MIRA INFORM REPORT

Report Date :

06.05.2008

IDENTIFICATION DETAILS

Name :	V AND G SWASTIK OIL COMPANY PRIVATE LIMITED
Registered Office :	“Prashant”, 30 Kamgar Nagar, Katol Road, Nagpur – 440013, Maharashtra
Country :	India
Financials (as on) :	31.03.2007
Date of Incorporation :	24.11.2004
Com. Reg. No.:	149680
CIN No.: [Company Identification No.]	U15140MH2004PTC149680
PAN No.: [Permanent Account No.]	AACCV4411H
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturers of All Types of Refined Oil

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 800
Status :	Project Under Implementation
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is an established company and proposes to set-up an edible oil refinery. Directors are reported as experienced, respectable and having satisfactory means of their own. Trade relations are fair. Payments are reported as usually correct and as per commitments. The company can be considered normal for business dealings at usual trade terms and conditions.

INFORMATION PARTED BY

Name :	Mr. N. Vijaykant Murthy
Designation :	Director
Contact No.:	91-9423103616
Date :	26.04.2008

LOCATIONS

Registered Office :	“Prashant”, 30 Kamgar Nagar, Katol Road, Nagpur – 440013, Maharashtra, India
Tel. No.:	91-712-2584284
Mobile No.:	91-9423103616
E-Mail :	nvijaykant@rediffmail.com manishpande_co@yahoo.com
Area :	1500 sq. ft. [Owned]
Factory :	A-3, MIDC Area, Additional Yawatmal Industrial Area, Village – Bhoyar, District Yawatmal, Maharashtra
Mobile No.:	91-9423103616
Area :	43594 sq. ft. [Leased]

DIRECTORS

Name :	Mr. Nandigrama Vijaykant Murthy
Designation :	Director
Address :	“Prashant”, 30 Kamgar Nagar, Katol Road, Nagpur – 440013, Maharashtra, India
Date of Birth/Age :	16.07.1979
Qualification :	M.Com., Diploma in Computer Application
Experience :	5 Years
Name :	Mr. Akash Harish Nagar
Designation :	Director
Address :	100, Friends Colony, Katol Road, Nagpur – 440013, Maharashtra, India
Date of Birth/Age :	23.07.1981
Qualification :	M.Com.
Experience :	4 Years
Date of Appointment :	30.11.2005
Name :	Mr. Sagar Harish Nagpal
Designation :	Director
Address :	100, Friends Colony, Katol Road, Nagpur – 440013, Maharashtra, India
Date of Birth/Age :	21.01.1983
Qualification :	B. Com.
Experience :	4 Years
Date of Appointment :	14.01.2005
Name :	Mr. Pradeep B. Pjmprikar
Designation :	Director
Date of Birth/Age :	26.05.1965
Date of Appointment :	14.01.2005

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

Names of Shareholders	No. of Shares
Mr. Vijaykant Murthy	10000
Mr. Akash Harish Nagar	5000
Mr. Sagar Harish Nagpal	5000
Total	20000

AS ON 29.09.2007

Equity Share Breakup	Percentage of Holding
Category
Directors or relatives of directors	100.00

BUSINESS DETAILS

Line of Business :	Manufacturers of All Types of Refined Oil
Products :	Refined Edible Soyabean Oil Refined Edible Cotton Seed Oil Refined Edible Palm Oil
Terms :
Selling :	Cash and Credit [21 days]
Purchasing :	Credit [10-30 days]

PRODUCTION STATUS

Particulars	Unit	Installed Capacity	Actual Production
Refined Edible Oil of Soyabean and Cotton Seed	MT	30 Day	25 Day

GENERAL INFORMATION

Suppliers :

Name of the Customers	Location	Relationship [No. of Years]
Sunvin Oils	Mumbai	About 2 Years

Customers :

Wholesalers

Name of the Customers	Location	Relationship [No. of Years]
Sunvin Oils	Mumbai	About 2 Years

No. of Employees :

12 [In Office 6 and In Factory : 6]

Bankers :

• State Bank of India, Chhaoni
• ICICI Bank
• Union Bank, Katol Road
• UCO Bank, MR Branch
• UCO Bank, IBM Branch
• Corporation Bank, Sadar
• UBI, Katol Road Branch

