MIRA INFORM REPORT

Report Date :

20.05.2011

IDENTIFICATION DETAILS

Name :	AASHIRWAD ENTERPRISES
Registered Office :	Shop No.5 and 6, Saraswati Apartment, Opposite Rekhi Hotel, Shivaji Road, Panvel – 410206, Maharashtra
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	26.08.2006
Capital Investment / Paid-up Capital :	Rs.1.105 Million
PAN No.: [Permanent Account No.]	AANFA2458B
Legal Form :	Partnership Concern with an Unlimited Liability of the Partners.
Line of Business :	Manufacturer of Milk and Milk Products.
No. of Employees :	40 (Office – 13 and Factory – 27)

RATING & COMMENTS

MIRA’s Rating :

B

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

Status :	Moderate
Payment Behaviour :	No Complaints
Litigation :	Clear
Comments :	Subject is an established concern in its field. Trade relations are reported as fair. The valuation report provided is of lesser value than the transaction amount. No complaints have been heard from indirect or market sources. It would be advisable to take adequate securities while dealing with the subject.

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. Jaspal Singh
Designation :	Chief Financial Officer
Contact No.:	91-9819939920
Date :	16.05.2011

LOCATIONS

Registered Office :	Shop No.5 and 6, Saraswati Apartment, Opposite Rekhi Hotel, Shivaji Road, Panvel – 410206, Maharashtra, India
Tel. No.:	91-22-40885151
Fax No.:	91-22-40885146
E-Mail :	Jaspal.singh@dwarka.biz
Website :	http://www.dwarkadairy.com
Location :	Owned
Corporate Office :	2^nd Floor, Hilton centre, Plot No.66, Sector 11, CBD Belapur, Navi Mumbai – 400614, Maharashtra, India
Location :	Rented
Factory :	G-6/ G-7, Old MIDC, Satara, Maharashtra, India
Area :	16526.62 sq. ft.
Location :	Owned

PARTNERS

Name :	Mr. Kapil D. Rajpur
Designation :	Partner
Address :	Rose, Flat 703, Plot No.10, Sector 06, Kharhar, Navi Mumbai – 410210, Maharashtra, India
Date of Birth/Age :	15.08.1974
Qualification :	B. Com
Experience :	15 years
Name :	Mr. Mithilesh D. Rajput
Designation :	Partner
Address :	Flat No.B-603, Neelkanth Garden, Plot No.29/5, Bhoomi Const., Panvel – 410206, Maharashtra, India
Date of Birth/Age :	30.08.1981
Qualification :	B. Com
Experience :	10 years
Name :	Mr. Murugesan A.
Designation :	Partner
Address :	GRH 5/3, Plot No.23, Sector 7, Airoli – 400708, India
Date of Birth/Age :	01.11.1977
Qualification :	B. Com. MBA
Experience :	10 years
Name :	Mr. Hemal Jobanputra
Designation :	Partner
Address :	4/12, Satyam Nath Pai Nagar, Ghatkopar East, Mumbai – 400077, Maharashtra, India
Date of Birth/Age :	07.04.1979
Qualification :	B. Com, DBM
Experience :	6 years

KEY EXECUTIVES

Name :	Mr. Jaspal Singh
Designation :	Chief Financial Officer

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

(AS ON 31.03.2010)

Names of Shareholders	Percentage of Holding
Kapil D. Rajpur	30%
Mithilesh D. Rajput	30%
Murugesan A.	20%
Hemal Jobanputra	20%
Total	100.00%

BUSINESS DETAILS

Line of Business :	Manufacturer of Milk and Milk Products.
Products :	40 (Office – 13 and Factory – 27)
Brand Name :	Dwarka
Terms :
Selling :	Cash and Credit (90 days)
Purchasing :	Cash and Credit (1 day)

PRODUCTION STATUS (AS ON 31.03.2010)

Particulars	Installed Capacity	Actual Production
Milk Processing and Trading Activity	1 lacs liter per day	54000 Liter per day

GENERAL INFORMATION

Customers :	Wholesalers and Retailers
No. of Employees :	40 (Office – 13 and Factory – 27)
Bankers :	· Corporation Bank Mid- Corporate Branch, Andheri, Maharashtra, India
Facilities :	Proposed cash Credit Limit – Rs.72.500 Millions and Term Loan – Rs.20.000 Millions

Banking Relations :	--
Auditors :
Name :	Dipesh Thakker Chartered Accountant
Address :	123, Commodity Exchange Building, Dana Bunder, Sector 19, Vashi, Navi Mumbai – 400705, Maharashtra, India
Tel. No.:	91-22-27831580
Mobile No.:	91-9869059901
Email :	dipeshthakkar@rediffmail.com
Ground Companies :	· Honey Taste Private Limited Bhaskar Milk and Milk Products Starview Trading Company Private Limited Icon Trading Company Private Limited Goodspot Trading Company private Limited Whitegold Mercantile Company Private Limited Dwarka Milk and Milk Products Private Limited Shri Krishna Milk and Allied Products K M Milk Products Private Limited Magictime Trading Company Private Limited Shri Vinayak Milk Products Private Limited Milkraft Dairytech Private Limited Mahesh Trading Company Avadhoot Traders Arzoo Enterprises A. M. Enterprises Gauri Enterprises K P Enterprises Chankya Foods and Beverages Arya Enterprises Abhishek Enterprises Armaan Foods Shivam Enterprises Kaveri Enterprises Trimurthi Enterprises Dev Dairy Products Private Limited Ganga Foods

CAPITAL STRUCTURE

PARTNER’S CAPITAL ACCOUNT

(RS. IN MILLIONS)

MR. KAPIL RAJPUT

Particulars	31.03.2010	Particulars	31.03.2010
Drawings	0.010	Opening Balance	0.103
Self Ass. Tax 2009-10	0.007	Interests on Capital	0.011
Balance C/d	0.360	Net Profit	0.263
Total	0.377	Total	0.377

MR. MITHILESH RAJPUT

Particulars	31.03.2010	Particulars	31.03.2010
Drawings	0.000	Opening Balance	0.065
Self Ass. Tax 2009-10	0.007	Interests on Capital	0.008
Balance C/d	0.328	Net Profit	0.262
Total	0.335	Total	0.335

MR. HEMAL JOBANPUTRA

Particulars	31.03.2010	Particulars	31.03.2010
Drawings	0.000	Opening Balance	0.034
Self Ass. Tax 2009-10	0.005	Interests on Capital	0.004
Balance C/d	0.208	Net Profit	0.175
Total	0.213	Total	0.213

MR. MURUGESAN ADIMOOLAM

Particulars	31.03.2010	Particulars	31.03.2010
Drawings	0.000	Opening Balance	0.034
Self Ass. Tax 2009-10	0.005	Interests on Capital	0.004
Balance C/d	0.208	Net Profit	0.175
Total	0.213	Total	0.213

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FINANCIAL DATA

[all figures are in Rupees Millions]

Note : Sole Proprietory and Partnership concerns are exempted from filing their financials with the Government Authorities or Registry.

