MIRA INFORM REPORT

Report Date :

19.05.2011

IDENTIFICATION DETAILS

Name :	GANGA FOODS
Registered Office :	Shop No.5 and 6, Saraswati Apartment, Opposite Rekhi Hotel, Shivaji Road, Panvel, Navi Mumbai – 410 206, Maharashtra
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	26.08.2006
Capital Investment / Paid-up Capital :	Rs.0.823 million
PAN No.: [Permanent Account No.]	AAGFG9883P
Legal Form :	Partnership concern with an unlimited liability of the partners
Line of Business :	Manufacturer of Milk and Milk Products.
No. of Employees :	41 (In office – 12, In factory – 29) (Approximately)

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 a much lesser value than the proposed 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, Navi Mumbai – 410 206, Maharashtra, India
Tel. No.:	91-22-40885151
Mobile No.:	91-9819939920 (Mr. Jaspal Singh)
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 – 400 614, Maharashtra, India
Tel. No.:	91-22-40885151
Fax No.:	91-22-40885146
E-Mail :	jaspal.singh@dwarka.biz
Location :	Rented
Factory :	Gut No.189/1, Sahagad Road, Avade Unchegaon, Taluka Paithan District, Aurangabad, Maharashtra, India
Area :	16526.62 sq ft
Location :	Owned

PARTNERS

Name :	Mr. Kapil D. Rajput
Designation :	Partner
Address :	ROSE, Flat 703, Plot No.10, Sector 06, Kharghar, Navi Mumbai – 410 210, 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 Construction, Panvel – 410 206, Maharashtra, India
Date of Birth/Age :	30.08.1981
Qualification :	B.Com
Experience :	10 Years
Name :	Mr. Murugesan Adimoolam
Designation :	Partner
Address :	GRH 5/3, Flat 23, Sector 7, Airoli – 400 708, Maharashtra, 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 – 400 077, 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

Names of Shareholders	Percentage of Holding
Kapil D. Rajput	30.00%
Mithilesh D. Rajput	30.00%
Murugesan Adimoolam	20.00%
Hemal Jobanputra	20.00%
Total	100.00%

BUSINESS DETAILS

Line of Business :	Manufacturer of Milk and Milk Products.
Brand Names :	“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	52000 Liter per day

GENERAL INFORMATION

Customers :

Wholesalers and Retailers

No. of Employees :

41 (In office – 12, In factory – 29) (Approximately)

Bankers :

Corporation Bank, Mid-Corporate Branch, Andheri

Facilities :

Credit Limit – Proposed Cash Credit Limit: Rs.70.000 millions and Term Loan: Rs.17.000 millions

Unsecured Loans	31.03.2010 Rs. In Millions	31.03.2009 Rs. In Millions
Loan from Friends and Relatives	2.600	0.000
Total	2.600	0.000

Banking Relations :	--
Auditors :
Name :	Dipesh Thakker and Company Chartered Accountants
Address :	123, Commodity Exchange Building, Dana Bunder, Sector 19, Vashi, Navi Mumbai – 400 705, Maharashtra, India
Tel. No.:	91-22-27831580
Mobile No.:	91-9869059901
E-Mail :	dipeshthakkar@rediffmail.com
Group Companies :	v Honey Taste Private Limited v Bhaskar Milk and Milk Products v Starview Trading Company Private Limited v Icon Trading Company Private Limited v Goodspot Trading Company Private Limited v Whitegold Mercantile Company Private Limited v Dwarka Milk and Milk Products Private Limited v Shri Krishna Milk and Allied Products v K.M. Milk Products Private Limited v Magictime Trading Company Private Limited v Shri Vinayak Milk Products Private Limited v Milkraft Dairytech Private Limited v Mahesh Trading Company v Avadhoot Traders v Arzoo Enterprises v A.M. Enterprises v Gauri Enterprises v K.P. Enterprises v Chankya Foods and Beverages v Arya Enterprises v Abhishek Enterprises v Armaan Foods v Shivam Enterprises v Kaveri Enterprises v Trimurti Enterprises v Aashirwad Enterprises v Dev Dairy Products Private Limited

CAPITAL STRUCTURE

PARTNER’S CAPITAL A/C FOR THE YEAR ENDED 31^ST MARCH, 2010

MR. KAPIL RAJPUT

Particulars	31.03.2010 (Rs. in millions)	Particulars	31.03.2010 (Rs. in millions)
Withdrawals	0.038	Opening Balance	0.116
Advance Tax (FBT-09-10)	0.001	Interest on Capital	0.012
Advance Tax (Self Assessment Tax 09-10)	0.004	Net Profit Transfer	0.176
Balance C/d	0.261
	0.304		0.304

MR. HEMAL JOBANPUTRA

Particulars	31.03.2010 (Rs. in millions)	Particulars	31.03.2010 (Rs. in millions)
Withdrawals	0.000	Opening Balance	0.040
Advance Tax (FBT-09-10)	0.000	Interest on Capital	0.005
Advance Tax (Self Assessment Tax 09-10)	0.003	Net Profit Transfer	0.117
Balance C/d	0.159
	0.162		0.162

MR. MITHILESH RAJPUT

Particulars	31.03.2010 (Rs. in millions)	Particulars	31.03.2010 (Rs. in millions)
Withdrawals	0.000	Opening Balance	0.064
Advance Tax (FBT-09-10)	0.001	Interest on Capital	0.008
Advance Tax (Self Assessment Tax 09-10)	0.004	Net Profit Transfer	0.176
Balance C/d	0.243
	0.248		0.248

MR. MURUGESAN ADIMOOLAM

Particulars	31.03.2010 (Rs. in millions)	Particulars	31.03.2010 (Rs. in millions)
Withdrawals	0.000	Opening Balance	0.041
Advance Tax (FBT-09-10)	0.000	Interest on Capital	0.005
Advance Tax (Self Assessment Tax 09-10)	0.003	Net Profit Transfer	0.117
Balance C/d	0.160
	0.163		0.163

