MIRA INFORM REPORT

Report Date :

02.01.2012

IDENTIFICATION DETAILS

Name :	SUGUNA POULTRY FARM LIMITED
Registered Office :	5^th Floor, Jaya Enclave, 1057, Avinashi Road, Coimbatore – 641 018, Tamilnadu
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	23.03.1994
Com. Reg. No.:	18-004951
Capital Investment/ Paid-up Capital:	Rs.386.844 Millions
CIN No.: [Company Identification No.]	U01222TZ1994PLC004951
IEC No.:	3295001022
TAN No.: [Tax Deduction & Collection Account No.]	CMBS03633A
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturing and Selling of Poultry Feeds (in Pellet Form) and Broiler or Processed Chicken.
No. of Employees:	3000 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

A (65)

RATING		STATUS	PROPOSED CREDIT LINE
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

Maximum Credit Limit :	USD 20000000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well established and a reputed company having fine track records. Financial position of the company appears to be sound. Trade relations are reported as fair. Business is active. Payments are reported to be regular and as per commitments. The company can be considered normal for business dealings at usual trade terms and conditions.

NOTES :

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

ECGC Country Risk Classification List – April 1, 2010

Country Name	Previous Rating (31.12.2009)	Current Rating (01.04.2010)
India	A1	A1

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

LOCATIONS

Registered Office / Corporate Office :	5^th Floor, Jaya Enclave, 1057, Avinashi Road, Coimbatore - 641 018, Tamilnadu, India
Tel. No.:	91-422-3073000/ 4392503/ 5392504/ 5392505/ 4343000
Fax No.:	91-422-3073333/ 5392507
E-Mail :	sugies@md3.vsnl.net.in suguna.poultry@rmy.sprintrpg.ems.vsnl.net.in corporate@sugunapoultry.com swaminathan@sugunapoultry.com
Website :	http://www.sugunapoultry.com
Area :	8000 sq. ft.
Location :	Owned
Broiler Offices :	Located at: · Hyderabad · Anand · Bengaluru · Pune · Nasik · Punjab · Orissa · Jaipur · Udumalpet · Madurai · Lucknow · Kolkata
Layer Offices :	Located at: · Hyderabad · East Godavari · Hospet · Chitradurga · Pune · Mohali · Nammakkal
Parent Stock	25, Nehru Street Extension, Udumalpet - 642 126, Tamilnadu, India,
Tel. No.:	91-4252-3321661/771/881
E-Mail :	parentstock@sugunapoultry.com
Hatching Eggs Division :	25, Nehru Street Extension, Udumalpet - 642 126, Tamilnadu, India
Tel. No.:	91-4252-3321661/771/881
E-Mail :	hatchingeggs@sugunapoultry.com
Soya Division :	Mauza – Thambhari, Village- Wani, N.H.NO.7 (NGP-HYD Highway), Hinganghat, Wardha (MS) – 442301, Maharashtra, India
Tel. No.:	91-7153-302400
Fax No.:	91-7153-302407
E-Mail :	soyadivision@sugunapoultry.com
Corn Division :	J2/203 Green Wood Regency, Near Wipro Campus, Shajurpur Road, Kai Kondanahalli, Bangalore - 560 035, Karnataka, India
Tel. No.:	91-80-32555231
Fax No.:	91-80-41508915
E-Mail :	corndivision@sugunapoultry.com

DIRECTORS

As on 30.09.2011

Name :

Mr. Bangarusamy Soundararajan

Designation :

Managing Director

Address :

Plot No.7, Parsn Rain Tree Apartments, Nanjundapuram, Coimbatore – 641 036, Tamilnadu, India

Date of Birth/Age :

12.04.1961

Date of Appointment :

23.03.1994

DIN No.:

00063462

Email :

bsr@sugunapoultry.com

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U01222TZ1994PLC004951	SUGUNA POULTRY FARM LIMITED	Whole-time director	2/5/2011	23/03/1994	-	Active	NO
2	U74999MH2002NPL137058	POULTRY PROCESSORS' ASSOCIATION OF INDIA	Director	6/9/2002	6/9/2002	-	Active	NO
3	U55101TZ2006PLC012813	FOUR WAY RETAIL LIMITED	Managing director	1/6/2006	1/6/2006	-	Amalgamated	NO
4	U67120TZ2006PTC012976	SUGUNA CAPITAL VENTURES PRIVATE LIMITED	Director	1/8/2006	1/8/2006	-	Active	NO
5	U24231TZ2006PTC013159	GLOBION INDIA PRIVATE LIMITED	Director	18/10/2006	18/10/2006	-	Active	NO
6	U85110TZ2004PTC010914	M AND M MEDICAL CENTRE PRIVATE LIMITED	Director	22/02/2007	22/02/2007	-	Amalgamated	NO
7	U00113TZ1996PTC006877	AMUDHA SURABI AGRO FARM PRIVATE LIMITED	Director	10/5/2007	10/5/2007	-	Amalgamated	NO
8	U00113TZ1995PTC006782	SUGUNA AGRO PRODUCTS PRIVATE LIMITED	Director	10/5/2007	10/5/2007	-	Amalgamated	NO
9	U00113TZ1996PTC006878	CHERAN AGRO FARMS PRIVATE LIMITED	Director	24/09/2007	10/5/2007	-	Amalgamated	NO
10	U00113TZ1996PTC006875	UZHAVAN AGRO FARMS PRIVATE LIMITED	Director	24/09/2007	10/5/2007	-	Amalgamated	NO
11	U00113TZ1996PTC006876	DRIZZLE AGRO FARMS PRIVATE LIMITED	Director	24/09/2007	10/5/2007	-	Amalgamated	NO
12	U65993TZ2008PTC014318	SUGUNA HOLDINGS PRIVATE LIMITED	Director	19/03/2008	19/03/2008	-	Active	NO

Name :

Mr. Ganapathypalayam Bangarusamy Soundararajan

Designation :

Joint Managing Director

Address :

Flat No.401 and 402, Raheja Enclave, Race Course, Coimbatore – 641 018, Tamilnadu, India

Date of Birth/Age :

12.04.1963

Date of Appointment :

23.04.2003

DIN No.:

00062984

Email :

gbs@sugunpoultry.com

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U00113TZ1996PTC007442	SUGUNA FARMS PRIVATE LIMITED	Director	6/9/1996	6/9/1996	-	Amalgamated	NO
2	U01222TZ1994PLC004951	SUGUNA POULTRY FARM LIMITED	Managing director	2/5/2011	23/04/2003	-	Active	NO
3	U55101TZ2006PLC012813	FOUR WAY RETAIL LIMITED	Director	1/6/2006	1/6/2006	-	Amalgamated	NO
4	U67120TZ2006PTC012976	SUGUNA CAPITAL VENTURES PRIVATE LIMITED	Director	1/8/2006	1/8/2006	-	Active	NO
5	U24231TZ2006PTC013159	GLOBION INDIA PRIVATE LIMITED	Director	18/10/2006	18/10/2006	4/8/2010	Active	NO
6	U85110TZ2004PTC010914	M AND M MEDICAL CENTRE PRIVATE LIMITED	Director	22/02/2007	22/02/2007	-	Amalgamated	NO
7	U00113TZ1996PTC006876	DRIZZLE AGRO FARMS PRIVATE LIMITED	Director	10/5/2007	10/5/2007	-	Amalgamated	NO
8	U00113TZ1995PTC006782	SUGUNA AGRO PRODUCTS PRIVATE LIMITED	Director	10/5/2007	10/5/2007	-	Amalgamated	NO
9	U00113TZ1996PTC006877	AMUDHA SURABI AGRO FARM PRIVATE LIMITED	Director	24/09/2007	10/5/2007	-	Amalgamated	NO
10	U00113TZ1996PTC006878	CHERAN AGRO FARMS PRIVATE LIMITED	Director	24/09/2007	10/5/2007	-	Amalgamated	NO
11	U00113TZ1996PTC006875	UZHAVAN AGRO FARMS PRIVATE LIMITED	Director	24/09/2007	10/5/2007	-	Amalgamated	NO
12	U65993TZ2008PTC014318	SUGUNA HOLDINGS PRIVATE LIMITED	Director	19/03/2008	19/03/2008	-	Active	NO

Name :

Mr. Balasubramaniam Ramjee

Designation :