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2010	31.03.2009	31.03.2008
SHAREHOLDERS FUNDS
1] Share Capital		1.105	0.236	0.206
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		0.000	0.000	0.000
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		1.105	0.236	0.206
LOAN FUNDS
1] Secured Loans		0.000	0.000	0.000
2] Unsecured Loans		0.500	0.000	0.000
TOTAL BORROWING		0.500	0.000	0.000
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		1.605	0.236	0.206
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		2.563	0.000	0.000
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	0.107	0.126	0.036
	Sundry Debtors	0.316	1.247	2.170
	Cash & Bank Balances	1.481	2.181	1.545
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	0.000	0.000	0.046
Total Current Assets		1.904	3.554	3.797
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditor	0.358	3.166	3.591
	Other Current Liabilities	0.337	0.000	0.000
	Provisions	2.167	0.152	0.000
Total Current Liabilities		2.862	3.318	3.591
Net Current Assets		(0.958)	0.236	0.206
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		1.605	0.236	0.206

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	320.670	158.638	81.591
		Other Income	0.000	0.000	0.000
		TOTAL	320.670	158.638	81.591
Less	EXPENSES
		Cost of Goods Sold	314.873	155.969	80.231
		Electricity Charges	0.099	0.084	0.029
		Labour Charge	0.073	0.043	0.075
		Miscellaneous Expenses	0.072	0.075	0.029
		Office Expenses	0.078	0.079	0.026
		Postage and Courier Charges	0.051	0.000	0.000
		Printing and Stationery	0.084	0.052	0.026
		Repaired and Maintenance	0.094	0.087	0.025
		Salary and Wages	3.678	1.546	0.620
		Sales Promotion	0.120	0.073	0.052
		Staff Welfare	0.098	0.053	0.021
		Telephone and Mobile Expenses	0.073	0.088	0.017
		Transport Charges	0.099	0.000	0.000
		Travelling and Conveyance	0.150	0.099	0.026
		Other Expenses	0.153	0.119	0.271
		TOTAL	319.795	158.367	81.448
	NET PROFIT		0.875	0.271	0.143

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	0.27	0.17	0.18
Net Profit Margin (PBT/Sales)	(%)	0.27	0.17	0.18
Return on Total Assets (PBT/Total Assets}	(%)	19.59	7.63	3.77
Return on Investment (ROI) (PBT/Networth)		0.79	1.15	0.69
Debt Equity Ratio (Total Liability/Networth)		3.04	14.06	17.43
Current Ratio (Current Asset/Current Liability)		0.67	1.07	1.06

LOCAL AGENCY FURTHER INFORMATION

COST OF THE PROJECT

Particulars	(Rs. In Millions)
Acquisition Cost of the plant	11.700
Proposed CAPEC to be done in the plant	15.101
Total Project Cost	26.801
Say – Total Project Cost	26.800
Bank Finance – 75% of the Project Cost	26.800
Own Funds – Approx. 25% of Project Cost	20.100
Total	26.800
Rounded off
Term Loan – Bank Finance	20.000
Own Funds	6.800
Total Project Cost	26.800
Cash Credit Limit (Fresh)	72.500

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SALES AND PURCHASES

(RS. IN MILLIONS)

Particulars	2011	2012	2013	2014	2015
Installed Capacity (In Lac. Ltr. Per Day)
Milk Handling for:
H and P	1.00	1.00	1.00	1.00	1.00
Total	1.00	1.00	1.00	1.00	1.00
Utilized Capacity in %
Of H and P	42.00	54.00	56.00	58.00	60.00
No. of Working Days	365.00	365.00	365.00	365.00	365.00
Installed capacity (In Lakh Ltrs.)	1.00	1.00	1.00	1.00	1.00
Requirement of Milk (In Lakh Ltrs.)	153.30	197.10	204.40	211.70	219.00
Opening stock of Milk (In Lakh Ltrs)	0.06	0.42	0.54	0.56	0.58
Add: Purchases during the year	153.30	197.10	204.40	211.70	219.00
	153.36	197.52	204.94	212.26	219.58
Less: Closing Stock	0.42	0.54	0.56	0.58	0.60
Quality of Milk Sold	152.94	196.98	204.38	211.68	218.98
Rate per Ltr (Rs.)	22.50	22.50	22.50	22.50	22.50
Total Sales	344.115	443.205	459.855	476.280	492.705
Purchases Price of Milk	1.900	1.850	1.850	1.850	1.850
Cost of Purchase of Milk	290.586	364.413	378.103	391.608	405.113

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STATEMENT OF DEBT SERVING CAPACITY RATIO

(RS. IN MILLIONS)

Particulars	2011	2012	2013	2014	2015
A. Cash Accruals
Post Tax Profit	1.034	9.226	10.015	10.961	11.216
Interests on Term Loan	0.000	2.771	2.596	2.135	1.673
Add: Depreciation	0.256	3.811	3.271	3.008	3.343
Preliminary Expenses	0.000	0.000	0.000	0.000	0.000
Net Cash Accruals (A)	1.291	15.807	15.881	16.104	16.232
B. Repayment Obligations
Interests on Term Loan	0.000	2.771	2.596	2.135	1.673
Installment of Term Loan	1.538	3.077	3.077	3.077	3.077
Total Debts (B)	1.538	5.848	5.673	5.212	4.750
DSC Ratio (A/B)	0.84	2.70	2.80	3.09	3.42
Average debt Serving Capacity Ratio	3.35
Minimum Debt Serving Capacity Ratio	2.70
Project debt Serving capacity Ratio	3.18

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OPERATING STATEMENT

(RS. IN MILLIONS)

Particulars	31.03.2011	31.03.2012	31.03.2013	31.03.2014	31.03.2015
	(Estimated)	(Projected)
Gross Sales
Domestic	344.115	443.205	459.855	476.280	492.705
Export	0.000	0.000	0.000	0.000	0.000
Total	344.115	443.205	459.855	476.280	492.705
Less : Excise Duty	0.000	0.000	0.000	0.000	0.000
Net Sales	344.115	443.205	459.855	476.280	492.705
% rise [+] or fall [-] in net sales as compared to previous year	7.31	28.80	3.76	3.57	3.45
Cost of Sales
Raw Materials Consumed
- Imported	--	--	--	--	--
- Indigenous	290.586	364.413	378.103	391.608	405.113
Others Stores and Spares
- Imported	--	--	--	--	--
- Indigenous	--	--	--	--	--
Power and Fuel	1.213	1.528	1.596	1.666	1.739
Direct Wages (Factory Wages and Salaries)	2.000	2.100	2.310	2.541	2.795
Other Manufacturing Expenses	25.329	26.388	27.342	28.344	29.625
Depreciation	0.256	3.811	3.271	3.008	3.343
Sub Total	319.384	398.239	412.622	427.167	442.615
Add: Opening Stock-In-Process	--	--	--	--	--
Sub Total	319.384	398.239	412.622	427.167	442.615
Deduct: Closing Stock-In-Process	--	--	--	--	--
Cost of Production	319.384	398.239	412.622	427.167	442.615
Add: Opening Stock of Finished Goods	0.107	0.796	0.998	1.036	1.073
Sub Total	319.491	399.035	413.621	428.203	443.687
Deduct: Closing Stock of Finished Goods	0.796	0.998	1.036	1.073	1.110
SUB TOTAL (Total cost of sales)	318.695	398.037	412.585	427.130	442.578
Selling, General and Administrative Expenses	23.943	18.705	19.855	20.844	21.919
Sub Total	342.637	416.742	432.440	447.974	464.496
Operating Profit before interests	1.478	26.463	27.415	28.306	28.209
Interests	0.000	13.284	13.109	12.647	12.186
Operating profit after Interests	1.478	13.179	14.307	15.659	16.023
Non Operating Income	0.000	0.000	0.000	0.000	0.000
Non Operating Expenses	0.000	0.000	0.000	0.000	0.000
Net of Non-operating Income and Expenses	0.000	0.000	0.000	0.000	0.000
Profit before Tax/ Loss [PBT]	1.478	13.179	14.307	15.659	16.023
Provision for taxes	0.443	3.954	4.292	4.698	4.807
Net Profit / Loss [PAT]	1.034	9.226	10.015	10.961	11.216
	0.030	0.208	0.218	0.230	0.228
Proposed Dividend	0.000	0.000	0.000	0.000	0.000
Retained Profit	1.034	9.226	10.015	10.961	11.216
Retained profit/ Net Profit % age	100.00%	100.00%	100.00%	100.00%	100.00%