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] Partner’s Capital		0.823	0.261	0.226
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		0.823	0.261	0.226
LOAN FUNDS
1] Secured Loans		0.000	0.000	0.000
2] Unsecured Loans		2.600	0.000	0.000
TOTAL BORROWING		2.600	0.000	0.000
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		3.423	0.261	0.226
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		2.045	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	0.125	0.164	0.071
	Sundry Debtors	0.324	1.575	2.120
	Cash & Bank Balances	0.045	1.227	1.047
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	3.000	4.000	0.040
Total Current Assets		3.494	6.966	3.278
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	0.153	6.540	2.921
	Other Current Liabilities	1.787	0.000	0.000
	Provisions	0.176	0.165	0.131
Total Current Liabilities		2.116	6.705	3.052
Net Current Assets		1.378	0.261	0.226
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		3.423	0.261	0.226

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	309.896	173.052	91.370
		Other Income	0.000	0.000	0.000
		TOTAL	309.896	173.052	91.370
Less	EXPENSES
		Cost of Goods Sold	305.532	170.727	90.106
		Audit Fees	0.020	0.018	0.015
		Bank Charges	0.011	0.051	0.035
		Electricity Charges	0.043	0.082	0.072
		Festival Expenses	0.038	0.018	0.011
		Interest on Capital	0.029	0.022	0.012
		Labour Charges	0.064	0.044	0.180
		Legal Expenses	0.017	0.035	0.037
		Miscellaneous Expenses	0.054	0.086	0.039
		Office Expenses	0.102	0.090	0.028
		Power and Fuel Expenses	0.135	0.000	0.015
		Printing and Stationery	0.090	0.071	0.025
		Repairs and Maintenance	0.059	0.043	0.019
		Salary, Wages	2.366	1.356	0.426
		Sales Promotion	0.131	0.042	0.011
		Staff Welfare	0.092	0.035	0.014
		Transport Charges	0.214	0.000	0.000
		Telephone Charges	0.035	0.044	0.011
		Traveling Expenses	0.170	0.048	0.006
		Brokerage Charges	0.000	0.000	0.022
		Damage and Spoil	0.000	0.000	0.098
		Accounting Charges	0.000	0.000	0.066
		TOTAL	309.202	172.812	91.248
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION		0.694	0.240	0.122
Less/ Add	DEPRECIATION/ AMORTISATION		0.108	0.000	0.000
	PROFIT BEFORE TAX		0.586	0.240	0.122
Less	TAX		0.000	0.000	0.000
	PROFIT AFTER TAX		0.586	0.240	0.122

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

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	0.19	0.14	0.13
Net Profit Margin (PBT/Sales)	(%)	0.19	0.14	0.13
Return on Total Assets (PBT/Total Assets}	(%)	10.58	3.45	3.72
Return on Investment (ROI) (PBT/Networth)		0.71	0.92	0.54
Debt Equity Ratio (Total Liability/Networth)		5.73	25.69	13.50
Current Ratio (Current Asset/Current Liability)		1.65	1.04	1.07

LOCAL AGENCY FURTHER INFORMATION

PROFILE:

Presently Milk industry is the one of the most of booming sector of the industry. The group has dealing with pouch milk through out 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. Every body 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 ihigher than the estimated 92 mt for rice and 75 mt for wheat. In value terms, too, a kg of milk is worth more than what you and I pay for a kg of rice and wheat. But despite all this and the fact that India is today the world’s largest milk producer, the dairy industry is for some strange reason not considered glamorous’. 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.

__________________________________________________________________________________________

COST OF THE PROJECT

Sr. No.	Particulars	Amount (Rs. in millions)
1.	Acquisition Cost of the Plant	15.288
2.	Proposed CAPEX to be done in the plant	7.411
		22.699
	SAY	22.700
	Bank Finance - 75% of CAPEX	17.025
	Own Funds - 25% of CAPEX	5.675
		22.700
	Rounded off
	Term Loan	17.000
	Own Funds	5.700
	Cash Credit Limit (FRESH)	70.000

__________________________________________________________________________________________

CALCULATION OF BREAK EVEN POINT

(Rs. in millions)

PARTICULARS	2012	2013	2014	2015
Sales Income	426.780	459.810	476.280	492.705
	426.780	459.810	476.280	492.705
VARIABLE EXPENSES:-
Raw Materials Consumed	350.908	378.066	391.608	405.113
Power & Fuel	1.461	1.577	1.646	1.716
Direct Labour & Wages	2.189	2.299	2.529	2.782
Operating Expenses	26.136	28.235	29.222	30.377
Interest on Bank Borrowings	10.150	10.150	10.150	10.150
	390.845	420.327	435.154	450.138
CONTRIBUTION	35.935	39.483	41.126	42.567
FIXED EXPENSES:-
Wages & Salaries	2.189	2.299	2.529	2.782
Interest on term loan	2.313	2.207	1.814	1.422
Depreciation	3.046	2.641	2.292	2.791
Selling & Administration Expenses	17.503	18.920	19.908	20.799
	25.051	26.067	26.543	27.793
BREAK EVEN POINT (In %)	26.49	45.56	45.18	46.36
CASH BREAK EVEN POINT (In %)	23.27	40.94	41.28	41.70

__________________________________________________________________________________________

OPERATING STATEMENT

(Rs. in millions)

