MIRA INFORM REPORT

Report Date :

18.05.2011

IDENTIFICATION DETAILS

Name :	NECTAR VINEYARD PRIVATE LIMITED

Registered Office :	At Post Telasang, Taluk Athani, Aigali-591265, Karnataka

Country :	India

Date of Incorporation :	04.12.2009

Com. Reg. No.:	051753

Capital Investment/ Paid-up Capital:	New Company

CIN No.: [Company Identification No.]	U15532KA2009PTC051753

Legal Form :	Private Limited Liability Company

Line of Business :	Manufacturer of Varieties of Grape wine.

No. of Employees:	Not Available

RATING & COMMENTS

MIRA’s Rating :

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

Status :	New Company

Payment Behaviour :	Unknown

Litigation :	Clear

Comments :	Subject is a relatively new company and in the process of establishing itself. The valuation report provided is of a much lesser value than the transaction amount. No further details or payment could be made available. 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

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

LOCATIONS

Registered Office/ Factory

At Post Telasang, Taluk Athani, Aigali-591265, Karnataka, India

E-Mail :

graplind@gmail.com

nectarvineyard@gmail.com

DIRECTORS

Name :	Mr. Shivanand L Udapudi
Designation :	Director
Address :	No. 1404, Amma Bagalkot Road, Lokapur Taluk Mudhol, District Bagalkot-587122, Karnataka, India
Date of Birth/Age :	20.07.1972
Qualification :	B.E. (Industrial Production Engineering)
Experience :	17 Years experience in various business and Industry
Present Occupation:	In Business- Running Cotton Industry, mining and Dealer – Hero Honda Motors Limited
Income Tax PAN:	AAEPU6758R/ I.T.O – Ward –I, Gokak
Date of Appointment :	10.01.2011
DIN No.:	02944806

Name :	Mr. Lokanna Channappa Udapudi
Designation :	Director
Address :	No. 1404, Amma Bagalkot Raod, Lokapur, Bagalkot-587122, Karnataka, India
Date of Birth/Age :	04.01.1948
Qualification :	8^th Class
Experience :	40 Years
Present Occupation:	Cotton Merchants
Income Tax PAN:	AACPU4063G
Date of Appointment :	10.01.2011
DIN No.:	03324409

Name :	Mr. Bhujaballi Jinappa Nandgave
Designation :	Director
Address :	38, Saraswati Sadan, North Shivaji Nagar, Sangli-416416, Maharashtra, India
Date of Birth/Age :	21.10.1949
Qualification :	BA
Experience :	10 Years experience in Wine Industry
Present Occupation Position:	Vice-Chairman in Green Gold Wine Private Limited Chairman in Sangli Region Wine Producers Association, Sangli
Income Tax PAN:	ADEPN3578R
Date of Appointment :	10.01.2011

Name :	Mr. Mallikarjun Shivappa Nidoni
Designation :	Director
Address :	57, Shrimad Society, Same Kathe, Morbi-363642, Gujarat, India
Date of Birth/Age :	01.07.1967
Qualification :	Diploma in Civil Engineering, MBA in operation
Experience :	23 years, Presently working as General Manager with India’s largest ceramic tile Manufacturer Kajaria Ceramics Limited
Present Occupation:	Presently working as General manager with India’s largest ceramic tile manufacture Kakaria Ceramics Limited
Income Tax PAN:	ABSPN2297B
Date of Appointment :	10.01.2011
DIN No.:	03249653

Name :	Mr. Baswaraj Malakappa Rodgi
Designation :	Director
Address :	At Post Telasang Taluk Athani, Belgaum-591265, Karnataka, India
Date of Birth/Age :	16.05.1958
Qualification :	B.S.A.M
Experience :	Grape Grower, Running regine shed for Dry-grape.
Present Occupation Positions:	Member, Karnataka State Wine Board, Advisory Member National Horticulture Mission Athani
Income Tax PAN:	ARUPR1350H/ I.T.O – Ward- I/3, Belgaum
DIN No.:	02745486

Name :	Mr. Karabasappa Lokanna Udapudi
Designation :	Director
Address :	385, Lokhapur Taluka Mudhol, District Bijapur-587122, Karnataka, India
Date of Birth/Age :	01.10.1970
Qualification :	MBBS. MD (Medicine)
Experience :	Since hails form business family background since partner in many business concerns, the experience is self-explanatory.
Present Occupation:	Present Profession- Physician
Income Tax PAN:	AAOPU5903G/I.T.O- Ward- I, Bagalkot
DIN No.:	02754619

Name :	Mrs. Suma M Nidoni
Designation :	Director
Address :	At/Po: Telsant Ta: Athani District: Belgaum-591265, Karnataka, India
Date of Birth/Age :	32 Years
Qualification :	B.A.
Experience :	Teacher in International School since last 10 years.
Present Occupation:	Teacher in International School, since last 10 years.
Income Tax PAN:	AJWPN6285D

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

Names of Shareholders		No. of Shares
Baswaraj Malakappa Rodgi		100000
Karabasappa Lokanna Udapudi		100000
Total		200000

As on 28.02.2011

List of Allottees		No. of Shares Allotted
Baswaraj Rodgi		150000
Karabasappa Lokanna Udapudi		100000
Shivanand Udapudi		250000
Lokanna Channappa Udapudi		200000
Mallikarjun Shivappa Nidoni		200000
Bhujaballi Jinappa Nandgave		200000
Total		1100000

As on 01.04.2011

List of Allottees		No. of Shares Allotted
Karabasappa Lokanna Udapudi		50000
Mallikarjun Shivappa Nidoni		50000
Lokanna Channappa Udapudi		50000
Total		150000

As on 26.04.2011

List of Allottees		No. of Shares Allotted
Baswaraj Rodgi		100000
Karabasappa Lokanna Udapudi		100000
Shivanand Udapudi		100000
Lokanna Channappa Udapudi		100000
Mallikarjun Shivappa Nidoni		100000
Bhujaballi Jinappa Nandgave		50000
Total		550000

BUSINESS DETAILS

Line of Business :

Manufacturer of Varieties of Grape wine.

GENERAL INFORMATION

Bankers :

Canara Bank
Corporation Bank – Gokak Branch


Banking Relations :

Auditors :
Name :	Not Available

Sister Concern:	Chinmay Motors L.C. Udapudi

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount

1300000	Equity Shares	Rs. 10/- each	Rs. 13.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount

200000	Equity Shares	Rs. 10/- each	Rs. 2.000 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

New Company

LOCAL AGENCY FURTHER INFORMATION

PREAMBLE AND PROJECT AT A GLANCE:

PREAMBLE:

The Agriculture and its growth is the symbol of development of farmer. In particular the cultivation of horticulture crop like grape is preferably a good commercial crop. The land fertility and climatic conditions in Telsang with radius of 100 kms are very favourable for grape cultivation. Hence most of the farmers of this area are engaged in grape cultivation and producing table-grapes and dry-grapes, now days due to price fluctuations in the market for theses grapes, farmers are finding it difficult to get good price for their good quality product. Hence they are migrating to wine-grape cultivation and about 500 Acres of wine variety is cultivated.

Subject is a company promoted due to the idea conceived by these leading grape growers. One of the promoters Dr. B. M Rodgi is the member of Karnataka State Wine Board Bangalore, another promoter Mr. B. J. Nandagave is running winery at Miraj since last 5 years and gained through knowledge in the field of wine manufacturing and Mr. S.L. Udapudi being technical graduate with business background.

PROJECT AT A GLANCE

Name of the Unit	Nector Vineyard Private Limited

Constitution	Private Limited Company

Address	R S No. 524/4 Athani- Bijapur Road, Telsang-591265 Tq: Athani, Belgavi, Karnataka

Year of Proposed Commencement	2011

Type of Industry	Small Scale Industry

Project Cost	Land and Building : Rs. 12.000 Millions Plant and Machinery : Rs. 27.875 Millions Computers, U.P.S., Printer Electrical Fittings and Furniture: Rs. 33.660 Millions Working Capital: Rs. 20.075 Millions Total : Rs. 63.310 Millions

Employment Generation	20 Members (6 Skilled, 14 Unskilled

Power Requirement	125 KVA

Nearest Town	31 Kms – Athani

Nearest Railway Station	42 kms – Bijapur

Nearest River	20 Kms- Krishna

Nearest Police Station	12 kms - Aigali

Nearest Post Office	02 kms – Telsang Village

Nearest Fire Engine	31 kms- Athani

Nearest City	42 kms- Athani

Nearest Airport	195 kms- Hubli 180 Kms- Belgaum

Nearest Seaport	300 kms – Marmgoa

Altitude	2700 feet above MSL

How Reach the project site	By Train , from Bangalore/ Bijapur. From Bijapur Railway Station to Project site by Bus/ Taxi

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

NET WORTH STATEMENT

AS ON 31.03.2010

MR. BASAVARAJ MALKAPPA RODGI

(DIRECTOR)

(Rs. in Millions)

Particulars	Area	Value	Acquired
A. IMMOVABLE PROPERTIES

1. Agriculture Land			Ancestral
S No. 52/1B of Telsant	4.26
S No. 35/4 of Telsang	1.10
S No. 965 of Hanawad	10.33
S No. 53/2D of Telsant (3.02/2)	1.21
S No. 477/2 of Telsant (6.13/2)	3.06
S No. 867/1 of Telsant (8.13/2)	4.06
S No. 913 (14/2) of Telsant	7.00
	31.02	24.816

2. Buildings:
VPC No. 260	1.00	0.600	Own
VPC No. 491/2/8/3/1	1.00	0.300	Own
VPC No. 515/2	1.00	0.500	Own
VPC No. 517/2	1.00	0.800	Own
VPC No. 614/A	1.00	0.400	Own
VPC No. 614/B	1.00	0.400	Own
Farm House	1.00	1.200	Own
	Total A	29.016

B. MOVABLE PROPERTIES AND INVESTMENTS
Jewellery	400 Gms	0.800
Cash in hand		0.050
Cash at Bank		0.300
Motor Car	2 Nos	0.750
Insurance Policies (Paid up value)		2.000
Enquiry Shares		0.035
	Total B	3.935

Total (A+B)		32.951

C. LESS: LIABILITIES
Bank Loans		1.300

TOTAL NET WORTH (ASSETS – LIABILITIES)		31.651

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

NET WORTH STATEMENT

AS ON 31.03.2010

MR. KARABSAPPA L UDAPUDI

(DIRECTOR)