Banking Relations :	Satisfactory
Auditors :
Name :	Deepak Heda and Company Chartered Accountants
Address :	Bhiwapurkar Chambers, Dhantoli, Nagpur – 440012
Tel. No.:	91-712-2425001
Associates/Subsidiaries :	Nagpal Trading Company Address : Gittikhandan, Katol Road, Nagpur - 440013 Activities : Wholesaler and Retailer of Edible Oil, Pulses and other daily needs Bankers : Union Bank Akash Enterprises Address : Gittikhandan, Katol Road, Nagpur – 440013 Activities : Coca Cola Distributor for Sitabuldi Area, Nagpur Bankers : Union Bank

CAPITAL STRUCTURE

AS ON 29.09.2007

Authorised Capital :

No. of Shares	Type	Value	Amount
20,000	Equity Shares	Rs. 10/- each	Rs. 0.200 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
20,000	Equity Shares	Rs. 10/- each	Rs. 0.200 Million

Director’s Capital

Mr. Nandigrama Vijaykant Murthy : Rs. 5.086 Millions

Mr. Akash Harish Nagar : Rs. 1.157 Millions

Mr. Sagar Harish Nagpal : Rs. 1.284 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		0.200	0.200
2] Share Application Money		0.000	0.000
3] Reserves & Surplus		0.000	0.000
4] (Accumulated Losses)		0.000	0.000
NETWORTH		0.200	0.200
LOAN FUNDS
1] Secured Loans		0.000	0.000
2] Unsecured Loans		1.945	1.917
TOTAL BORROWING		1.945	1.917
DEFERRED TAX LIABILITIES		0.000	0.000
TOTAL		2.145	2.117
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		1.731	1.731
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	0.000	0.000
	Sundry Debtors	0.000	0.000
	Cash & Bank Balances	0.289	0.290
	Other Current Assets	0.130	0.099
	Loans & Advances	0.000	0.000
Total Current Assets		0.419	0.389
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	0.005	0.003
	Provisions	0.000	0.000
Total Current Liabilities		0.005	0.003
Net Current Assets		0.414	0.386
MISCELLANEOUS EXPENSES		0.000	0.000
TOTAL		2.145	2.117

KEY RATIOS

PARTICULARS	31.03.2007	31.03.2006
Debt Equity Ratio (Total Liability/Networth)	9.75	9.60
Current Ratio (Current Asset/Current Liability)	83.80	129.67

LOCAL AGENCY FURTHER INFORMATION

Business

To carry on the business to deal in by way of trade, process, distribute, import and export or otherwise in oil seeds, deoiled cakes, vegetable oils and to establish extraction plants for vegetable oil or deoiled cake. Deoiled rice bran cake by solvent extraction plants, expelling process or by any other means or process from rice bran, oil seeds, oil cakes nuts eucalyptus and grams and or all other vegetable and other all bearing substances and to manufacture of vegetable or other oils therefrom and to refine, double refine and mix the same.

Fixed Assets

Land and Building : Rs. 3.865 Millions

Plant and Machinery : Rs. 7.728 Millions

Working Capital : Rs. 1.453 Millions

Furniture and Fixture

Personal Assets of the Director

Name	Description of the assets owned by them	Amount
Mr. N. Vijaykant Murthy	One residential flat and agriculture land	Rs. 250000 Millions

Whether the critical ratios conforms to the bench mark stipulation

Current Ratio	1.25
Debt-Equity Ratio	2.00:1
DSCR	1.50
TOL / TNW	4:1
Promoter’s Contribution	25 %

For Manufacturing Entities / Factory Site

Location of Plot, Accessibility, Proximity to other units	Easily accessible by road and scope of sale to nearby places is easily approchable
Principal raw material and sources	Crude Edible soyabean and cotton seed oil : sources are nearby places and cities and also through agents
Major branded and imported machines, installed	Proposed to install by C.C.P. consultants
Pollution Control : Any pollutants being generated and their disposal	Already got the pollution clearance from MPCB
Power : Connected load and back up availability	200 HP and Generator to BE Installed
Storage / Security / Perishability / Susceptibility to fire and wheather	Storage Tank will be installed
Quality Certification	C.C.P. Consultants

