MIRA INFORM REPORT

Report Date :

21.03.2011

IDENTIFICATION DETAILS

Name :	DODLA DAIRY LIMITED
Registered Office :	8-2-696, Road No. 12, Banjara Hills, Hyderabad-500034, Andhra Pradesh
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	15.05.1995
Com. Reg. No.:	01-020324
CIN No.: [Company Identification No.]	U15209AP1995PLC020324
TAN No.: [Tax Deduction & Collection Account No.]	HYDD00808D
Legal Form :	A closely held Public Limited Liability Company.
Line of Business :	Manufacturer of Milk Products.

RATING & COMMENTS

MIRA’s Rating :

Ba (48)

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

Maximum Credit Limit :	USD 730000
Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is a well 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.

ECGC Country Risk Classification List – April 1, 2010

Country Name	Previous Rating (31.12.2009)	Current Rating (01.04.2010)
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. Chandrashekhar
Designation :	Accounts Department
Date :	21.03.2011

LOCATIONS

Registered Office :	8-2-696, Road No. 12, Banjara Hills, Hyderabad-500034, Andhra Pradesh
Tel. No.:	91-40-23395218
E-Mail :	sunil@dodladairy.com
Head Office:	6-3-66/8, Sangeeth Nagar, Simgeguda, Hyderabad, India
Factory 1 :	Mydukuru Road, Nandipalli Post, Brahmamgari Matam MDL, Badvel-516502, Kadapa District, India
Factory 2 :	Devarapalem, Nellore Rural Nellore-524004, Nellore District
Tel. No.:	91-861-2399790/1/2
Factory 3:	Nadimidoddi Palli, Moram Post, Palamaneru-517408, Chittoor District
Tel. No.:	91-8579-259388/088
Factory 4:	T.V. Puram, Penumur-517126, Chittoor District
Tel No.:	91-8572-277784
Factory 5:	Dhulipalla Village, Sattenapalli-522403, Guntur District
Tel No.:	91-8641-232122/5
Factory 6:	D No. 7-1-225, Valabellary Road, PWD Camp, Sindhanoor-584128, Raichur, Karnataka, India
Tel No.:	91-9535-221131
Factory 7:	Kondalammapuntha, 16^th Ward, Tanuku West, Godavari
Tel No.:	91-8819-241791/4
Sales and Marketing Office :	Located At: Bangalore Bowenpally Chennai Guntur Hyderabad Vijaywada Gulbarga Hubli Jodhpur
Chilling Centers:	Located At: Ananthapur Bangaru Tirupathi Chagalamarri Chickballapur Chelur Chengam Cheyyar Kaikiri Kaluvai Kuppam Korukallu Madhugiri Nandyal Narsapuram Gingee Gudiwada Jammalamadugu Janga Reddy Gudem Kallur Karlapalem Kavali Pallikonda Polur Pamuru Porumamilla Vinjamuru Yerraguntla Palam

DIRECTORS

As on 02.09.2010

Name :	Mr. Dodla Sunil Reddy
Designation :	Managing Director
Address :	18, Bishop Wallers Avenue, (West), Mylapore, Chennai-600004, Tamilnadu, India
Date of Birth/Age :	22.02.1968
Date of Appointment :	15.05.1995
Name :	Dodla Sesha Reddy
Designation :	Director
Address :	2, Bishop Wallers Avenue, (West), Mylapore, Chennai-600004, Tamilnadu, India
Date of Birth/Age :	10.12.1941
Date of Appointment :	15.05.1995
Name :	Mr. Sarath Naru
Designation :	Nominee Director
Address :	# 3, 7^th Avenue, Harrington Road, Chetput, Chennai-600018, Tamilnadu, India
Date of Birth/Age :	15.08.1957
Date of Appointment :	27.09.1999
Name :	Mr. M. Srinivas Reddy
Designation :	Director
Address :	78, Cherry Hills, Farm Drive Eagle Wood, United States of America
Date of Birth/Age :	15.04.1945
Date of Appointment :	15.05.1995
Date of Ceasing:	31.01.2009