(Rs. in Millions)

Particulars	Area	Value	Acquired
A. IMMOVABLE PROPERTIES
1. Agricultural Lands: Identification
Lokapur Sy. No. 1/ 2	1.00	1.050	Purchased
Lokapur Sy. No. 14	2.10	0.850	Ancestral

2. Non-Agricultural Lands:
Lokapur Sy No. 11/1+2+3	2.38	8.000	Purchased
Lokapur CTS No. 1404	0.10	7.500	Purchased
Open Site 2 Nos		0.450	Ancestral

3. Building
Residential Building	0.04	6.000	Constructed
Shop		0.250	Ancestral
Machineries		0.050	Purchased
	Total A	24.150

B. Movable Properties
Jewellery		0.220
Cash in Hand		0.310
Cash at Bank		0.180
Motor Car and Bikes		0.500
Insurance Policies (Paid up value)		0.450
NSC		0.100

C. Investments
In L.C. Udapudi		0.172
In Chinmay Motors		0.799
In Udapudi Pressing Factory		1.672
	Total B	4.403

Total (A+B)			28.553

D. Less: Liabilities
SBI Car Loan		0.080
From Mrs. Savita K Udapudi		1.000
Others		0.050
	Total C	1.130

Total Net Worth (Assets – Liabilities)			27.423

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

NET WORTH STATEMENT

AS ON 31.03.2010

MR. SHIVANAND L UDAPUDI

(DIRECTOR)

(Rs. in Millions)

Particulars	Area	Market Value	Acquired
A. IMMOVABLE PROPERTIES
1 Agricultural Lands: Identification
Palakimanya Sy. No. 64-5 Nos	35.15	6.900	Purchased
Palakimanya Sy No. 47/4	4.04	0.923	Purchased
Lokapur Sy. No. 14/2A	2.13	0.640	Ancestral
Lokapur Sy. No. 99/2 and 3, 95/ 1 and 2	10.35	6.600	Purchased

2. Non- Agricultural Lands
Lokapur Sy. No. 116/3B Mining	2.38	3.200	Purchased
Lokapur Sy. No. 10/1	2.04	10.000	Purchased
Lokapur CTS No. 1405	0.09	5.600	Purchased

3. Buildings
Godown		0.650	Constructed
Shop		0.500	Constructed
Machineries		0.080	Purchased
	Total A	35.090

B. Movable Properties
Jewellery		0.150
Cash in hand		0.190
Cash at Bank		0.220
Motor Car		1.450
Insurance Policies (Paid up value)		0.400
NSC		0.010

C. INVESTMENTS
In L.C. Udapudi		0.033
In Chinmay Motors		1.748
In Udapudi Pressing Factory		2.596
	Total B	6.797

Total (A+B)			41.887

D. Less: Liabilities
KSFC Belgaum		1.000
Basaveshwar Cotton Industries		0.731
Others		0.050
	Total C	1.781

Total Net Worth (Assets- Liabilities)			40.106

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

NET WORTH STATEMENT

AS ON 31.03.2010

MR. LOKANNA C UDAPUDI

(DIRECTOR)

(Rs. in Millions)

Particulars	Area	Market Value	Acquired
A. IMMOVABLE PROPERTIES
1. Agricultural Lands: Identification
Palakimanya Sy. No. 64/8	8.17	0.840	Purchased
Chikkur Sy. No. 57/2	7.24	2.200	Ancestral
Lokapur Sy. No. 110/2	2.08	0.600	Ancestral
Choudapur Sy. No. 63/3B	3.05	0.800	Purchased
Lokapur Sy. No. 10/2	1.22	0.400	Purchased
Lokapur Sy. No. 14/2B	2.34	0.720	Purchased
Lokapur Sy. No.	0.18	0.800	Purchased

2. Non-Agricultural Lands:
Lokapur Sy. No. 1	1.00	1.500	Purchased
Gokak Sy. No. 130	2.00	16.000	Purchased
Open Sites 5 Nos		1.200	Ancestral

3. Building
Factory Godowns 4 nos		9.000	Constructed
Showroom and Workshop Building		8.000	Constructed
Shops 2 Nos		0.800	Constructed
Shops 3 Nos		0.500	Ancestral
Machineries		0.160	Purchased
	Total A	43.520

B. MOVABLE PROPERTIES
Jewellery		0.154
Cash in Hand		0.224
Cash at Bank		0.042
Motor Car		0.200
Insurance Policies (Paid up value)		1.000
NSC		0.025

C. INVESTMENTS
In L.C. Udapudi		3.139
Shares		0.050
	Total B	4.834

Total (A+B)			48.354

D. LESS: LIABILITIES
KSFC Belgaum		1.500
KVG Bank, Lokapur (Limit 1.500 Millions)		0.020
Others		0.050
	Total C	1.570

Total Net Worth (Assets- Liabilities)			46.784

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

NET WORTH STATEMENT

AS ON 31.03.2010

MR.BHUJABALLI JINNAPPA NANDAGAVE

(DIRECTOR)

(Rs. in Millions)

Particulars	Area	Market Value	Acquired
A. IMMOVABLE PROPERTIES

2. Buildings
City Survey No. 1070-A-195 sq.m.	Sq.m	33% own	2.200
City Survey No. 1070/2-429 Sq.m. (Sangli (50% ownership)			Own
	Total A	2.200

B. MOVABLE PROPERTIES AND INVESTMENTS
Jewellery		0.800
Cash in Hand		0.050
Cash at Bank		0.100
Partner Capital Telsang		2.500
Green Gold Wine, Bedag		0.930
	Total B	4.380

Total (A+B)		6.580

C. LESS: LIABILITIES		0.000

Total Net Worth (Assets- Liabilities)		6.580

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

NET WORTH STATEMENT

AS ON 31.03.2010

MR.MALLIKARJUN SHIVAPPA NIDONI

(DIRECTOR)

(Rs. in Millions)

Particulars	Area	Market Value	Acquired
A. IMMOVABLE PROPERTIES
1. Agricultural Lands:
Survey No. Honwad Ta/ District Bijapur	7 acres 12 ghunta	2.400	Own
Survey No. 585 Telsant Ta: Athani District : Belgaum	5 acres 12 Ghunta	2.500	Own

2. Buildings
Old S No. 283-A and B News S. No. 37 and 38 Everest World Kholset Road Thane (50% ownership)		2.250	Own
India Bulls Gressn Panvel (Booked under construction)		2.000	Own
	Total A	9.150

B. MOVABLE PROPERTIES AND INVESTMENTS
Jewellery		0.000
Cash in hand		0.050
Cash at Bank		0.050
Motor Car		0.650
Scooter		0.040
Insurance Policies (Paid up value)		0.000
NSC		0.000
Parnters capital		0.000
	Total B	1.290

C. LESS LIABILITIES
ICICI Bank (Home Loan)		1.000
ICICI Bank (Car Loan)		0.200
	Total C	1.200

Total Net Worth (Assets- Liabilities)		9.240

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

NET WORTH STATEMENT

AS ON 31.03.2010

MRS. SUMA MALLIKARJUN NIDONI

(DIRECTOR)

(Rs. in Millions)

Particulars	Area	Market Value	Acquired
A. IMMOVABLE PROPERTIES

2. Building
Thane (50% ownership)		2.250	Own
	Total A	2.250

B. MOVABLE PROPERTIES AND INVESTMENTS
Jewellery		0.250
Cash in Hand		0.050
Cash at Bank		0.100
Tractor		0.500
Insurance Policies (Paid up Value)		0.000
NSC		0.000
Partner Capital		0.000
	Total B	0.900
Total (A+B)		3.150

C. LESS LIABILITIES		0.000

Total Net Worth ( Assets- Liabilities)		3.150

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

OPERATIONAL GUIDELINE OF SFAC SCHEME FOR AGRIBUSINESS PROJECT DEVELOPMENT

HIGHLIGHTS

1. Venture Capital: To promote investments in agri-business projects with the participation of banks

a) Equity participation in agri-projects upto 10% of the total project cost, or 26% of the total project equity or Rs.75 lakhs whichever is lower.

b) b. In special cases, higher equity possible for Projects located in hilly and North Eastern States and in Projects recommended by State agencies/ State SFACs.

2. Project Development Facility(PDF) : To provide financial assistance to farmers, Producer Groups, Agripreneurs, Units in Agri-Export Zones, Organizations and Agriculture graduates for the preparation of bankable Detailed Project Reports (DPR).

3. Eligible Criteria for funding

a) Project should be in agriculture or allied sector namely horticulture, floriculture, medicinal and aromatic plants, minor forest produce, sericulture, organic farming, vermi compost, apiculture, plantation crops, and fisheries. However, poultry and dairy projects will not be covered under the scheme.

b) Project should provide assured market to farmers/ producer groups

c) Project should encourage farmers to diversify into high value crops, to increase farm incomes

d) Project should be accepted by banks for grant of term loan

SCHEME FOR AGRIBUSINESS DEVELOPMENT THROUGH VENTURE CAPITAL ASSISTANCE AND PROJECT DEVELOPMENT FACILITY

1. Background:

Farming is the single largest private sector economic activity in the country. The growth potential in this key sector is immense in view of the changes taking place in food consumption and there is growing demand for high value processed products. Successes in such endeavors will require innovations and partnerships. Private agribusinesses provide first point market for the farm sector and growth depends principally on private initiatives. A significant portion of agribusiness activity is the result of small and medium enterprises. Such enterprises are necessarily widespread in location to capture opportunities that arise all along the farm to table supply chain. Key constraints that impede development of new agribusiness projects are access to information and access to credit. Agribusiness entrepreneurs are generally first generation who have business skills but their financial resources are limited. In order to facilitate agribusiness development in the country SFAC venture capital scheme will:

a) Assist agripreneurs to make investments in setting up agribusiness projects through equity participation and

b) Provide financial support for preparation of bankable Detailed Project Reports (DPR) through a Project Development Facility (PDF).

2. Objectives:

The main objectives of the Scheme are:

a) To facilitate setting up of agribusiness ventures in close association with banks.

b) To catalyze private investment in setting up of agribusiness projects and thereby providing assured market to producers for increasing rural income and employment.

c) To strengthen backward linkages of agri-business projects with producers.

d) To assist farmers, producer groups, and agriculture graduates to enhance their participation in value chain through Project Development Facility

e) To arrange training and visits, etc. of agripreneurs setting up identified agribusiness projects.

