MIRA INFORM REPORT

Report Date :

21.06.2011

IDENTIFICATION DETAILS

Name :	KADAM DAIRY EQUIPMENTS PRIVATE LIMITED
Registered Office :	612, Vakil Nagar, Erandawana, Pune – 411 004, Maharashtra
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	29.09.1994
Com. Reg. No.:	11-081565
Capital Investment / Paid-up Capital :	Rs.3.000 Millions
CIN No.: [Company Identification No.]	U15147PN1994PTC081565
IEC No.:	3101005264
TAN No.: [Tax Deduction & Collection Account No.]	PNEK06150E
PAN No.: [Permanent Account No.]	AAACK7643Q
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturers and Exporters of Dairy Equipments, Chemicals, Pharmaceuticals and Food Processing.
No. of Employees :	30 (Approximately)

 RATING & COMMENTS

MIRA’s Rating :

B (29)

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Maximum Credit Limit :	USD 16000
Status :	Moderate
Payment Behaviour :	Slow
Litigation :	Clear
Comments :	Subject is an established company having moderate track. Profitability of the company appears to be low. However, trade relations are reported as fair. Business is active. Payments are reported to be slow. The company can be considered for business dealings with some cautions.

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 – June 30, 2010

Country Name	Previous Rating (01.04.2010)	Current Rating (30.06.2010)
India	A1	A1

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. Tambe
Designation :	Marketing Manager
Contact No. :	91-9371311709
Date :	10.06.2011

LOCATIONS

Registered Office :	612, Vakil Nagar, Erandawana, Pune – 411 004, Maharashtra, India
Tel. No.:	91-20-25448796
Mobile No.:	91-9371311709 (Mr. Tambe)
Fax No.:	91-20-25448796
E-Mail :	kadamde@vsnl.net kdepl@indiya.com
Website :	http://www.kamade.tradeindia.com www.indiamart.com/kadamdairy
Area :	800 sq. ft
Location :	Owned
Factory :	Plot No. L -73, Additional MIDC, Satara – 415 004, Pune, Maharashtra, India
Tel. No.:	91-2162-247540
Fax No.:	91-2162-247540
E-Mail :	kdepl@indiya.com
Area :	15000 sq. ft
Location :	Leased

DIRECTORS

As on 30.09.2010 

Name :	Mr. Mugutrao S Kadam
Designation :	Whole Time Director
Address :	612 Vakil Nagar Erandawana, Pune – 411 004, Maharashtra, India
Date of Birth/Age :	02.06.1949
Qualification :	MSC. LLB , CAIIB
Date of Appointment:	29.09.1994
DIN No. :	01991693
Name :	Mrs. Bharati M Kadam
Designation :	Whole Time Director
Address :	612 Vakil Nagar Erandawane, Pune – 411 004, Maharashtra, India
Date of Birth/Age :	05.10.1952
Qualification :	BA, LLB
Date of Appointment:	28.10.1994
DIN No. :	01991710
Name :	Mr. Arjun S Kadam
Designation :	Director
Address :	New MIDC, Satara, Pune, Maharashtra, India
Date of Birth/Age :	01.06.1954
Qualification :	M Com
Date of Appointment:	28.10.1994
DIN No. :	01993439
Name :	Mr. Balkrishna S Kadam
Designation :	Director
Address :	At H. No. R1/4/2, Additional MIDC, Kodoli Street, Satara, Pune, Maharashtra, India
Date of Birth/Age :	02.06.1952
Qualification :	M.Com
Date of Appointment :	29.09.1994
DIN No. :	01993421
Name :	Mr. Rajendra P Kadam
Designation :	Director
Address :	At H. No. R1/4/2, Additional MIDC, Kodoli Street, Satara, Pune, Maharashtra, India
Date of Birth/Age :	21.03.1970
Qualification :	DME
Date of Appointment:	28.10.1994
DIN No. :	01993486

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As On 30.09.2010

Names of Shareholders	No. of Shares
Mr. Mugutrao S Kadam	8450
Mrs. Bharati M Kadam	5500
Mr. Arjunrao S Kadam	3450
Mr. Balasaheb S Kadam	4200
Mr. Rajendra P Kadam	2900
Mr. Shrirang Shankarrao Kadam	100
Mr. Pandurang Shankarrao Kadam	100
Mrs. Asha Balkrishna Kadam	100
Mrs. Surekha Arjunrao Kadam	100
Mrs. Durpada Pandurang Kadam	100
Mrs. Vaijayanta Shrirang Kadam	100
Mr. Umesh P Kadam	2450
Mr. Jaywant S Kadam	2450
Total	30000

AS ON 30.09.2010

Category	Percentage
Directors or relatives of directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturers and Exporters of Dairy Equipments, Chemicals, Pharmaceuticals and Food Processing.
Products:	Bulk Milk Cooler Milk Silo Milk Storage Tank Road Milk Tanker Ghee Boiler Ghee Storage Tank Cream Reipening Tank etc.
Terms :
Selling :	Cash and Credit
Purchasing :	Cash and Credit

PRODUCTION STATUS

Particulars	31.03.2010
Installed Capacity	48 tanks P.A.
Actual Production	46 tanks P.A.