Property Valuation Certificate

General Information
Name of party / purchaser and address	The Licensee V and G Swastik Oil Company Private Limited, a company, registered office at “Prashant” 30, Kamgar Nagar, Katol Road, Nagpur – 440013 through Director Shri Nandigrama Venkata Satyanarayana Murthy
Name of the reported owner / Name of persons in whose name the property registered and address	The Licensee V and G Swastik Oil Company Private Limited, a company, registered office at “Prashant” 30, Kamgar Nagar, Katol Road, Nagpur – 440013 through Director Shri Nandigrama Venkata Satyanarayana Murthy
Purpose of Valuation	Collateral security for credit limit
Date of inspection	25.09.2007
Date of Valuation	01.09.2007
Approximate distance from the branch to the property	The property situated in Additional Industrial Area of MIDC at Yavatmal
Situation / location / brief description of the land / site and brief description of the building	Lease Hold Plot No. A-3 in Additional Yavatmal Industrial Area, Village Bhoyar, Taluka Yavatmal
Boundaries o the property	East : 20 Mt. Road West : MIDC Land [Amenity] North : MIDC Land [Amenity] South : Plot No. A-4
Property Tax Details	Rs. 0.162 Million
Valuation Details
Land
The total Area [Extent] of the site / land	4050 sq. mt.
Description of the site / land
Character of Locality	Industrial Area
Development of surrounding areas	The Industrial Area is developed
Shape of the land	Rectangular
Type of to which it can be put	Industrial
Nature of right whether leasehold / freehold	Leasehold
Road facility	20.0 Mt. Road on East
Water supply potentiality	MIDC Water supply
Prevailing Unit Market rate :	Rs. 400/- sq. ft.
Prescribed Rate by the local Authority	Rs. 400/- sq. ft.
Unit Rate adopted in the Valuation	Rs. 400/- sq. ft.
Valuation of the site / land	4050 sq. ft. x Rs. 400/- sq. mt. = Rs. 0.162 Million
Total Valuation
Valuation of the Land	Rs. 0.162 Million
Valuation of the Building	--
Total	Rs. 0.162 Million

Project at a Glance

Capacity Utilization

1^st Year	2^nd Year	3^rd Year	4^th Year	5^th Year
60 %	70 %	80 %	80 %	80 %

Raw Materials

• Soyabeen
• Cotton Seed
• Palm

Loan Requirement

Term Loan : Rs. 7.019 Millions

W.C. : Rs. 2.811 Millions

Electricity

200 HP / Day

Cost of the Project

- Land and Site Development: Rs. 0.567 Million

- Building and Shed : Rs. 1.632 Millions

- Plant and Machinery : Rs. 7.728 Millions

- Furniture and Fixture : Rs. 0.100 Million

- Pre-operative Expenses : Rs. 0.578 Million

- Working Capital : Rs. 1.453 Millions

- Miscellaneous : Rs. 0.310 Million

Rs. 12.368 Millions

Means of Finance

- Own Capital : Rs. 3.200 Millions

- Loans from Friends and Relatives : Rs. 2.000 Millions

- Term Loan : Rs. 7.019 Millions

- Unsecured Loan : Rs. 0.149 Millions

Rs. 12.368 Millions

Financial Aspect Ratio

Debt Equity Ratio : 1.00

Debt Service Coverage Ratio : 1.78

Break Even Point : 44.89 %

Loan Repayment Period

Term Loan : In Five Years

Working Capital Loan : Renewable every year

Installed Capacity

Year	Efficiency %	MTs	Value in Millions
		8977.50	116.033
1^st Years	60	586.50	69.620
2^nd Years	70	6284.25	81.223
3^rd Years	80	7182.00	92.826
4^th Years	80	7182.00	92.826
5^th Years	80	7182.00	92.826

Status

SSI Unit

Consumers

All users inland and overseas

Preoperative Expenses

Total preoperative expenses required for the subject unit is Rs. 0.578 Million. Te details are given as follows :

Rs in Millions

Interest on Term Loan for three months	0.246
Legal Expenses	0.050
Salaries and Wages	0.100
Traveling for Insp. of M/C	0.040
Other Administrative	0.010
Electricity Charges	0.050
Miscellaneous	0.017
Insurance	0.015
Repairs and Maintenance	0.025
Technical Consultancy	0.025
Total	0.578

Working Capital

Working capital has been worked out Rs. 1.453 Million which added to the cost of project.

Means of Finance

The total project cost arrived at Rs. 12.368 Millions is proposed to be financed as per following finance mix.