Director

Address :

B1, Flat B Block, 1075, Pioneer Apartment, Avinashi Road, Coimbatore – 641 018, Tamilnadu, India

Experience :

32 Years

Date of Birth/Age :

12.08.1943

Date of Appointment :

09.08.2003

DIN No.:

00066535

Email :

ramjee@sugunapoultry.com

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U01222TZ1994PLC004951	SUGUNA POULTRY FARM LIMITED	Director	9/8/2003	9/8/2003	-	Active	NO
2	U55101TZ2006PLC012813	FOUR WAY RETAIL LIMITED	Additional director	13/03/2008	13/03/2008	-	Amalgamated	NO

Name :

Mr. Venkitusamy Bangarusamy

Designation :

Director

Address :

3/ 25, Ganapathi Palayam, Poolankinar, Udumalpet – 642 122, Tamilnadu, India

Date of Birth/Age :

15.03.1935

Date of Appointment :

22.03.2005

DIN No.:

01938372

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U00113TZ1996PTC006875	UZHAVAN AGRO FARMS PRIVATE LIMITED	Director	24/01/1996	24/01/1996	19/11/2007	Amalgamated	NO
2	U01222TZ1994PLC004951	SUGUNA POULTRY FARM LIMITED	Director	20/09/2005	20/09/2005	28/01/2011	Active	NO

Name :

Mr. Koyambedu Subramani Ramesh

Designation :

Director

Address :

No.3, Cedar Wood Apartments, Flat No.11, 4^th Main Road, Ra Puram, Chennai – 600 028, Tamilnadu, India

Date of Birth/Age :

13.08.1951

Date of Appointment :

15.07.2006

DIN No.:

01259495

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U01222TZ1994PLC004951	SUGUNA POULTRY FARM LIMITED	Director	15/07/2006	15/07/2006	-	Active	NO
2	U55101TZ2006PLC012813	FOUR WAY RETAIL LIMITED	Director	22/06/2007	22/06/2007	13/03/2008	Amalgamated	NO

Name :

Mr. Palanisamy Angamuthu

Designation :

Whole Time Director

Address :

6/ 1, Subhdarsan Gardens, Veeriampalayam Road, Kalapatty, Coimbatore – 641 035, Tamilnadu, India

Date of Birth/Age :

24.02.1972

Date of Appointment :

09.12.2009

DIN No.:

02981062

Audit Committee :

Mr. B. Soundararajan

Mr. B. Ramjee

Mr. K.S. Ramesh

KEY EXECUTIVES

Name :	Mr. R. Hariram
Designation :	Secretary
Address :	Old No. 39-41, New No. 73, Vaniarstreet, Jpplane, Coimbatore – 641001, Tamilnadu, India
Date of Birth :	03.09.1983
Date of Appointment :	28.01.2011

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2011

Names of Shareholders	No. of Shares
Lalitha Ramjee	4166
Abupakkar U.	333
Anbumoney. Dr. P.R.	333
Anil Dhumal	1000
Anil Gupta	833
Annadurai S.	2000
Arulmurughu L.	333
Arumugam P.	333
Arun R.	333
Arunaben K. Shah	1333
K. Jayakumar	2914
Balachandran P.K.	333
Bernard Joseph	333
Chandra Kumari N.	333
Chandrasekaran T.	833
Chandrasekaran G.	333
Dharmarajan S.	333
Gopalsamy V.	333
Kalpesh Shah K.	1333
Kamalam K.	166
Kamalaveni M.	666
Kirtilal Shah S.	666
Krishnakumar D.	666
Krishnamurthi R.	500
Lakshmanan R.	500
Latha K.K.	333
Mahalakshmi S.	333
Menon P.V.	333
Mohhemed Ameer P.	333
Muthu Sivasubramaniam M.	400

Preference Share Holders

Names of Shareholders	No. of Shares
International Finance Corporation	789480
Total	789480

As on 30.09.2011

Equity Share Breakup	Percentage of Holding
Category
Bodies corporate	99.38
Directors or relatives of directors	0.07
Other top fifty shareholders	0.55
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturing and Selling of Poultry Feeds (in Pellet Form) and Broiler or Processed Chicken.
Products :	Production Description	ITC Code
	Meat Product (other than canned)	02071100
	Poultry Food	23099090
	Live Poultry	01059300
	Egg	04070010
	Soya Meal	12081000