3. Salient features of the Scheme:

A) Venture Capital Assistance

SFAC would provide equity to qualifying projects on the recommendations of the bank financing the project. This equity capital will be repayable back to SFAC after the project has repaid the term loan of the financing bank. SFAC would provide financial assistance to agri-business projects by way of equity participation on the fulfillment of the following conditions.

a) Qualifying projects under Venture Capital

i) Project should be in agriculture or allied sector namely horticulture, floriculture, medicinal and aromatic plants, minor forest produce, sericulture, organic farming, vermi compost, apiculture, plantation crops, and fisheries.However, poultry and dairy projects will not be covered under the scheme.

ii) Project should provide assured market to farmers/ producer groups

iii) Project should encourage farmers to diversify into high value crops, to increase farm incomes

iV) Project should be accepted by banks for grant of term loan

b) The quantum of SFAC venture capital assistance will depend on the project cost and will
be the lowest of the following –

10% of the total project cost assessed by the bank
26% of the project equity
Rs. 7.500 Millions

c) Higher venture capital assistance can be considered by SFAC to deserving projects on merit and/or to projects that are located in remote and backward areas, North- eastern and hilly States and projects recommended by State agencies.

d) Beneficiary will submit the project proposal in the form of DPR to area lending bank.

e) On receipt of project proposal, bank will appraise, assess and sanction requisite amount of term loan/working capital required by the beneficiary for execution of the project.

f) Bank will also workout the amount of Venture Capital, as per criteria laid down at para 3 (a, b and c) and communicate it to SFAC with its recommendation.

g) SFAC will make said amount available to the recommending bank on case to case basis for disbursement to the beneficiary either in lump sum or in stages, as may be considered appropriate by the bank.

h) Term Loan/working capital and equity amount from SFAC as Venture Capital assistance will be extended to the

beneficiary through a single-window of the project financing bank.

i) Financial assistance from SFAC would be in the nature of equity, till the banks term loan is fully repaid by the project and would automatically be converted into a term loan on the last date of such repayment.

j) The venture capital after it becomes term loan could be repaid to SFAC in lump sum or in four quarterly installments with the amount of interest at the same rate as the term loan.

k) During the pendency of loan, the bank will be having charge over the primary/collateral securities available with

the beneficiary. After repayment of bank term loan, available securities will be automatically charged to the SFAC for recovery of its Venture Capital.

l) The bank will provide SFAC with full details of the terms and conditions under which the term loan is sanctioned including repayment schedule fixed for the loan.

m) The bank will also keep SFAC posted of the progress in implementation of the project and repayment of its term loan from time to time and its performance on yearly basis after the project becomes operational.

n) The funds received from SFAC will be kept in a separate account by the bank and released to promoters for the project implementation, as and when required.

B Project Development Facility

a) SFAC will provide financial support to farmers, Producer Groups, Agripreneurs, Units in Agri-Export Zones, and Agriculture graduates (called beneficiary) in the preparation of bankable Detailed Project Reports (DPR) through empanelled consultants/institutions. SFAC will provide for the cost of preparation of DPR upto
a ceiling of Rs. 0.500 Million depending upon size, location, activity and coverage on a case to case basis.

b) The beneficiary desirous of seeking assistance for preparation of DPR can approach nearest branch of the commercial bank along with the details / pre- feasibility of the proposed project for the recommendation of the bank.

c) The bank on being satisfied about the feasibility of the intending project will recommend it to SFAC for providing financial assistance for the preparation of DPR. Intending projects must be over Rs. 5.000 Millions (Rs. 2.500 Millions in case of NE states and other hilly areas) in size.

d) Based on the activity and location of the project, SFAC will entrust preparation of DPR to one of the consultants

on its panel.

e) SFAC will release cost of DPR preparation to the area Lending Bank with an intimation to the consultant.

f) Bank will release 25% of cost to empanelled consultant at the first stage, 50% on receipt of DPR and 25% within fortnight of receipt of DPR after having satisfied itself about the quality of DPR. Consultant will submit three copies of DPR, one each for beneficiary, bank and SFAC.

g) The DPR received from SFAC or directly from the consultant will be examined in detail by the lending bank for sanction of term loan and release of venture capital. A copy of the term loan sanction advice to the borrower will also be addressed to SFAC for its record.

h) PDF will also provide financial assistance to State SFACs for undertaking promotional activities for agribusiness development. PDF will also arrange training and visits etc. of entrepreneurs setting up the identified Agri-business projects.

i) SFAC.’s Project Development Facility will engage the services of National Institute of Agricultural Marketing (NIAM), Jaipur; MANAGE, Hyderabad; Industry Associations such as CII, FICCI, ASSOCHAM, PHD, State SFACs, SAUs and others to vigorously publicize the benefits of the Venture Capital Assistance Scheme to
prospective entrepreneurs and producer organizations.

4. Eligible Persons

Assistance under the scheme will be available to Individuals, Farmers, Producer Groups, Partnership / Propriety firms, Self help groups, Companies, agripreneurs, units in agri-export zones, and Agriculture graduates Individually or in groups.

For professional management and accountability the groups have to preferably form into companies or producer companies under the relevant act.

5. Role of Central SFAC

a) On receipt of Proposal from bank indicating sanction of term loan and requirement of VCA, SFAC will submit the proposal to its investment committee for approval after field visit and satisfying itself about the viability and linkages with farmers etc.

b) SFAC after seeking approval of its investment committee and sanction by its Managing Director will release VCA to the bank.

c) SFAC will seek approval of its Executive Committee in cases where higher Venture Capital Assistance is proposed to be considered.

d) SFAC‟s Project Development Facility will investigate such proposals, which may include site visits, referred by bank needing clarification to determine if projects are qualifying or not and report back to Bank within 30 days of receipt of reference.

e) In case SFAC receives proposals of PDF and VCA directly from intending groups, these will be directed to nodal officers of concerned bank.

f) Central SFAC will strengthen the State SFACs and assist them in undertaking promotional activities, campaigns, printing of guidelines in local language, identification of qualifying projects and in organizing producer groups.

g) SFAC will have Memorandum of Understanding with all participating lending banks as per Indian Bank Association approved model.

h) SFAC will have a separate agreement with the applicant for facilitating the recovery of its equity amount extended under Venture Capital assistance.

6. Role of State SFACs

a) As extended arms, State SFACs as federal unit have been established in 17 States to aggressively promote agribusiness project development in their respective States.

b) State SFACs in consultation with Central SFAC will prepare a plan for agri- business project development in their respective States.

c) State SFACs after due diligence and ascertaining the backward linkages as per the objectives will recommend agri-business projects to Central SFAC for equity participation.

d) State SFACs with assistance under PDF facility will organize awareness and publicity campaigns, arrange training of entrepreneurs for setting up identified projects, publish guidelines of the scheme in local languages, undertake promotional activities and organize producer groups.

e) Help producer groups in framing pre-feasibility reports and facilitate interaction with local banks for their recommendation.

f) Function as repositories of information maintaining a data base of potential areas, producer groups and marketable surplus of various crops available.

g) Provide venture capital to small projects out of interest earned on the Corpus fund and refer large projects to Central SFAC

h) As a Member of SLBC, raise the issues concerning agribusiness project development in their respective States during the SLBC meetings.

i) Monitor the projects through their implementation stage and developments/deficiencies will be reported to Central SFAC for initiating remedial action.

7. Role of Agripreneurs

For the success of the Venture, the agribusiness projects should be grounded within a predetermined time schedule as fixed in the sanction of term loan.

a) For the release of Venture Capital, agripreneurs will have to enter into an agreement with SFAC for the purpose of refund of equity fund and also transfer of charge on securities which would take place after the repayment of the term loan to the financing bank.

b) Agripreneurs will submit implementation schedule of the Project to SFAC and participating bank which will be closely monitored by SFAC.

c) Deviation, if any, in the implementation schedule should be immediately notified to the Bank and to SFAC.
d) Agripreneurs will submit utilization certificate of Venture Capital assistance in GFR 19 A duly certified by Chartered Accountant to SFAC and the participating bank, at the end of each financial year.

e) Agripreneurs will submit yearly physical progress reports, audited accounts and balance sheet to SFAC and the participating banks.

8. Eligible Financing Institutions

Nationalized Banks, SBI and its subsidiaries and other commercial banks

9. Monitoring and Reporting

With a view to minimize paper work and ensure that SFAC is provided with all the relevant details of individual projects financed by the bank with Venture Capital support provided by SFAC, units assisted for preparation of DPR, and also progress in project implementation from time to time, the following reporting schedule will be observed.

a. Report on utilization of venture capital assistance (VCA) / project development facility (PDF) The bank will report each disbursement made by them in respect of VCA out of the funds received from SFAC. A report on progress in project implementation vis a vis utilization of equity amount already given to the party through bank under VCA would also be sent to SFAC.

b. Report on the working of assisted units The Bank will submit a report on the working of the units financed by them under VCA to SFAC on a half yearly basis indicating whether the operations are in line with the projections and whether the borrowers are adhering to repayment commitments.

c. Reporting of Exceptions The bank would also keep SFAC informed of any significant developments with regard to operation of the projects, its implementation and unsatisfactory features if any noticed by them. The bank will also keep SFAC informed of any recovery action initiated by them in the event of failure of the unit to perform or inability of the borrowers to meet financial commitments.

d. Project Specific Information In addition to the above standard reporting by the bank, it would also provide SFAC with project specific information, if any, sought by them from time to time.

e. Field visits As part of due diligence, before sanction of Venture Capital Assistance, SFAC will undertake field visits to ascertain backward linkages with the farmers, feasibility of the site, availability of raw material, etc.
SFAC’s Officers will undertake field visits independently or in association with the lending bank or State Government/State SFAC to monitor the implementation of the project.

10. Implementation period

The scheme will be implemented during 2005-06 and 2006-07 in the tenth plan with a central assistance of Rs. 480.000 Millions.

11. Implementing Agency

The scheme will be implemented by Small Farmers Agribusiness Consortium (SFAC), a registered society under Department of Agriculture and Cooperation, Ministry of Agriculture.

12. General awareness, publicity and training programmer.

Services of National Institute of Agricultural Marketing, NIAM, Jaipur; MANAGE, Hyderabad; Industry Associations such as CII, FICCI, ASSOCHAM, PHD, State SFAC‟s, SAU‟s and others will be engaged under PDF to vigorously publicize the benefits of the Venture Capital Assistance Scheme to prospective entrepreneurs and producer organizations

Services of banking institutions will also be engaged for sensitizing the Branch Managers and other functionaries about the Scheme.

