MIRA INFORM REPORT

Report Date :

21.06.2011

IDENTIFICATION DETAILS

Name :	VNR SEEDS PRIVATE LIMITED
Registered Office :	Village Gomachi, Post Tendua, Near Nandanvan, Raipur-492 099, Chhattisgarh
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	23.12.2004
Com. Reg. No.:	10-17187
Capital Investment / Paid-up Capital :	Rs. 6.000 millions
CIN No.: [Company Identification No.]	U00512CT2004PTC017187
TAN No.: [Tax Deduction & Collection Account No.]	JBPV00576C
PAN No.: [Permanent Account No.]	AACC0174D
Legal Form :	Private Limited Liability Company.
Line of Business :	Subject is engaged in the business of Production and Sales of Agro Seeds, Hybrid and OP
No. of Employees :	250 Approximately

RATING & COMMENTS

MIRA’s Rating :

Ba (49)

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Maximum Credit Limit :	USD 344912
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is an established 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.

INFORMATION PARTED BY

Name :	Mr. Dushyant
Designation :	Accounts Executive
Date :	20.06.2011

LOCATIONS

Registered Office :	Village Gomachi, Post Tendua, Near Nandanvan, Raipur-492 099, Chhattisgarh, India
Tel. No.:	91-788-3208800/3204080
Fax No.:	91-771-4280330
E-Mail :	info@vnrseeds.com aic_mca@rediffmail.com mca.1912@gmail.com
Website :	www.vnrseeds.com
Location:	Owned
Administrative and Sales Office:	Ratnagiri Arcade, 1^st Floor, Opposite Rajkumar Colege, G. E. Road, Raipur-492 001, Chhattisgarh, India
Tel. No.:	91-771-3200334
Fax No.:	91-771-4280330
E-Mail :	info@vnrseeds.com

DIRECTORS

AS ON 21.09.2010

Name :	Mr. Vimal Chawda
Designation :	Director
Address :	102, Village Gomachi, Post- Tendua, Block Dharsiwa, Raipur-492 099, Chhattisgarh, India
Date of Birth/Age :	05.11.1971
Date of Appointment :	23.12.2004
Name :	Ms. Hema Chawda
Designation :	Director
Address :	Village Gomachi, Post- Tendua, Block Dharsiwa, Raipur-492 099, Chhattisgarh, India
Date of Birth/Age :	10.10.1975
Date of Appointment :	23.12.2004
Name :	Mr. Narayan Chawda
Designation :	Director
Address :	Village Gomachi, Post- Tendua, Block Dharsiwa, Raipur-492 099, Chhattisgarh, India
Date of Birth/Age :	28.07.1941
Date of Appointment :	18.04.2005
Name :	Mr. Arvind Kumar Agrawal
Designation :	Director
Address :	3, Parmanand Marg, Behind Scholl, Mohba Bazar, Raipur-492 001, Chhattisgarh, India
Date of Birth/Age :	19.12.1971
Date of Appointment :	02.02.2009

KEY EXECUTIVES

Name :	Mr. Dushyant
Designation :	Accounts Executive

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 21.09.2010

Names of Shareholders	No. of Shares
Vimal Chawda	120000
Hema Chawda	20000
Narayan Chawda	90000
Velu Chawda	70000
Raipur Horticultural Farm Private Limited, India	40000
VNR Farms Private Limited, India	31000
Hema Seeds Private Limited, India	30000
Chawda Plantations Private Limited, India	40000
Nirmala Chauhan	1800
Sanjay Kumar Chauhan	1800
Anuradha Chauhan	1800
Kamlesh Taank	1800
Romi Taank	1800
Adarsh Agrawal	60000
Byas Narayan Agrawal	50000
Bhagwati Devi Agrawal	10000
Muktamani Agrawal	30000
Total	600000

AS ON 21.09.2010

Equity Share Breakup	Percentage of Holding
Category
Bodies corporate	23.50
Directors or relatives of directors	50.00
Other top fifty shareholders	26.50
Total	100.00

BUSINESS DETAILS

Line of Business :	Subject is engaged in the business of Production and Sales of Agro Seeds, Hybrid and OP
Products :	Agro Seeds

GENERAL INFORMATION

Customers :

Wholesaler

No. of Employees :

250 Approximately

Bankers :

· State Bank of India, Phaphadih Branch, Raipur-492 001, Chattigarh, India

· Bank of Baroda, Main Branch, Mahavir Goshala Complex, Raipur-492 001, Chattisgarh, India

Facilities :