GENERAL INFORMATION

No. of Employees :

3000 (Approximately)

Bankers :

• ICICI Bank Limited, Cheran Plaza, 1090, Trichy Road, Coimbatore – 641018, Tamilnadu, India
• Corporation Bank, Industrial Finance Branch, 1604, Coimbatore – 641018, Tamilnadu, India
• Axis Bank Limited, "Vigneshhwar Cresta", 1095, Avinashi Road, Pappanaickenpalayam, Coimbatore – 641 018, Tamilnadu, India
• Bank of Baroda
• Central Bank of India
• HDFC Bank Limited
• IDBI Bank Limited
• Indian Bank
• ING Vysya Bank Limited
• Oriental Bank of Commerce
• Standard Chartered Bank Limited
• State Bank of India
• State Bank of Indore
• State Bank of Mysore

Facilities :

Secured Loans	31.03.2011 Rs. In Millions	31.03.2010 Rs. In Millions
Loans and Advances from Banks
Rupee term loans banks secured	2896.915	3345.915
Working Capital loans banks secured	2365.049	4178.328
Deposits related parties secured	0.000	18.214
Total	6211.964	7542.458

Unsecured Loans	31.03.2011 Rs. In Millions	31.03.2010 Rs. In Millions
From Banks	0.000	1450.506
Inter Corporate Deposit	2.500	2.500
Hire Purchase installment payable unsecured	2.744	0.000
Other Debt Unsecured	12.401	11.158
Total	17.646	1464.165

Notes :

Term Loans The amount outstanding due to various bankers is Rs 2896.900 millions against the sanctioned limit of Rs. 3721.700 millions The term loans are primarily secured by the specific assets being funded against and a pari-passu second charge on the existing and future current assets of the company. Working Capital and Other Short Term Loans The amount due to various bankers is Rs 3315.000 millions against the sanctioned limit of Rs 7550.000 millions. The above limits are primarily secured by the hypothecation of present and future stocks, book debts, etc., on pari-passu basis among the bankers. The above limits are also secured by the second charge on the fixed assets of the company on a pari-passu basis. The above limits are further secured with collateral securities of unencumbered properties of the company, to the tune of Rs 235.200 millions.

Banking Relations :	Satisfactory
Auditors :
Name :	T.S. Maniam and Associates Chartered Accountants
Address:	No. 63, 2^nd Floor, Sarojini Street, Ram Nagar, Coimbatore – 641 012, Tamilnadu, India
Tel. No.:	91-422-5377659
E-Mail.:	tsmaniam@tbsindia.com
Pan No.:	AAEFT0709M
Holding Company :	Suguna Holdings Private Limited CIN No.: U65993TZ2008PTC014318
Wholly owned subsidiary :	Ocean Feeds Private Limited, Sri Lanka
Associate Enterprises significantly influenced by Directors and /or their relatives :	Suguna Foundation Suguna Capital Ventures Private Limited CIN No.: U67120TZ2006PTC012976 Globion India Private Limited CIN No.: U24231TZ2006PTC013159

CAPITAL STRUCTURE

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
34000000	Equity Shares	Rs.10/- each	Rs.340.000 Millions
800000	Preference Shares	Rs.300/- each	Rs.240.000 Millions
	Total		Rs.580.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
15000000	Equity Shares	Rs.10/- each	Rs.150.000 millions
789480	8.45% Preference Shares	Rs.300/- each	Rs.236.844 Millions
	Total		Rs.386.844 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2011	31.03.2010 (9 Months)	30.06.2009 (15 Months)
SHAREHOLDERS FUNDS
1] Share Capital		386.844	386.844	386.800
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		4638.079	3153.799	3025.600
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		5024.923	3540.643	3412.400
LOAN FUNDS
1] Secured Loans		6211.964	7542.458	7498.500
2] Unsecured Loans		17.646	1464.165	757.700
TOTAL BORROWING		6229.610	9006.623	8256.200
DEFERRED TAX LIABILITIES		557.973	455.962	344.200
TOTAL		11812.506	13003.228	12012.800
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		6236.572	5582.274	4562.400
Capital work-in-progress		71.553	461.647	1412.800
INVESTMENT		51.941	92.285	199.800
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	7021.436	7035.907	6349.500
	Sundry Debtors	131.713	131.378	195.100
	Cash & Bank Balances	419.086	358.097	384.300
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	1986.362	1514.549	1655.900
Total Current Assets		9558.597	9039.931	8584.800
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	1121.985	1078.421
	Other Current Liabilities	659.973	354.204	2147.600
	Provisions	2326.957	750.650	615.000
Total Current Liabilities		4108.915	2183.275	2762.600
Net Current Assets		5449.682	6856.656	5822.200
MISCELLANEOUS EXPENSES		2.758	10.366	15.600
TOTAL		11812.506	13003.228	12012.800