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ANALYSIS OF BALANCE SHEET

(RS. IN MILLIONS)

Particulars	31.03.2011	31.03.2012	31.03.2013	31.03.2014	31.03.2015
	(Estimated)	(Projected)
CURRENT LIABILITIES
Short Term Borrowing from Bank
i. From Application Bank	0.000	72.500	72.500	72.500	72.500
ii. From Other Banks	0.000	0.000	0.000	0.000	0.000
SUB TOTAL (A)	0.000	72.500	72.500	72.500	72.500
Short Term Borrowings From Others	0.000	0.000	0.000	0.000	0.000
Sundry Creditors (Trader)	0.958	1.207	1.252	1.297	1.342
Advances Payment from customers	0.000	0.000	0.000	0.000	0.000
Provision For Taxes	0.000	0.000	0.000	0.000	0.000
Dividend Payable	0.000	0.000	0.000	0.000	0.000
Other Statutory Liabilities (due within one years)	0.000	0.000	0.000	0.000	0.000
Installments of term loans and Deferred Payment Credits	0.000	0.000	0.000	0.000	0.000
Other current Liabilities and Provisions (due within one years)	1.146	1.086	1.139	1.194	1.251
SUB TOTAL (B)	2.104	2.293	2.391	2.491	2.592
TOTAL CURRENT LIABILITIES	2.104	74.793	74.891	74.991	75.092
TERM LIABILITIES
Debentures	0.000	0.000	0.000	0.000	0.000
Redeemable Preference Shares	0.000	0.000	0.000	0.000	0.000
Term Loans	0.000	18.462	15.385	12.308	9.231
Deferred Payment Credits
Unsecured Loans	15.000	15.000	15.000	15.000	15.000
Term Deposit
Other Term Liabilities
TOTAL TERM LIABILITIES	15.000	33.462	30.385	27.308	24.231
TOTAL OF OUTSIDE LIABILITIES	17.104	108.255	105.276	102.298	99.323
NET WORTH
Shares Capital	11.139	20.365	30.380	41.341	52.557
Application Money	0.000	0.000	0.000	0.000	0.000
Partner’s Current A/c	0.000	0.000	0.000	0.000	0.000
General Reserve	0.000	0.000	0.000	0.000	0.000
Revolution Reserve	0.000	0.000	0.000	0.000	0.000
Reserves and Surplus	0.000	0.000	0.000	0.000	0.000
Unsecured Loans	0.000	0.000	0.000	0.000	0.000
Share Premium Account	0.000	0.000	0.000	0.000	0.000
Surplus (+) or deficit (-) in Profit and Loss Account	0.000	0.000	0.000	0.000	0.000
TOTAL NET WORTH	11.139	20.365	30.380	41.341	52.557
TOTAL LIABILITIES	28.244	128.620	135.656	143.639	151.880
ASSETS
CURRENT ASSETS
Cash and Bank Balance	1.572	2.557	2.786	3.911	3.908
Investments [Other than long term investments]	0.000	0.000	0.000	0.000	0.000
Receivables other than deferred and exports	23.570	99.569	109.609	117.439	121.489
Export receivables	0.000	0.000	0.000	0.000	0.000
Government and other Trustee securities	0.000	0.000	0.000	0.000	0.000
Fixed deposit with bank	0.000	0.000	0.000	0.000	0.000
Domestic receivable Including BP/ BD	0.000	0.000	0.000	0.000	0.000
INVENTORY
Raw Materials
- Imported	0.000	0.000	0.000	0.000	0.000
- Indigenous	0.796	0.998	1.036	1.073	1.110
Stock in Process	0.000	0.000	0.000	0.000	0.000
Finished Goods	0.000	0.000	0.000	0.000	0.000
Other Consumable Spares	0.000	0.000	0.000	0.000	0.000
Advances to suppliers	0.000	0.000	0.000	0.000	0.000
Advance Payment of Taxes	0.000	0.000	0.000	0.000	0.000
Other Current Assets	0.000	0.000	0.000	0.000	0.000
TOTAL CURRENT ASSETS	25.938	103.125	113.431	122.423	126.506
FIXED ASSETS
Gross Block (Land and Building Machinery)	2.562	29.562	29.562	31.562	39.062
Depreciation to date	0.256	4.067	7.337	10.346	13.688
NET BLOCK	2.306	25.495	22.225	21.216	25.374
OTHER NON CURRENT ASSETS
Investments in sub Cos./ Affiliates	0.000	0.000	0.000	0.000	0.000
Advances to suppliers of Capital goods and contractors	0.000	0.000	0.000	0.000	0.000
Investment in Others	0.000	0.000	0.000	0.000	0.000
Other Non-Current Investment	0.000	0.000	0.000	0.000	0.000
TOTAL OTHER NON CURRENT ASSETS	0.000	0.000	0.000	0.000	0.000
Intangible Assets	0.000	0.000	0.000	0.000	0.000
TOTAL ASSETS	28.244	128.620	135.656	143.639	151.880
Tangible Net Worth (TNW)	11.139	20.365	30.380	41.341	52.557
Net Working Capital (NWC)	23.834	28.331	38.540	47.432	51.414
Current Ratio	12.33:1	1.38:1	1.51:1	1.63:1	1.68:1
TOL/ TNW	1.54	5.32	3.47	2.47	1.89

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COMPARATIVE STATEMENT OF CURRENT ASSETS AND CURRENT LIABILITIES

(RS IN MILLIONS)

Particulars	31.03.2011	31.03.2012	31.03.2013	31.03.2014	31.03.2015
	(Estimated)	(Projected)
Raw Materials
[a] Imported	0.000	0.000	0.000	0.000	0.000
Months Consumption	0.000	0.000	0.000	0.000	0.000
[b] Indigenous	0.796	0.998	1.036	1.073	1.110
Months Consumption	0.000	0.000	0.000	0.000	0.000
Other consumable spares (Excluding those included 1 above)
[a] Imported	0.000	0.000	0.000	0.000	0.000
Months Consumption	0.000	0.000	0.000	0.000	0.000
[b] Indigenous	0.000	0.000	0.000	0.000	0.000
Months Consumption	0.000	0.000	0.000	0.000	0.000
Stock in process	0.000	0.000	0.000	0.000	0.000
Months cost of production	0.000	0.000	0.000	0.000	0.000
Finished goods	0.000	0.000	0.000	0.000	0.000
Months cost of sales	0.000	0.000	0.000	0.000	0.000
Receivable other than export and deferred receivables [including bills purchased and discounted by bankers]	23.570	99.569	109.609	117.439	121.489
Months domestic sales	0.000	0.000	0.000	0.000	0.000
Export receivables [including bills purchased and discounted by bankers]	0.000	0.000	0.000	0.000	0.000
Months export sales	0.000	0.000	0.000	0.000	0.000
Advances to suppliers of raw materials and stores/ spares consumable	0.000	0.000	0.000	0.000	0.000
Other current Assets including cash and bank balances and deferred receivable due within one year	1.572	2.557	2.786	3.911	3.908
TOTAL CURRENT ASSETS	25.938	103.125	113.431	122.423	126.506
B CURRENT LIABILITIES
[Other than bank borrowing for working capital]
Creditors for purchases of raw materials and stores and consumable spares	0.958	1.207	1.252	1.297	1.342
Months Purchases	0.000	0.000	0.000	0.000	0.000
Advances from customers	0.000	0.000	0.000	0.000	0.000
Statutory Liabilities	0.000	0.000	0.000	0.000	0.000
Other current liability Specify Major Items) Current Loan Inst.	2.504	1.146	1.086	1.139	1.194
TOTAL	2.104	2.293	2.391	2.491	2.592