Mix of Cost	Rs in Million
Own Capital	3.200
Loans from friends and relatives	2.000
Term Loan from Bank	7.019
Unsecured Loans – Family and Friends	0.149
Total	12.368

Assumption of Profitability Estimate

The various assumptions made for the calculation of cost of production and profitability are given below :

• The unit will work for 300 days in year.
• The installed capacity of the year is 30 MT / Day
• The capacity of the year in 30 MT / Day
• The capacity utilization has been assumed a 60 % in the first year, 70 % in the second year and 80 % in the third year onwards.
• The Promoter will utilized 100 % capacity for own manufacturing.
• The sales prices are considered at ex-factory basis based on prevailing market prices.
• The employees benefit have been @ 30 % of salary and wages
• Every year an increase of 5 % on total salary and wages of previous year has been assumed.
• Provisions for repairs and maintenance has been taken at 2 % on total cost of fixed assets. In every an increase of 25 % on previous.
• The interest on Bank Term Loan have been taken per annum due to the unit is registered S.S.I. Unit.
• Income Tax Liability for the unit has been computed after taking consideration of dedication u/s 80 IA which is 20 % of taxable income.
• Depreciation has been calculated on Written Down Value Method.

DETAILS OF CAPACITY AND PERFORMANCE AND PROJECTIONS

PARTICULARS	1^st Year	2^nd Year	3^rd Year	4^th Year	5^th Year	6^th Year	7^th Year
Installed Capacity [In/Month AMT.]	8978	8978	8978	8978	8978	8978	8978
Utilised Capacity %	60	70	80	80	80	80	80
Utilised Capacity [In/Month AMT.]	5378	6284	7182	7182	7182	7182	7182
Net Charges	69.620	81.223	92.826	92.826	92.826	92.826	92.826
Net Receipts	69.620	81.223	92.826	92.826	92.826	92.826	92.826
COST OF PRODUCTION
Raw Materials	58.050	67.725	77.400	77.400	77.400	77.400	77.400
Miscellaneous Expenses Consumables	1.925	2.246	2.567	2.567	2.567	2.567	2.567
Power and Fuel	3.228	3.442	3.657	3.657	3.657	3.657	3.657
Factory and quality staff	0.686	0.721	0.755	0.789	0.824	0.858	0.892
Direct Labour and Wages	0.434	0.507	0.579	0.579	0.579	0.579	0.579
Repairs and maintenance	0.155	0.193	0.242	0.302	0.377	0.472	0.590
Depreciation	1.332	1.158	1.009	0.882	0.775	0.683	0.606
Total cost of Production	65.810	75.992	86.208	86.176	86.179	86.216	86.290
Add : Opening Stock-in Process and Finished	0.000	0.739	0.863	0.986	0.986	0.986	0.986
Deduct : Closing Stock-in Process and Finished	0.739	0.863	0.986	0.986	0.986	0.986	0.986
Cost of Processing	65.071	75.868	86.085	86.176	86.179	86.216	86.290
Gross Profit	4.549	5.355	6.741	6.650	6.647	6.610	6.536
INTEREST
On Term Loan	0.983	0.983	0.787	0.591	0.395	0.199	0.003
On Working Capital	0.422	0.492	0.562	0.562	0.562	0.562	0.562
On Soft Loan	0.300	0.300	0.300	0.300	0.300	0.300	0.300
On Unsecured Loan	0.022	0.022	0.022	0.022	0.022	0.022	0.022
ADMINISTRATION AND SELLING EXPENSES	2.244	2.356	2.468	2.581	2.693	2.805	2.917
3.029Insurance Charges	0.183	0.187	0.190	0.190	0.190	0.190	0.190
Total	4.154	4.340	4.330	4.247	4.163	4.079	3.995
Profit Before Tax	0.395	1.015	2.411	2.403	2.484	2.531	2.541
Provision for Taxes	0.095	0.244	0.579	0.577	0.596	0.608	0.610
Net Profit	0.300	0.771	1.832	1.826	1.888	1.924	1.931
Depreciation add Bank	1.332	1.158	1.009	0.882	0.775	0.683	0.606
Net Cash Accruals	1.633	1.929	2.841	2.709	2.663	2.607	2.537
Repayment Term Loan	0.000	1.400	1.400	1.400	1.400	1.400	0.000
Repayment Soft Loan
Debt Service Ratio	0.266	0.122	0.166	0.166	0.170	0.175	0.000
Average DSCR	0.178

TERM LOAN AND INTEREST REPAYMENT

[In Millions ]

Particulars	%	1^st Year	2^nd Year	3^rd Year	4^th Year	5^th Year	6^th Year	7^th Year
Opening Balance		7.019	7.019	5.619	4.219	2.819	1.419	0.019
Additions in Loan
Total Term Loan		7.019	7.019	5.619	4.219	2.819	1.419	0.019
Repayment		0.000	1.400	1.400	1.400	1.400	1.400	1.400
Balance		7.019	5.619	4.219	2.819	1.419	0.019	0.019
Interest %	14.00	9.83	9.83	7.87	5.91	3.95	1.99	0.03