KEY EXECUTIVES

Name :	Mr. Chandrashekhar
Designation :	Accounts Department

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 02.09.2010

Names of Shareholders	No. of Preferences Shares	No. of Equity Shares
D. Chenchurami Reddy and D. Sesha Reddy	--	255001
D. Sesha Reddy and D. Chenchurami Reddy	91668	10001
D. Subba Reddy and D. Sesha Reddy	52083	10601
D. Sunil Reddy and D. Sesha Reddy	52083	650476
D. Girijamma	52083	375662
Deepa Reddy and D. Sunil Reddy	52083	275001
R. Ramanathan and G. Ramachandran	--	1
N. Krishnaswami and K. Nagarajan	--	1
Ramachandra Rao and A Ramachandra Rao	--	1
D. Padmavathamma and Chenchurami Reddy	--	135000
D. Kousalyamma and D. Subba Reddy	--	135000
International Media and Cultures, Inc	--	88255
D Bhargavi Reddy and D. Subba Reddy	--	115000
Gopal Reddy	--	20000
Anuradha	--	30000
D. Rahul Reddy and D. Subba Reddy	--	400000
Total	300000	2500000

As on 02.09.2010

Equity Share Breakup	Percentage of Holding
Category
Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others]	3.53
Directors or relatives of directors	96.47
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Milk Products.

Products :

Product Description	Item Code
Milk and Milk Product	40210

Terms :

Selling :

Cash and Credit

Purchasing :

Cash and Credit

PRODUCTION STATUS (AS ON 31.03.2010)

Particulars	Unit	Installed Capacity	Actual Production
Milk	Ltrs Per Day	675000	1408.025 Ltrs/ Lakh
Ghee	Per Day	4000	2115.326 MTs
SMP Tonnes	Per Day	15	--

GENERAL INFORMATION

Customers :

Wholesalers, Retailers, End Users and OEM’s

No. of Employees :

600 (Approximately)

Bankers :

ICICI Bank Limited, Landmark Race, Cource Circle, Alakapuri, Baroda-390015, Gujarat, India

Facilities :

Secured Loan	As on 31.03.2010 (Rs. in Millions)	As on 31.03.2009 (Rs. in Millions)
Term Loan
From Banks
Long Term Loan
Ing Vysya Bank Limited	143.176	103.425
ICICI Bank Limited	95.000	0.000
Short Term Loan
Ing Vysya Bank Limited	130.272	70.000
ICICI Bank Limited	129.000	0.000
Cash Credit
ICICI Bank Limited	0.381	0.000
Total	497.829	173.425
Unsecured Loan
Vat Deferral	7.088	7.088
From Directors, Associates and Relatives	17.600	17.600
Total	24.688	24.688

Banking Relations :	--
Auditors :
Name :	A Ramachandra Rao and Company Chartered Accountant
Address :	3-6-369/A/11, 1^st Floor, Hyderabad-500029, Andhra Pradesh, India
Tel. No.:	91-40-27633677
Fax No.:	91-40-27639746
E-Mail :	arrandco@gmail.com
Associates/Subsidiaries :	Dodla Dairy, Vinjimuru Dodla Engineering D Soft India Private Limited Hanslot Pile Foundations Surekha Milk Chilling Centre

CAPITAL STRUCTURE

As on 02.09.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
3500000	Equity Shares	Rs.10/- each	Rs.35.000 Millions
2500000	Preferences Shares	Rs.10/- each	Rs.25.000 Millions
	Total		Rs.60.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
2500000	Equity Shares	Rs.10/- each	Rs.25.000 Millions
300000	Preferences Shares	Rs.10/- each	Rs.3.000 Millions
	Total		Rs.28.000 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		28.000	37.000	37.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		156.129	196.893	93.686
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		184.129	233.893	130.686
LOAN FUNDS
1] Secured Loans		497.829	173.425	132.230
2] Unsecured Loans		24.688	24.688	28.592
TOTAL BORROWING		522.517	198.113	160.822
DEFERRED TAX LIABILITIES		47.433	34.303	13.863
DEFERRED PAYMENTS		0.000	0.658	0.000
TOTAL		754.079	466.967	305.371
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		423.244	330.180	190.250
Capital work-in-progress		17.243	25.687	11.931
INVESTMENT		1.848	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	322.997	122.120	106.255
	Sundry Debtors	9.720	7.453	5.038
	Cash & Bank Balances	97.517	70.090	56.835
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	101.435	68.660	40.362
Total Current Assets		531.669	268.323	208.490
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	96.838	77.366	64.089
	Other Current Liabilities	76.263	43.598	32.771
	Provisions	46.824	36.259	8.460
Total Current Liabilities		219.925	157.223	105.320
Net Current Assets		311.744	111.100	103.170
MISCELLANEOUS EXPENSES		0.000	0.000	0.020
TOTAL		754.079	466.967	305.371