------------------------------------------------------------------------------------------------------------------------------

COMPUTATION OF MAXIMUM PERMISSIBLE BANK FINANCE FOR WORKING CAPITAL

(RS. IN MILLIONS)

Particulars	31.03.2011	31.03.2012	31.03.2013	31.03.2014	31.03.2015
	(Estimated)	(Projected)
FIRST METHOD OF LENDING
Total Current Assets	25.938	103.125	113.431	122.423	126.506
Other current Liabilities (Other than Bank borrowings)	2.104	2.293	2.391	2.491	2.592
Working Capital Gap	23.834	100.831	111.040	119.932	123.914
Min. Stipulated net working capital (25% of WCG)	6.484	25.781	28.358	30.606	31.627
Actual/ Project Net Working	23.834	28.331	38.540	47.432	51.414
Item 3 minus item 4	17.349	75.050	82.682	89.326	92.288
Item 3 minus item 5	0.000	72.500	72.500	72.500	72.500
Maximum permissible bank finance	0.000	72.500	72.500	72.500	72.500
Excess borrowing representing Shortfall in NWC	0.000	0.000	0.000	0.000	0.000

------------------------------------------------------------------------------------------------------------------------------

FUND FLOW STATEMENT

(RS. IN MILLIONS)

Particulars	31.03.2011	31.03.2012	31.03.2013	31.03.2014	31.03.2015
	(Estimated)	(Projected)
SOURCES
Net profit After Tax	1.034	9.226	10.015	10.961	11.216
Depreciation	0.256	3.811	3.271	3.008	3.343
Increase in Capital	9.000	0.000	0.000	0.000	0.000
Increase in Term Liability
- Term Loans	0.000	22.400	0.000	0.000	0.000
- Unsecured Loans	14.500	0.000	0.000	0.000	0.000
Decrease in
- Fixed Assets	0.000	0.000	0.000	0.000	0.000
- Other Non Current Assets	0.000	0.000	0.000	0.000	0.000
Others	0.000	0.000	0.000	0.000	0.000
TOTAL SOURCES	24.791	35.436	13.286	13.969	14.559
USES
Net Loss	0.000	0.000	0.000	0.000	0.000
Decrease in Term Liability	0.000	1.538	3.077	3.077	3.077
Increase in
- Fixed Assets	0.000	27.000	0.000	2.000	7.500
- Other Non Current Assets	0.000	0.000	0.000	0.000	0.000
Dividend Payments	0.000	0.000	0.000	0.000	0.000
Withdrawals	0.000	0.000	0.000	0.000	0.000
Other Unsecured Loans	0.000	2.400	0.000	0.000	0.000
TOTAL USES	0.000	30.938	3.077	5.077	10.577
Long Term Surplus (+) Deficit (-)	24.791	4.498	10.208	8.892	3.982
Increase/ Decrease in current Assets (as per details Given Below)	24.033	77.187	10.307	8.992	4.083
Increase/ decrease in current Liabilities other Than Bank Borrowing	(0.758)	0.189	0.098	0.099	0.101
Increase/ decrease Working Capital Gap	24.791	76.998	10.208	8.892	3.982
Net surplus (+)/ Deficit (-)	(72.500)	0.000	0.000	0.000	0.000
Increase/ (Decrease) in Bank Borrowings	0.000	72.500	0.000	0.000	0.000
Increase/ (Decrease) in Net Sales	23.445	99.090	16.650	16.425	16.425
Break-Up of (4)
Increase/ Decrease in Raw Material	0.689	0.202	0.038	0.037	0.037
Increase/ Decrease in Stock in Process	--	--	--	--	--
Increase/ Decrease in Finished Goods	0.000	0.000	0.000	0.000	0.000
Increase/ Decrease in Receivables
Domestic	23.253	76.000	10.040	7.830	4.050
Export	--	--	--	--	--
Increase/ Decrease in Other Current Assets	0.091	0.985	0.229	1.125	(0.004)
Total	24.033	77.187	10.307	8.992	4.083

------------------------------------------------------------------------------------------------------------------------------

CASH FLOW STATEMENT

(RS. IN MILLIONS)

Particulars	31.03.2011	31.03.2012	31.03.2013	31.03.2014	31.03.2015
	(Estimated)	(Projected)
Capital introduced	9.000	0.000	0.000	0.000	0.000
Net Profit Before Depreciation and Interests	1.734	30.274	30.686	31.314	31.551
Increase in Term Loan	0.000	22.400	0.000	0.000	0.000
Increase in Short Term Loan	0.000	72.500	0.000	0.000	0.000
Increase in Unsecured Loan	14.500	0.000	0.000	0.000	0.000
Others	0.000	0.000	0.000	0.000	0.000
Total Sources	25.234	125.174	30.686	31.314	31.551
Capital Expenditure	0.000	27.000	0.000	2.000	7.500
Decrease in Secured Loan	0.000	1.538	3.077	3.077	3.077
Interests on Secured Loan	0.000	13.284	13.109	12.647	12.186
Increase /(Decrease) in working Capital	24.700	78.413	9.979	7.767	3.986
Decrease in Unsecured Loan	0.000	0.000	0.000	0.000	0.000
Deposits	0.000	0.000	0.000	0.000	0.000
Taxes paid	0.443	3.954	4.292	4.698	4.807
Total Outflow	25.143	124.189	30.457	30.189	31.555
Opening cash Balance	1.481	1.572	2.557	2.786	3.911
Surplus	0.091	0.985	0.229	1.125	(0.004)
Closing Cash Balance	1.572	2.557	2.786	3.911	3.908

------------------------------------------------------------------------------------------------------------------------------

COMPUTATION OF TOTAL INCOME

(RS. IN MILLIONS)

PARTICULARS	2010-2011
INCOME FROM BUSINESS AND PROFESSION
Net Profit as per Profit and Loss Account		0.875
Add: Interests on Capital
Kapil Rajput	0.011
Mithilesh rajput	0.008
Hemal Jobanputra	0.004
Murugesan Adimoolam	0.004	0.027
Total		0.902
Less:
Allowable under Section 40b (iv)		0.028
Gross Total Income		0.028
Taxable Income		0.875
Rounded Off		0.875
Tax on Rs.875090/-		0.263
Add: E. Cess at 3%		0.007
Total Tax Payable		0.270
Less: Self Assessment Tax Paid		0.270
Tax Payable		0.000

------------------------------------------------------------------------------------------------------------------------------

