MIRA INFORM REPORT

Report Date :

12.01.2011

IDENTIFICATION DETAILS

Name :	PARAG MILK FOODS PRIVATE LIMITED

Formerly Known As :	PARAG MILK AND MILK PRODUCTS PRIVATE LIMITED

Registered Office :	Flat No. 1, Plot No. 19, Nav Rajasthan, Soc., Behind Ratna Memorial Hospital, S.B. Road, Shivaji Nagar, Pune-411016, Maharashtra

Country :	India

Financials (as on) :	31.03.2009

Date of Incorporation :	29.12.1992

Com. Reg. No.:	070209

CIN No.: [Company Identification No.]	U15204MH1992PTC070209

Legal Form :	Private Limited Liability Company

Line of Business :	Manufacturer, Importer and Exporter of Milk Products such as Ghee, Butter and Cheese.

RATING & COMMENTS

MIRA’s Rating :

Ba (49)

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

Maximum Credit Limit :	USD 2000000

Status :	Satisfactory

Payment Behaviour :	Usually correct

Litigation :	Clear

Comments :	Subject is a well established and reputed company having satisfactory track. Trade relations are reported as fair. Business is active. Payments are reported to be usually correct and as per commitments. The company can be considered normal for business dealings at usual trade terms and conditions.

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List – April 1, 2010

Country Name

Previous Rating

(31.12.2009)

Current Rating

(01.04.2010)

India

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

INFORMATION PARTED BY

Name :	Mr. Ajit Marathe
Designation :	Accountant
Contact No.:	91-9890700668
Date :	11.01.2011

LOCATIONS

Registered Office :	Flat No. 1, Plot No. 19, Nav Rajasthan, Soc., Behind Ratna Memorial Hospital, S.B. Road, Shivaji Nagar, Pune-411016, Maharashtra, India
Tel. No.:	91-20-25674762/25674761
Mobile No.:	91-9890700668 (Mr. Ajit Marathe)
Fax No.:	91-20-25674763/25674761
E-Mail :	cs@gowardhaindia.com
Website :	http://www.gowardhaindia.com
Area :	2000 sq. ft. (Owned)

Marketing Office:	8^th Floor, A Wing, Mittal Court, Nariman Point, Mumbai-400021, Maharashtra, India
Tel. No.:	91-22-22844763

Corporate Office :	Awasari Phata, Manchar, District Pune-410503, Maharashtra, India
Tel. No.:	91-21-33224763
E-Mail :	parag@gowardhaindia.com

Eastern Regional Office:	P-12, Kalindi Housing Estate, Ground Floor, Kolkata-700089, West Bengal, India
Tel. No.:	91-33-25223090/25223092
E-Mail :	gowardhan@cal3.vsnl.net.in

DIRECTORS

AS ON 30.09.2009

Name :	Mr. Devendra Prakash Shah
Designation :	Chairman
Address :	A-602, Kumar Puram Mukund Nagar, Pune – 411 037, Maharashtra, India
Date of Birth/Age :	27.04.1964
Qualification :	B.Com
Experience :	16 Years
Date of Appointment :	29.12.1992

Name :	Mr. Pritam Prakash Shah
Designation :	Managing Director
Address :	A-602, Kumar Puram Mukund Nagar, Pune – 411 037, Maharashtra, India
Date of Birth/Age :	01.11.1970
Qualification :	B.Com
Experience :	16 Years
Date of Appointment :	06.02.2009

Name :	Mr. Parag Prakash Shah
Designation :	Director
Address :	A-602, Kumar Puram Mukund Nagar, Pune – 411 037, Maharashtra, India
Date of Birth/Age :	22.06.1967
Date of Appointment :	29.12.1992

Name :	Mr. Dhaval Sumantrai Desai
Designation :	Director
Address :	405, Gayatri Opposite Pratap Society, J.P. Road, Andheri (West), Mumbai – 400 053, Maharashtra, India
Date of Birth/Age :	14.09.1956
Date of Appointment :	15.01.2008

Name :	Mr. Sunil Badriprasad Goyal
Designation :	Director
Address :	731/ A, 7^th Floor, Akshay Girikunj – III, Paliram Road, Andheri (West), Mumbai – 400 058, Maharashtra, India
Date of Birth/Age :	04.10.1967
Date of Appointment :	15.01.2008