PARTICULARS	Current Year (Estimated)	Following Year Projections
	2011	2012	2013	2014	2015
1. Gross Sales
(i) Domestic sales	327.780	426.780	459.810	476.280	492.705
(ii) Export sales	0.000	0.000	0.000	0.000	0.000
Total	327.780	426.780	459.810	476.280	492.705
2. Less excise duty	0.000	0.000	0.000	0.000	0.000
3. Net sales(item 1 - item 2)	327.780	426.780	459.810	476.280	492.705
4. % age rise (+) or fall (-) in net sales as compared to previous year (annualised)	89.41	30.20	7.74	3.58	3.45
5. Cost of sales
i) Raw materials (including stores and other items used in the process of manufacture)
(a) Imported	0.000	0.000	0.000	0.000	0.000
(b) Indigenous	276.792	350.908	378.066	391.608	405.113
ii) Other Spares
(a) Imported	0.000	0.000	0.000	0.000	0.000
(b) Indigenous	0.000	0.000	0.000	0.000	0.000
iii) Power and fuel	1.163	1.461	1.577	1.646	1.716
iv) Direct Labour Expenses	2.085	2.189	2.299	2.529	2.782
v) Other Direct Expenses	24.846	26.136	28.235	29.222	30.377
vi) Depreciation	0.205	3.046	2.641	2.292	2.791
vii) SUB-TOTAL (i to vi)	305.090	383.741	412.819	427.297	442.779
viii) Add: Opening stocks-in-process	0.000	0.000	0.000	0.000	0.000
Sub Total	305.090	383.741	412.819	427.297	442.779
ix) Deduct: Closing stocks-in- process	0.000	0.000	0.000	0.000	0.000
x) Cost of Production	305.090	383.741	412.819	427.297	442.779
xi) Add: Opening stock of finished goods	0.124	0.758	0.961	1.036	1.073
Sub Total	305.214	384.499	413.780	428.332	443.851
xii) Deduct: Closing stock of finished goods	0.758	0.961	1.036	1.073	1.110
xiii) SUB-TOTAL (Total cost of sales)	304.456	383.538	412.744	427.260	442.742
6. Selling, general and administrative expenses	21.707	17.503	18.920	19.908	20.799
7. SUB-TOTAL (5+6)	326.163	401.040	431.665	447.167	463.540
8. Operating profit before interest (3-7)	1.617	25.740	28.145	29.113	29.165
9. Interest	0.000	12.463	12.357	11.964	11.572
10. Operating profit after interest (8-9)	1.617	13.277	15.789	17.148	17.593
11. (1) Add other non-operating income
(a) Rental Income	0.000	0.000	0.000	0.000	0.000
(b) Others	0.000	0.000	0.000	0.000	0.000
Sub-total (income)	0.000	0.000	0.000	0.000	0.000
ii) Deduct other non-operating expenses
(a) Prior Period Adjustments	0.000	0.000	0.000	0.000	0.000
(b) Others	0.000	0.000	0.000	0.000	0.000
Sub-total (expenses)	0.000	0.000	0.000	0.000	0.000
(iii) Net of other non-operating income/ expenses [net of 11(i) and (ii)]	0.000	0.000	0.000	0.000	0.000
12. Profit before tax/loss [10 + 11(iii)]	1.617	13.277	15.789	17.148	17.593
13. Income Tax
- Income Tax	0.500	4.102	4.879	5.299	5.436
- Deferred Tax	0.000	0.000	0.000	0.000	0.000
- Fringe Benefit Tax	0.000	0.000	0.000	0.000	0.000
14. Net profit/loss (12-13)	1.118	9.174	10.910	11.850	12.157
	0.034	0.215	0.237	0.249	0.247
15. Proposed Dividend	0.000	0.000	0.000	0.000	0.000
16. Retained profit (14-15)	1.118	9.174	10.910	11.850	12.157
17. Retained profit/Net profit (% age)	100.00%	100.00%	100.00%	100.00%	100.00%

__________________________________________________________________________________________

ANALYSIS OF BALANCE SHEET

(Rs. in millions)