MR. KAPIL D. RAJPUT

NET ASSETS AS ON 31^ST MARCH 2010

PARTICULARS	(RS. IN MILLIONS)
ASSETS
Gold Jewellery	1.421
Hotel Dwarka, Panvel	51.617
Plant and Machinery	10.404
Land	1.880
Building	6.088
Equipment	0.305
Computer	0.030
Furniture and Fixture	0.029
Motor Vehicles	3.652
Mobile	0.002
Regency Gardens	21.450
Krishna Tower – Panvel	4.450
Investment
Investment in Partnership Firms	16.872
Investment in LIC	1.065
Investment in Proprietorship Firms	12.760
Investment in Shares (Private Limited Companies)	49.500
Current Assets
Sundry Debtors	88.103
Stock in Hand	0.938
Loans, Advance and Other Assets	1.872
Cash and Bank Balance	0.061
TOTAL ASSETS		272.499
LESS: LIABILITIES
Cash Credit with Canara Bank, Chembur Branch	50.564
Term Loan with Canara Bank, Chembur Branch	15.018
Unsecured Loan from Friends and Relatives	26.434
Vehicles Loan	2.967
Business Loan	7.040
Housing Loan from BOB	9.895
Sundry Creditors	0.635
Liabilities for Expenses	0.011
TOTAL LIABILITIES		112.564
NET WORTH		159.935

------------------------------------------------------------------------------------------------------------------------------

MR. MITHILESH D. RAJPUT

NET ASSETS AS ON 31^ST MARCH 2010

PARTICULARS	(RS. IN MILLIONS)
ASSETS
Jewellery	0.715
Furniture and Fixture	0.055
Shop Premises at Jeevan Shilp, Khanda Colony	0.363
Shop 1, 2 and 3 at Ashapura	8.998
Residential Premises at Neelkanth Garden	9.000
Shop 9,13,14 and 15 Premises at Sai Vihar	90.624
Office 6, 7 and 8 at Neco Chambers	27.150
Office 22, 23, 24 and 25 Premises at Shree Darshan	11.103
Motor Vehicles	1.082
Investment
Investment in Partnership Firms	16.219
Investment in Share of Private Limited Companies	49.500
Current Assets
Loans and Advance	0.700
Cash and Bank Balance	1.212
TOTAL ASSETS		216.721
LESS: LIABILITIES
Motor Car Loan	0.759
Loan from Friends and Relatives	19.942
Housing Loan from HDFC	3.687
Personal Loan from Financial Institute	8.875
Unsecured Loan and Others	8.525
TOTAL LIABILITIES		41.788
NET WORTH		174.933

------------------------------------------------------------------------------------------------------------------------------

MR. HEMAL JOBANPUTRA

NET ASSETS AS ON 31^ST MARCH 2010

PARTICULARS	(RS. IN MILLIONS)
ASSETS
Office at Vashi	1.750
LIC	0.325
Jewellery	0.169
Investment in shares (Private Limited Companies)	33.300
Investment in Partnership Firms	10.644
House Property	2.500
Loans and Advance	1.250
Cash and Bank Balance	0.122
TOTAL ASSETS		50.060
LESS: LIABILITIES
PL – Kotak Bank	0.186
Housing and Office Loan	1.413
Unsecured Loans	41.100
TOTAL LIABILITIES		42.699
NET WORTH		7.361

------------------------------------------------------------------------------------------------------------------------------

MR. MURGESHAN AADIMOOLAM SALIAN

NET ASSETS AS ON 31^ST MARCH 2010

PARTICULARS	(RS. IN MILLIONS)
ASSETS
House at Airoli	3.505
LIC	0.350
Jewellery	0.819
Investment in Shares (Private Limited)	33.300
Investment in Partnership Firms	10.614
Loans and Advance	1.522
Investment in Shares	0.332
Cash and Bank Balance	0.099
TOTAL ASSETS		50.541
LESS: LIABILITIES
PL – Deutsche Bank	0.275
Loan	0.250
Housing Loan	0.999
Unsecured Loans – Friends and Relatives	39.800
TOTAL LIABILITIES		41.324
NET WORTH		9.217

------------------------------------------------------------------------------------------------------------------------------

VALUE OF FRINGE BENEFITS IN TERMS OF SECTION 115 WC READ WITH SECTION 115WB FOR THE ASSESMENT YEAR 2009-2010

(RS. IN MILLIONS)

Section under Which Chargeable to Fringe Benefit Tax	Name	Amount of Expenditure Incurred or Payment Made	Percentage Expenditure/ Payment Being Fringe Benefits	Value of Fringe Benefits
115WB(1)(b)	Free or concessional ticket provided by the employer for private journeys of this employees or their family members	Nil	100%	Nil
115WB(1)(c)	Any contribution by the employer to any approved Superannuation fund for employees	Nil	100%	Nil
115WB(2)(A)	Entertainment	Nil	20%	Nil
115WB(2)(B)	Provision of Hospitality of every kind by the employer to any person	Nil	20%	Nil
115WB(2)(C)	Conference (Other than fee for participation by the employees in any conference)	Nil	20%	Nil
115WB(2)(D)	Sales promotion including publicity	0.073	20%	0.015
115WB(2)(E)	Employees’ Welfare	0.053	20%	0.011
115WB(2)(F)	Conveyance	Nil	20%	Nil
115WB(2)(G)	Use of hotel, boarding and lodging facilities	Nil	20%	Nil
115WB(2)(H)	Repair, Running (including fuel), maintenance of motor cars and the amount of depreciation thereon	Nil	20%	Nil
115WB(2)(I)	Repair, Running ( Including Fuel) and maintenance of aircraft and the amount of depreciation thereon	Nil	20%	Nil
115WB(2)(J)	Use of Telephone (Including mobile phone) other than expenditure on leased telephone lines	0.088	20%	0.018
115WB(2)(K)	Maintenance of any accommodation in the nature of guest house other than accommodation used for training purpose	Nil	20%	Nil
115WB(2)(L)	Festival Celebrations	Nil	50%	Nil
115WB(2)(M)	Use of health club and similar facilities	Nil	50%	Nil
115WB(2)(N)	Use of any other club facilities	Nil	50%	Nil
115WB(2)(O)	Gifts	Nil	50%	Nil
115WB(2)(P)	Scholarships	Nil	50%	Nil
115WB(2)(Q)	Tour and Travel (Including foreign travel)	0.099	5%	0.005
Total		0.313		0.049

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BASIS AND ASSUMPTIONS FOR VALUATION OF FIXED ASSETS

This Valuation Assignment is given by the Owner for onward submission to the - Corporation Bank Andheri (East) Branch.

If the property is small piece of land which is measurable, they take actual measurement for the area.

If the land is large / either merged or many separate piece in the same or different survey nos., it is practically not possible to take actual measurements and the area mention in (he Property document is taken for valuation.

For Valuation of Factory Building and other structures, they refer to Approved plans by the competent Authority and arrive at value based on Technical specifications of every structure, it’s replacement cost as on day of visit and Applying clue % of deprecation.

VALUATION is the Art of Process of Estimating Value, depending on the circumstances of the case and purpose for which Valuation is needed, at a given time, Place and Under Specified Market conditions and Their Report is an opinion expressed keeping in mind the purpose. Buying and Selling Assets is a Totally Different Activity and is out of scope of the Valuation Assignment.

FAIR MARKET VALUE is the Price that the Capital Asset would ordinarily fetch on sale in the open market on the relevant date. Market value is thus the warranted Price expressed in terms of money which a property is estimated to bring, at any given Time, and Place, where the Buyers and Sellers act without compulsion and with full knowledge of all the uses to which the asset is adopted and for which it is capable of being used, As Defined by the International Valuation Standards Committee London.

VALUATION is a function of Time; ‘VALUE’ varies with the purpose viz. Value of the same Property will be different, when purpose is different viz.