Name :	Mr. Vishal Murarilal Tulsyan
Designation :	Additional Director
Address :	401-Madhu Kunj, 959 Sayani Road, Prabhadevi, Mumbai – 400 025, Maharashtra, India
Date of Birth/Age :	31.05.1975
Date of Appointment :	16.05.2008
Date of Ceasing :	06.02.2009

Name :	Mr. Rakesh Ram Gopal Sony
Designation :	Additional Director
Address :	Space Town Housing Complex, Flat No. 4B, Block No.8, Raghunathpur, V.I.P. Road, Kolkata – 700 052, West Bengal, India
Date of Birth/Age :	02.01.1976
Date of Appointment :	06.02.2009

KEY EXECUTIVES

Name :	Asawari Avinash Tilak
Designation :	Secretary
Address :	A-9, Ganga Lahari Society, Ganeshnagar, Pune-411052, Maharashtra, India
Date of Birth/Age :	01.03.1985
Date of Appointment :	11.12.2008

Name :	Mr. Ajit Marathe
Designation :	Accountant

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 30.09.2009

Names of Shareholders		No. of Shares
Parag Prakash Shah		1631096
Pritam Prakash Shah		3053296
Devendra Prakash Shah		4856944
Prakash Babulal Shah		2239112
Priti Devendra Shah		496940
Rajni Prakash Shah		192004
Netra P. Shah		1177480
Purva Constructions and Engineering Private Limited, India		1000000
India Business Excel Lence Fund, Mauritius		40
IL and FS Trust Company Limited, India		40
Suneeta agarwal		40
Vimla Oswal		40
Pratik Oswal		40
Anmol Insurance Consultants Private Limited, India		60000
IFIS Business Solutions Private Limited, India		900000
Ladderup Finance Limited, India		200000
Richa Gupta		3200

Total		15810272

AS ON 30.09.2009

Equity Share Breakup		Percentage of Holding
Category
Bodies corporate		13.67
Directors or relatives of directors		86.31
Other top fifty shareholders		0.02
Total		100.00

BUSINESS DETAILS

Line of Business :	Manufacturer, Importer and Exporter of Milk Products such as Ghee, Butter and Cheese.

Brand Names :	Gowardhan

Exports :
Products :	Milk Products
Countries :	Korea Bangladesh

Imports :
Products :	Finished Goods
Countries :	Netherlands Switzerland Germany

Terms :
Selling :	Cash / Credit (30 days)

Purchasing :	Cash / Credit (30 days)

GENERAL INFORMATION

Customers :	End Users and OEM’s

No. of Employees :	600 (Approximately)

Bankers :	Export - Import Bank of India, Centre One Building, Floor 21, World Trade Centre Complex, Cuffe Parade, Mumbai – 400 005, Maharashtra, India Bank of Maharashtra, Manchar Branch Union Bank of India, Industrial Finance Branch, 619, Sachpir Street, Pune – 411 001, Maharashtra, India Union Bank of India, Pune Camp Branch, Aurora Towers, M.G. Road, Pune – 411 001, Maharashtra, India State Bank of India, Industrial Finance Branch, Pune – 411 003, Maharashtra, India

Financial Institution:	Electronica Finance Limited, 128/A, Plot No. 3, Kailashchandra Apartments, Paud Road, Kothrud, Pune-411038, Maharashtra, India.

Banking Relations :	--

Auditors :
Name :	Walker Chandiok and Company Chartered Accountant
Address :	Engineering Centre, 6^th Floor, 9 Matthew Road, Opera House, Mumbai-400004, Maharashtra, India
Tel. No.:	91-22-23671623
Fax No.:	91-22-23671624
E-Mail :	mumbai@wegt.in

Name :	SPCM and Associates Chartered Accountant
Address :	1211/B, Shukrawar Peth, Subhash Nagar, Lane No. 4, Pune-411002, Maharashtra, India
Tel. No.:	91-20-24479119
Fax No.:	91-20-24486663
E-Mail :	account@spcm.co.in

Associates/Subsidiaries :	Bhagyalaxmi Dairy Farms Private Limited (U01211PN2003PTC018624)

CAPITAL STRUCTURE

AS ON 30.09.2009

Authorised Capital :

