MIRA INFORM REPORT

Report Date :

14.08.2008

IDENTIFICATION DETAILS

Name :	GHODAWAT INDUSTRIES (INDIA) PRIVATE LIMITED
Formerly Known As :	GHODAWAT PAN MASALA PRODUCTS (INDIA) PRIVATE LIMITED
Registered Office :	Plot No.438, P B No.118, Post Chipri (Via Jaysingpur), Kolhapur – 416101, Maharashtra
Country :	India
Financials (as on) :	31.03.2007
Date of Incorporation :	04.04.1993
Com. Reg. No.:	11-74899
CIN No.: [Company Identification No.]	U16001MH1993PTC074899
IEC No.:	3198010357
TAN No.: [Tax Deduction & Collection Account No.]	KLPG00963E
PAN No.: [Permanent Account No.]	AAACG6910C
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Household and General Merchandise

RATING & COMMENTS

MIRA’s Rating :

A

RATING		STATUS	PROPOSED CREDIT LINE
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

Maximum Credit Limit :	USD 2500000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well – established and reputed company having fine track records. Available information indicates high financial responsibility of the company. Trade relations are fair. Business is active. Payments are reported as usually correct and as per commitments. The company can be considered good for normal business dealings. It can be regarded as promising business partners in medium to long run.

LOCATIONS

Registered Office/ Factory :	Plot No.438, P B No.118, Post Chipri (Via Jaysingpur), Kolhapur – 416101, Maharashtra, India
Tel. No.:	91-2322-255023/ 255212/ 18
Fax No.:	91-2322-255059/ 255211
E-Mail :	Jitu_160372@yahoo.com info@sdggroup.in klp_starpanmasala@sancharnet.in starpanmasala@ip.eth.nct
Website :	http://www.sdggroup.in
Factory :	Stae House, P.B. No. 118, Jaysingpur, Dist. Kolhapur (India)
Tel. No.:	91-2322-255023 / 255059
Area :	6000 sq ft
Location :	Owned
Branch 1 :	5/6, Raghavendra Colony, Khasbag, Belgaum
Location :	Owned
Branch 2 :	77 / A4, IP2, A/P Mankapur, Dist. Belgaum
Tel. No.:	251187
Fax No.:	251387
Area :	32700 sq ft
Location :	Owned

DIRECTORS

Name :	Mr. Chandrabha B. Budgujar
Designation :	Director
Address :	C-100 Centuary, House, Narain Vihar, New Delhi – 110028, India
Date of Appointment :	28.10.1999
Name :	Mr. Sanjay Danchand Ghodawat
Designation :	Director
Address :	Sushreya Yashwant Company Opposite Housing Society, Jaysingpur, Kolhapur – 416101, Maharashtra, India
Qualification :	D.M.E.
Date of Appointment :	04.11.1993
Experience :	18 Years
Name :	Mrs. Neeta Sanjay Ghodawat
Designation :	Director
Address :	Sushreya Yashwant Company Opposite Housing Society, Jaysingpur, Kolhapur – 416101, Maharashtra, India
Date of Birth/Age :	07.01.1967
Date of Appointment :	05.01.2008
Name :	Mr. Satish Danchand Ghodawant
Designation :	Director
Address :	Sushreya Yashwant Company Opposite Housing Society, Jaysingpur, Kolhapur – 416101, Maharashtra, India
Qualification :	B. Com
Date of Appointment :	04.11.1993
Experience :	18 Years
Name :	Mr. Shamrao Bhau Hande
Designation :	Director
Address :	A/P Kondigre, Chipri, Tal Shirol, jaysinghpur, Kolhapur – 416101, Maharashtra, India
Date of Appointment :	09.10.2003
Name :	Mr. Shrenik S. Ghodawat
Designation :	Director
Address :	Sushreya Yashwant Company Opposite Housing Society, Jaysingpur, Kolhapur – 416101, Maharashtra, India
Date of Birth/Age :	21 Years
Experience :	3 Years

KEY EXECUTIVES

Name :	Mr. Abhinav K. Desai
Designation :	Key Executive

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

(As on 30.09.2005)

Names of Shareholders	No. of Shares
Mr. Sanjay Danchand Ghodawat	143000
Mrs. Neeta Sanjay Ghodawat	3500
Mrs. Sushila Danchand Ghodawat	1000
Mr. Sanjay Danchand Ghodawat HUF	200000
Mr. Shrenik S. Godawat	60000
Mr. Shreya S. Ghodawat	60000

(As on 31.03.2007)