PARTICULARS	Current Year (Estimated)	Following Year Projections
	2011	2012	2013	2014	2015
1. Short-term borrowings from banks (including bills purchased, discounted & excess borrowings placed on repayment basis)
(i) From applicant bank	0.000	70.000	70.000	70.000	70.000
(ii) From other banks	0.000	0.000	0.000	0.000	0.000
(iii) (of which BP & BD)	0.000	0.000	0.000	0.000	0.000
Sub total (A)	0.000	70.000	70.000	70.000	70.000
2. Short term borrowings from others	0.000	0.000	0.000	0.000	0.000
3. Sundry Creditors (Trade)	0.912	1.162	1.252	1.297	1.342
4. Advance payments from customers/ deposits from deal	0.000	0.000	0.000	0.000	0.000
5. Provision for Taxation	0.000	0.000	0.000	0.000	0.000
6. Dividend Payable	0.000	0.000	0.000	0.000	0.000
7. Other statutory liabilities (due within one year)	0.000	0.000	0.000	0.000	0.000
8. Deposits/ installments of term loans/ DPGs/ Debentures, etc. (due within one year)	0.000	0.000	0.000	0.000	0.000
9. Other current liabilities & provisions (due within 1 year) (Specify major items)
Creditors for Capital Goods	0.000	0.000	0.000	0.000	0.000
Creditors for Expenses	1.107	1.075	1.153	1.207	1.265
Other Current Liabilities	0.000	0.000	0.000	0.000	0.000
Sub-total (B)	2.019	2.237	2.405	2.504	2.606
10. TOTAL CURRENT LIABILITIES (total of 1 to 9)	2.019	72.237	72.405	72.504	72.606
TERM LIABILITIES:
11. Debentures (not maturing within one year)	0.000	0.000	0.000	0.000	0.000
12. Preference Shares (redeemable after one year)	0.000	0.000	0.000	0.000	0.000
13. a. Term Loans (Including Interest Accrued)	0.000	15.692	13.077	10.462	7.846
b. Public Deposits/ Inter Corporate Deposits – in-secured loans	13.600	13.600	13.600	13.600	13.600
14. Deferred payment credits (excluding installments due within one year)	0.000	0.000	0.000	0.000	0.000
15. Term deposits (repayable after one year) (Interest Free, Long term)	0.000	0.000	0.000	0.000	0.000
16. Other Term Liabilities (Dealers Deposits)	0.000	0.000	0.000	0.000	0.000
17. TOTAL TERM LIABILITIES	13.600	29.292	26.677	24.062	21.446
18. TOTAL OUTSIDE LIABILITIES (Total of 10 + 17)	15.619	101.529	99.082	96.565	94.053
NET WORTH
19. Share Capital	7.941	17.115	28.025	39.874	52.031
20. General Reserve	0.000	0.000	0.000	0.000	0.000
21. Revaluation Reserve	0.000	0.000	0.000	0.000	0.000
22. Other reserves (excluding provisions)	0.000	0.000	0.000	0.000	0.000
23. Surplus (+) or deficit (-) in Profit & Loss A/c	0.000	0.000	0.000	0.000	0.000
24. NET WORTH	7.941	17.115	28.025	39.874	52.031
25. TOTAL LIABILITIES (18 + 24)	23.560	118.644	127.106	136.439	146.083
DIFFERENCE	0.000	0.000	0.000	0.000	0.000
CURRENT ASSETS
26. Cash and bank balances	2.102	2.544	3.814	3.873	3.112
27. Investments (other than long term investments)
(i) Government & other Trustee securities	0.000	0.000	0.000	0.000	0.000
(ii) Fixed Deposits with banks	0.000	0.000	0.000	0.000	0.000
(iii) Recurring Deposits with Banks	0.000	0.000	0.000	0.000	0.000
(iv) Accrued Interest on F.D.	0.000	0.000	0.000	0.000	0.000
28.(i) Receivables other than deferred & exports (Including Bills purchased and discounted by banks)	18.859	93.541	103.300	114.829	121.489
(ii) Export Receivables (Including bills purchased and discounted by banks)	0.000	0.000	0.000	0.000	0.000
29. Investments of deferred receivables (due within one year)	0.000	0.000	0.000	0.000	0.000
30. Inventory:
(i) Raw Materials (including stores & other items used in the process of manufacture)
a) Imported	0.000	0.000	0.000	0.000	0.000
b) Indigenous	0.758	0.961	1.036	1.073	1.110
(ii) Stock in Process	0.000	0.000	0.000	0.000	0.000
(iii) Finished Goods	0.000	0.000	0.000	0.000	0.000
(iv) Other consumable stores
a) Imported	0.000	0.000	0.000	0.000	0.000
b) Indigenous	0.000	0.000	0.000	0.000	0.000
31. Advances to suppliers of Raw materials & stores/spares	0.000	0.000	0.000	0.000	0.000
32. Advance Payment of Taxes	0.000	0.000	0.000	0.000	0.000
33. Other Current Assets
- Prepaid Expenses	0.000	0.000	0.000	0.000	0.000
- Others	0.000	0.000	0.000	0.000	0.000
34. TOTAL CURRENT ASSETS (Total of 26 to 33)	21.719	97.046	108.150	119.776	125.711
FIXED ASSETS
35. Gross Block (land and building, machinery, work-in-progress)	2.045	24.643	24.643	24.643	31.143
36. Depreciation to date	0.205	3.046	5.687	7.980	10.771
37. NET BLOCK (35-36)	1.841	21.597	18.956	16.663	20.372
OTHER NON-CURRENT ASSETS
38. Investments/book debts/ advances/ deposits which are not Current Assets	0.000	0.000	0.000	0.000	0.000
(i) a) Investments in subsidiary companies/ affiliates	0.000	0.000	0.000	0.000	0.000
b) Others	0.000	0.000	0.000	0.000	0.000
(ii) Advances to suppliers of capital goods & contractors	0.000	0.000	0.000	0.000	0.000
(iii) Deferred receivables (maturity exceeding one year)	0.000	0.000	0.000	0.000	0.000
(iv) Others-Deposits with Telecom etc.	0.000	0.000	0.000	0.000	0.000
39. Non-consumables stores & spares	0.000	0.000	0.000	0.000	0.000
40. Other non-current assets including dues from directors	0.000	0.000	0.000	0.000	0.000
Deferred Tax Asset	0.000	0.000	0.000	0.000	0.000
41. TOTAL OTHER NON-CURRENT ASSETS	0.000	0.000	0.000	0.000	0.000
42. Intangible assets (patents, goodwill, prelim. expenses, bad/doubtful expenses not provided for, etc.)	0.000	0.000	0.000	0.000	0.000
43. TOTAL ASSETS (34+37+41+42)	23.560	118.644	127.106	136.439	146.083
44. TANGIBLE NETWORTH (24-42)	7.941	17.115	28.025	39.874	52.031
45. NET WORKING CAPITAL [(17+24)-(37+41+42)] To tally with (34-10)	19.700 19.700	24.810 24.809	35.746 35.745	47.272 47.272	53.105 53.104
46. Current Ratio (Item 34 / 10)	10.76 : 1	1.34 : 1	1.49 : 1	1.65 : 1	1.73 : 1
47. Total Outside Liabilities / Tangible Net Worth (without considering quasi capital) (18 / 44)	1.97	5.93	3.54	2.42	1.81
ADDITIONAL INFORMATION
A) Arrears of depreciation
B) Contingent liabilities
i) Arrears of cumulative dividends	Nil	Nil	Nil	Nil	Nil
ii) Gratuity Liability not provided for	Nil	Nil	Nil	Nil	Nil
iii) Disputed excise/ customs/ tax Liabilities	Nil	Nil	Nil	Nil	Nil
iv) Other Liabilities not provided for	Nil	Nil	Nil	Nil	Nil

