MIRA INFORM REPORT

Report Date :

29.12.2012

IDENTIFICATION DETAILS

Name :	UPADRASTA DAIRY SPECIALITIES LIMITED
Registered Office :	6-1-107/22, Padma Rao Nagar, Secunderabad-500026, Andhra Pradesh
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	29.05.1995
Com. Reg. No.:	01-020497
Capital Investment / Paid-up Capital :	Rs. 2.264 Millions
CIN No.: [Company Identification No.]	U15201AP1995PLC020497
TAN No.: [Tax Deduction & Collection Account No.]	HYDU01141A HYDU01591C
PAN No.: [Permanent Account No.]	AAACU2940C
Legal Form :	A Closely Held Public Limited Liability Company.
Line of Business :	Manufacturer of Dairy Products.
No. of Employees :	23 (Approximately), (In Office – 15, In Factory – 8)

RATING & COMMENTS

MIRA’s Rating :

B (27)

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

Maximum Credit Limit :	USD 9000
Status :	Moderate
Payment Behaviour :	Slow
Litigation :	Clear
Comments :	Subject is an established company having a moderate track record. The financial position of the company appears to be weak. Profitability is low. However, trade relations are reported as fair. Business is active. Payment terms are slow. The company can be considered for business dealings with some caution.

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List – June 30, 2012

Country Name	Previous Rating (31.03.2012)	Current Rating (30.06.2012)
India	A1	A1

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

INDIAN ECONOMIC OVERVIEW

India is developing into an open-market economy, yet traces of its past autarkic policies remain. Economic liberalization, including industrial deregulation, privatization of state-owned enterprises, and reduced controls on foreign trade and investment, began in the early 1990s and has served to accelerate the country's growth, which has averaged more than 7% per year since 1997. India's diverse economy encompasses traditional village farming, modern agriculture, handicrafts, a wide range of modern industries, and a multitude of services. Slightly more than half of the work force is in agriculture, but services are the major source of economic growth, accounting for more than half of India's output, with only one-third of its labor force. India has capitalized on its large educated English-speaking population to become a major exporter of information technology services and software workers. In 2010, the Indian economy rebounded robustly from the global financial crisis - in large part because of strong domestic demand - and growth exceeded 8% year-on-year in real terms. However, India's economic growth in 2011 slowed because of persistently high inflation and interest rates and little progress on economic reforms. High international crude prices have exacerbated the government's fuel subsidy expenditures contributing to a higher fiscal deficit, and a worsening current account deficit. Little economic reform took place in 2011 largely due to corruption scandals that have slowed legislative work. India's medium-term growth outlook is positive due to a young population and corresponding low dependency ratio, healthy savings and investment rates, and increasing integration into the global economy. India has many long-term challenges that it has not yet fully addressed, including widespread poverty, inadequate physical and social infrastructure, limited non-agricultural employment opportunities, scarce access to quality basic and higher education, and accommodating rural-to-urban migration.

Source : CIA

EXTERNAL AGENCY RATING

Rating Agency Name	CRISIL
Rating	SE 3B
Rating Explanation	Moderate performance capability and moderate financial strength.
Date	28.07.2012

RBI DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2012.

INFORMATION PARTED BY

Name :	Miss. Seeta
Designation :	Office Executive
Contact No :	91-40-65917387
Date :	22.12.2012

LOCATIONS

Registered Office :	6-1-107/22, Padma Rao Nagar, Secunderabad-500026, Andhra Pradesh, India
Tel. No.:	91-22-40-65917387
Mobile No.:	91-9848046072 / 91-9666646072 (Mr. Patanjali)
Fax No.:	Not Available
E-Mail :	info@upadrastadairy.com
Website :	http://upadrastadairy.com
Location :	Owned
Factory :	Upadrasta Dairy Specialities Limited. Plot No: 47/A2, IDA Cherlapally, Phase - Road No: 4, Hyderabad - 500 051., Andhra Pradesh, India
Tel. No.:	91-40-65917387 / 91-40-2008114
E-Mail :	info@upadrastadairy.com