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010 (9 Months)	30.06.2009 (15 Months)
	SALES
		Income	37194.157	24079.861	37971.900
		Other Income	128.133	369.653	484.200
		TOTAL (A)	37322.290	24449.514	38456.100
Less	EXPENSES
		Consumption materials changes inventories	27187.539	19088.979	29698.500
		Manufacturing Service Cost	4172.436	2930.064	4658.300
		Employee Related Expenses	923.139	591.795	970.200
		Administrative Selling other expenses	722.314	595.342	728.900
		Prior Period items before tax	6.474	10.929	4.200
		TOTAL (B)	33011.902	23217.109	36060.100
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		4310.388	1232.405	2396.000
Less	FINANCIAL EXPENSES (D)		600.163	584.680	1134.800
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		3710.225	647.725	1261.200
Less/ Add	DEPRECIATION/ AMORTISATION (F)		354.905	311.164	339.700
	PROFIT BEFORE TAX (E-F) (G)		3355.320	336.561	921.500
Less	TAX (H)		1871.041	120.569	328.300
	PROFIT AFTER TAX (G-H) (I)		1484.279	215.992	593.200
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		2333.800	2239.200	1714.200
Less	APPROPRIATIONS
		Provision for Dividend	NA	75.000	25.000
		Provision for Dividend Tax	97.900	12.800	4.200
		Transfer to General Reserve	NA	33.600	39.000
	BALANCE CARRIED TO THE B/S		97.900	2333.800	2239.200
	EARNINGS IN FOREIGN CURRENCY
		Export of Goods on F.O.B. Basis	NA	32.000	27.400
		Dividend Income	NA	320.800	343.000
	TOTAL EARNINGS		NA	352.800	370.400
	IMPORTS
		Live Poultry	NA	113.900	118.300
		Raw Materials	NA	1571.100	2886.000
		Packing Material	NA	0.300	0.000
		Capital Goods	NA	32.800	16.700
		Spare Parts	NA	24.900	270.600
	TOTAL IMPORTS		NA	1743.000	3291.600
	Earnings Per Share (Rs.)
	- Basic		149.27	13.23	37.60
	- Diluted		144.12	13.68	37.57

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010 (9 Months)	30.06.2009 (15 Months)
PAT / Total Income	(%)	3.97	0.88	1.54
Net Profit Margin (PBT/Sales)	(%)	9.02	1.40	2.43
Return on Total Assets (PBT/Total Assets}	(%)	21.24	2.30	7.01
Return on Investment (ROI) (PBT/Networth)		0.66	0.10	0.27
Debt Equity Ratio (Total Liability/Networth)		2.05	3.16	3.23
Current Ratio (Current Asset/Current Liability)		2.32	4.14	3.11

LOCAL AGENCY FURTHER INFORMATION

HISTORY

Suguna Poultry Product Limited was originally incorporated under the name and style of Suguna Feeds Private Limited as a Private Limited company and was converted into a deemed public limited company later.

The name of the company was subsequently changed to present w.e.f. 4^th January, 1999.

Letter w.e.f. 1^st April, 2003, the company Suguna Poultry Product Limited was merged with Suguna Poultry Farm Limited

Change in the financial year

The Board of Directors of the Company has decided to change its financial year from July to March for the FY 2009-10. As a result, the current year will reflect the performance of the period of nine months beginning from 1st July 2009 to end on March 31, 2010.