__________________________________________________________________________________________

COMPARATIVE STATEMENT OF CURRENT ASSETS AND CURRENT LIABILITIES

(Rs. in millions)

PARTICULARS	Current Year (Estimated)	Following Year Projections
	2011	2012	2013	2014	2015
A. Current Assets
1) Raw material including stores & other items use in the process of manufacture
a) Imported	0.000	0.000	0.000	0.000	0.000
months consumption	0.00	0.00	0.00	0.00	0.00
b) Indigenous	0.758	0.961	1.036	1.073	1.110
2) Other consumable spares excluding those included in 1 above
a) Imported	0.000	0.000	0.000	0.000	0.000
months consumption	0.00	0.00	0.00	0.00	0.00
b) indigenous	0.000	0.000	0.000	0.000	0.000
1 month’s consumption	0.00	0.00	0.00	0.00	0.00
(3) Stocks-in-process	0.000	0.000	0.000	0.000	0.000
Months cost of sales	0.00	0.00	0.00	0.00	0.00
4) Finished goods	0.000	0.000	0.000	0.000	0.000
Months cost of sales	0.00	0.00	0.00	0.00	0.00
5) Receivables other than export & deferred receivables (including bills purchased and discounted by bankers)	18.859	93.541	103.300	114.829	121.489
Months Domestic sales (Excluding deferred Payment sales)	0.00	0.00	0.00	0.00	0.00
6) Export receivables (including bills purchased and discounted by banks)	0.000	0.000	0.000	0.000	0.000
(Months export sales)	0.00	0.00	0.00	0.00	0.00
7). Advances to suppliers of raw materials & stores/spares	0.000	0.000	0.000	0.000	0.000
8) OTHER CURRENT ASSETS
a) Cash and bank balances	2.102	2.544	3.814	3.873	3.112
b) Investments and Accrued Interest	0.000	0.000	0.000	0.000	0.000
c) Advance Income Tax	0.000	0.000	0.000	0.000	0.000
d) Prepaid Expenses	0.000	0.000	0.000	0.000	0.000
e) Others	0.000	0.000	0.000	0.000	0.000
9) TOTAL CURRENT ASSETS	21.719	97.046	108.150	119.776	125.711
B. CURRENT LIABILITIES (Other than bank borrowings for working capital)
10) Creditors for purchase of raw materials, stores & consumable spares	0.912	1.162	1.252	1.297	1.342
11) Advances from customers	0.000	0.000	0.000	0.000	0.000
12) Statutory Liabilities	0.000	0.000	0.000	0.000	0.000
13) Other current liabilities (Specify major items)
a) Installments of Term Loan	0.000	0.000	0.000	0.000	0.000
b) Provision for Taxation	0.000	0.000	0.000	0.000	0.000
c) Creditors for Capital Goods	0.000	0.000	0.000	0.000	0.000
d) Creditors for Expenses	1.107	1.075	1.153	1.207	1.265
e) Other Current Liabilities	0.000	0.000	0.000	0.000	0.000
f) Dividend Payable	0.000	0.000	0.000	0.000	0.000
g) Short Term Borrowings	0.000	0.000	0.000	0.000	0.000
14) TOTAL	2.019	2.237	2.405	2.504	2.606

__________________________________________________________________________________________

COMPUTATION OF MAXIMUM PREMISSIBLE BANK FINANCE FOR WORKING CAPITAL

(Rs. in millions)

PARTICULARS	Current Year (Estimated)	Following Year Projections
	2011	2012	2013	2014	2015
1. Total Current Assets	21.719	97.046	108.150	119.776	125.711
2. Other Current Liabilities (other than bank borrowings)	2.019	2.237	2.405	2.504	2.606
3. Working Capital Gap (WCG) (1 – 2)	19.700	94.809	105.745	117.272	123.104
4. Minimum stipulated net working capital – 25% of WCG/ 25% of total current assets as the case may be depending upon the method of lending being applied. (Export receivables to be excluded under both methods)	5.430	24.262	27.038	29.944	31.428
5. Actual/ projected net working capital	19.700	24.810	35.746	47.272	53.105
6. Items 3 minus item 4	14.270	70.548	78.708	87.328	91.677
7. Items 3 minus item 5	0.000	70.000	70.000	70.000	70.000
8. Maximum permissible bank finance (item 6 or 7 whichever is lower)	0.000	70.000	70.000	70.000	70.000
9. Excess borrowings representing short fall in NWC (4-5)	0.000	0.000	0.000	0.000	0.000

__________________________________________________________________________________________

FUND FLOW STATEMENT

(Rs. in millions)