WORKING CAPITAL INTEREST DETAILS

[In Millions ]

Particulars	Days	%	1^st Year	2^nd Year	3^rd Year	4^th Year	5^th Year	6^th Year	7^th Year
Raw Materials	10		1.590	1.855	2.121	2.121	2.121	2.121	2.121
Packing / Miscellaneous Expenses	1		0.005	0.006	0.007	0.007	0.007	0.007	0.007
Consumables	15		0.079	0.092	0.105	0.105	0.105	0.105	0.105
Work in Process	1		0.167	0.195	0.223	0.223	0.223	0.223	0.223
Finish Product	3		0.572	0.668	0.763	0.763	0.763	0.763	0.763
Total			2.413	2.816	3.219	3.219	3.219	3.219	3.219
Bank Limit of Margin		25	0.603	0.704	0.805	0.805	0.805	0.805	0.805
Bank Share		75	1.810	2.112	2.414	2.414	2.414	2.414	2.414
Receivables	7		1.335	1.559	1.780	1.780	1.780	1.780	1.780
Bank Limit on Margin		25	0.334	0.390	0.445	0.445	0.445	0.445	0.445
Bank Share		75	1.001	1.169	1.335	1.335	1.335	1.335	1.335
One Month Expenses			0.516	0.617	0.658	0.675	0.693	0.713	0.735
Total Working Capital			4.264	4.992	5.657	5.674	5.693	5.713	5.735
Own Contribution – MNWC			1.453	1.711	1.907	1.925	1.943	1.963	1.985
Bank Contribution			2.811	3.281	3.750	3.750	3.750	3.750	3.750
Interest on Bank
Contribution		15.00	0.422	0.492	0.562	0.562	0.562	0.562	0.562

SOFT LOAN AND INTEREST REPAYMENT

[In Millions ]

Particulars	%	1^st Year	2^nd Year	3^rd Year	4^th Year	5^th Year	6^th Year	7^th Year
Opening Balance		2.000	2.000	2.000	2.000	2.000	2.000	2.000
Additions in Loan		0.000	0.000	0.000	0.000	0.000	0.000	0.000
Total Repayment		2.000	2.000	2.000	2.000	2.000	2.000	2.000
Balance		2.000	2.000	2.000	2.000	2.000	2.000	2.000
Interest %	15.00	3.00	3.00	3.00	3.00	3.00	3.00	3.00

UNSECURED LOAN AND INTEREST REPAYMENT

[In Millions ]

Particulars	%	1^st Year	2^nd Year	3^rd Year	4^th Year	5^th Year	6^th Year	7^th Year
Opening Balance		0.149	0.149	0.149	0.149	0.149	0.149	0.149
Additions in Loan		0.000	0.000	0.000	0.000	0.000	0.000	0.000
Total Repayment		0.149	0.149	0.149	0.149	0.149	0.149	0.149
Balance		0.149	0.149	0.149	0.149	0.149	0.149	0.149
Interest %	15.00	0.22	0.22	0.22	0.22	0.22	0.22	0.22

PROJECTED BALANCE SHEET

[In Millions ]

PARTICULARS	1^st Year	2^nd Year	3^rd Year	4^th Year	5^th Year	6^th Year	7^th Year
Capital	3.200	3.200	3.200	3.200	3.200	3.200	3.200
Reserve and Surplus	0.300	1.072	2.905	4.731	6.620	8.544	10.475
Equity Assistance/ Subsidy	2.000	2.000	2.000	2.000	2.000	2.000	2.000
Term Loan	7.019	5.619	4.219	2.819	1.419	0.019	0.019
Bank Limit of Working Capital	2.811	3.281	3.750	3.750	3.750	3.750	3.750
Unsecured Loans	0.149	0.149	0.149	0.149	0.149	0.149	0.149
Total	15.479	15.321	16.222	16.641	17.138	17.661	19.592
Assets
Gross Block	10.027	8.695	10.037	9.028	10.646	9.871	11.688
Depreciation	1.332	1.158	1.009	0.882	0.775	0.683	0.606
Net Block	8.695	7.537	9.028	8.146	9.871	9.188	11.082
Investments	0.310	0.310	0.310	0.310	0.310	0.310	0.310
Net Current Assets	4.264	4.992	5.657	5.674	5.693	5.713	5.735
Cash and Bank Balance	1.633	1.905	0.649	1.941	0.686	1.873	1.888
Preliminary and Preo Expenses	0.578	0.578	0.578	0.578	0.578	0.578	0.578
Total	15.479	15.321	16.222	16.649	17.138	17.661	19.592