No. of Shares	Type	Value	Amount
20000000	Equity Shares	Rs.10/- each	Rs.200.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
15810272	Equity Shares	Rs.10/- each	Rs.158.103 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2009	31.03.2008	31.03.2007
SHAREHOLDERS FUNDS
1] Share Capital		158.103	35.143	31.528
2] Share Application Money		0.000	14.700	24.500
3] Reserves & Surplus		349.577	304.094	126.438
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		507.680	353.937	182.466
LOAN FUNDS
1] Secured Loans		1388.848	641.868	470.500
2] Unsecured Loans		505.003	53.829	20.719
TOTAL BORROWING		1893.851	695.697	491.219
DEFERRED TAX LIABILITIES		19.301	23.474	22.792

TOTAL		2420.832	1073.108	696.477

APPLICATION OF FUNDS

FIXED ASSETS [Net Block]		420.286	387.727	293.897
Capital work-in-progress		945.887	84.802	5.842

INVESTMENT		128.578	21.350	0.934
DEFERREX TAX ASSETS		0.000	0.000	0.000

CURRENT ASSETS, LOANS & ADVANCES
	Inventories	661.862	532.151	327.801
	Sundry Debtors	375.348	298.307	162.434
	Cash & Bank Balances	179.142	41.124	8.206
	Other Current Assets	0.415	0.000	0.000
	Loans & Advances	101.073	66.599	51.519
Total Current Assets		1317.840	938.181	549.960
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors
	Other Current Liabilities	351.839	293.874	132.648
	Provisions	39.920	65.078	21.508
Total Current Liabilities		391.759	358.952	154.156
Net Current Assets		926.081	579.229	395.804

MISCELLANEOUS EXPENSES		0.000	0.000	0.000

TOTAL		2420.832	1073.108	696.477

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2009	31.03.2008	31.03.2007
	SALES
		Income
		Other Income
		TOTAL (A)	3402.500	3043.300	2115.800

Less	EXPENSES
		Office Expenses
		Administrative Expenses
		Advertising Expenses
		TOTAL (B)	3132.800	2750.800	1957.600

Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		269.700	292.500	158.200

Less	FINANCIAL EXPENSES (D)		86.400	69.100	58.100

	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		183.300	223.400	100.100

Less/ Add	DEPRECIATION/ AMORTISATION (F)		59.000	48.600	37.600

	PROFIT BEFORE TAX (E-F) (G)		124.300	174.800	62.500

Less	TAX (H)		39.700	60.700	23.600

	PROFIT AFTER TAX (G-H) (I)		84.600	114.100	38.900

Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		190.500	84.400	49.200

Less	APPROPRIATIONS
		Transfer to General Reserve	0.000	5.100	0.000
		Dividend	0.000	2.900	3.700
	BALANCE CARRIED TO THE B/S		275.100	190.500	84.400

	EARNINGS IN FOREIGN CURRENCY		799.681	778.842	NA

	IMPORTS
		Raw Materials	6.976	4.929	NA
		Capital Goods	327.920	7.895	NA
	TOTAL IMPORTS		334.896	12.824	NA

	Earnings Per Share (Rs.)		5.35	NA	NA

Particulars

31.03.2010

Sales Turnover (Approximately)

4910.000

Expected Sales (2010-2011) : Rs.6500.000 Millions

KEY RATIOS

PARTICULARS		31.03.2009	31.03.2008	31.03.2007
PAT / Total Income	(%)	2.49	3.75	18.39

Return on Total Assets (PBT/Total Assets}	(%)	7.15	13.18	7.41

Return on Investment (ROI) (PBT/Networth)		0.24	0.49	0.34

Debt Equity Ratio (Total Liability/Networth)		4.50	2.98	3.54

Current Ratio (Current Asset/Current Liability)		3.36	2.61	3.57

LOCAL AGENCY FURTHER INFORMATION

Note: The registered office of the company has been shifted from 602, Kumar Puram Mukund Nagar, Pune-411037, Maharashtra, India to the present address w.e.f. 06.02.2009