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	3273.012	2753.138	2102.692
		Processing Charges	3.412	0.000	0.000
		Other Income	9.925	5.975	2.811
		TOTAL (A)	3286.349	2759.113	2105.503
Less	EXPENSES
		Consumption of raw material	2743.464	2202.443	1721.726
		Consumption of stores and spares	28.983	23.683	16.389
		Manufacturing expenses	148.304	138.073	103.327
		Salaries, wages etc	62.972	53.263	29.265
		Administration and selling expenses	234.937	198.530	148.633
		Increase / decrease in stocks	(133.417)	(38.695)	(7.062)
		TOTAL (B)	3085.243	2577.297	2012.278
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		201.106	181.816	93.225
Less	FINANCIAL EXPENSES (D)		40.806	16.111	12.183
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		160.300	165.705	81.042
Less/ Add	DEPRECIATION/ AMORTISATION (F)		20.687	13.354	11.636
	PROFIT BEFORE TAX (E-F) (G)		139.613	152.351	69.406
Less	TAX (H)		49.883	51.644	24.170
	PROFIT AFTER TAX (G-H) (I)		89.730	100.707	45.236
Less:	TAXATION OF EARLIER YEARS		1.994	0.000	0.000
	NET PROFIT / (LOSS)		87.736	100.707	45.236
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		192.393	91.686	46.450
Less	APPROPRIATIONS
		Capital Redemption Reserve	9.000	0.000	0.000
		Redeemable Preferences Shares	131.000	0.000	0.000
	BALANCE CARRIED TO THE B/S		140.129	192.393	91.686
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	0.136	0.287	NA
	Earnings Per Share (Rs.)		35.89	40.28	18.09

Expected Sales (2010-2011) : Rs.4500.000 Millions

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	2.73	3.65	2.15
Net Profit Margin (PBT/Sales)	(%)	4.27	5.53	3.30
Return on Total Assets (PBT/Total Assets}	(%)	19.00	25.45	17.41
Return on Investment (ROI) (PBT/Networth)		0.76	0.65	0.53
Debt Equity Ratio (Total Liability/Networth)		4.03	1.52	2.04
Current Ratio (Current Asset/Current Liability)		2.42	1.70	1.98

LOCAL AGENCY FURTHER INFORMATION

Details of Sundry Creditors:

Particulars	31.03.2010 (Rs. in millions)	31.03.2009 (Rs. in millions)	31.03.2008 (Rs. in millions)
Sundry Creditors
Goods and Services	96.838	77.366	64.089

Business Operations:

The company had achieved a growth in sales of 19.00% during the reported period. The company has setup a plant at Sindhanoor, this will cater the growing market in north Karnataka region.

Bankers Charges Report as per Registry

This form is for	Creation of charge
Corporate identity number of the company	U15209AP1995PLC020324
Name of the company	DODLA DAIRY LIMITED
Address of the registered office or of the principal place of business in India of the company	8-2-696, Road No. 12, Banjara Hills, Hyderabad, Andhra Pradesh
Type of charge	Book Debts Movable Property (not being pledge) Others
Particular of charge holder	ICICI Bank Limited, Landmark Race, Cource Circle, Alakapuri, Baroda-390015, Gujarat, India
Email	praveen.kylasa@icicibank.com
Nature of description of the instrument creating or modifying the charge	Deed of Hypothecation dated 28th October, 2010 for working capital limits aggregating to Rs 200.000 Millions.
Date of instrument Creating the charge	28.10.2010
Amount secured by the charge	Rs.200.000 Millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest CC: I Base +4.25% p.a. WCDL: CoF+1.00% p.a. Appl. 10.30% Terms of Repayment Working capital limits payable on demand WCDL : Principal amt of each tranche to be repaid in installments , but within validity period of facility Margin CC and WCDL : 25% against on all components of inventory, 25% on Book debts with cover period of 90days Extent and Operation of the charge Working Capital: Pari passu first charge by way of hypothecation of the Company’s entire Current Assets, both present and future. Pari passu second charge on all the fixed assets of the company, both present and future
Short particulars of the property charged	I) Working Capital : Pari passu first charge by way of hypothecation of the Company’s entire Current Assets, both present and future II) Working Capital : Pari passu second charge on all the fixed assets of the company, both present and future

Fixed Assets:

• Land
• Building
• Plant and Machinery
• Electrical Installation
• Data Processing Equipment
• Furniture and Fittings
• Laboratory Equipments
• Vehicles

Trade References:

• Deejay Multiplast

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.45.09
UK Pound	1	Rs.72.82
Euro	1	Rs.63.43

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	5
--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	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		48

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.