PERFORMANCE REVIEW

The company had achieved a turnover of Rs 371.941 Millions for the Year of Apr-2010 to Mar-2011. This shows an increase of Rs. 13114.200 millions over the achieved turnover of Rs. 24079.900 millions for the previous period July 2009 to March 2010. Profit after tax, including exceptional item, for the period was Rs. 2183.600 millions as against Rs. 216.000 millions for the previous period July 2009 to

March 2010.

DIET CHICKEN

They have successfully commissioned a Feed Mill plant with a capacity of producing 1200 MT per day of Pellet Feed in Andhra Pradesh near Hyderabad (Toopran) during Jan 2011. This will cater to the needs of feed requirement of broiler integration and feed sales activity in that region.

BUSINESS EXPANSION

As part of poultry expansion plan, they have entered into the state of Assam with broiler integration operations. We have also planned to start operations in the state of Bihar.

POULTRY SECTOR OUTLOOK

The annual per capita poultry meat consumption in India has been increasing from 0.7 kg in 2001 to 2.5 kg in 2010 yet it remains one of the lowest globally with vast gap even between NIN (National Institute of Nutrition) recommended levels of 180 eggs and 11 kg of poultry meat per person. This offers a tremendous opportunity for further integration and growth in industry. The domestic broiler meat demand is expected to grow at around 10-13%, while table egg demand is expected to grow at 5-7% in medium to long term. Poultry meat is primarily sold through fresh markets in India and consumers prefer to buy live poultry and get it dressed in their presence. The average poultry purchased is fresh chicken meat, mostly slaughtered in small establishments with wet markets accounting for nearly 95% of sales.

This is due to the fact that consumers believe such meats are healthy and germ free. A lot of effort is required to change that attitude and consumer confidence has to be gained that dressed poultry is hygienic, healthy and from disease-free birds. Further low penetration of modern retail establishments with back end infrastructure for freezing has limited the growth of this market

The domestic poultry market size is estimated at more than Rs. 470000 millions and the growth trend is likely to continue for the present decade as demand has been growing steadily on back of favorable socio economic factors like healthy GDP growth, rising purchasing power, changing food habits, and increasing urbanization.

The poultry sector in India has undergone major shift in structure and operation during last two decades transforming from a mere backyard activity into a major commercial activity with presence of large integrated players with successful implementation of contract poultry farming on a large scale. This transformation involved sizeable investments in breeding, hatching, rearing and processing activities.

Maize is the primary source of energy for the Indian poultry industry and constitutes 60% of compound feed, while soybean is the main source of protein and forms 30-35% of the feed. Maize has remained a relatively small crop in the country, which has led to supply shortages. Maize is primarily rain-fed and competes with crops such as wheat and paddy which has assured prices from the Government. Hence any monsoon failure is a threat for the crop as was evident in drought year 2009-10, when maize production fell by 12-15% although it recovered in crop year 2010-11 with an estimated production of 19 million tones. Still maize prices are expected to remain high on back of strong demand from poultry and starch sector and limited supply available. Poultry sector consumes 52% of domestic maize production and demand from poultry sector is expected to outstrip supplies in near future. India needs to double its maize production in next ten years to meet the growing domestic demand from the feed industry. In case of soymeal, India manufactures exportable surplus and hence adequate availability of soymeal is there though prices remain volatile on back of fluctuation in international prices and domestic production.( Source ICRA Poultry Survey Report June 2011).

SUBSIDIARY COMPANIES

M/s Ocean Feeds Private Limited, Sri Lanka is a wholly owned overseas subsidiary of the Company. The Overseas Subsidiary clocked a profit of LKR 1103.200 millions during 2010-11 as compared to LKR 1108.700 millions in the previous year.