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

MINISTRY OF FOOD PROCESSING INDUSTRIES GUIDELINE

GENERAL INFORMATION

Capital	Bangalore
Area	450000 sq.km
Population (Census 2001)	52850562
Principal Languages	Kanada
Literacy Rate (2001)	66.6%
Major Minerals	Highgrade iron ore, cooper, manganese, chromite, china clay, lime stone, magnetite, Gold.
Major Industries	Aircraft, Rail, Coaches, telephone instruments, electronic and telecommunication, equipments, glass, batteries, electric motors, textiles, silk, hosiery, por/ pan/ celain, ceramic, sugar, capacitors, mining-metal, tools, cement, motorcycles, fertilizers.
Major Crops	Rice, Ragi, Jowar, Bajra, Maize, Cardomom, Apricot, Safflower, Coconut, Cotton, Groundnut, chillies, castor seed, sugarcane, tobacco.

INFRASTRUCTURE

Railway track length	3089 km
Road length	137500 km
National Highway Length	2587 km
Domestic Airport	Bangalore, Belgaum, Ballary, Hubli, Mangalore, Mysore
International airport	Bangalore
Major Cities linked	Ahmedabad, Calcutta, Delhi, Chennai, Mumbai, Thiruvananthapuram
Ports	New Mangalore, port Karwar
Industrial Zones and Parks	23
Export Processing Zone	1

INDUSTRIAL POLICY

The main objectives of Industrial Policy 1996 is to active participation of Industry in development of infrastructure. It also emphasis on development of potential growth centres, thrust for growth in the export of value added goods, encouragement of utilization of Non-conventional energy and co-generation, and encouragement for improvement in productivity, R and D and quality upgradation etc. The state has been classified into three zones:-

Zone-I : Development Areas	Bangalore South and North Talukas and Bangalore Urban Agglomeration areas as per 1991 census
Zone –II: Developing Areas	All the remaining parts of state – 173 talukas
Zone –III: Growth Centres	Growth centres at Dharwad, Hassan and Raichur, Proposed Mini growth centres at Bijapur, Malur-Kolar District, Chitradurga, Chikmaglur, Nippani, Gadag and Bellary, and Ancillary complex at Thorangallum Ballsary District and Such other areas as may be so declared by Government in commerce and Industries Department from time to time.

INCENTIVES

The Following are supports proposed to be provided to the entrepreneurs for developing all round industrial development of the islands.

· Capital investment subsidy of 25% of fixed capital upto Rs. 2.500 Million, for Tiny and Small Scale Industries in Zone-II.

· Capital investment subsidy of 30% of fixed capital upto Rs. 3.000 Millions, for Tiny and Small Scale Industries in Zone-III.

· Additional 10% Investment subsidy for installing renewable energy equipment, upto Rs. 05 million

· Additional 5% investment subsidy up to Rs. 0.500 Million for tune and SSI in Zone II and III for thrust sector projects.

· Additional investment subsidy 5% of capital investment up to Rs. 0.100 Million for thrust and SSI units all zones established by special category entrepreneurs.

· Industrial estates promoted in Private/ co-operative sector (in Zone-II and III) shall be allowed an investment subsidy @ 20% upto Rs. 2 Million for project cost upto Rs. 50 Millions

· Sales tax exemption or deferral for investment in small, medium, and large scale units

· Five year exemption from Electricity tax on captive generation for self consumption

· Special incentive package, on case-to-case basis, for projects over Rs. 1000 millions.

· All new, tiny, and SSI units in Zone II and III exempted from stamp duty.

· Subsidy for SSIs of 25% of fixed capital or Rs. 2.5 million (Zone II) and 30% or Rs. 3 Million (Zone III)

· Additional 5% subsidy of upto Rs. 0.500 Million for 100% export oriented units.

· Exemption from planned power cuts for 100% export oriented units.

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

SCHEME FOR AGRIBUSINESS DEVELOPMENT THROUGH VENTURE CAPITAL ASSISTANCE AND PROJECT DEVELOPMENT FACILITY

Background:

a) Assist agripreneurs to make investments in setting up agribusiness projects through equity participation, and

b) Provide financial support for preparation of bankable Detailed Project Reports (DPRs) through Project Development Facility (PDF).

Objectives:

The main objectives of the Scheme are:

a) To facilitate setting up of agribusiness ventures in close association with banks.

b) To catalyze private investment in setting up of agribusiness projects and thereby providing assured market to producers for increasing rural income and employment.

c) To strengthen backward linkages of agri-business projects with producers.

d) To assist farmers, producer groups, and agriculture graduates to enhance their participation in value chain through Project Development Facility.

e) To arrange training and visits, etc. of agripreneurs setting up identified agribusiness projects.

Salient features of the Scheme:

A Venture Capital Assistance

a) Qualifying projects under Venture Capital

i) Project should be in agriculture or allied sector namely horticulture, floriculture, medicinal and aromatic plants, minor forest produce, sericulture, organic farming, vermi compost, apiculture, plantation crops, and fisheries. However, poultry and dairy projects will not be covered under the scheme.

ii) Project should provide assured market to farmers/ producer groups

iii) Project should encourage farmers to diversify into high value crops, to increase farm incomes

iv) Project should be accepted by banks for grant of term loan

b) The quantum of SFAC venture capital assistance will depend on the project cost and will be the lowest of the following –

10% of the total project cost assessed by the bank

26% of the project equity

Rs. 7.500 Millions

c) Higher venture capital assistance can be considered by SFAC to deserving projects on merit and/or to projects that are located in remote and backward areas, North-eastern and hilly States and projects recommended by State agencies.

d) Beneficiary will submit the project proposal in the form of DPR to area lending bank.

e) On receipt of project proposal, bank will appraise, assess and sanction requisite amount of term loan/working capital required by the beneficiary for execution of the project.

f) Bank will also workout the amount of Venture Capital, as per criteria laid down at para 3 (a, b and c) and communicate it to SFAC with its recommendation.

h) Term Loan/working capital and equity amount from SFAC as Venture Capital assistance will be extended to the beneficiary through a single-window by the project financing bank.

i) Financial assistance from SFAC would be in the nature of equity, till the banks term loan is fully repaid by the beneficiary and would automatically be converted into a term loan on the last date of such repayment.

j) The venture capital after it becomes loan could be repaid to SFAC in lump sum or in four quarterly installments together with the amount of interest at the same rate as was applicable on the term loan of the lending bank.

k) During the pendency of loan, the bank will be having charge over the primary/ collateral securities available with the beneficiary. After repayment of bank term loan, available securities will be automatically charged to the SFAC for recovery of its Venture Capital.

l) The bank will provide SFAC with full details of the terms and conditions under which the term loan is sanctioned including repayment schedule fixed for the loan.

n) The funds received from SFAC will be kept in a separate account by the bank and released to promoters for the project implementation, as and when required.

B Project Development Facility

a) SFAC will provide financial support to farmers, Producer Groups, Agripreneurs, Units in Agri-Export Zones, and Agriculture graduates (called beneficiary) in the preparation of bankable Detailed Project Reports (DPR) through empanelled consultants/institutions. SFAC will provide for the cost of preparation of DPR upto a ceiling of Rs. 0.500 Million depending upon size, location, activity and coverage on a case to case basis.

b) The beneficiary desirous of seeking assistance for preparation of DPR can approach nearest branch of the commercial bank along with the details / pre-feasibility of the proposed project for the recommendation of the bank.

c) The bank on being satisfied about the feasibility of the intending project will recommend it to SFAC for providing financial assistance for the preparation of DPR. Intending projects must be over Rs.5.000 Millions (Rs.2.500 Millions in case of NE states and other hilly areas) in size.

d) Based on the activity and location of the project, SFAC will entrust preparation of DPR to one of the consultants on its panel.

e) SFAC will release cost of DPR preparation to the area Lending Bank with an intimation to the consultant.

h) PDF will also provide financial assistance to State SFACs for undertaking promotional activities for gribusiness

development. PDF will also arrange training and visits etc. of entrepreneurs setting up the identified Agri-business

projects.

i) SFAC’s Project Development Facility will engage the services of National Institute of Agricultural Marketing (NIAM), Jaipur; National Institute of Agricultural Extension Management (MANAGE), Hyderabad; Industry Associations such as CII, FICCI, ASSOCHAM, PHD, State SFACs, SAUs and others to vigorously publicize the benefits of the Venture Capital Assistance Scheme to prospective entrepreneurs and producer organizations.

Eligible Persons

Assistance under the scheme will be available to Individuals, Farmers, Producer Groups, Partnership / Proprietary firms, Self help groups, Companies, agripreneurs, units in agriexport zones, and Agriculture graduates Individually or in groups.

For professional management and accountability the groups have to preferably form into companies or producer companies under the relevant act.

Role of Central SFAC

b) SFAC after seeking approval of its investment committee and sanction by its Managing Director will release VCA to the bank.

c) SFAC will seek approval of its Executive Committee in cases where higher Venture Capital Assistance is proposed to be considered.

d) SFAC is Project Development Facility will investigate such proposals, which may include site visits, referred by bank needing clarification to determine if projects are qualifying or not and report back to Bank within 30 days of receipt of reference.

e) In case SFAC receives proposals of PDF and VCA directly from intending groups, these will be directed to nodal officers of concerned bank.

f) Central SFAC will strengthen the State SFACs and assist them in undertaking promotional activities, campaigns, printing of guidelines in local languages, identification of qualifying projects and in organizing producer groups.

g) SFAC will have Memorandum of Understanding with all participating lending banks as per Indian Banksí Association approved model.

h) SFAC will have a separate agreement with the applicant for facilitating the recovery of its equity amount extended under Venture Capital assistance.

Role of State SFACs

a) As extended arms, State SFACs as federal units have been established in 20 States to aggressively promote agribusiness project development in their respective States.

b) State SFACs in consultation with Central SFAC will prepare a plan for agri-business project development in their respective States.

c) State SFACs after due diligence and ascertaining the backward linkages as per the objectives will recommend

agri-business projects to Central SFAC for equity participation.

e) Help producer groups in framing pre-feasibility reports and facilitate interaction with local banks for their

recommendation.

f) Function as repositories of information maintaining a data base of potential areas, producer groups and marketable surplus of various crops available.

g) Provide venture capital to small projects out of interest earned on the Corpus fund and refer large projects to

Central SFAC

h) As a Member of SLBC, raise the issues concerning agribusiness project development in their respective States

during the SLBC meetings.

i) Monitor the projects through their implementation stage and developments/deficiencies will be reported to Central SFAC for initiating remedial action.