DIRECTORS

AS ON 28.09.2012

Name :	Mr. Patanjali Rao Updrasta
Designation :	Managing Director
Address :	6-1-103/12/13 FL-02, Sree Apts, Abhinvnagar colony, Padma Road Nagar, Secunderabad – 500003, Andhra Pradesh, India
Date of Birth/Age :	30.12.1964
Date of Appointment :	29.05.1995
DIN No.:	01630725
Name :	Mr. Gnana Prasuna Muktevi
Designation :	Director
Address :	6-1-107/22, Padma Road Nagar, Secunderabad – 500003, Andhra Pradesh, India
Date of Birth/Age :	14.08.1967
Date of Appointment :	29.05.1995
DIN No.:	01626374
Name :	Mr. Upadrasta Suresh Rao
Designation :	Director
Address :	Plot No 7, Padmaja co.op. hous, NG Society, Kakaguda, Secunderabad – 500015, Andhra Pradesh, India
Date of Birth/Age :	15.08.1956
Date of Appointment :	01.09.2001
DIN No.:	02480772

KEY EXECUTIVES

Name :	Miss. Seta
Designation :	Office Executive

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 28.09.2012

Names of Shareholders	No. of Shares
U. Patanjali Rao	63010
M. G. Prasuna	44210
U. Suresh Rao	1
U. Prakash Rao	1
U. Ganesh Rao	1
U. Lakshman Rao	1
M. Bharathi	11501
U. Sarala Devi	14700
U. Gopal Rao	23000
M. Ravindranath	70000
TOTAL	226425

AS ON 28.09.2012

Equity Shares Break Up	Percentage of Holding
Directors or relatives of Directors	100.00
TOTAL	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer of Dairy Products.
Products :	Desi Ghee Desi Cow Ghee White Cream White Cream Sauce White Garlic Cream Desi Buffalo Ghee Pure Buffalo Ghee Pure Ghee Pure Cow Ghee Pure White Ghee Pure Brown Ghee Desi Pure Ghee Buffalo Ghee Cow Ghee White Ghee White Butter Butter Oil Yellow Butter Cream White Cream Buffalo Cream Yellow Cream Cow Cream Export Ghee Indian Ghee
Exports :
Products :	Desi Ghee
Countries :	Dubai
Terms :
Selling :	Cash, Credit (30-90 Days)
Purchasing :	Cash, Credit (30-90 Days)

PRODUCTION STATUS (AS ON : 31.03.2011)

Particulars	Unit	Licensed Capacity	Installed Capacity	Actual Production
Ghee	MT	300	300	163666

GENERAL INFORMATION

Customers :

Wholesalers, Retailers and End Users

• Indian Naval Canteen Services, (Cochin)
• Indian Naval Canteen Services, (Goa)
• Indian Naval Canteen Services, (Mumbai)
• Indian Naval Canteen Services, (Visakhapatnam )
• G.Pulla Reddy Sweets, ( Hyderabad )
• Sikh Gurudwara, ( Bidar )
• Anik Industries Limited, ( Itah Nagar, Madhya Pradesh )
• Arya Samaj temple, ( Hyderabad )
• Dadus Mithai Vatika, ( Hyderabad )
• Heritage Foods India Limited, ( Hyderabad )
• Reddy sweet shops, ( Hyderabad )
• Anand Foods, ( Hyderabad )

No. of Employees :

23 (Approximately), (In Office – 15, In Factory – 8)

Bank Name :

State Bank of India

Address :

Rp road Opp Arya Samad Builiding, Secunderabad – 500003, Hyderabad Urban, Andhra Pradesh, India

Branch :

Bible House Branch, R. P. Road, Secunderabd – 500003, Andhra Pradesh, India

Branch Code :

002788

Tel No :

91-40-27533879 I.P - 900616

IFSC Code :

SBIN0002788

MICR Code :

500002041

Facilities :

Secured Loan	Rs. In Millions 31.03.2012	Rs. In Millions 31.03.2011
Vehicle loans from Banks	0.188	0.260
Cash Credit from Banks	7.139	5.428
TOTAL	7.327	5.688

Notes :

1. Vehicles loan from Tata Capital limited is secured against hypothecation of Motor Car of the company. The loan is repayable total in 48 monthly instalments with an interest of 10.50% p.a.