FORM 8:

Corporate identity number of the company	U01222TZ1994PLC004951
Name of the company	SUGUNA POULTRY FARM LIMITED
Address of the registered office or of the principal place of business in India of the company	5^th Floor, Jaya Enclave, 1057 Avanashi Road, Coimbatore – 641018, Tamilnadu, India
This form is for	Modification of charge
Type of charge	Immovable Property
Particular of charge holder	State Bank of India, Commercial Branch, 1443, Trichy Road, Coimbatore – 641018, Tamilnadu, India
Nature of instrument creating charge	Letter regarding merger of state bank of Indore with State Bank of India
Date of instrument Creating the charge	10/10/2011
Amount secured by the charge	Rs.500.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest CC- 3.25% below BPLR (BPLR presently 12.75%) the effective rate being 9.50% p.a (Floating) Terms of Repayment Payable on demand Margin RM: 25% SIP: 25% FG: 25% Receivables: 25% Extent and Operation of the charge Primary: Charge over the current assets of the Company on pari passu basis with other member banks under Multiple Banking Arrangement. Collateral: First Pari passu charge on Unencumbered Fixed assets of the Company with other banks under Multiple Banking Arrangement.
Short particulars of the property charged	Primary: Charge over the current assets of the Company on pari passu basis with other member banks under Multiple Banking Arrangement. Collateral: First Pari passu charge on Unencumbered Fixed assets of the Company with other banks under Multiple Banking Arrangement.
Date of instrument modifying the charge	25/03/2010
Particulars of the present modification	There is no change in the charge amount of Rs.500.000 millions by charge on immovable properties and current assets of the company. Consequent to merger of State Bank of Indore with State Bank of India, the name of the charge holder will be State Bank of India, Commercial Branch,1443,Trichy Road, Coimbatore-641 018.

FIXED ASSETS

Tangible Assets

• Land
• Building
• Plant and Machinery
• Furniture and Fittings
• Computer and
• Accessories
• Vehicles
• Agri Equipments

Intangible Assets

• Computer
• Software
• Goodwill

WEBSITE DETAILS:

OVERVIEW:

Over a period of 25 years, Suguna has gone from strength to strength and has become a Rs. 3200 crore company that makes it India’s No. 1 broiler producer. Along the way, Suguna’s pioneering efforts in contract farming helped create thousands of rural entrepreneurs who share the growth successfully. "Poultry Integration" introduced and pioneered by Suguna in the country has energized the livelihoods of farmers in rural India.

Suguna ranks among the top ten poultry companies worldwide. With operations in 11 states across India, it offers a range of poultry products and services. The fully integrated operations cover broiler and layer farming, hatcheries, feed mills, processing plants, vaccines and exports. Suguna markets live broiler chicken, value added eggs and frozen chicken. With the intent to provide consumers with fresh, clean and hygienic packed chicken, Suguna has set up a chain of modern retail outlets.

Today, the company’s brand Suguna Chicken is a household name in India. With its Suguna Daily Fressh outlets, Suguna Home Bites, Suguna Anytime processed chicken and four varieties of specialty Suguna value added eggs, Suguna is the undisputed leader in poultry products. Suguna Home Bites being the latest in its product range is a new category of home meal replacements (HMR).

History

Managing Director Mr. B. Soundararajan and Joint Managing Director Mr. G.B. Sundararajan saw potential in growing the Indian Poultry Industry through integration, which later came to be known as Contract Farming. This led Suguna Poultry to pioneer contract farming in India.

In 1986, Mr. B. Soundararajan and Mr. G.B. Sundararajan set up a poultry farm with 200 layer birds at Udumalpet. During 1989 - 90, when chicken prices crashed because of an over-supply of birds in the local market, Suguna saw an opportunity for business growth by helping the poultry farmers who had bought feed and medicines on credit and could not clear their dues. To help them recover their money, these visionaries began to provide feed and health support to indebted farmers in return for the end product - eggs. The success of this exercise gave birth to the Suguna Integration Model.

The poultry integration model has set a win-win situation for both the farmer and the integrator. Farmers are provided with day-old chicks, feed and health support. Performance is monitored on a daily basis with Suguna field staff visiting the farms to check on the health of the birds, feed intake, growth and mortality levels. In six weeks time, the birds are weighed and are ready to be sold by Suguna. Farmers are paid a handsome growing charge for the birds at the end of this period. Thus, Suguna takes this success model to the next level vision of energising rural India benefiting the country, farmer and the company.

A constant and relentless drive has taken the company's growth and expansion which covers over 15,000 farmers from 8,000 villages in 11 Indian states. Impressed by the model and its success, Suguna receives invitations from many state governments to set up its operations. Many investors and delegates from across borders visit Suguna’s facilities to study this model and later adopt in their own countries.

