MIRA INFORM REPORT

Report Date :

05.06.2008

IDENTIFICATION DETAILS

Name :	FEROZE FOODS AND FLAVOURS
Registered Office :	403-404, Central Tin Industrial Estate, A. G. Powerlane, Sussex Road, Byculla, Mumbai 400027, Maharashtra
Country :	India
Financials (as on) :	31.03.2007
Year of Establishment:	1975
Legal Form :	Partnership concern with an unlimited liability of the Partners
Line of Business :	Manufacturer and Exporter of Avan Soft Drink Concentrates, Flavours, Instant China Grass and Jelly Crystals.

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 3340
Status :	Satisfactory
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well established and reputed concern meeting its normal commitments timeously. Trade relations are fair. The concern can be considered good for normal business dealings.

INFORMATION PARTED BY

Name :	Mr. Feroze Sethana
Designation :	Partner
Contact No.:	91-9820007589
Date :	31.05.2008

LOCATIONS

Registered Office :	403-404, Central Tin Industrial Estate, A. G. Powerlane, Sussex Road, Byculla, Mumbai 400027, Maharashtra, India
Tel. No.:	91-22-23729724
nFax No.:	91-22-23640341
E-Mail :	ferozefoods@yahoo.com
Website :	www.ferozefoods.com
Area :	540 Sq. fts.
Location :	Rented

PARTNERS

Name :	Mr. Feroze S. Sethna
Designation :	Partner
Date of Birth/Age :	48 Years
Qualification :	H.S.C.
Name :	Mrs. Persis F. Sethna
Designation :	Partner
Date of Birth/Age :	42 Years
Qualification :	Graduate
Name :	Mrs. Aloo S. Sethna
Designation :	Partner

BUSINESS DETAILS

Line of Business :	Manufacturer and Exporter of Avan Soft Drink Concentrates, Flavours, Instant China Grass and Jelly Crystals.
Exports :
Countries :	South Africa
Terms :
Selling :	Credit [30 days]
Purchasing :	Credit [30 days]

GENERAL INFORMATION

Suppliers :	Ujwal Pharma Private Limited Koteshwar Salt Supply Ami Essence and Perfumes Boota Chemicals Krishna Chemicals R. Jayantilal and Company Acid India Remik Trading Company Private Limited Jaytex Dyes and Chemical Private Limited N. Giridharilal and Company
Customers :	Dochlar India Private Limited Sunrise Cont. Limited Gujarat Essence Stores K. Traders R. Exports and Imports Super Traders Negha Botling Amol Pepsi Products Real Fresh Gro Private Limited Kesarilal Brothers Sharma Product Vaibhav Trading Company Shakeel Ahmed Simplex Agro Food Product Ajit Traders Shalok Export Sneedi’s Home Product Shri Renuka Gas Suppliers
No. of Employees :	8
Bankers :	Zoroastrian Co-operative Bank, Tardeo, Mumbai

Banking Relations :	Satisfactory
Auditors :
Name :	Bilimoria Mehta and Company Chartered Accountants

CAPITAL STRUCTURE

Mr. Feroz S. Sethna Capital A/C. as on 31.03.2007

Particulars	Rs. In Millions	Particulars	Rs. In Millions
Withdrawals	0.138	Opening Balance	0.207
L.I.P.	0.084	Share Dividend	0.001
Sale of Motor Cycle	0.035	Received from saving A/c	0.239
Sale of Motor Car	0.075	Remuneration from Feroze Foods	0.102
Firm Tax	0.026	Net profit from Feroze Foods	0.063
Advance Tax	0.026
School Fees	0.025
P.P.P.	0.010
Balance C/f.	0.193
Total	0.612		0.612

Mrs. Aloo S. Sethna Capital A/C. as on 31.03.2007

Particulars	Rs. In Millions	Particulars	Rs. In Millions
Withdrawals	0.179	Opening Balance	0.386
Mediclaim	0.004	Rent received	0.024
Firm Tax	0.021	Received from saving A/c	0.055
Balance C/f	0.379	Remuneration from Feroze Foods	0.068
		Net profit from Feroze Foods	0.050
Total	0.583	Total	0.583

Mrs. Persis F. Sethna Capital A/C. as on 31.03.2007

Particulars	Rs. In Millions	Particulars	Rs. In Millions
L.I.P.	0.003	Opening Balance	0.042
Firm Tax	0.005	Amount received	0.050
Balance b/f	0.096	Net profit from Feroze Foods	0.012
Total	0.104	Total	0.104