DETAILS OF COLLATERAL SECURITY

Details of Properties	Area	Value [Rs. In Millions]
Residential house of Mr. N. V. S. Murthy, on Plot No. 30, Kamgar nagar, Nagpur - 440013	1500 SFT	1.820
Commercial Plot of Mr. Harish Nagpal on Katol Road, Makartokda, bearing house no 517, Nagpur 440013	1513.62 SFT	1.406
Commercial Plot of Mr. Harish Nagpal on IBM Road Gittikadam, Katol Road, Nagpur – 440013	1200 SFT	1.115
Residential Flat of Mr. R. M. Katkamwar on Flat No. 11, Pankaj Apartments, Khare Town, Dharampeth, Nagpur	748 SFT	2.062
Total		6.403

Introduction

This comprehensive project report deals with the establishment of Edible Oil Refinery At – A – 3, Additional Industrial Area District Yavatmal its viability and financial aspects.

Profile

The proposed unit subject is promoted by Mr. Nandigram Vijaykant Mouthy aged 29 years residence of 100, Friends Colony, Katol Road, Nagpur is an energetic and dynamic professional. His father is working in Central Government Department in Nagpur since last 34 years and his brother is a software engineer working with Subscribers base, an on Line Advertising Company at Columbia, USA. It is necessary to mention that Mr. Nandigrama Vijaykant Murthy has carried out a detailed study of the production of vegetable oil and marketing of the product. He is fully aware of the potential available in the market and also possesses good knowledge of market threats from established units. He is looking after and also possesses good knowledge of market threats from established units. He is looking after all financial matters, accounts, all Government Departments including taxation and banking and also sales and purchases of raw materials with over all control of administration and also completed full training of oil refining, quality checking, sales an purchases.

The second promoter is Mr. Sagar Harish Nagpal B. Com. Aged about 27 years is having good knowledge of the market currents and also understands the pulse of the customers. Further he is a working partner in Nagpal Trading Company. Nagpur whose annual turnover is around a crore of rupees which includes sales of refined oil for all local oils and branded oils like Rajmoti Oil, Sweekar, Fortune, Murali Agro etc. His father is a reputed business man of the city with contacts in the entire Vidarbha with the whole sale dealers in edible oil. He will assist the Chief prompter in all respect of the company. He is also looking after the billing of the sales and monitoring the trade creditors and debtors as well and also completed full training of oil refining.

The third promoter is Mr. Akash Harish Nagpal, B. Com. Aged about 28 years is having good knowledge of the market currents and also understands the pulse of the customers. Further he is a proprietor in Akash Enterprises, Nagpur. His father is a reputed business man of the city with contacts in the entire Vidarbha with the whole dealers in edible oil. He will assist the Chief Promoter in all respects of the working of the company. He is also looking after the billing of the sales and monitoring the trade creditors and debtors as well as also completed full training of oil refining, quality checking sales and purchases.

Product to be manufactured

The Unit proposes to manufacture Refined Edible Soyabean Oil, Refined Edible Cotton Oil, Refined Edible Palm Oil and other by – Products.

Availability of Raw Materials

The raw materials i.e. Soyabeen, Cotton and Palm is purchased from local A.P.M.C. market and directly from Farmers and raw materials is easily available.

Manufacturing Process

Raw Materials i.e. Soyabean, Cotton Seed and Palm are after cleaning are crushed first to produce crud oil. Crude oil pumped by a centrifugal pump is heated to required temperature in plate heat exchanger and mixed with pre calculated acid in gum conditioning mixture after this acid de gumming process gum conditioning is done with phosperic acid after this process neutralization is one with sodium hydroxide, neutralized oil produce is heated to 90 C after this water washing with soft water in a centrifuge is done, after this process vacuum drying process is done, after this process vacuum drying process is done, after above process continuous bleaching process is done which consist of mixing of chemicals, bleaching and filtration. After this process continuous deodorization cum deacidification process is done.

Marketability

As the promoter hails from Oil business family marketing is not a big problem for a products like Edible Oil. The product will be sold in the states of Andhra Pradesh and Maharashtra for which necessary market research has been done. The contacts with reputed buyers of the product goes hand in hand with the production facility established.

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.40.55
UK Pound	1	Rs.80.22
Euro	1	Rs.62.74

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	NO
--AFFILIATION	YES/NO	YES
--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