Role of Agripreneurs

For the success of the Venture, the agribusiness projects should be grounded within a predetermined time schedule as fixed in the sanction of term loan.

b) Agripreneurs will submit implementation schedule of the Project to SFAC and participating bank which will be closely monitored by SFAC.

c) Deviation, if any, in the implementation schedule should be immediately notified to the Bank and to SFAC.

d) Agripreneurs will submit utilization certificate of Venture Capital assistance in GFR19 A duly certified by Chartered Accountant to SFAC and the participating bank, at the end of each financial year

e) Agripreneurs will submit yearly physical progress reports, audited accounts and balance sheet to SFAC and the participating banks.

Eligible Financing Institutions

Nationalized Banks, SBI and its subsidiaries and other commercial banks

Monitoring and Reporting

a. Report on utilization of venture capital assistance (VCA) / project development facility (PDF)

The bank will report each disbursement made by them in respect of VCA out of the funds received from SFAC. A report on progress in project implementation vis a vis utilization of equity amount already given to the party through bank under VCA would also be sent to SFAC.

b. Report on the working of assisted units

The Bank will submit a report on the working of the units financed by them under VCA to SFAC on a half yearly basis indicating whether the operations are in line with the projections and whether the borrowers are adhering to repayment commitments.

c. Reporting of Exceptions

The bank would also keep SFAC informed of any significant developments with regard to operation of the projects, its implementation and unsatisfactory features if any noticed by them. The bank will also keep SFAC informed of any recovery action initiated by them in the event of failure of the unit to perform or inability of the borrowers to meet financial commitments.

d. Project Specific Information

In addition to the above standard reporting by it bank, it would also provide SFAC with project specific information, if any, sought by it from time to time.

e. Field visits

As part of due diligence, before sanction of Venture Capital Assistance, SFAC will undertake field visits to ascertain backward linkages with the farmers, feasibility of the site, availability of raw material, etc.

SFAC is Officers will undertake field visits independently or in association with the lending bank or State Government/State SFAC to monitor the implementation of the project.

Implementation period

The scheme will be implemented during 2005-06 and 2006-07 in the tenth plan with a central assistance of Rs. 480.000 Millions.

Implementing Agency

The scheme will be implemented by Small Farmers Agribusiness Consortium (SFAC), a registered society under Department of Agriculture and Cooperation, Ministry of Agriculture.

General awareness, publicity and training programme.

Services of National Institute of Agricultural Marketing, (NIAM), Jaipur; National Institute of Agricultural Extension Management (MANAGE), Hyderabad; Industry Associations such as CII, FICCI, ASSOCHAM, PHD, State SFAC is, SAUís and others will be engaged under PDF to vigorously publicize the benefits of the Venture Capital Assistance Scheme to prospective entrepreneurs and producer organizations.

Services of banking institutions will also be engaged for sensitizing the Branch Managers and other functionaries about the scheme.

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

COST OF PROJECT AND MEANS OF FINANCE

(Rs. in Millions)

Particulars	Amount Rs. in Millions
Plot and Site Development	1.000
Factory Building	11.000
Plant and Machinery	27.875
Electrification	1.848
Furniture and Fixtures	0.562
Computers	0.200
Pre-Operative Expenses	0.750
Working Capital Required	20.114
Total Cost of Project	63.349

MEANS OF FINANCE

(Rs. in Millions)

Particulars	Amount Rs. in Millions	Amount Rs. in Millions
1. Bank Loan 75% of the Project Cost
A) Term Loan		36.633
B) Bridge Loan
1) State Government Capital Investment Subsidy	1.500
2) Interest Free Loan From SFAC (Venture Capital)	4.000
3) MOFPI Capital Investment Subsidy	5.000	10.500

Own Contribution 25% of the project cost		16.000

Total Cost of Project		63.133

PROFITABILITY STATEMENT

(Rs. in Millions)

Particulars	1^st Year	2^nd Year	3^rd Year	4^th Year	5^th Year	6^th Year
1. Sale Proceeds from Wine	28.630	34.261	38.252	43.804	49.031	54.421
Total	28.630	34.261	38.252	43.804	49.031	54.421
2. Direct Expenses
Grape Cost	9.858	11.213	12.680	14.265	15.977	17.824
Chemicals and Consumables	1.226	1.365	1.470	1.575	1.680	1.785
Packing Cost	3.034	3.451	3.902	4.390	4.916	5.485
Factory Expenses	0.288	0.305	0.323	0.342	0.363	0.384
Power and Fuel	0.824	0.865	0.908	0.954	1.002	1.052
Insurance repairs and maintenance	0.150	0.150	0.150	0.150	0.150	0.150
Winery Staff	0.681	0.839	0.901	0.963	1.026	1.088
Wine Master Charges	0.400	0.420	0.441	0.463	0.486	0.510
Indirect Expenses
Administrative Staff Cost	1.572	1.038	1.038	1.181	1.181	1.203
Administrative Expenses	0.554	0.582	0.611	0.641	0.673	0.707
Vehicles Expenses	0.185	0.194	0.204	0.214	0.225	0.236
Marketing Expenses	4.080	4.888	5.276	5.778	6.229	6.655
Cost of Production	22.851	25.310	27.904	30.916	33.907	37.056

Add: Opening Stock	0.000	3.195	4.790	6.558	7.957	9.199
Less: Closing Stock	3.195	4.790	6.558	7.956	9.199	10.399
Cost of Goods Sold	19.656	23.715	26.137	29.518	32.664	35.855

Gross Margin (A-C)	8.974	10.545	12.115	14.287	16.368	18.566
Indirect Expenses
Pre- Operative Expenses Written off	0.075	0.075	0.075	0.075	0.075	0.075
Total Indirect Cost	0.075	0.075	0.075	0.075	0.075	0.075

Profit Before Depreciation Interest and Tax	8.899	10.471	12.040	14.212	16.293	18.491
Interest on Loans
Interest on Loan	5.656	5.061	3.748	3.072	2.395	1.718
Profit Before Depreciation and Tax	3.243	5.410	8.292	11.140	13.897	16.772
Depreciation	5.092	4.341	3.732	3.223	2.792	2.424
Profit Before Tax	[1.849]	1.069	4.561	7.918	11.105	14.348
Less: Provision for Taxes	0.000	0.160	0.684	1.188	1.666	2.152
Profit After Tax	[1.849]	0.908	3.876	6.730	9.440	12.195
Add: Depreciation Add Back	5.092	4.341	3.732	3.223	2.792	2.424
Cash Accruals	3.243	5.250	7.608	9.953	12.231	14.620
Less: Repayment of Loan	0.000	9.318	5.636	5.636	5.636	5.636
Profit Available for Distribution	3.243	[4.068]	1.972	4.317	6.596	8.984

BALANCE SHEET

(Rs. in Millions)

Particulars	1^st Year	2^nd Year	3^rd Year	4^th Year	5^th Year	6^th Year
CAPITAL AND LIABILITES
1. Share Capital	16.000	16.000	16.000	16.000	16.000	16.000

2. RESERVE, SURPLUS AND SUBSIDY
General Reserve	0.000	0.000	1.000	2.500	5.000	10.000
Subsidies	0.000	6.500	0.000	0.000	0.000	0.000
Profit and Loss Balance A/c	0.000	0.000	1.936	6.166	10.605	12.801

4. SECURED LOANS
Term Loan	47.133	37.815	32.179	26.543	20.908	15.272

5. CURRENT LIABILITIES	2.398	2.724	3.073	3.449	3.855	4.292

TOTAL	65.531	63.039	54.188	54.659	56.368	58.364

FIXED AND CURRENT ASSETS

1. Land and Development	1.000	1.000	1.000	1.000	1.000	1.000
2. Factory Building	10.450	9.928	9.431	8.960	8.512	8.086
3. Plant and Machinery	23.694	20.140	17.119	14.551	12.368	10.513
4. Furniture and Fixtures	0.506	0.456	0.410	0.369	0.332	0.299
5. Electrification	1.663	1.496	1.347	1.212	1.091	0.982
6. Computers	0.080	0.032	0.013	0.005	0.002	0.001

CURRENT ASSETS LOANS AND ADVANCES
7. Closing Stock (WIP, RM and FG)	3.195	4.790	6.558	7.956	9.199	10.399

8. Sundry Debtors	5.726	6.852	7.650	8.761	9.806	10.884

9. Cash in Hand Bank Balance	19.217	18.345	10.661	11.845	14.058	16.200

MISCELLANEOUS EXPENDITURE
10. Profit and Loss Account	1.849	0.941	0.000	0.000	0.000	0.000

11. Preliminary Expenses	0.675	0.600	0.525	0.450	0.375	0.300

TOTAL	65.531	63.039	54.188	54.659	56.368	58.364

CASH FLOW STATEMENT

Particulars	1^st Year	2^nd Year	3^rd Year	4^th Year	5^th Year	6^th Year
SOURCES
1. Opening Cash Balance	0.000	19.217	18.345	10.661	11.845	14.058
2. Capital Introduced	16.000	0.000	0.000	0.000	0.000	0.000
3. Bank Term Loan and Bridge Loan	47.133	0.000	0.000	0.000	0.000	0.000
4. Increase in Current Liabilities	2.398	0.327	0.349	0.376	0.406	0.437
5. Operating Profit	3.318	5.485	8.367	11.215	13.972	16.847

Total	68.848	25.028	27.062	22.252	26.223	31.342

1. Land	1.000	0.000	0.000	0.000	0.000	0.000
2. Office Building	11.000	0.000	0.000	0.000	0.000	0.000
3. Plant and Machinery	27.875	0.000	0.000	0.000	0.000	0.000
4. Furniture and Fixture	0.563	0.000	0.000	0.000	0.000	0.000
5. Electrification	1.848	0.000	0.000	0.000	0.000	0.000
6. Computers	0.200	0.000	0.000	0.000	0.000	0.000
7. Increase in Stock	3.195	1.595	1.767	1.398	1.243	1.200
8. Increase in Debtors	5.726	1.126	0.798	1.110	1.045	1.078
9. Pre-Operative Expenses	0.750	0.000	0.000	0.000	0.000	0.000
10. Repayment of loan	0.000	9.318	5.636	5.636	5.636	5.636
11. Income Ta Paid	0.000	0.160	0.684	1.188	1.666	2.152