PARTICULARS	Current Year (Estimated)	Following Year Projections
	2011	2012	2013	2014	2015
1. SOURCES
a) Net profit (after tax)	1.118	9.174	10.910	11.850	12.157
b) Depreciation	0.205	3.046	2.641	2.292	2.791
c) Increase in capital	6.562	0.000	0.000	0.000	0.000
d) Increase in Term Liabilities
- Term Loans	0.000	17.000	0.000	0.000	0.000
- Unsecured Loans	13.600	0.000	0.000	0.000	0.000
e) Decrease in
i) Fixed Assets	0.000	0.000	0.000	0.000	0.000
ii) Other non-current assets	0.000	0.000	0.000	0.000	0.000
f) Others – Pre operative expenses and deferred tax liability	0.000	0.000	0.000	0.000	0.000
g) TOTAL	21.484	29.220	13.551	14.143	14.948
2. USES
a) Net loss	0.000	0.000	0.000	0.000	0.000
b) Decrease in Term Liabilities	0.000	1.308	2.615	2.615	2.615
c) Decrease in Share Application Money	0.000	0.000	0.000	0.000	0.000
d) Increase in
i) Fixed Assets	2.045	22.700	0.000	0.000	6.500
ii) Other Non Current Assets	0.000	0.000	0.000	0.000	0.000
e) Dividend payments	0.000	0.000	0.000	0.000	0.000
f) Others	0.000	0.103	0.000	0.000	0.000
g) TOTAL	2.045	24.111	2.615	2.615	9.115
3. LONG TERM SURPLUS (+) DEFICIT (-) (1-2)	19.439	5.109	10.936	11.527	5.832
4. Increase/ decrease in current assets	14.917	75.327	11.104	11.625	5.935
5. Increase/decrease in current liabilities other than bank borrowings	(4.686)	0.218	0.168	0.099	0.103
6. Increase /decrease in working capital gap	19.439	75.109	10.936	11.527	5.832
7. Net surplus(+)/ deficit (-) Difference of (3 - 6)	0.000	(70.000)	0.000	0.000	0.000
8. Increase/ decrease in Bank borrowings	0.000	70.000	0.000	0.000	0.000
INCREASE/ DECREASE IN NET SALES	154.728	99.000	33.030	16.470	16.425
BREAK UP OF CURRENT ASSETS
I) Increase/Decrease in raw materials	0.758	0.203	0.074	0.037	0.037
II) Increase/Decrease in stock in process	0.000	0.000	0.000	0.000	0.000
III) Increase/Decrease in finished goods	0.000	0.000	0.000	0.000	0.000
IV)Increase/decrease/ in receivables
a) Domestic	17.283	74.682	9.759	11.529	6.660
b) Export	0.000	0.000	0.000	0.000	0.000
V) increase/decrease in stores & Spares	0.000	0.000	0.000	0.000	0.000
VI) Increase/Decrease in other current assets	(3.124)	0.442	1.270	0.059	(0.762)
	14.917	75.327	11.104	11.625	5.935

__________________________________________________________________________________________

CASH FLOW STATEMENT

(Rs. in millions)

Year ended 31^st March	2011	2012	2013	2014	2015
1. Capital Introduced	6.000	0.000	0.000	0.000	0.000
2. Net Profit before depreciation & Interest	1.822	28.785	30.787	31.405	31.956
3. Increase in term Loan	0.000	17.000	0.000	0.000	0.000
4. Increase in short term loan	0.000	70.000	0.000	0.000	0.000
5. Increase in Unsecured Loan	11.000	0.000	0.000	0.000	0.000
6. Others	0.000	0.000	0.000	0.000	0.000
TOTAL SOURCES	18.822	115.785	30.787	31.405	31.956
1. Capital Expenditure	0.000	22.700	0.000	0.000	6.500
2. Decrease in secured loan	0.000	1.308	2.615	2.615	2.615
3. Interest on secured loan	0.000	12.463	12.357	11.964	11.572
4. Increase (Decrease) in Working capital	16.265	74.770	9.666	11.468	6.594
5. Decrease in unsecured loan	0.000	0.000	0.000	0.000	0.000
6. Deposits	0.000	0.000	0.000	0.000	0.000
7. Taxes Paid	0.500	4.102	4.879	5.299	5.436
TOTAL OUTFLOW	16.765	115.343	29.517	31.346	32.718
Opening Cash Balance	0.045	2.102	2.544	3.814	3.873
Surplus	2.057	0.442	1.270	0.059	(0.762)
Closing Cash Balance	2.102	2.544	3.814	3.873	3.112

__________________________________________________________________________________________

STATEMENT OF DEBT SERVING CAPACITY RATIO

(Rs. in millions)

PARTICULARS	YEAR 2012	YEAR 2013	YEAR 2014	YEAR 2015
A. CASH ACCRUALS
Post Tax Profit	9.174	10.910	11.850	12.157
Interest on Term Loan	2.313	2.207	1.814	1.422
Add: Depreciation	3.046	2.641	2.292	2.791
Preliminary Expenses	0.000	0.000	0.000	0.000
NET CASH ACCRUALS (A)	14.533	15.758	15.956	16.370
B. REPAYMENT OBLIGATIONS
Interest on Term Loan	2.313	2.207	1.814	1.422
Installment of Term Loan	1.308	2.615	2.615	2.615
TOTAL DEBTS (B)	3.621	4.822	4.430	4.038
D.S.C. RATIO (A / B)	4.01	3.27	3.60	4.05

Average Debt Serving Capacity Ratio – 4.34

Minimum Debt Serving Capacity Ratio – 3.27

Project Debt Serving Capacity Ratio – 4.21

__________________________________________________________________________________________

SALES AND PURCHASES

PARTICULARS	2011	2012	2013	2014	2015
INSTALLED CAPACITY (In Lac Ltr. Per Day) Milk Handling For: H & P	1.00	1.00	1.00	1.00	1.00
TOTAL	1.00	1.00	1.00	1.00	1.00
UTILIISED CAPACITY IN %
Of H & P	40.00	52.00	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.)	146.00	189.80	204.40	211.70	219.00
OPENING STOCK OF MILK (IN LAKH LTRS)	0.08	0.40	0.52	0.56	0.58
ADD: PURCHASES DURING THE YEAR	146.00	189.80	204.40	211.70	219.00
	146.08	190.20	204.92	212.26	219.58
LESS : CLOSING STOCK	0.40	0.52	0.56	0.58	0.60
QUANTITY OF MILK SOLD	145.68	189.68	20.436	211.68	218.98
RATE PER LTR (RS.)	22.50	22.50	22.50	22.50	22.50
TOTAL SALES (RS. IN MILLIONS)	327.780	426.780	459.810	476.280	492.705
PURCHASE PRICE OF MILK (RS. IN MILLIONS)	1.900	1.850	1.850	1.850	1.850
COST OF PURCHASE OF MILK (RS. IN MILLIONS)	276.792	350.908	378.066	391.608	405.113