With mastery and success in contract farming, Suguna has shaped the poultry industry to its current position in India.

PRESS RELEASES:

SUGUNA DAILY FRESSH SUCCESS WITH FOOD RETAIL SUGUNA TO EXPAND ITS OPERATIONS NOW

To open 200 stores through the franchise route in South

Thursday, October 30, 2008

Suguna Group, India’s largest poultry enterprise, launched its first outlet of a chain of quality chicken retail stores in Kerala under the brand name Suguna Daily Fressh at Erode this week. Spread across 250 square feet, the store retails fresh hygienic nutritious and tender chicken (eight forms of chicken, whole and portioned), specialty eggs (four varieties of value added eggs), sausages and salami. This brings the total to 27 stores including Tamil Nadu and Kerala.

Suguna Daily Fressh is a new shopping concept for purchasing all your home needs of fresh chicken in a hygienic environment with the promise of quality from the house of Suguna. All the products are HACCP certified and adhere to the international standards based on Total Quality Management (TQM) system with strict compliance to hygiene and inspection requirements, and adopting the traditional “Halal” method. The stores retail mutton and a range of Suguna’s soon to be launched heat n’ eat Suguna Home Bites chicken based home meal replacements.

Speaking on the occasion, Mr. B. Soundararajan, Managing Director, Suguna Poultry Farm Limited, said, “For the first time people can buy fresh chicken in a clean and enjoyable ambience with hygienic storage and packing. We plan to open at least 40 outlets in Kerala before the end of this fiscal, and will open 200 stores across South”.

Currently, Suguna has 23 such Daily Fressh stores in Tamil Nadu with the franchisee model. Buoyed by the success of the model in Coimbatore, Suguna decided to set up franchisee owned branded outlets that offer quality products in a clean and modern environment. These stores would be spread across 200 –300 sft space in prime residential areas and will be set up with an investment of about Rs.0.600 million.

Suguna is also inviting proposals from prospective franchisees. Suguna will help the franchisees by supplying products, providing marketing support and ensuring guaranteed minimum revenue in the formative years of the venture. Suguna will also invest in training the franchisees and the store workforce to adhere to its hygiene standards.

About Suguna Group

Started in 1984, Suguna Group Limited is India’s largest poultry enterprise with a turnover of 20300.000 millions in 2007-08. It has fully integrated operations covering broiler and layer farming with its own state of the art hatcheries, feed mills, processing plant and vaccine plant and exports. Suguna sells live broiler chicken, specialty eggs, frozen chicken and has set up a chain of modern retail stores selling fresh, clean and hygienically packed chicken. At the heart of Suguna’s success is its vision of energizing rural India. Its pioneering efforts in Contract Farming have helped thousands of farmers to grow along with the company. Suguna currently operates in 11 states working with 15,000 farmers, 25000 channel partners and 3500 employees.

Suguna Poultry Farm Limited is an ISO 9001:2000 certified company. All of Suguna’s products are HACCP certified and Suguna imports the grandparent birds from Ross in UK, best known for their tenderness and taste. State-of-the-art hatcheries and best farm management practices ensure the highest quality broiler chicken. Suguna benchmarks its infrastructure and processes with leading poultry companies in developed companies and has successfully introduced latest technology in its poultry management value chain. Suguna is the first poultry company to implement end to end ERP system for poultry business management.

ASIAN POULTRY

PERSONALITY OF 2011

Our beloved JMD Mr.G.B.Sundararajan has been conferred with “Asian Poultry Personality of 2011” award by International Poultry production and VIV Asia at the Opening ceremony of VIV Asia on 9^th March-2011 at Bangkok.

This award was given in recognition with the outstanding services to the Asian poultry sector by Suguna Poultry. It evidences that Suguna poultry brand is recognized globally and stands on par with international standards.

Let’s all share the happiness together.

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. 53.26
UK Pound	1	Rs. 82.09
Euro	1	Rs. 68.90

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	7
OPERATING SCALE	1~10	7
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	8
--PROFITABILIRY	1~10	8
--LIQUIDITY	1~10	8
--LEVERAGE	1~10	7
--RESERVES	1~10	8
--CREDIT LINES	1~10	7
--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	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		65

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.