SECURED LOANS :	31.03.2010 Rs. in Millions	31.03.2009 Rs. in Millions
Cash Credit
From Bank (Working capital loan from Bank is secured by hypothecation of Inventories and Book Debts and further secured by guaranty of directors and other party.)	136.973	85.974
Vehicle (Car) Loan
From Banks (Vehicle loan from Bank is secured by hypothecation of the Vehicle for which loans have been taken.)	2.209	1.370
Term Loan
From Banks (Term Loan for Building and Civil Work and Purchase of Plant and Machinery)	1.028	0.000
Total	140.210	87.344

UNSECURED LOANS :	31.03.2010 Rs. in Millions	31.03.2009 Rs. in Millions
From Others	4.300	1.800
Total	4.300	1.800

Banking Relations :	-
Auditors :
Name :	Avadhesh Gabel and Associates Chartered Accountants
Address :	Village and Post Masaniya Kala, Distt – Janjgir, Sakti-495 689, Chattisgarh , India
Associates/Subsidiaries :	Hema Seeds Private Limited Raipur Horticulture farm Private Limited VNR Farms Private Limited Chawda Plantation Private Limited Fortune Bio Sciences Private Limited VNR Agrimatrix Agri Impex Private Limited Dream Agri Research Private Limited

CAPITAL STRUCTURE

AS ON 21.09.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
600000	Equity Shares	Rs.10/- Each	Rs.6.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
600000	Equity Shares	Rs.10/- Each	Rs.6.000 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2010	31.03.2009	31.03.2008
SHAREHOLDERS FUNDS
1] Share Capital		6.000	4.000	2.590
2] Share Application Money		0.000	6.500	0.000
3] Reserves & Surplus		80.228	76.098	46.168
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		86.228	86.598	48.758
LOAN FUNDS
1] Secured Loans		140.210	87.344	54.395
2] Unsecured Loans		4.300	1.800	1.800
TOTAL BORROWING		144.510	89.144	56.195
DEFERRED TAX LIABILITIES		0.436	0.301	0.155
TOTAL		231.174	176.043	105.108
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		36.969	26.649	12.991
Capital work-in-progress		2.228	4.100	1.626
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	206.716	149.806	93.646
	Sundry Debtors	28.384	13.507	16.063
	Cash & Bank Balances	6.446	0.340	6.674
	Other Current Assets	1.048	0.528	0.075
	Loans & Advances	28.381	1.892	1.586
Total Current Assets		270.975	166.073	118.044
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	64.844	13.865	23.291
	Other Current Liabilities	5.657	3.590	2.756
	Provisions	8.682	3.378	1.526
Total Current Liabilities		79.183	20.833	27.573
Net Current Assets		191.792	145.240	90.471
MISCELLANEOUS EXPENSES		0.185	0.054	0.020
TOTAL		231.174	176.043	105.108

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	274.165	172.061	96.741
		Other Income	0.216	0.205	0.269
		TOTAL (A)	274.381	172.266	97.010
Less	EXPENSES
		TOTAL (B)	249.434	154.950	89.251
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		24.947	17.316	7.759
Less	FINANCIAL EXPENSES (D)		14.246	9.488	2.928
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		10.701	7.828	4.831
Less/ Add	DEPRECIATION/ AMORTISATION (F)		5.133	3.346	1.977
	PROFIT BEFORE TAX (E-F) (G)		5.568	4.482	2.854
Less	TAX (H)		1.438	1.342	0.952
	PROFIT AFTER TAX (G-H) (I)		4.130	3.140	1.902
	Earnings Per Share (Rs.)		9.58	7.84	12.77

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	1.50	1.82	1.96
Net Profit Margin (PBT/Sales)	(%)	2.03	2.60	2.95
Return on Total Assets (PBT/Total Assets}	(%)	1.80	2.33	2.18
Return on Investment (ROI) (PBT/Networth)		0.06	0.05	0.06
Debt Equity Ratio (Total Liability/Networth)		2.59	1.27	1.72
Current Ratio (Current Asset/Current Liability)		3.42	7.97	4.28

LOCAL AGENCY FURTHER INFORMATION

SUNDRY CREDITORS DETAILS:

Rs. In Millions

Particulars	31.03.2010	31.03.2009	31.03.2008
Sundry Creditors	64.844	13.865	23.291

COMPANY’S BACKGROUND

The company was incorporated on 23rd December, 2004. The Company is presently engaged in the business of production and sales of Agro Seeds, Hybrid and OP. (e.g. Vegetable Seed and Cereal Crops.) the company’s corporate office is located in Gomchi (Raipur C.G.)