__________________________________________________________________________________________

COMPUTATION OF TOTAL INCOME

GANGA FOODS

(ASSESSMENT YEAR 2010-2011)

PARTICULARS		AMOUNT (Rs. in millions)
INCOME FROM BUSINESS AND PROFESSION
Net profit as per profit and loss account		0.586
Add: Interest on Capital
Kapil Rajput	0.012
Mithilesh Rajput	0.008
Hemal Jobanputra	0.004
Murugesan Adimoolam	0.005	0.029
		0.615
Less: Allowable under section 40b(iv)		0.029
Taxable income		0.586
Tax on Rs.0.586 million @ 30%		0.176
Add: E. Cess at 3%		0.005
		0.181
Less: Advance tax paid		0.000
Total Tax Payable		0.181

__________________________________________________________________________________________

NET ASSET AS ON 31^ST MARCH, 2010

(MR. KAPIL D. RAJPUT)

PARTICULARS		AMOUNT (Rs. in millions)
Assets
Gold Jewellery	1.421
Hotel Dwarka, Panvel	51.617
Plant and Machinery	10.404
Land	1.880
Building	6.088
Equipments	0.305
Computer	0.030
Furniture and Fixtures	0.029
Motor Vehicle	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, Advances and Other Assets	1.872
Cash and Bank Balance	0.061
Total		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
Vehicle Loan		2.967
Business Loan		7.040
Housing Loan from Bank of Baroda		9.895
Sundry Creditors		0.635
Liabilities for Expenses		0.011
Net Asset as on 31^st March, 2010		159.935

__________________________________________________________________________________________

NET ASSET AS ON 31^ST MARCH, 2010

(MR. MITHILESH D. RAJPUT)

PARTICULARS		AMOUNT (Rs. in millions)
Assets
Jewellery	0.715
Furniture and Fixtures	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 Vehicle	1.082
Investment in Partnership Firms	16.219
Investment in Shares of Private Limited Companies	49.500
Current Assets
Loans and Advances	0.700
Cash and Bank Balance	1.213
Total		216.722
Less: Liabilities
Motor Car Loan		0.759
Loan from Friends and Relatives		19.942
Housing Loan from HDFC		3.687
Personal Loan from Financial Institutions		8.875
		8.526
Net Assets as on 31^st March, 2010		174.933

__________________________________________________________________________________________

NET ASSET AS ON 31^ST MARCH, 2010

(MR. HEMAL JOBANPUTRA)

PARTICULARS		AMOUNT (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 Advances	1.250
Cash and Bank Balances	0.122
Total		50.060
Less: Liabilities
PL – Kotak Bank	0.186
Housing and Office Loan	1.413
Unsecured Loan	41.100	42.698
Net Assets as on 31^st March, 2010		7.362

__________________________________________________________________________________________

NET ASSET AS ON 31^ST MARCH, 2010

(MR. MURGESAN ADIMOOLAM SALIAN)

PARTICULARS		AMOUNT (Rs. in millions)
Assets
House at Airoli	3.505
LIC	0.350
Jewellery	0.819
Investment in Shares (Private Limited Companies)	33.300
Investment in Partnership Firms	10.614
Loans and Advances	1.523
Investment in shares	0.332
Cash and Bank Balances	0.099
Total		50.542
Less: Liabilities
PL – Deutsche Bank	0.275
Loan	0.250
Housing Loan	0.999
Unsecured Loan – Friends and Relatives	39.800	41.324
Net Assets as on 31^st March, 2010		9.218

__________________________________________________________________________________________

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

I. GENERAL INFORMATION

Name of the Owner

Sant Eknath Milk and Agro Products

Name/s of the Purchaser! Name/s of persons in whose name/s the Property registered and Address

GANGA FOODS

Plot Bearing Gut No.189/1, 189/4, Sahagad Road, Village — Avade Unchegaon, Taluka — Paithan, District — Aurangabad, Maharashtra.

Purpose of Valuation

Requirement of Corporation Bank, Andheri (East) Branch.

List of Documents produced for perusal

1. Memorandum of understanding Dated 03.02.2011 between Sant Eknath Milk and Agro Products (Owner) and Ganga Foods (Purchaser)

2. 7/ 12 Extract for Gut No.189/1 and 189/4

3. Approved Plan Dated 10.04.08 by Drushti Associates, Architects

Date of Inspection

07.03.2011

Date of Valuation

15.03.2011

Approximate distance from the Branch to the Property

N.A.

Situation / Location / Brief Description of the Land / Site and brief description of the Building

Plot Bearing Gut No.189/1, 189/4, Sahagad Road, Village Avade Unchegaon, Taluka — Paithan, District — Aurangabad, Maharashtra.

Boundaries of the Property

As per Documents with the owners

Property Tax Details

Owner to Furnish.

Assuming the entire Property is let out, the probable monthly Rent

N.A.

Whether the Building Plan has been Approved? If Yes, Date of Approval, approving authority. and whether the Building has been constructed as per the Approved Plan

If No, the reason for non-approval

Not Available

II. VALUATION DETAILS

A. BUILDING

Type of Constructions

R.C.C. and Non R.C.C.

Quality of Construction

Good

Appearance of the Building

Good

Number of Floors

Ground + 1 and Ground Structures

Maintenance of Building.

Good and Well Maintained by the Owner

Description of the Property under valuation

a. Foundation

h. Superstructure

c. Roof

d. Doors

e. Windows

F. Sanitary Fittings

G. Flooring

h. Electricity supply

R.C.C

R.C.C

R.C.C. SLAB and A.C. Sheet Roofing

T.W. Doors

Al. / Glass Windows.