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2007	31.03.2006
SHAREHOLDERS FUNDS
1] Partners Capital		0.668	0.634
2] Share Application Money		0.000	0.000
3] Reserves & Surplus		0.000	0.000
4] (Accumulated Losses)		0.000	0.000
NETWORTH		0.668	0.634
LOAN FUNDS
1] Secured Loans		0.973	0.093
2] Unsecured Loans		0.035	0.035
TOTAL BORROWING		1.008	0.128
DEFERRED TAX LIABILITIES		0.000	0.000
TOTAL		1.676	0.762
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		1.452	0.368
Capital work-in-progress		0.000	0.000
INVESTMENT		0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	0.555	0.181
	Sundry Debtors	0.811	0.533
	Cash & Bank Balances	0.023	0.058
	Other Current Assets	0.023	0.043
	Loans & Advances	0.090	0.022
Total Current Assets		1.502	0.837
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	1.278	0.443
	Provisions	0.000	0.000
Total Current Liabilities		1.278	0.443
Net Current Assets		0.224	0.394
MISCELLANEOUS EXPENSES		0.000	0.000
TOTAL		1.676	0.762

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2007	31.03.2006
Sales Turnover		3.990	2.985
Net Profit		0.126	0.141
Expenditures :
	E.S.I.C.	0.010	0.007
	Telephone Expenses	0.091	0.097
	Stationery and Printing Expenses	0.011	0.003
	Insurance charges	0.047	0.002
	Advertisement Expenses	0.083	0.040
	Courier charges	0.009	0.023
	Business Expenses	0.003	0.006
	Testing charges	0.002	0.005
	Staff welfare Expenses	0.020	0.024
	Conveyance Expenses	0.023	0.025
	Motor cycle Expenses	0.016	0.020
	Salary Expenses	0.039	0.061
	Professional charges	0.035	0.034
	Trade mark registration charges	0.023	0.010
	Sundry Expenses	0.008	0.003
	Electric bill Expenses	0.036	0.059
	Bank charges	0.004	0.001
	Service charges	0.005	0.016
	Fridge benefit tax	0.012	0.015
	Rent Expenses	0.025	0.028
	Motor Car Expenses	0.006	0.000
	Designing Expenses	0.030	0.000
	Clearing Expenses	0.068	0.004
	Machinery loan Expenses	0.024	0.014
	Donations	0.004	0.000
	License fees	0.015	0.000
	Machinery Expenses	0.002	0.000
	Vatav Kasar Expenses	0.001	0.013
	Conference fees	0.009	0.000
	Maharashtra welfare fund	0.001	0.000
	Depreciation	0.153	0.063

KEY RATIOS

PARTICULARS		31.03.2007	31.03.2006
PAT / Total Income	(%)	3.18	4.72
Net Profit Margin (PBT/Sales)	(%)	3.18	4.72
Return on Total Assets (PBT/Total Assets}	(%)	4.29	11.70
Return on Investment (ROI) (PBT/Networth)		0.19	0.22
Debt Equity Ratio (Total Liability/Networth)		3.42	0.90
Current Ratio (Current Asset/Current Liability)		1.17	1.88

LOCAL AGENCY FURTHER INFORMATION

OTHER INFORMATION:-

PARAMETER	DETAIL
Statutory Approval
Income Tax Registration	AAAEE1738L
Central Sales Tax Registration	27110097712C
VAT / TIN Registration	27110097712V
Import Export Code	0303
Name of Bank	Zoroastrian Co-operative Bank
Current Account Number	386
Account Since	1992
Company ESI Reg. Number	31-41203-08
Credibility Factors
India Mart Client Since	5 Years
Trade Affiliations
Chambers of commerce Membership	World Zurthostic Chambers

Fixed Assets

• Celivlar Phone
• Machinery
• Motor Car
• Motor Cycle
• Fax
• Computer
• Cycle
• Air condition
• Furniture and Fixtures
• Water Purifier
• Refrigerator
• Electric Installation

Trade References:

• Maharashtra Assence
• T. Ali Mohammed and Company
• K. Bhavnagarwala and Company

CMT REPORT (Corruption, Money Laundering & Terrorism]

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

1] INFORMATION ON DESIGNATED PARTY

No exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

2] Court Declaration :

No records exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

3] Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

4] Record on Financial Crime :

Charges or conviction registered against subject: None

5] Records on Violation of Anti-Corruption Laws :

Charges or investigation registered against subject: None

6] Records on Int’l Anti-Money Laundering Laws/Standards :

Charges or investigation registered against subject: None

7] Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

8] Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

9] Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

10] Press Report :

No press reports / filings exists on the subject.

CORPORATE GOVERNANCE

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

CONTRAVENTION

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs. 42.63
UK Pound	1	Rs. 83.40
Euro	1	Rs. 65.80

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	4
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--CREDIT LINES	1~10	5
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	NO
--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	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		45

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