GENERAL INFORMATION

Suppliers :

• Tapex Corporation
• Vimal Packaging Company
• S P Engineering

Customers :

End users

No. of Employees :

30 (Approximately)

Bankers :

v HDFC Bank

v IDBI Bank, IDBI Building, 4^th Floor, SME Department, Dyaneshwar Paduka Chowk, F. C. Road, Shivajinagar, Pune – 411004, Maharashtra, India

Facilities :

Secured Loans	31.03.2010 (Rs. in Millions)	31.03.2009 (Rs. in Millions)
IDBI Pune (Mortgage of Land and Building and Hypothecation of Machinery)	0.334	0.417
IDBI Pune (Hypothecation by book debts and stock)	3.018	2.743
Total	3.352	3.160
Unsecured Loans	31.03.2010 (Rs. in Millions)	31.03.2009 (Rs. in Millions)
M. S. Kadam and others	0.000	0.161
HDFC Bank	0.000	0.135
Total	0.000	0.296

Banking Relations :

--

Auditors :

Name :

Patil Randive and Associates

Chartered Accountants

Address:

501-B, Ghorpade Peth, 208, Panna Chambers, Shivaji Road, Swargate, Pune – 411042, Maharashtra, India

Tel No:

91-20-24480706

Sister Concern :

Name :

Suruchi Food and Milk Products

Address:

Plot No. L -75, ADDL. MIDC SATARA-415 004, Maharashtra, India

Line of Business :

Manufacturer of all types of Pickles, Sauce, Ketchup, Jam, Tutifruity, Etc.

Name :

Kadam Engineers

Address:

Plot No. L-75, ADDL MIDC, SATARA– 415 004, Maharashtra, India

Line of Business :

All types fabrication works

CAPITAL STRUCTURE

As On 30.09.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
30000	Equity Shares	Rs. 100/- each	Rs. 3.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
30000	Equity Shares	Rs. 100/- each	Rs. 3.000 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		3.000	3.000	3.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		1.069	0.377	0.357
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		4.069	3.377	3.357
LOAN FUNDS
1] Secured Loans		3.352	3.160	3.460
2] Unsecured Loans		0.000	0.296	0.808
TOTAL BORROWING		3.352	3.456	4.268
DEFERRED TAX LIABILITIES		0.000	0.000	0.070
TOTAL		7.421	6.833	7.695
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		2.698	2.818	2.272
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	13.000	9.950	4.180
	Sundry Debtors	5.852	9.070	8.240
	Cash & Bank Balances	0.304	4.713	0.096
	Other Current Assets	1.020	0.606	0.065
	Loans & Advances	3.303	2.822	0.734
Total Current Assets		23.479	27.161	13.315
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	3.057	4.389
	Other Current Liabilities	13.034	18.133	7.582
	Provisions	2.665	0.624	0.310
Total Current Liabilities		18.756	23.146	7.892
Net Current Assets		4.723	4.015	5.423
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		7.421	6.833	7.695

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	41.240	18.399
		Other Income	0.008	0.384
		TOTAL (A)	41.248	18.783	11.184
Less	EXPENSES
		Purchase and Consumables	35.331	19.249
		Personnel Expenses	0.025	0.000
		Operating and other Expenses	6.306	2.916
		Directors Sitting Fee	0.061	0.082
		Directors Remuneration	1.418	1.245
		Increase / (Decrease) in stock	(3.050)	(5.770)
		TOTAL (B)	40.091	17.722	10.996
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		1.157	1.061	NA
Less	FINANCIAL EXPENSES (D)		0.718	0.770	NA
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		0.439	0.291	0.188
Less/ Add	DEPRECIATION/ AMORTISATION (F)		0.209	0.184	0.155
	PROFIT BEFORE TAX (E-F) (G)		0.230	0.107	0.033
Less	TAX (I)		0.462	0.087	0.001
	PROFIT AFTER TAX (G-I) (J)		0.692	0.020	0.032
	Earnings Per Share (Rs.)		11.53	0.34	1.07

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	1.68	0.11	0.29
Net Profit Margin (PBT/Sales)	(%)	0.56	0.58	--
Return on Total Assets (PBT/Total Assets}	(%)	0.88	0.36	0.21
Return on Investment (ROI) (PBT/Networth)		0.06	0.03	0.01
Debt Equity Ratio (Total Liability/Networth)		5.43	7.88	3.62
Current Ratio (Current Asset/Current Liability)		1.25	1.17	1.69

LOCAL AGENCY FURTHER INFORMATION

CHANGE OF ADDRESS

Registered office of the company has been shifted from Plot No. L -73, Additional MIDC, Satara – 415 004, Pune, Maharashtra, India to the present address.

Bankers Charges Report as per Registry

Corporate identity number of the company	U15147PN1994PTC081565
Name of the company	KADAM DAIRY EQUIPMENTS PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	612, Vakil Nagar, Erandawana, Pune – 411 004, Maharashtra, India
This form is for	Creation of charge
Type of charge	Immovable property Book debts
Particular of charge holder	IDBI Bank, IDBI Building, 4^th Floor, SME Department, Dyaneshwar Paduka Chowk, F. C. Road, Shivajinagar, Pune – 411004, Maharashtra, India
Nature of instrument creating charge	Agreement of Hypothecation dated 13.08.2008
Date of instrument Creating the charge	13.08.2008
Amount secured by the charge	Rs.3.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of interest : 16.25% p.a. Terms of repayment : On demand Margin : 40% Extent and operation of the charge : The charge shall remain operative till full and final settlement of loan amount.
Short particulars of the property or asset(s) charged (including complete address and location of the property)	All those tangible movable properties and assets, all stocks, plants and machinery and vehicles, all the present and future book-debts, outstanding, monies receivables, claims, demand and bills.

Fixed Assets :

• Land
• Plot
• Building
• Plant and Machinery
• Electrification
• Furniture

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	4
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILIRY	1~10	4
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	3
--CREDIT LINES	1~10	2
--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	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		29

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.