Bankers Charges Report as per Registry

This form is for	Creation of charge
Corporate identity number of the company	U15204MH1992PTC070209
Name of the company	PARAG MILK FOODS PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	Flat No. 1, Plot No. 19, Nav Rajasthan, Soc., Behind Ratna Memorial Hospital, S.B. Road, Shivaji Nagar, Pune-411016, Maharashtra, India
Type of charge	Movable Property (not being pledge)
Particular of charge holder	Electronica Finance Limited, 128/A, Plot No. 3, Kailashchandra Apartments, Paud Road, Kothrud, Pune-411038, Maharashtra, India.
Email	finance@electronicafinance.com
Nature of description of the instrument creating or modifying the charge	Deed of Hypothecation dated 1st November, 2010
Date of instrument Creating the charge	01.11.2010
Amount secured by the charge	Rs.28.257 Millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest 12.46% p. a Terms of Repayment 60 Monthly installments Extent and Operation of the charge First Charge
Short particulars of the property charged	I) Packing Machine for trangular processed choose portions FF220V Automatic Dashing wrapping machines lying at the premises of the borrower at Awasari phata, Manchar, Dist: Pune II) 8 by 8 trangular portions in sealed and fully wrapped lying at the premises of the borrower at Awasari phata, Manchar, Dist: Pune

Fixed Assets

· Building

· Furniture

· Fan

· I.B.T.

· Machinery

· Refrigerator

· Water Tank

· Creat

· Weighting Scale

· Electric Equipment

· Air Conditioner

· T.V.

· Armada

· Pager

· Computers

· Tankers

· Lancer

· Armada Grand

· Xerox Machine

· Printer

· Rikshaw

· Tractor

· Montero

Trade References:

Mother Dairy
Pizza Hut
Dominos
Macdonald

AS PER WEBSITE DETAILS:

PROFILE:

Gowardhan, founded by Subject is one of India's largest private dairies, with an output capacity of 1,000,000 liters per day. Located in a lush green village called Manchar in Maharashtra (60 km from Pune), They pride ourselves on owning the largest cow farm in India as well as Asia's largest cheese plant. They are an ISO 9000 and AGMARK certified company, committed to international standards of product quality. Their product portfolio includes Skim Milk Powder, Whole Milk Powder, Ghee, Processed Cheese, Butter,Dahi, proprietary foods like Dairy Whitener and Gulab Jamun Mix powder under the brand names of "Gowardhan" and 'Go' ,all made from 100% fresh cow milk.

EXPORTS

Gowardhan exports milk powder, butter and butter oil, anhydrous milk fats and ghee to 27 countries in the Middle East, South East Asia and Africa. They are soon going to include cheese in the product mix. Some of Their significant customers include Yakult for Their skimmed milk powder and BEL, Morocco (world famous manufacturers of cheese).

INSTITUTIONAL SALES:

Gowardhan is a one-stop, efficient and reliable supplier to reputed hotels, restaurants, institutions and caterers. The wide range of products They supply include cheese, butter, ghee and milk powder. Each of these products comes with the Gowardhan assurance of purity and quality. They have a national tie-up with companies like Baskin Robins, Barista, Café Coffee Day etc. They have also expanded Their retail presence significantly: Gowardhan and Go brands of are now available at large retailers and modern retail outlets, reaching out to more and more customers with the promise of a healthy, active life.

INFRASTRUCTURE AND TECHNOLOGY:

Their commitment to quality and innovation has resulted in huge investments in infrastructure and technology. Their integrated dairy and cow farm at Manchar, is rapidly scaling up to cater to the ever expanding circle of customers in India, who seek all-natural, wholesome and delicious dairy products.

DAIRY PLANT, MANCHAR, PUNE

The extensive range of Their products are processed at this ultra modern dairy. Their dairy plant is fully automated ,of international standards and equipped with the best European technology. Right from reception of milk to the finished product, They maintain strict no-human-contact through the entire manufacturing process. Their plant churns out 1,000,000 litres of milk per day, has an output capacity upto 10 MT of butter, 25 MT of ghee and 10 MT of dahi (yoghurt) and 65 MT of milk powder.

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.45.32
UK Pound	1	Rs.70.54
Euro	1	Rs.58.70

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	6
--RESERVES	1~10	5
--CREDIT LINES	1~10	5
--MARGINS	-5~5	-
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		49

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	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
-	NB	New Business	-

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

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.

MIRA INFORM REPORT

661.862

532.151

327.801

375.348

298.307

162.434

179.142

41.124

8.206

0.415

0.000

0.000

101.073

66.599

51.519

1317.840

938.181

549.960

351.839

293.874

132.648

39.920

65.078

21.508

391.759

358.952

154.156

926.081

579.229

395.804

2.49

7.15

0.24

4.50

3.36

Unit