Category	Percentage
Directors or relatives of directors	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer of Household and General Merchandise
Products :	Household and General Merchandise Panmasala Containing Tobaco, Star, Chakde, Lagan Electricity Flowers
Brand Name :	STAR^555 Gutkha and Pan Masala, Josh111 Gutkha and Pan Masala, Lagan Gutkha SG^555Gutkha Star^555 Scented Supari and Zarda
Exports :
Products :	Mosquito Repellent, Panmasala Containing Tobaco, Flower, Gelbera, Roses.
Countries :	Deemed Export Japan

PRODUCTION STATUS

Particulars	Actual Production
Pan Masala	2004500 kgs
Electricity	72110870 Units
Gerberg, Roses	1448100 Nos.

GENERAL INFORMATION

Customers :	Wholesaler
No. of Employees :	1587 (Office – 216, Factory – 1333, Branches - 38)
Bankers :	State Bank of India Industrial Finance Branch, Pune, Maharashtra, India

Banking Relations :	Satisfactory
Financial Institutions :	Indian Renewable Energy Development Agency Limited India Habitat Centre, 1^st Floor, East Court Core, 4 A Lodhi Road, New Delhi – 110003, Delhi, India
Auditors :
Name :	Ramesh V. Raichur Chartered Accountant
Address :	Flat No.4 (Ground Floor), Aditya Apartment, Agarkar Road, Tilakwadi, Belgaum – 590006, Karnataka, India

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
10000000	Equity Shares	Rs.10/- each	Rs.100.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
3000000	Equity Shares	Rs.10/- each	Rs.30.000 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2007	31.03.2006
SHAREHOLDERS FUNDS
1] Share Capital		30.000	30.000
2] Share Application Money		0.000	0.000
3] Reserves & Surplus		472.135	436.729
4] (Accumulated Losses)		0.000	0.000
NETWORTH		502.135	466.729
LOAN FUNDS
1] Secured Loans		1311.854	711.860
2] Unsecured Loans		130.073	143.675
TOTAL BORROWING		1441.927	855.535
DEFERRED TAX LIABILITIES		165.828	151.782
TOTAL		2109.890	1474.046
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		828.642	1037.496
Capital work-in-progress		19.702	4.951
INVESTMENT		30.252	30.199
DEFERREX TAX ASSETS		0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	249.604	231.826
	Sundry Debtors	86.879	70.065
	Cash & Bank Balances	365.213	328.092
	Other Current Assets	0.000	0.000
	Loans & Advances	867.612	788.847
Total Current Assets		1569.308	1418.830
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	284.003	880.280
	Provisions	54.215	137.360
Total Current Liabilities		338.218	1017.640
Net Current Assets		1231.090	401.190
MISCELLANEOUS EXPENSES		0.204	0.210
TOTAL		2109.890	1474.046

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2007	31.03.2006
Sales Turnover		1084.869	1570.787
Other Income		0.000	0.000
Total Income		1084.869	1570.787
Profit/(Loss) Before Tax		52.866	504.961
Provision for Taxation		0.000	0.000
Profit/(Loss) After Tax		52.866	504.961
Expenditures :
	Interests	87.083	55.090
	Depreciation & Amortization	379.844	373.033
	Other Expenditure	565.076	637.703
Total Expenditure		1032.003	1065.826

KEY RATIOS

PARTICULARS		31.03.2007	31.03.2006
PAT / Total Income	(%)	4.87	32.15
Net Profit Margin (PBT/Sales)	(%)	4.87	32.15
Return on Total Assets (PBT/Total Assets}	(%)	2.20	20.56
Return on Investment (ROI) (PBT/Networth)		0.11	1.08
Debt Equity Ratio (Total Liability/Networth)		3.64	4.01
Current Ratio (Current Asset/Current Liability)		4.64	1.39

LOCAL AGENCY FURTHER INFORMATION

Trade Reference (Export)

• Paramount Export – Mumbai
• Organi Trading Company – Japan, Tokyo

Trade reference

Pan Masala

Electricity – MES Com

Flowers – Pavamount Export – Mumbai

FORM 8:

Corporate identity number of the company	U16001MH1993PTC074899
Name of the company	GHODAWAT INDUSTRIES (INDIA) PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	Plot No.438, P B No.118, Post Chipri (Via Jaysingpur), Kolhapur – 416101, Maharashtra, India
This form is for	Modification of Charge
Type of charge	Immovable Property Book debts Movable Property Floating Charge
Particular of charge holder	Indian Renewable Energy Development Agency Limited India Habitat Centre, 1^st Floor, East Court Core, 4 A Lodhi Road, New Delhi – 110003, Delhi, India CIN No.: U40108DL1987GOI027265 Email : mdiresa@iredaltd.com
Nature of instrument creating charge	No Instrument was executed. Mortgage by deposit of title deeds was created in favour of IREDA on 13.06.2007
Date of instrument Creating the charge	13.06.2007
Amount secured by the charge	Rs.74.500 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interests: Rate of Interests is as per the Loan Agreement dated 06.07.2006 executed between IREDA and the company as may be amended from time to time at the discretion of charge holders. Terms of Repayment: As per the agreement dated 06.07.2006 executed between IREDA and the company as may be amended from time to time at the discretion of charge holders. As of now Loan id repayable in 40 Quarterly installment; 01^st Installment of Rs.1.882 Millions and Balance 39 installment of Rs.1.862 Millions each Payable on 31.03.2007 to 31.12.2016. Margin: As stipulated in the Loan Agreement Dated 06.07.2006. Extent and Operation of the charge: 100% Exclusive 1^st Charge on the movable assets and exclusive 1^st charge on receivable of power and exclusive 1^st charge on immovable properties, all pertaining to 2.4 MW (3 No. of 800 KM Wind Electric Generator) Wind Farm Project at Village Kita, Tehsil Fategarh, District Jaisalmer, in the State of Rajasthan (Project No 1775) and elsewhere for repayment/ Payment of Loan interests and other monies payable thereon. Others: As stipulated in the Loan Agreement dated 06.07.2006
Particulars of the present modification	The loan of Rs.74.500 Millions already secured by the deed of hypothecation dated 06.07.2006 executed by the company in favour of IREDA hypothecation movable assets and receivable of power and other monies, the said loan is now further secured by mortgage of immovable properties (mentioned in para 14 above) by deposit of title deeds created on 13.06.2007.

Dealer

Madhu Agencies

C/o Shri. Narsinghjj Karwa,

Nakoda Apartment, A/P. Ichalkarnji,

Dist. Kolhapur

Ph. 91-230-2422076

Shivam Traders

C/o Y. D. Lohana,

Shanivar Peth,

A/P. Karad,

Dist. Satara

Mob No. 91-9850982709

Nipanikar agencies

C/o Sardarbhai Nipanikar,

Kupwad Road,

A/P Miraj,

Dist Sangli

Mob NO. 91-98229758515

Shaikh Traders

C/o. Kutbuddin Shaikh,

Guruwar Paraj Shopping Center,

Shop No. 10,

A/P Satara

Mob No. 91-9850441555

Shri Sidheshwar agency

Solapur and Barshi,

C/o. Uddhav Karge,

A/P Solapur

Mob NO. 91-9850554670

Balram Agencies

C/o Balram Sambhvani,

A/P 32 Shirala,

Dist Sangali

Mob No. 91-9822427111

Yash Agencies

C/o Pravin Paras Jain,

609, 1^st lane,

Shahupuri,

Kolhapur

Phone No. 91-231-2640592

Shri Ganesh Agencies

C/o Keval Mehta,

382/1, Anant Apartment,

Block No. 10,

8^th lane, Rajaram Puri,

Kolhapur

Mob No. 91-9422590555

Shri Tirupati Balaji Traders

Indore Kapoor – 91-9303239280

S.S. Kothawale

C/o Satish Kothawale,

5^th lane,

A/P Jaysingpu,r

Dist. Kolhapur,

Mob No. 91-9890873111

Pradip Agencies

C/o Nandlal Trijani,

Prathmesh Complex,

Pan Lane,

Laxmipuri, Kolhapur,

Mob. No. 91-9822047555

Shri Sai Agencies

Jayram Dharamdasini,

Bipin – Vijay Market,

Near Karnal Police Station,

A/P Sangli

Mob No. 91-9822046986

Pradnya Sales and Marketing

C/o Amol Hukkire,

A/P Peth Wadgaon,

Tal Hatkanangale,

Dist Kolhapur,

Mob No. 91-9822058555

Chandan Trader

C/o Sunil Shah,

A/P Islampur and Baramati,

Dist Sangali

Mob No. 91-9850982708

M/s.Dastgir Mohmmad Mulla

C/o Dastgir Mohmmad Mulla,

A/P Chandgad,

Dist Kolhapur

M/s Manik Oil Mills

C/o Pravin Brothara,

392, Guruwar Peth,

Kirana Merchant, A/P. Tasgaon,

Dist Sangli

Phone No. 91-2346- 240051

Fancy Agency

C/o. Sachin Tawani,

D.P. Road,

Siddhivinayak Complex,

A/P. Beed

Mob. No. 91-9422931666

Shri Ambika Enterprises

C/o. Dharmeshbhai,

Gala No. 118,

Narayan Udyog Bhavan,

Lalbag Industrial Estate,

Gabesh Nage, Mumbai - 12

Mob No. 91-9821928419

WEBSITE DETAILS:

SANJAY GHODAWAT GROUP OF INDUSTRIES

The Corporate growth in the modern era is driven by Globalization. World economy is gaining speed and has continued to make all activities more challenging every year.