Total	52.156	12.199	8.885	9.332	9.590	10.066

12. Cash in hand/ Bank Balance	16.693	12.829	18.176	12.920	16.633	21.275

Total	68.849	25.028	27.062	22.252	26.223	31.342

FUND FLOW STATEMENT

(Rs. in Millions)

Particulars	1^st Year	2^nd Year	3^rd Year	4^th Year	5^th Year	6^th Year
SOURCES
1. Share Capital	16.000	0.000	0.000	0.000	0.000	0.000
2. Bank Loan	47.133	0.000	0.000	0.000	0.000	0.000
3. Increase in Current Liabilities	2.398	0.327	0.349	0.376	0.406	0.437
4. Cash Profit	3.318	5.325	7.683	10.028	12.306	14.695

Total	68.849	5.652	8.032	10.404	12.712	15.132

APPLICATIONS

1. Land	1.000	0.000	0.000	0.000	0.000	0.000
2. Office Building	11.000	0.000	0.000	0.000	0.000	0.000
3. Plant and Machinery	27.875	0.000	0.000	0.000	0.000	0.000
4. Furniture and Fixtures	0.563	0.000	0.000	0.000	0.000	0.000
5. Electrification	1.848	0.000	0.000	0.000	0.000	0.000
6. Computers	0.200	0.000	0.000	0.000	0.000	0.000
7. Increase in Stock	3.195	1.595	1.767	1.398	1.243	1.200
8. Increase in Debtors	5.726	1.126	0.798	1.110	1.045	1.078
9. Pre-Operative Expenses	0.750	0.000	0.000	0.000	0.000	0.000
10. Repayment of Loan	0.000	9.318	5.636	5.636	5.636	5.636

Total	52.156	12.039	8.201	8.145	7.924	7.914

11. Increase in Working Capital	16.693	[6.388]	[0.169]	2.259	4.788	7.217

Total	68.849	5.652	8.032	10.404	12.712	15.132

RATIO ANALYSIS

(Rs. in Millions)

Particulars	1^st Year	2^nd Year	3^rd Year	4^th Year	5^th Year	6^th Year
Net Profit After Interest and Tax	[1.849]	0.908	3.876	6.730	9.440	12.195

Depreciation	5.092	4.341	3.732	3.223	2.792	2.424

Interest on Loan	5.656	5.061	3.748	3.072	2.395	1.719

PBIT Total (A)	8.899	10.310	11.356	13.024	14.627	16.339

Repayment of Loan	0.000	9.318	5.636	5.636	5.636	5.636

Interest on Loan	5.656	5.061	3.748	3.072	2.395	1.719

Repayment obligation Total (B)	5.656	14.378	9.384	8.707	8.031	7.355

Debt Service Coverage Ratio (DSCR) DSCR = (A/B*100)	1.57%	0.72%	1.21%	1.50%	1.82%	2.22%

Average DSCR	1.72%	--	--	--	--	--
Maximum DSCR	2.73%	--	--	--	--	--
Minimum DSCR	0.72%	--	--	--	--	--

Internal Rate of Return
Cash out Flow	42.485	0.000	0.000	0.000	0.000	0.000
Cash Flow – Cash Profit	3.243	5.250	7.608	9.953	12.231	14.620
Discounting Factor 17.0%	0.855	0.731	0.625	0.534	0.456	0.390
Discounting Cash Flow @ 15%	2.773	3.838	4.755	5.315	5.578	5.702
Cumulative DCF @ 15%	2.773	6.611	11.366	16.681	22.258	27.960
Discounting Factor 12.0%	0.893	0.797	0.712	0.636	0.568	0.507
Discounted Cash Flow @ 12%	2.896	4.184	5.417	6.330	6.948	7.412
Cumulative DCF @ 12%	2.896	7.080	12.497	18.827	25.775	33.187

Internal Rate of Return	--	6.516/ 9.654	5.00%		3.37%

Factor at IRR	0.867	0.751	0.651	0.564	0.489	0.424
CF at IRR	2.812	3.943	4.953	5.613	5.981	6.199
Cumulative CF	2.812	6.755	11.708	17.321	23.302	29.501

BREAK EVEN ANALYSIS

(Rs. in Millions)

Particulars	1^st Year	2^nd Year	3^rd Year	4^th Year	5^th Year	6^th Year
Productions	0.180	0.195	0.210	0.225	0.240	0.255
Sales	0.195	0.238	0.257	0.282	0.305	0.326
Net Sales	28.630	34.261	38.252	43.804	49.031	54.421

Variable Costs
Grape Cost	9.858	11.213	12.680	14.265	15.977	17.824
Chemicals and Consumables	0.245	0.273	0.294	0.315	0.336	0.357
Packing Cost	0.607	0.690	0.780	0.878	0.983	1.097
Factory Expenses	0.058	0.061	0.065	0.068	0.073	0.077
Power and Fuel	0.165	0.173	0.182	0.191	0.200	0.210
Winery Staff	0.136	0.168	0.180	0.193	0.205	0.218
Wine Master Charges	0.080	0.084	0.088	0.093	0.097	0.102
Insurance Repairs and Maint	0.030	0.030	0.030	0.030	0.030	0.030
Administrative Staff Cost	0.314	0.208	0.208	0.236	0.236	0.236
Administrative Expenses	0.111	0.116	0.122	0.128	0.135	0.141
Vehicles Expenses	0.037	0.039	0.041	0.043	0.045	0.047

Total Variable Costs	11.641	13.055	14.670	16.439	18.317	20.339

Variable Cost per Unit	59.63	54.86	57.09	58.21	60.06	62.37
Contribution	16.990	21.205	23.583	27.365	30.715	34.082
Contribution per unit	87.04	89.10	91.77	96.89	100.71	104.52

Fixed Costs
Chemicals and consumables	0.980	1.092	1.176	1.260	1.344	1.428
Packing Cost	2.427	2.761	3.122	3.512	3.933	4.388
Factory Expenses	0.231	0.244	0.258	0.275	0.290	0.307
Power and Fuel	0.659	0.692	0.727	0.763	0.801	0.841
Winery Staff	0.545	0.671	0.721	0.771	0.820	0.870
Wine Master Charges	0.320	0.336	0.353	0.370	0.389	0.408
Insurance Repairs and Maintenance	0.120	0.120	0.120	0.120	0.120	0.120
Administrative Staff Cost	1.257	0.830	0.830	0.944	0.944	0.944
Administrative Expenses	0.443	0.465	0.489	0.513	0.539	0.566
Vehicles Expenses	0.148	0.155	0.163	0.171	0.180	0.189
Total Interest on loan	5.656	5.061	3.748	3.072	2.395	1.719
Depreciation + Preliminary Expenses	5.167	4.416	3.807	3.298	2.867	2.499
Total Fixed and Semi Variables	14.546	12.992	11.216	10.296	9.346	8.463
Profit Volume Ratio	59.34%	61.89%	61.65%	62.47%	62.64%	62.63%
Break Even Sales	24.513	20.990	18.192	16.482	14.919	13.516
Break Even Sales/ per Bottle Rs.	125.58	88.20	70.80	58.36	48.92	41.45
Actual Sales	28.630	34.261	38.252	43.804	49.031	54.421
Margin of Safty	4.117	13.271	20.060	27.323	34.112	40.906

SENSITIVITY ANALYSIS

(Rs. in Millions)

Particulars	1^st Year	2^nd Year	3^rd Year	4^th Year	5^th Year	6^th Year
TEST 1- IF SALES REVENUE DECREASES 10%

Sales Revenue	25.767	30.835	34.427	39.424	44.128	48.979
Less: Variable Cost	19.656	23.715	26.137	29.518	32.664	35.855
Contribution	6.111	7.120	8.290	9.906	11.464	13.124
Contribution per Unit	31.31	29.92	32.26	35.08	37.59	40.25

Total Fixed Cost	10.823	9.637	8.239	7.557	6.928	6.370
Operating Profit	[4.712]	[2.518]	0.051	21.349	4.537	6.753

P/V Ratio	23.72%	23.09%	24.08%	25.13%	25.98%	26.79%
Break Even Sales	45.634	41.739	34.214	30.074	26.666	23.775

TEST -2 IF EXPENSES INCREASE BY 10%

Sales Revenue	28.630	34.261	38.252	43.804	49.031	54.421
Less: Variable Cost	21.621	26.087	28.751	32.469	35.930	39.441
Contribution	7.009	8.174	9.501	11.335	13.101	14.980
Contribution per unit	35.91	34.35	36.97	40.14	42.96	45.94

Total Fixed Cost	10.823	9.637	8.239	7.557	6.928	6.370
Operating Profit	10.798	16.449	20.512	24.912	29.002	33.070

P/V Ratio	24.48%	23.86%	24.84%	25.88%	26.72%	27.53%
Break Even Sales	44.212	40.393	33.169	29.204	25.928	23.143

TEST – 3- PROJECTED FIGURES

Sales Revenue	28.630	34.261	38.252	43.804	49.031	54.421
Less: Variable Cost	19.656	23.715	26.137	29.518	32.664	35.855
Contribution	8.974	10.546	12.115	14.287	16.368	18.566
Contribution per Unit	45.98	44.31	47.15	50.59	53.67	56.94

Total Fixed Cost	10.823	9.637	8.239	7.557	6.928	6.370
Operating Profit	8.833	14.078	17.899	21.961	25.736	29.485

P/V Ratio	31.35%	30.78%	31.67%	32.62%	33.38%	34.12%
Break Even Sales	34.528	31.310	26.013	23.170	20.753	18.673

COMPUTATION OF WORKING CAPITAL AND WORKING CAPITAL LOAN

(Rs. in Millions)

Particulars	1^st Year	2^nd Year	3^rd Year	4^th Year	5^th Year	6^th Year
Raw Material	5.915	6.728	7.608	8.559	9.586	10.694
Consumable Stores	2.556	2.889	3.223	3.579	3.958	4.362
Salary and Wages	0.197	0.146	0.148	0.164	0.167	0.169
Power and Fuel	0.082	0.087	0.091	0.095	0.100	0.105
Cost of Repairs and Maintenance Insurance	0.015	0.015	0.015	0.015	0.015	0.015
Cost of Utilities	0.332	0.376	0.423	0.473	0.528	0.587
Stock of Finished Goods	2.285	2.531	2.790	3.092	3.391	3.706
Stock of Finished Raw Wine	4.570	5.062	5.581	6.183	6.781	7.411
Bills Receivables	5.726	6.852	7.650	8.761	9.806	10.884
Marketing Expenses	0.408	0.489	0.528	0.578	0.623	0.665