There are Different yardsticks /.Approaches to Valuation viz.

1. If Valuation is for Income Tax / Wealth Tax Purpose, the approach is Indexation referring to RBI Cost Inflation Index as of 01.04.1981 and the index on date of valuation as notified by RBI.

2. If Valuation is for Insurance Purpose, GIC Subsidiaries who work on IRDA Guidelines, the Open land is not insured.

3. It’ Valuation is for Merger / Acquisition, then as per understanding for SWAP Ratio Decided by the Purchasing Company and Selling Company, the Valuation is arrived at.

4. If Valuation is for VISA Purpose Value, will be Market Value Approach is adopted.

5. If Valuation is for Balance Sheet Purpose, Fair Market Value Approach is adopted.

6. If Valuation is for Availing Bank Facilities, Conservative Approach is adopted.

Whatever Documents / Data was not available, they have arrived at the values on Basis of their experience and knowledge in the field. In case of any Human and / Technical error of judgment, a fresh Report will be Submitted at a later Date, as and when the mistake is identified.

Ownership Documents

a. The Agreement for Sale is registered on the Basis of the Area mentioned in this Document after paying Stamp Duty and Registration Charges, 1-lowever this area may not be a True Area, at times, to reduce the Stamp Duty, the Area mentioned in the Agreement is decided by seller and Purchaser on lower side.

b. It is to he understood that the Amount which is mentioned in the Agreement is again decided by seller and Buyer on terms mutually Agreed by them. This Amount is COST PRICE of the property to the Purchaser and NOT A REAL VALUE because it is the payment made by purchaser by way of Cheque / D.D. to the seller. All times, there is Cash Element also, which is not reflected in the Agreement.

Different values of the Property

a. Fair Market Value: The Market value obtained in this report is defined as follows:

Market Value is the Estimated Amount for which an Asset should exchange on the date of valuation between a willing buyer and willing seller in an Arm’s length transaction after proper marketing wherein the parties had each acted Knowledgeably and without compulsion. (As Defined by the International Valuation Standards Committee, London.) Thus, the characteristics of the Market Value’s are:

• It is depend on ‘Purpose of Valuation’.

• It is time-specific as on the given date and it is free will Sale.

• It is an estimated amount and not a predetermined or an actual sale price.

• Buyer and Seller are actuated by business principles. They are unrelated and are acting independently.

• Asset would be exposed to the market in the most appropriate manner to effect its disposal at the best price possible.

b. Realisable Value: The Value Realisable by the Bank is generally less than the Market value because of various facts such as mode of payment (Strictly by Cheque), limitations of effective marketing, costs involved in the process of the sale etc. The percentage variation between RV and MV depends on various factors such as urban or rural property, user and location of the property etc. in their opinion, considering characteristics of the subject Property under Valuation they have considered reduction factor of 10% of Market Value.

c. Distress Sale Value: It means the amount which may reasonably be expected to be obtained from the sale of a property in which one or more characteristics of the definition of market value are not satisfied. The Seller may be a unwilling seller and the buyer may be motivated by the knowledge of the disadvantage the seller Suffers from Due to this they are discounting the market value by 20%.

In view of this, when they are giving opinion to the bank regarding Value of the Security, for them the Intrinsic Value of the Property is relevant. Their emphasis is on “Value” of the Security and Rate is judiciously adopted keeping in mind the characteristics / locality.

As Panel Valuer of the Bank, they do keep in Mind, the Bank’s Interest Only. The Report is purely their opinion on date of Inspection, as Professionals having Several years of Experience in the field for many Banks.

They are in no way concerned or have any Authority in the financial facilities which are applied by the Borrowers to the Bank, subsequent sanction and Disbursal by the Bank.

In case in future if the Account becomes N.P.A. or Bank Notices that the Borrower with Fraudulent Intentions has either By Concealing the information or forging the papers, cheated the Bank and the case is handed over to Investigating Authority, It is to be very clearly understood and noted by the bank that they in no way work hand in glove with the Borrower any time and not responsible for any Loss / Damage /Claim incurred by the Bank and they indemnify their self from any of these things.

Their Reports are never wrong or inflated and they refer to the Real Estate Periodicals / News Papers Supplements or gather the information from Websites of Real Estate Agencies / Sources and Verbal Information gathered from Estate Agents/ Builders sale Offices in the Locality at the time of arriving at the Valuation figure.

Their Report is issued for a Specific Bank which is mentioned in their Report. Use of Their Report for any other Bank or for any other purpose is Strictly Prohibited. In Case the Bank has any Querries, they should be address formally in writing to them by way of Formal Letter and they shall reply to the same by Formal Letter by answering the querries / clarifications sought by bank.

VALUATION REPORT

GENERAL INFORMATION

Name of the Owner

G. P. Milk and Agro Industries

Name’s of the Purchaser/ Name of Persons in whose names/ the property registered and address

Dev Dairy Products Private Limited

Plot Bearing Gut No.46, Village – Miri, Tal – Pathardi, District – Ahmedabad, Maharashtra

Purpose of Valuation

Requirement of corporation Bank, Andheri (East) Branch

List of documents produced for perusal

Memorandum of Understanding date 02.02.2011 between G. P. Milk and Agro Industries (Owner) and Dev Dairy Products Private Limited (Purchaser)

7/12 Extract for Gut No.46.

Approved Plan Date 10.04.2008 Certified by Deputy Divisional Engineer, Ahmedabad

Date of Inspection

12.03.2011

Date of Valuation

15.03.2011

Approximate distance from the branch to the property

NA

Situation / Location/ Brief description of the land site and brief description of the building

Plot bearing Gut No.46, Village – Miri, Tal- Pathardi, and District – Ahmedabad, Maharashtra

Property tax details

Owner to Furnish.

Assuming the entire property is let out, the probable monthly rent and advance building rent

NA

Whether the Building Plan has been approved?

If yes, dated of approval Approving Authority, and Whether the Building has been constructed as per the approved plan, If no the reason for non approval

Yes. As per Approved Plan certified by Deputy Divisional Engineer, Ahmednagar.

VALUATION DETAILS

A. BUILDING

Type of construction

RCC and Non RCC

Quality of construction

Good

Appearance of the building

Good

Number of floors

Ground Structure

Maintenance of the building

Good and Well Maintained by the Owner

Description of the Property under Valuation

Foundation

RCC

Superstructure

RCC

Roof

RCC Slab

Doors

T. W. Door

Windows

AL./ Glass Windows

Sanitary fittings

Concealed

Flooring

Kota Tiles/ C.C. Flooring

Electric supply

MSEB

Total Area

Land:

1 Hec 20 Ares i.e. 12,000.00 sq. mtrs.

Building:

Type	Built Up Area
	In sq. Mtrs.	In Sq. ft.
RCC	37.17	400.00
Non RCC	622.68	6,700.00

Year of construction

2002-03

Total life of the building

For RCC 45-50 years For Non RCC 25-30 Subject to Proper repairs and Maintenance as and when required

General remarks

NA

Replacement rate of construction with the existing conditions and specification

for R.C.C Rs.1,400/- for non R.C.C. Rs.800/-

Replacement Value

Rs.5.920 Millions

Depreciation Value at the rate of

90% of Market Value i.e. Rs.10.796 Millions

Present Value of the property

Rs.11.995 Millions

VALUATION ANNEXURE

Date of Inspection

12.03.2011

Name of present owner(s): of the property

M/s. G. P. Milk and Agro Industries

Name of purchaser(s) of the property

M/s. Dev Dairy Products Private Limited

Address

Plot Bearing Gut No. 46, Village - Miri, Tal. - Pathardi, District - Ahmednagar, Maharashtra, India

Area

Land: 1 Hec 20 Ares i.e. 12,000.00 Sq. Mtrs. As Per M.O.U.