They as a group today are focused on developing innovative strategies and are venturing into arena's which are not only profit making but are inclined towards development of economy.

Their immediate vision is to target the potentialities and convert them into reality. Through their dedicated workforce they have so far outrun all the hurdles and hinderences.

Sanjay Ghodawat Group has and always will continue to work towards the betterment of the nation.

PROFILE:

The dynamic entrepreneurship and vision of Mr. Sanjay D. Ghodawat has led 'Sanjay Ghodawat Group of Industries' popularly known as Star Group, to a remarkable success in a short span.

The key for this success is to provide "Uncompromising Quality at Competitive Prices".

Today, the Sanjay Ghodawat Group has diversified its activities into different streams viz. Wind Power, High-Tech Agriculture, Chemicals, Flexible Packaging, Edible Oils, Real Estates, Heavy engineering, Textile division and FMCG. Now, the focus would be to provide FMCG products and packaged essential commodities to the people at competitive prices.

BEYOND BUSINESS:

One hand in Charity is worth thousand hands in prayer

True to this, the group has always been a step ahead be it business or philanthropy. The group has focused its strength to give humanity a face lift in all adverse predicaments and calamities.

To serve the society, the needy, the down trodden and every deprived brethren of the basic needs, the Sanjay Ghodawat Group has initiated various charitable trusts thoroughly engaged in extending its best helping hands. A cause to fulfill the social obligations.....a call of duty towards humanity.

Khivraj Ghodawat Charitable Trust

Runs a self funded 'Shree Gangabai Khivraj Ghodawat Kanya Mahavidyalaya' located at Taluka Shirol, which has endowed literacy to 1400 girls since 1995, from 52 villages.

It is the only college in Jaysingpur city with its own building and mastered staff that provides education in both arts & commerce stream along with vocational courses like tailoring, fashion designing, computer education etc.... A ray of hope that gives direction in giving employment to the economically vulnerable classes.

Sou. Sushila Danchand Ghodawat Charitable Trust

Providing social, medical and educational help since its inception. Acharya Shree Tulsi Blood Bank, one of the best Blood Banks in India, is run by this Trust. The Trust also provides 'Ambulance Service' for Rural areas round the Clock

Future Plans:

An 'International Residential School' covering an area of 300 acres.

Intensive Care Unit (ICU) at Jaysingpur city with latest medical support

AGRO DIVISION

Green Revolution

The company owns Green Houses and has a plantation of exotic flowers in over 33 acres of land. The variety of flowers grown here are mainly Roses and Gerbera.

There are various kinds of exotic roses and to name a few like, Grand Gala, Royal Class, Passion, Marie Claire, Ice Burge, Poison, African Dawn etc.

They also expertise in open farming, Titanic Grapes and Banana gardens in over 70 acres of land.

Roses are exported to Japan and various parts of Europe. The Company has future plans to venture into cultivation of medicinal plants for which it will tie up with the pharmaceutical companies.

FMCG DIVISION:

Mosquito Coil

The first product under this division is Mosquito Coil. The commercial production of this product commenced from January 2004.

This is a full fledged plant having latest technology. The installed capacity of the plant is 180000 (108,000,000 coils) per annum. They also manufacture liquid vaporizer and mosquito repellent mats under the brand name “Star⁵⁵⁵”. Currently the marketing activities prevail in Maharashtra and Karnataka.

EASY ACESSIBILITY:

As the group activities are spread all over the country, the company has recently acquired a Helicopter (Euro copter Make) in the year 2004 to save the traveling time of top brass management. The Company is also in the process of acquiring 9 seater Executive Plane.

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.42.67
UK Pound	1	Rs.80.92
Euro	1	Rs.63.71

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	7
PAID-UP CAPITAL	1~10	7
OPERATING SCALE	1~10	7
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	8
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	7
--LEVERAGE	1~10	7
--RESERVES	1~10	7
--CREDIT LINES	1~10	7
--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	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		63

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