Concealed

Kota Tiles / C.C. Flooring

M.S.E.B.

Total Area

Land:

Gut No.	Area
	In Ares	In Sq. Mirs.
189/1	20.00	2000.00
189/4	11.00	1100.00

Building:

Type	Built Up Area
	In Sq. Mtrs.	In Sq. Ft.
R.C.C.	114.31	1230.00
Non R.C.C.	227.32	2446.00

Year of Construction

2008

Total Life of the I3uilding estimated

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

General Remarks

N.A.

Replacement rate of construction with the existing conditions and specifications

For R.C.C. Rs.1400/- for non R.C.C. Rs.800/-

Replacement value

Rs.3.679 millions

Depreciation Value at the rate of

90% of Market Value i.e. Rs.6.713 millions

Present Value of the Property.

Rs.7.459 millions

VALUATION ANNEXURE

DATE OF INSPECTION

07.03.2011

NAME OF PRESENT OWNER(S) OF THE PROPERTY

SANT EKNATH MILK AND AGRO PRODUCTS

NAME OF PURCHASER(S) OF THE PROPERTY

GANGA FOODS

ADDRESS

PLOT BEARING GUT NO.189/ 1, 189/ 4, SAHAGAD ROAD, VILLAGE – AVADE UNCHEGAON, TALUKA -PAITHAN, DISTRICT - AURANGABAD, MAHARASHTRA.

AREA

Land:

Gut No.	Area
	In Ares	In Sq. Mirs.
189/1	20.00	2000.00
189/4	11.00	1100.00

Building:

Type	Built Up Area
	In Sq. Mtrs.	In Sq. Ft.
R.C.C.	114.31	1230.00
Non R.C.C.	227.32	2446.00

1. LAND: 3100.00 Sq. Mtrs.

Sant Eknath Milk and Agro Products has acquired 31 Ares i.e. 3,100.00 Sq. Mtrs. of land at Gut No. 189/1, 189/4, Sahagad Road, Village — Avade Uncliegaon, Tal. — Paithan, fist. — Aurangabad, Maharashtra.

Out of the total 3,100.00 Sq. Mtrs. the owners have converted around 2,000.00 Sq. Mtrs of Land to Non Agricultural Purpose while the rest of the 1,100.00 Sq. Mtrs is Agricultural Land.

This is located at @ 90 Krns. From Aurangabad and within 85 Kms from Aurangabad Railway Station and Bus stand. It has plants of various Company 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.

VALUATION

Considering there factors and based on verbal information gathered from local sources. The Current Prevailing Market Rates are in the range of Rs.1200/- to Rs.1500/- per sq. mtr. For properties, which have been purchased outright, and the owner has procured all Licenses/ Permissions/ Clearances from the various regulatory authorities.

Hence in their opinion, the MARKET Rate of Rs.1400/- per Sq. Mtr. For N.A. Land (Inclusive of Cost incurred towards Procurement of Various Licenses/ Permissions/ Clearances and Registration/ Stamp Duty Charges) and Rs.750/- per Sq. Mtr. For Agricultural Land for the property under valuation, as on date of Valuation is Fair and reasonable.

Thus the Valuation works out to,

Sr. No.	Details	Area In Sq. Mtrs.	Rate Per Sq. Mtrs. In Rs.	Net Value (Rs. in millions)
1.	Gut No.189/1 Non Agricultural Land	2000.00	1400/-	2.800
2.	Gut No.189/4 Agricultural Land	1100.00	750/-	0.825
3.	Site Development	L.S.	L.S.	0.400
Sub Total – I				4.025

II. BUILDING AND STRUCTURES:

1. R.C.C. 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.

2. Non R.C.C. Building:

This is a Ground structure with R.C.C. Beams and AC. 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.
Joinerv / 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 specifications for the above mentioned building works out as below:

Sr. No.	Details	Area In Sq. Ft.	Replacement Cost Rate Per Sq. Ft. In Rs.	Net Value (Rs. in millions)
1.	R.C.C. Building	1230.00	1400/-	1.722
2.	Non R.C.C. Building	2446.00	800/-	1.957
Total				3.679

VALUATION:

Location, Demand — Supply Gap, Quality of Construction and amenities are BACKBONES in Valuation of Immovable Properties. They are working out the Valuation of subject Property on MARKET VALUE APPROACH, depending upon Location, Builder, Quality of Construction, amenities and the LOCALITY with well planned infrastructure.

Taking into Consideration, above Details / Specifications for the Property, Located at Village — Avade Unchegaon, Taluka — Paitliaii, District — Aurangabad, which is a Fully Developed Locality of Aurangabad;

Thus the valuation works out as below.

Sr. No.	Details	Area In Sq. Ft.	Rate Per Sq. Ft. In Rs.	Net Value (Rs. in millions)
1.	R.C.C. Building	1230.00	1300/-	1.599
2.	Non R.C.C. Building	2446.00	750/-	1.835
Sub Total – II				3.434
Say				3.434

SUMMARY:

SR. NO.	PARTICULARS	FAIR MARKET VALUE (Rs. in millions)
I.	Land and Site Development	4.025
II.	Buildings and Construction	3.434
	TOTAL (I + II)	7.459

VALUATION REPORT: PLANT AND MACHINERY

Date of making Valuation	15.03.2011
Name of Present Owner(s) of the Plant and machinery	SANT EKNATH MILK AND AGRO PRODUCTS
Name of purchaser of the Plant and machinery	GANGA FOODS
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.10.595 millions
Realisable Value at distress sale of the Plant and Machinery	Rs.9.536 millions i.e. 90% of F.M.V.

__________________________________________________________________________________________

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.45.08
UK Pound	1	Rs.73.35
Euro	1	Rs.64.30

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.