Gross Working Capital Required	22.086	25.174	28.057	31.499	34.955	38.599

Less: Credit Available
For Raw Materials	1.972	2.243	2.536	2.853	3.195	3.565
For Consumables	0.426	0.482	0.537	0.596	0.660	0.727
Net Working Capital Required	20.115	22.932	25.521	28.646	31.759	35.034
Less: Margin 25%	5.029	5.733	6.380	7.162	7.940	8.759
Working Capital To be Finance	15.086	17.199	19.141	21.485	23.820	26.276

DETAILS OF PRODUCTION AND CLOSING STOCK

(Rs. in Millions)

Particulars		1^st Year	2^nd Year	3^rd Year	4^th Year	5^th Year	6^th Year
Installed Capacity		100%	100%	100%	100%	100%	100%
Production at Installed Capacity	Litre	300000	300000	300000	300000	300000	300000
Capacity Utilisation Liters		60.00%	65.00%	70.00%	75.00%	80.00%	85.00%
Production at Utility Capacity	Litre	180000	195000	210000	225000	240000	255000

Upto 60% for Sale of Bulk-wine	Litre	108000	117000	126000	135000	144000	153000

Upto 40% for Sale in Bottles	Litre	72000	78000	84000	90000	96000	102000

Production of Wine in Bottles (One Bottle= 750 ml of wine)	Bottle	96000	104000	112000	120000	128000	136000

Estimated Sales and Stocks (Bulk)
Opening Stock	Litres	0	21600	30960	40680	47340	52470
Wine Produced for bulk Sale	Litres	108000	117000	126000	135000	144000	153000
Sale	Litres	86400	107640	116280	128340	138870	148635

Closing Stock	Litres	21600	30960	40680	47340	52470	56835

Estimate Sale and Stock (Bottles)
Opening Stock	Bottles	0	14400	20640	27120	31560	34980
Wine Produced for bulk Sale	Bottles	96000	104000	112000	120000	128000	136000
Sales	Bottles	81600	97760	105520	115560	124580	133090

Closing Stock	Bottles	14400	20640	27120	31560	34980	37890

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

VALUATION OF IMMOVABLE PROPERTY

PART –I
GENERAL INFORMATION
a) Purpose for which valuation made	To ascertain present FMV for Corporation Bank, RAH- Andheri (East)
b) Fresh Valuation I Revaluation	Fresh valuation for YPCVL

Visit Date on which valuation made	04.03.2011

Name of the Owner / Seller / Purchaser	Mr. Mallikarjun S. Nidoni and Mrs. Suma M. Nidoni

If the property is under joint ownership/ share of each owner. Is the share undivided?	Joint ownership

Brief description of property	Flat No. 204, 2 Floor, Tulip Buiing, Everest World, Kolshet Road, Village Balkum, Thane (West) — 400 601 They referred to the Xerox copy of following documents provided to us: 1) Registered agreement for sale dated 18.03.2005 between M/s. National Dyes (the Developers) AND Mr. Mallikarjun S. Nidoni and Mrs. Suma M. Nidoni (the Purchasers) 2) Commencement certificate of TMC V.P. No. 2003/94 /TMC / TDD / 4698 dtd. 25.01 .2005for new survey no. 37 and 38 for Building No. —Stilt + 12 upper floors, Building no. 2- Stilt + 18, Building no. 4- Stilt + 12, Building No. 5-Stilt + 20 upper floors. Building number is not indicated in the agreement. 3) The engineer visited the property on 04.03.2011 and has taken few photographs as allowed tothem at the time of visit and they are enclosed herewith for the perusal, verification and records. Brief Description: The residential property Flat No. 204 on 2 Floor in Tulip Building, situated at above address is very near to Thane (West) railway station. All civic amenities are nearby and within easy reach. The building is of Ground + 20 upper floors. It is R.C.C. framed structure of R.C.C. beams, columns, slabs and R.C.C. staircase and 2 lifts to access upper floors. Nearest Landmark: Everest Road on Kolshet Road Property is bounded by: North: Building South: Building East: Podium Parking West: Building Accommodation: Accommodation provided in flat consists of 1 hall, 1 kitchen, 2 bedrooms and 2 toilets (i.e. 2 RHK) Amenities of the property: Vitrified tiles flooring, aluminum sliding windows, laminated wooden flush doors, granite kitchen platform, ceramic tiles flooring and full height glazed tiles dado in toilet and concealed wiring and plumbing, etc. Areas: As per measurement the carpet area is 600 sq. ft. As per agreement the carpet area is 628.18 sq. ft., with 40% loading, the super built up area 1s 879 sq. ft., which is considered for valuation. A) Notes and Limitations: 1) The Society directory board exhibits the name of Mr. Mallikarjun Nidoni the owner against flat no. 204. Door no. 204 is given at the entrance door. Mrs. Simi Chitwadgi residing same building for flat no. 304 identified the flat to the valuer. 2) Bank to obtain latest share certificate and maintenance bill and ascertain the name of the owner before taking action on the valuation report 3) They consider the area given in the agreement, declared by the party and submitted for registration with the government authorities as final for valuation purpose. Any area that is not stated in the agreement is not considered for valuation. 4) copy of the approved plans not given for the verification and the same may be obtained from the owner. B) Disclaimers and Caveats: 1) The estimated future life of the building / structure considered on the basis of data available from the site information. Maximum age of structure considered 60 years in case of Greater Mumbai I TMC / NMMC and 50 years in other places. 2) As an abundant precaution the bank may consider the obtaining of the CIBIL REPORT of the customers before disbursement / enhancement of the loan to safeguard the interest of the bank from probable loss due to disbursal of loan amount. The valuers should not be held responsible due to the deviations of the bank for any reasons. 3) The valuation is based on the experience and knowledge and this is an opinion only and does not stand as a guarantee for the value it can fetch if disposed, due to any emergency, in future. 4) The legal documents pertaining to the ownership of the above said property has been referred to on its face value and that is presumed that Bank has got the same verified through its legal counsel. They do not certify the veracity of the documents. This report does not certify valid or legal or marketable title of any of the parties over the property. The report does not cover verification of ownership, title clearance, or legality and subject to adequacy of engineering / structural design. 5) The valuation is only for the use of the party to whom it is addressed and no responsibility is accepted to any third party for the whole or any part of its contents. 6) The value given in the report is only an opinion on the FMV as on date. If there is any opinion from others/ valuers about increase or decrease in the value of the assets valued by us, they should not be held responsible as the views vary from person to person and based on circumstances. The principle of “BUYERS BEWARE” is applicable in case of any sale! purchase of assets. 7) Encumbrances of Loan, Government and other dues, stamp duty, registration charges, transfer charges etc. if any are not considered in the valuation. They have assumed that the assets are free from encumbrances. 8) The report is issued at the specific request of the party for specific purpose and the said report is not valid if the purpose of use and party is different. 9) This report should be read along with legal due diligence report. Value assigned herein is subject to this stipulation. It is presumed that the Xerox of documents are taken from the originals duly tested and verified at ultra violet lamp machine (UVL) about veracity. 10) It should be noted that YPCVL’s value assessments are based upon the facts and evidence available at the time of assessment. It is therefore recommended that the value assessments be periodically reviewed

Location, Street, Ward No.	Fiat No. 204, 2Foor,TuHpBuHdig Everest World, Kolshet Road, Village Balkum, Thane (West) —400 601

Survey I Plot No. of land	New Survey No. 37 and 38 of Village Balkum

Is the property situated at above address is about in residential/ commercial! Mixed/ industrial area?	Residential

Classification of locality- high class/ middle class/ poor class.	Middle class

Proximftyto civic amenities like schools, offices, hospitals, market, cinemas, Railways etc.	All civic amenities are reach. nearby and within easy

Means and proximity to surface communication by which the locality is served.	Railway, Taxi, bus, auto, private vehicles etc.

a) Is the Property owner occupied, tenant, or both	Vacant at the time of out visit
b) If partly occupied, specify portion and extent of area under owner occupation.	Vacant at the time of the visit

Name and Registration No. of Co-Op. Housing Society.	Details not available

Share Certificate No. and Face values.	Details not available

SALES AND MARKETABILITY:
Give instances of sale of immovable property in the locality on a separate sheet, including the name and address of the property, registration No., sale price and area land sold.	Sales instances are not readily available. As such, local estate agent, builders and other related agencies were contacted to ascertain fair market value

Market Rates adopted.	Prevalent market Rate: Rs. 5500/- to Rs. 6500/- per sq. ft. Rate adopted for valuation: Rs. 6300/- per sq. ft. Factors considered for valuation Location and locality, facilities and amenities, quality of construction, residual life of building, business potential, supply of demand, local nearby enquiry, market feed back of investigation.

If sale instances are not available or relied upon, basis of arriving at the land rate.	Enquired with local Architects and Real’ estate consultants about the current market rates in that area and on this basis, property is valued under “Selling Price Method”.

PRESENT FAIR MARKET VALUATION:
Value Area x Rate
Super built up area	879 sq. ft.
Rate considered for valuation	Rs. 6300/- per sq. ft.
Value	Rs. 5.538 Millions
Say	Rs. 5.538 Millions

DISTRESS SALE VALUE	RS. 4.430 MILLIONS

VALUE FOR INSURANCE PURPOSE (STRUCTURE)	RS. 1.400 MILLIONS

TECHNICAL DETAILS FOR THE PREMISES

No. of floors and height of each floor.	Stilt +20 upper floors

Stilt +20 upper floors	Flat No. 204, 2 Floor Carpet area — 600 sq. ft. - measurement Carpet area — 628.18 sq. ft - agreement Super built up area 879 sq. ft. (40% loading on agreement carpet area)

Year of Construction	Year- 2007 (as reported) Age of Building — 04 Years

Estimated future life.	56 years (Subject to proper and regular maintenance of the building)

Type of construction	R.C.C framed structure

Type of foundation	R.C,C. footing

WALLS
a) External walls	9” thick brick masonry walls with both side plastered
b) Partitions	41/2” thick brick masonry walls with both side plastered

Door and Windows (floor-wise)	Aluminum sliding windows, laminated wooden flush doors

Aluminum sliding windows, laminated wooden flush doors	Vitrified tiles flooring

Finishing and Maintenance	Good

Roofing and terracing.	R.C.C. slab roof

Special architectural or decorative features.	Normal

a) Internal wiring- surface or conduit.	Concealed wiring

b) Class of fittings superior/ ordinary! poor.	Superior

a) Sanitary installations.	2 Toilets
b) Class of fittings superior colored/ superior white/ ordinary.	Superior white

Compound Wall.	Compound Wall.