2. Cash Credit from State Bank of India is secured against mortagage of fixed asset of building of company, hypothecation o book debt and stock and further guaranteed by both the directors of the company. The loan is repayable on demand.

Banking Relations :	--
Auditors :
Name :	Sankar and Raja Chartered Accountant
Address :	3-6-211, West Marredpally, Secunderabad – 500026, Andhra Pradesh, India
Tel No :	91-40-27805050
Fax No :	91-40-27803249
E-Mail :	sankaraja@rediffmail.com
PAN No.:	AAGFS4407H

CAPITAL STRUCTURE

AS ON 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
300000	Equity Shares	Rs.10/- each	Rs. 3.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
226425	Equity Shares	Rs.10/- each	Rs. 2.264 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2012	31.03.2011	31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		2.264	2.264	2.264
2] Share Application Money		0.700	0.700	0.000
3] Reserves & Surplus		0.337	0.141	0.029
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		3.301	3.105	2.293
LOAN FUNDS
1] Secured Loans		7.327	5.688	9.441
2] Unsecured Loans		0.000	0.000	0.000
TOTAL BORROWING		7.326	5.688	9.441
DEFERRED TAX LIABILITIES		0.000	0.007	0.013
TOTAL		10.628	8.800	11.747
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		2.221	2.045	1.672
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.009	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	8.519	8.648	8.511
	Sundry Debtors	3.076	1.933	2.507
	Cash & Bank Balances	0.177	0.106	0.127
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	0.157	0.024	0.053
Total Current Assets		11.929	10.711	11.198
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	2.733	3.067	0.919
	Other Current Liabilities	0.719	0.839	0.013
	Provisions	0.079	0.050	0.191
Total Current Liabilities		3.531	3.956	1.123
Net Current Assets		8.398	6.755	10.075
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		10.628	8.800	11.747

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	32.854	20.864	24.783
		Other Income	0.000	0.000	0.069
		TOTAL (A)	32.854	20.864	24.852
Less	EXPENSES
		Cost of Material Consumed	28.615	17.762
		Changes in inventory of work-in-progress	(0.010)	(0.282)	23.543
		Employee benefit expenses	0.776	0.793
		Other expenses	2.215	1.215
		TOTAL (B)	31.596	19.488	23.543
Less	PROFIT / (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		1.258	1.376	1.309
Less	FINANCIAL EXPENSES (D)		0.582	0.925	0.825
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		0.676	0.451	0.484
Less/ Add	DEPRECIATION/ AMORTISATION (F)		0.392	0.284	0.338
	PROFIT / (LOSS) BEFORE TAX (E-F) (G)		0.284	0.167	0.146
Less	TAX (H)		0.088	0.055	0.052
	PROFIT / (LOSS) AFTER TAX (G-H) (I)		0.196	0.112	0.094
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		0.140	0.028	(0.065)
	BALANCE CARRIED TO THE B/S		0.336	0.140	0.028
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	3.191	2.101	2.723
	TOTAL EARNINGS		3.191	2.101	2.723
	Earnings Per Share (Rs.)		0.87	0.50	0.41

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	0.60	0.54	0.39
Net Profit Margin (PBT/Sales)	(%)	0.86	0.80	0.59
Return on Total Assets (PBT/Total Assets}	(%)	2.00	1.31	1.13
Return on Investment (ROI) (PBT/Networth)		0.09	0.05	0.06
Debt Equity Ratio (Total Liability/Networth)		1.07	1.27	0.49
Current Ratio (Current Asset/Current Liability)		3.38	2.71	9.97