Building:

Type	Built Up Area
	In sq. Mtrs.	In Sq. ft.
RCC	37.17	400.00
Non RCC	622.68	6,700.00

LAND: 12,000.00 SQ. MTRS.

M/s. G. P. Milk and Agro Industries has acquired 1 Hec 20 Ares i.e. 12,000.00 Sq. Mtrs. of land at Gut No. 46, Village - Miri, Tal. -Pathardi, Dist. - Ahmednagar, Maharashtra.

Out of the total 12,000.00 Sq. Mtrs. the owners have converted around 4,000.00 Sq. Mtrs of Land to Non Agricultural Purpose while the rest of the 8,000.00 Sq. Mtrs is Agricultural Land.

This is located at 160 Kms. From Pune and within 45 Kms from Ahmednagar Railway Station and Bus stand. It has plants of various Co. nearby, the area is industrially developing area and the Property / Land is in good demand. Being Connected with National Highway, Transportation facility will be available easily and at reasonable rates. All Infrastructures such as Water Supply, Roads, Communication, Network etc. are easily available at the location.

SITE DEVELOPMENT

This consists of land development - Leveling, Filling and Development of Natural Land. The entire factory is enclosed by B.B. Compound Wall around 1,600 R. Ft.

VALUATION

Considering there factors and based on verbal information gathered from local Sources. The Current Prevailing Market Rates are in the range of 500/- to 700/- Per Sq. Mtr., for properties, which have been purchased outright, and the owner has procured all Licenses / Permissions / Clearances from the various regulatory authorities.

The Market Rate of 600/- Per Sq. Mtr. For N.A. Land (Inclusive of Cost incurred towards Procurement of Various Licenses/Permissions/Clearances and Registration /Stamp Duty Charges) and 350/- Per Sq. Mtr. For Agricultural Land for the property under valuation, as on date of Valuation is Fair and Reasonable.

Thus the Valuation work out to,

Details	Area In Sq. Mtrs.	Rate per Sq. Mtrs. In Rs.	Net Value (Rs. In Millions)
Gut No. 46 Agricultural Land	8,000.00	350/-	2.800
Gut No. 46 Non-Agricultural Land	4,000.00	600/-	2.400
Site Development	L.S.	L.S.	1.250
Sub Total			6.450

BUILDING AND STRUCTURE

RCC Building:

This is a Ground structure with R.C.C. Slab, Beams and Columns and Constructed in 2008 i.e. 3 Years Old.

The Present Condition of the Building is good and well maintained by the Owner. The Future Life of the Structure would be 45-50 years Subject to Proper repairs and Maintenance as and when required.

Description

Details

Foundation

R.C.C.

Superstructure

R.C.C.

Joinery / Doors and windows

T.W. Doors, Al. / Glass Windows

Roof

R.C.C. Slab

RCC work

Good

Plastering

Good

Flooring, Skirting

Kota Tiles / C.C. Flooring

Drainage

Concealed

Electric installation

Industrial Wiring

Plumbing installation

Toilet Block with Urinals and Indian W.C.

NON R.C.C. BUILDING

This is a Ground structure with R.C.C. Beams and A.C. Sheet Roofing over M.S. Trusses and Constructed in 2008 i.e. 3 Years Old. The Present Condition of the Building is good and well maintained by the Owner. The Future Life of the Structure would be 25-30 years Subject to Proper repairs and Maintenance as and when required.

Description

Details

Foundation

R.C.C.

Superstructure

R.C.C.

Joinery / Doors and windows

T.W. Doors, Al. / Glass Windows

Roof

A.C. sheet Roofing Over M. S. Trusses

RCC work

Good

Plastering

Good

Flooring, Skirting

Kota Tiles / C.C. Flooring

Drainage

Concealed

Electric installation

Industrial Wiring

Plumbing installation

Toilet Block with Urinals and Indian W.C.

REPLACEMENT COST

The Replacement rate of construction with the existing conditions and specification for the above mentioned building work out as below:

Description	Area In Sq. ft.	Replacement Cost Rate per sq. ft. in Rs.	Net Value (Rs. in Millions)
RCC Building	400.00	1,400/-	0.560
Non RCC Building	6,700.00	800/-	5.360
Total			5.920

VALUATION

Location, Demand - Supply Gap, Quality of Construction and amenities are backbones in Valuation of Immovable Properties. We are working out the Valuation of subject Property on market value approach, depending upon Location, Builder, Quality of Construction, amenities and he locality with well planned infrastructure.

Taking into Consideration, above Details / Specifications for the Property, Located at Village - Nun, Tal. - Patliardi, Dist. – Ahmednagar, which is a Fully Developed Locality of Ahmednagar;

Thus the valuation works out as below.

Description	Area In Sq. ft.	Replacement Cost Rate per sq. ft. in Rs.	Net Value (Rs. in Millions)
RCC Building	400.00	1,300/-	0.520
Non RCC Building	6,700.00	750/-	5.025
Total			5.545

SUMMARY

Particulars

Fair market Value

(Rs. in Millions)

Land and Site Development

3.000

Building and Construction

5.532

Total

8.532

VALUATION REPORT: PLANT AND MACHINERY

Date of making Valuation	15.03.2011
Name of Present Owner(s) of the Plant and machinery	G. P. Milk and agro Industries
Name of purchaser of the Plant and machinery	Dev Dairy Products Private Limited
The Valuer should give in details his approach to valuation of the plant and machinery and indicate how the value been arrived at, supported by necessary calculations including giving effect to technological attrition	Replacement Cost and (New,) of the similar Plant and Machinery are considered and due depreciation is applied considering the age of Machinery to arrive Fair Market Value.
Market Value of the Plant and Machinery	Rs.25.183 Millions
Realizable Value at Distress sale of the Plant and Machinery	Rs.2,26,64,700 = i.e. 90% of FMV

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COMPANY PROFILE:

Presently Milk industry is the one of the most of booming sector of the industry. The group has dealing with pouch milk throughout the Maharashtra Dwarka Group has strong marketing channel spread all over the Maharashtra. The company has good marketing network already established in the local market through trading activity and the company propose to convert the existing marketing network into the business. The group has acquired 29 running units and 15 proposed to be acquired as expansion strategy. Since 1998, the company is dealing in the same line of business; sale and achievement of sales will no be issue.

At presently, the company will capture nearby market, which is very much in the nearby vicinity of the plant. In future the company has target of selling their products to the market of Navi Mumbai and Mumbai. The distance can be covered in a span of six hours, which is a normal trend in the milk industry. As such milk is not available in the urban areas, the same has to procured and processed afresh in the rural areas and sold at urban area.

The Dairy Project under study is a commercial proposition. The objective of setting a project which is a proposal for long term investment is to make maximum profit and with the additional motto of improvement of economic life of thousands of farmers through self help group.

The factory is running unit. Therefore the company does not see any problem in milk procurement. The company has well studied the milk availability in the surrounding villages and taluka and has concluded that the sufficient milk is available.