No. of lifts and capacity.	2 lifts

Underground sump.	Existing

a) Capacity	Sufficient as per requirement
b) Type of construction.	R.C.C.

Overhead Tank.	Overhead Tank.
a) Where located.	On Terrace
b) Capacity	Sufficient as per requirement
c) Type of construction.	R.C.C.

Pumps Nos. and their horsepower.	2 Pumps

Roads and paving within the compound, approx. area.	Plain cement concrete

Sewage disposal / whether connected to public sewers. If septic tanks provided, no and capacity.	As per local norms

Regards to Aesthetics and environment.	Good

Safety considerations fires, earthquakes, and tides.	Found

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

VALUATION REPORT

GENERAL DETAILS

Purpose for which this valuation is made

Bank Loan

Date on which this valuation is made

18.03.2011

Name of the reported owner and address

Mr. Shivanand, Lokanna, Udapudi

Documents produced fro valuation

Sale Deed, V.P.C. Utar

Brief Description of the property under valuation

Land and Building

Scope of Valuation

Land and Building

Name of the bank and branch

Corporation Bank Cokak

DESCRIPTION OF PROPERTY

Location of the property

Lokapur

Plot No./ Colony Name

V.P.C. No. 1869 and 1870 at Near Maruti temple market Road

S.F. No./ T.S No./ R.S. No.

Lokapur

Taluka / Block

Mudhol

District/ Municipalty Corporation/ Gram Panchayat

Gram Panchayat

Postal Address of the Property

Mr. Shri Shivanand Lokanna Udapudi

Near Maruti Temple Lokapur

Boundaries of the property area as per sale deed

North: Panchayat Road

South: Property of Mr. Awaradi

East: Panchayath open land

West: Panchayat open land

Boundaries of the property area as per Actual deed

North: Panchayat Road

South: Property of Mr. Awaradi

East: Property of Mr. S.S. Parannavar

West: Mr. S.Y. Hanchate

VALUATION DETAILS

PART A – LAND

Diamension of Site	Sale Deed	Actual
East	60’0”	60’0”
West	60’0”	60’0”
South	70’0”	60’0”
North	70’0”	60’0”
	4200.00 sft.	3600.00 sft

Character of Locality

Commercial Area

Development of surrounding

Yes

Level of land with topographical

Leveled Land

Type of use to which it can be put

Commercial Area

Whether leasehold/ free hold

Free hold

Road Facilities

Yes

Water Potentialities

Yes

Commercial Potentiality of the property

Yes

Value by adopting GLR

i. Guideline rate as obtained from Government register officer

Commercial Rs. 75.00 / Sft.

ii. Value of land by adopting GLR

Commercial Rs. 0.270 Million

Value of adopting PMR

i. Prevaling market rate

Rs. 800/ to 900/-

Unit rate adopted in this valuation after considering the characteristics of the subject plot

Commercial Rs . 850.00/sft

Value of land by adopting PMR

Commercial RS. 3.060 Millions

Total Rs. 3.060 Millions

PART- B – BUILDINGS

Type of Construction

Load Bearing Structure

Quality of construction

Common

Appearance of building

Normal

Maintenance of building

Good

Plinth area 60’0” X 60’0”

3600.00 sft.

Valuation of building is estimated by adopting suitable unit plinth area rate depending upon the specification. Depreciation is calculated by straight line method assuming a salvage value as 10%.

Description	Ground Floor
Foundation	U.C.R. Masonary
Super Structure	U.C.R. Masonary
Roof	G.I. Sheet Roof
Doors	Rolling Shutter
Windows	Jungle Wood
Floor Finish	Concrete Flooring
Ground Floor	3600.00
Year of Construction	2006
Age of building as on	5 years
If the age is not exactly know, further life expected	45 years
Total life of building estimated	50 years
Replacement rate of construction per sft. With existing condition and specification
Ground Floor	500.00
Replacement value
Ground Floor	Rs. 1.800 Millions

Total	Rs. 1.800 Millions
Depreciation value at 0.058% for 6 years old building	Rs. 0.104 Million

Approximate present value of building	Rs. 1.696 Millions

Total Value of Building	Rs. 1.696 Millions

PART C- AMENITIES AND EXTRA ITEMS (VALUE AFTER DEPRECIATION)

Open Stair Case

PART D SERVICES

1) Watersupply arrangement

Deep Borewell

Rs. 0.030 Million

Total

Rs. 0.030 Million

PART- E ABSTRACT VALUE OF PROPERTY ANY OTHER DETAILS

Description	Value by adopting
	GLR	PMR
A Land	Rs. 0.270 Million	Rs. 3.060 Millions
B Building	--	Rs. 1.696 Millions
C Amenities	--	--
D Service	Rs. 0.030 Million	Rs. 0.030 Million
Total	Rs. 0.300 Million	Rs. 4.786 Millions
Approximately present value		Rs. 4.786 Millions
Say		Rs. 4.786 Millions

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

CHINMAY MOTORS

(SISTER CONCERN)

BALANCE SHEET

(Rs. in Millions)

SOURCES OF FUNDS		31.03.2010	31.03.2009
SHAREHOLDERS FUNDS
1] Share Capital		1.906	3.011
2] Share Application Money		0.000	0.000
3] Reserves and Surplus		0.000	0.000
4] (Accumulated Losses)		0.000	0.000
NETWORTH		1.906	3.011
LOAN FUNDS
1] Secured Loans		4.196	5.091
2] Unsecured Loans		4.567	2.921
TOTAL BORROWING		8.763	8.012
DEFERRED TAX LIABILITIES		0.000	0.000

TOTAL		10.669	11.023

APPLICATION OF FUNDS

FIXED ASSETS [Net Block]		1.616	1.402
Capital work-in-progress		0.000	0.000

INVESTMENT		0.355	0.001
DEFERREX TAX ASSETS		0.000	0.000

CURRENT ASSETS, LOANS and ADVANCES
	Inventories	5.303	2.977
	Sundry Debtors	0.905	4.295
	Cash and Bank Balances	4.560	3.766
	Other Current Assets	0.000	0.000
	Loans & Advances	1.355	0.454
Total Current Assets		12.123	11.492
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	0.212	0.856
	Other Current Liabilities	1.852	0.000
	Provisions	1.361	1.016
Total Current Liabilities		3.425	1.872
Net Current Assets		8.698	9.620

MISCELLANEOUS EXPENSES		0.000	0.000

TOTAL		10.669	11.023

PROFIT & LOSS ACCOUNT

(Rs. in Millions)

	PARTICULARS		31.03.2010	31.03.2009
	SALES
		Income	111.050	64.562
		Other Income	1.594	1.884
		TOTAL (A)	112.644	66.446

Less	EXPENSES
		Cost of Materials	107.888	61.962
		Administrative Expenses	3.655	3.404
		TOTAL (B)	111.543	65.366

Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		1.101	1.080

Less	FINANCIAL EXPENSES (D)		0.858	0.762

	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		0.243	0.318

Less/ Add	DEPRECIATION/ AMORTISATION (F)		0.000	0.290

	PROFIT BEFORE TAX (E-F) (G)		0.243	0.028

Less	TAX (H)		0.000	0.000

	PROFIT AFTER TAX (G-H) (I)		0.243	0.028

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

L.C. UDAPUDI

(SISTER CONCERN)

BALANCE SHEET

(Rs. in Millions)

SOURCES OF FUNDS		31.03.2010	31.03.2009	31.03.2008
SHAREHOLDERS FUNDS
1] Share Capital		6.737	4.253	3.976
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		6.737	4.253	3.976
LOAN FUNDS
1] Secured Loans		0.010	0.009	1.023
2] Unsecured Loans		4.477	3.205	3.494
TOTAL BORROWING		4.487	3.214	4.517
DEFERRED TAX LIABILITIES		0.000	0.000	0.000

TOTAL		11.224	7.467	8.493

APPLICATION OF FUNDS

FIXED ASSETS [Net Block]		3.376	2.453	1.137
Capital work-in-progress		0.000	0.000	0.000

INVESTMENT		0.443	0.208	0.134
DEFERREX TAX ASSETS		0.000	0.000	0.000

CURRENT ASSETS, LOANS & ADVANCES
	Inventories	1.895	2.728	0.890
	Sundry Debtors	6.192	8.272	8.514
	Cash & Bank Balances	2.141	0.908	0.243
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	0.050	0.050	0.022
Total Current Assets		10.278	11.958	9.669
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	2.432	6.460	1.776
	Other Current Liabilities	0.441	0.692	0.671
	Provisions	0.000	0.000	0.000
Total Current Liabilities		2.873	7.152	2.447
Net Current Assets		7.405	4.806	7.222

MISCELLANEOUS EXPENSES		0.000	0.000	0.000

TOTAL		11.224	7.467	8.493

PROFIT & LOSS ACCOUNT

(Rs. in Millions)

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	89.599	91.154	61.671
		Other Income	0.000	0.000	0.000
		TOTAL (A)	89.599	91.154	61.671

Less	EXPENSES
		Cost of Materials	83.623	84.094	57.774
		Administrative Expenses	5.393	6.394	3.295
		TOTAL (B)	89.016	90.488	61.069

Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		0.583	0.666	0.602

Less	FINANCIAL EXPENSES (D)		0.422	0.564	0.438

	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		0.161	0.102	0.164

Less/ Add	DEPRECIATION/ AMORTISATION (F)		0.074	0.038	0.044

	PROFIT BEFORE TAX (E-F) (G)		0.087	0.064	0.120

Less	TAX (H)		0.000	0.000	0.000

	PROFIT AFTER TAX (G-H) (I)		0.087	0.064	0.120

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.

MIRA INFORM REPORT

5.303

0.905

4.560

0.000

1.355

12.123

0.212

1.852

1.361

3.425

8.698

1.895

6.192

2.141

0.000

0.050

10.278

2.432

0.441

0.000

2.873

7.405

Unit