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	Check List by Info Agents	Available in Report (Yes / No)
1]	Year of Establishment	Yes
2]	Locality of the firm	Yes
3]	Constitutions of the firm	Yes
4]	Premises details	No
5]	Type of Business	Yes
6]	Line of Business	Yes
7]	Promoter's background	No
8]	No. of employees	Yes
9]	Name of person contacted	Yes
10]	Designation of contact person	Yes
11]	Turnover of firm for last three years	Yes
12]	Profitability for last three years	Yes
13]	Reasons for variation <> 20%	-----
14]	Estimation for coming financial year	No
15]	Capital in the business	Yes
16]	Details of sister concerns	No
17]	Major suppliers	No
18]	Major customers	Yes
19]	Payments terms	Yes
20]	Export / Import details (if applicable)	Yes
21]	Market information	-----
22]	Litigations that the firm / promoter involved in	-----
23]	Banking Details	Yes
24]	Banking facility details	Yes
25]	Conduct of the banking account	-----
26]	Buyer visit details	-----
27]	Financials, if provided	Yes
28]	Incorporation details, if applicable	Yes
29]	Last accounts filed at ROC	Yes
30]	Major Shareholders, if available	Yes
31]	Date of Birth of Proprietor/Partner/Director, if available	Yes
32]	PAN of Proprietor/Partner/Director, if available	No
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	Yes

FORM 8

Corporate identity number of the company	U15201AP1995PLC020497
Name of the company	UPADRASTA DAIRY SPECIALITIES LIMITED
Address of the registered office or of the principal place of business in India of the company	6-1-107/22, Padma Rao Nagar, Secunderabad-500026, Andhra Pradesh, India
This form is for	Modification of charge
Charge identification number of the charge to be modified	90117042
Type of charge	Book debt Movable property (not being pledge)
Particular of charge holder	Nationalized Bank
Nature of instrument creating charge	Letter of Arrangement and Supplemental Agreement of Loan-Hypothecation
Date of instrument Creating the charge	26.11.2011
Amount secured by the charge	Rs. Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of interest Cash credit – 16.50%, Term loan – 17% Terms of repayment Cash credit: Repayable on demand. The facility which was sanctioned on 15.11.2011 is available for 12 months. Subject to review every 12 months and term loan is repayable in 15 quarterly installment of Rs. 1,00,000/- each starting from 31.08.2012 to 28.02.2016 Margin For cash credit –raw material, semi finished – 25%, Domestic receivables up to 120 days 40%, for term loan 25% Extent and operation of the charge CC – Rs. 9.000 Million and TL Rs.1.500 Million together with interest, costs and other charges there on both present and future and hypothecation of all current assets acquired out of bank finance.
Short particulars of the property charged (Including location of the property)	CC-Primary-Stock & Receivables, Collateral - EM of Plot of 333 Sq Yds in Sy No.74/12, Plot No.258, Trimurthy Colony, Mahindra Hills, East Marredpally, Secunderabad - 26 of U Patanjali Rao EM of Factory land and buildings at Plot No.47/A, Sy no.35, IDA, Phase - I, Road No.4, Cherlapalli, Hyderabad on the name of Upadrasta Food Products, Proprietor U Patanjali Rao
Particulars of the present modification	Enhancement of Cash credit from Rs.5.000 Millions to Rs.9.000 Millions and sanction of Term loan of Rs.1.500 Millions

FIXED ASSETS

• Buildings
• Computers
• Furniture and Fixture
• Office Equipment
• Plant and Machinery
• Vehicles

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 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 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.54.85
UK Pound	1	Rs.88.40
Euro	1	Rs.72.63

INFORMATION DETAILS

Report Prepared by :

SPR

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--PROFITABILIRY	1~10	2
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	2
--CREDIT LINES	1~10	2
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	YES
--AFFILIATION	YES/NO	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		27

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended
-	NB	New Business	-

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.