PERFORMANCE AND PROSPECTS :

The Company is doing business of Processing and Sales of Vegetable Seeds (Agro Seeds). During the current year, the Overall turnover of the Company crossed Rs. 172.061 millions and went up to Rs. 274.165 millions which represents the Turn-over growth by 59.34 % in 2009-10 as compared to 2008-9. Increase in Turnover results in increase of profit from operations.

Now, The Company has successfully launched BLB Registered variety of Paddy and various other varieties of seeds. It has also launched a Biotech lab and Lab with DH Facility to provide better Quality of Seeds. Also the scale of demand of Vegetable Seeds reached at excellent stage. The Turn-over of the Company is showing the excellence of the brand of VNR.

The company is focused as operation growth. The same has also resulted increase in net profit in this year.

Looking to growth and increasing Market Share of the Company, it has expanded its fixed assets base and multiplied its assets by Times. Seed processing facility for bulky item is under construction as of the balance sheet date and have already been completed and come in to operation.

During the year, to meet the fund requirement, Shareholders’ Fund have been brought by issue of Equity Shares.

Presently, The Company has expanded its product’s market in India in all five zones namely North, South, East, West and Central Zone and the Company is going to plan for expansion of its product market outside India also, in the coming year.

OUTLOOK:

Look up to the current year scenario Today the company is able to provide better quality seeds not only in Indian markets but flourishing in the Global market too. The company is dedicated to providing good seeds for betterment of farmers.

Fixed Assets:

· Freehold Land

· Furniture and Fittings

· Computer and Accessories

· Plant and Machinery

· Vehicle

· Building

· Furniture

· Bio Tech Lab Construction

FORM 8

Corporate identity number of the company	U00512CT2004PTC017187
Name of the company	VNR SEEDS PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	Village Gomachi, Post Tendua, Near Nandanvan, Raipur-492 099, Chhattisgarh, India
This form is for	Modification of charge
Type of charge	Immovable property Book debts Movable property (not being pledge)
Particular of charge holder	Bank of Baroda, Main Branch, Mahavir Goshala Complex, Raipur-492 001, Chattisgarh, India Email: raipur@bankofbaroda.com
Nature of instrument creating charge	"Composite Hypothecation Agreement" and "Memorendum for Creation and Extension of mortgage by deposit of title deeds" for cash credit limit of Rs. 350.000 millions (previously Rs. 200.000 millions) in addition to existing term loan of Rs. 50.000 millions agreegating Rs. 400.000 millions.
Date of instrument Creating the charge	09.03.2011
Amount secured by the charge	Rs. 400.000 millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of interest For Cash Credit - 3.75% Over The Base Rate i.e. 13.25% For Term Loan - 3.75% Over The Base Rate i.e. 13.25% Margin 25% On Stock and Book Debts
Short particulars of the property charged (Including location of the property)	Hypothecation of Raw Material, Finished Goods, Stores and Hypothecation Of Book Debts. Advances To Suppliers. Company's Agriculture Land At Godhi, Durg, Kh. No. - 1864/1, 1865, 1870/1(Partly) Area - 1.62 Hect And At Jaitgiri, Bastar, Kh. No. - 32 Area 1.22 Hect and Kh. No. 16, Area 1.60 Hect. Company's Agriculture Land At Badegaon, Bastar, Kh. No. 295,299,300,301,307, Area - (1.78+0.40=2.18) Hect Guarantor's Agriculture Land At Kohadia, Durg, K.H. No. 410, 404, 405, 403,386, Area - 8.77 Hect. Equitable Mortgage of Additional Agriculture Land Bearing Kh. No. 262.Total Area 2.27 Hect. At Village - Deorjhal P.C. No. 28, R.I.C. Ahirwara Block and Tehsil Dhamdha, Distt - Durg(C.G) Hypothecation of Plant and Machinery Etc.
Whether any of the property or interest therein under reference is not registered in the name of the company. If yes, in whose name it is registers	Yes, Properties In The Name of Raipur Horticultural Farm Private Limited
Date of instrument modifying the charge	03.02.2010
Particulars of the present modification	Increase In Cash Credit Limit From Rs. 200.000 millions To Rs. 350.000 millions In Addition To Existing Term Loan of Rs. 50.000 millions Agreegating Rs. 400.000 millions By Way of Depositing Title Deeds of Additional Securities.

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.44.99
UK Pound	1	Rs.72.60
Euro	1	Rs.64.01

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	6
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	5
--RESERVES	1~10	6
--CREDIT LINES	1~10	6
--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		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

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.