Demand for the product and supply of the product: The main activity of the Company will be to procure milk from the villages and supply the same in the cities and the up-coming markets. In so far as the demand for the milk in their country is concerned, one can easily estimate the demand depending upon the increase in population of their country. India no longer lives in villages. Demographical surveys and some other surveys have squarely brought home the increasing trend of urbanization in their country. They are witnessing every day concentration of population in the cities. The demand for the product certainly exists. Everybody needs milk and milk-product for day to day consumption. However, the demand for the milk and the milk products can be converted into commercial terms only on the ability of any management to market the produce. It may be appreciated milk is a bio-product and therefore highly perishable. The success of the activity therefore depends upon efficient way of handling the product. It can be observed many dairies have encashed this situation and have succeeded in increasing the milk supply in the cities. The present Dairy is not an exception to this situation. The urban population needs milk at any time during the day and that too processed milk duly packed in the polythene bags. This milk is required to be stored in refrigerators. The Company has rightfully concentrated on all these aspects. To sum up the discussion on the demand for the product, one can say that the demand for the milk is ever increasing and large players have been still increasing their capacities and have been making efforts to capture new markets. Therefore, they feel, the project under study has a capacity to procure milk of about one ac liters per day. Another aspect for the demand and supply of the product and the by-products under study is the increase in the middle class population in their country. There has been increasing consumption of milk and milk products in their country due to upward change in economic life their people and change in their standard of living. Milk is the basic requirement of the people. There are reasons to believe that there will be increase in average consumption of the milk per person. Also refer statistical information at end of project report for more information. One of the important aspects of the commercial viability of the project is market and marketing arrangements. The discussion of the ever increasing market as mentioned above speaks about the size of the market. Mumbai and other large metro cities in the State and in the near-by States offer an ever increasing market to the Company. The marketing arrangements in respect of Dairy projects are connected with the following factors:

v Appointment of distributors in the cities

v Establishment of retail centers at strategic places

v Selection of proper brand equity

v Selection of proper logo

v Proper packaging of the products

v Proper advertisement strategy

v Regularity in supplies

v Observance of time schedule

v Quality of the products, and

v Proper services

The other important aspects of the commercial viability of the project are element of competition. In so far as the milk and milk products are concerned, it is totally privatized. However, the players in the market are Government, large dairies in the Co-operative sector and large dairies in the private sector. Free movement of the milk inter-State also affords a good opportunity to the Company The company will have benefit of being in private sector and having presence through co-operative sector Though the larger players will have an edge over the small players like the present Dairy unit under study, yet the disadvantage in respect of above could b overcome by competing successfully on the price front. It could be also countered by offering a better quality and better and attractive packing.

The Government policy in respect of the procurement of milk and supply of the same in the state of Maharashtra also need bit of a discussion. Recently, the Government of Maharashtra have taken a policy decision to privatize their Dairy units. The Government has decided to transfer these units to co-operatives. Another important developments in respect of the trade is free import of milk is being allowed in their country and milk from the Eastern Countries have started reaching Mumbai Market. These countries are likely to resort to price war in order to capture the market. To sum-up the discussion on the competition, one can only say, only those units are likely to survive which pay attention to the above aspects and resort to economies and efficiency of operations They felt, the Company Management was aware of the above aspects. Today, the size of the market is so expanding that the products are getting consumed with almost no stocks.

The country’s milk production is estimated to have touched 100 million tonnes (mt) last year, which is higher than the estimated 92 mt for rice and 75 mt for wheat. For policy makers, dairying is viewed as a ‘subsidiary’ activity, when milk is one product that generates cash income to farmers almost on a daily basis, unlike sugarcane or wheat. Besides being a source of liquidity and insurance against crop failure, milk is the only crop where the farmer realizes 60-70 per cent of consumer price — against 20 per cent or so in fruits and vegetables. Again, it is striking that there are no commodity futures in milk powder or ghee, whereas the daily turnover volumes in NCDEX and MCX of guarseed, mentha oil, jeera or pepper run to hundreds (even thousands) of crores!

One reason for this ‘image problem’ suffered by milk has to do with the absence of proper databases with authentic information on the sector. This is a gap that Dairy India 2007 (Sixth Edition) seeks to fill. A treasure trove of information, this 864-page publication offers the most comprehensive and up-to-date picture about the world’s numero uno dairying nation. An invaluable Databank-cum-Management Guide-cum-Directory, it contains over 120 in-depth articles, 260 statistical tables and charts and reference details of 7,000 organizations including dairy plants and farms, equipment and consumable manufacturers, cattle feed and veterinary pharmaceutical manufacturers, chemicals and food additives, project consultants, breeding and fodder seed farms, analytical and disease-diagnostic laboratories, cooperative institutions and government agencies. The articles cover a range of topics including trends in consumption and market size of milk and milk products, WTO challenges and export potential, management of dairy plants and farms, breeding, feeding and nutrition, health care, clean milk production, food safety and quality standards as well as techno-economic feasibility of small and large scale dairy plants and farms, cattle feed units, and manufacture of cheese, ice-cream, etc. In addition, there is a special section devoted to technology innovations and organized production of indigenous milk products such as paneer, gulabjamun, rasogolla and shrikhand — a potentially lucrative segment ignored so far by the industry in its obsession with butter, cheese and other foreign’ products. Contributors include the President, Dr A.P.J. Abdul Kalam and the Father of India’s Dairy Revolution, Dr V. Kurien, besides a host of acknowledged experts in livestock management, marketing, processing technologies and policy makers In response to unprecedented developments in Asian countries, a special section, ‘Dairy Asia’, has been introduced. Dairy India 2007 has estimated the size of India’s dairy sector in 2005 at Rs.2273400.000 millions (valued at consumer prices). The largest contributor to this is liquid milk (at Rs.828350.000 millions), followed by ghee (Rs.229800.000 millions) khoa/ chhana/ paneer (Rs.241000.000 millions), milk powder (Rs.46800.000 millions), table butter (Rs.7700.000 millions), cheese/edible casein (Rs.9750.000 millions) and other products such ethnic sweets, ice-cream, etc (Rs.91000.000 millions) Out of the total milk production of 94.5 mt, 77 per cent or 73.1 mt is sold as liquid milk, with the balance 23 per cent or 21.4 mt converted into products. Further, the organized industry handles only 18 per cent or 17 mt of milk, with 36 per cent (34.5 mt) being handled by private dudhias and unorganized players and 46 per cent (43 mt) being retained in rural areas. Within the 18 per cent organized sector share, private and cooperative/government dairies handle an equal 8.5 mt each.

By 2011, Dairy India projects the value of the industry to more than double to Rs.5207800.000 millions, which includes Rs.1596000.000 millions from liquid milk, Rs.426800.000 millions from ghee, Rs.505000.000 millions from khoa/ chhana/ paneer, Rs.91000.000 millions from milk powder, Rs.22500.000 millions from table butter, Rs.61500.000 millions from cheese/edible casein and Rs.250500.000 millions from other products.

Interestingly, out of the anticipated milk output of 120 mt, the share of liquid milk will rise to 81 per cent or 97.5 mt and only the rest 19 per cent (22.5 mt) would get converted into products. But the organized industry’s share of total milk handling will go up to 30 per cent (36 mt), while the small players will see their share dip to 22 per cent (26 mt). At the same time, higher rural incomes will marginally boost the share of milk retained in rural areas to 48 per cent or 58 mt. The other significant feature is that within the 30 per cent overall share of organized dairies, the major 20 per cent (24 mt) will be accounted for by the private sector. The cooperatives and government dairies will handle 10 per cent or 12 mt of milk, which will be lower than that of the organized private sector.

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.44.98
UK Pound	1	Rs.72.68
Euro	1	Rs.64.16

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.