MIRA INFORM REPORT

Report Date :

09.07.2012

IDENTIFICATION DETAILS

Name :	GITS FOOD PRODUCTS PRIVATE LIMITED
Registered Office :	Gits House, Hadapsar Industrial Estate, Pune – 411013, Maharashtra
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	27.07.1994
Com. Reg. No.:	11-079891
Capital Investment/ Paid-up Capital:	Rs. 7.440 Millions
CIN No.: [Company Identification No.]	U15443MH1994PTC079891
TAN No.: [Tax Deduction & Collection Account No.]	MUMG04022E
Legal Form :	Private Limited Liability Company
Line of Business :	Exporters, Manufacturers and supplier of instant food and ready to eat food – snack mixes, desert mixes, papads, savories, meals, desserts, biscuits and cookies, dairy mate and pure ghee.
No. of Employees:	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba [46]

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Maximum Credit Limit :	USD 443000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is a well established company having satisfactory track. Trade relations are reported as fair. Business is active. Payments are reported to be usually correct 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 – September 30, 2011

Country Name	Previous Rating (30.06.2011)	Current Rating (30.09.2011)
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 :	Gits House, Hadapsar Industrial Estate, Pune – 411013, Maharashtra, India
Tel. No.:	Not Available
Fax No.:	Not Available
E-Mail :	gitsfood@bom3vsnl.net.in
Factory :	Gits House, 18/3, Hadapsar Industrial Estate, Pune – 411013, Maharashtra, India
Tel. No.:	91-20-66496000
Fax No.:	91-20-26875993
Sales Office :	4TH Floor, Balarama, Bandra Kurla Complex, Bandra E, Mumbai – 400051, India
Tel. No.:	91-22-26592525
Fax No.:	91-22-26592626

DIRECTORS

As on 27.09.2010

Name :

Mr. Mukhtar Akbarally Tejani

Designation :

Director

Address :

A/6, Dungursee Park Cooperative Housing Society Limited, 22, Bund Garden Road, Pune – 411001, Maharashtra, India

Date of Birth/Age :

26.05.1950

Date of Appointment :

27.07.1994

Din No.:

00150278

Other Directorship :

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U15443MH1994PTC079891	GITS FOOD PRODUCTS PRIVATE LIMITED	Director	27/07/1994	27/07/1994	-	Active	NO
2	U74220PN2002NPL017463	NATIONAL AGRICULTURE AND FOOD ANALYSIS AND RESEARCH INSTITUTE	Director	29/11/2002	29/11/2002	-	Active	NO
3	U01409MH1974PLC017803	MAHRATTA CHAMBER OF COMMERCE INDUSTRIES AND AGRICULTURE	Director	30/09/2006	30/09/2006	-	Active	NO
4	U15139PN2007PLC129397	G & G FOODS LIMITED	Director	04/01/2007	04/01/2007	01/10/2009	Active	YES

Name :

Mr. Raju Harji Gilani

Designation :

Director

Address :

502, Panju Mahal, B J Road, Bandra West, Mumbai – 400050, Maharashtra, India

Date of Birth/Age :

26.03.1956

Date of Appointment :

27.07.1994

Din No.:

00152179

Other Directorship :

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U15443MH1994PTC079891	GITS FOOD PRODUCTS PRIVATE LIMITED	Director	27/07/1994	27/07/1994	-	Active	NO
2	U15139PN2007PLC129397	G & G FOODS LIMITED	Director	04/01/2007	04/01/2007	01/10/2009	Active	YES

Name :

Mr. Akbarally Khan Mohamed Tejani

Designation :

Director

Address :

A/3, Vrindavan Park Cooperative Housing Society Limited, Harangi Bagh, Path C, Pune – 411001, Maharashtra, India

Date of Birth/Age :

20.01.1929

Date of Appointment :

27.07.194

Din No.:

00152887

Name :

Mr. Sahil Raju Gilani

Designation :

Director

Address :

502 / 04, Panju Mahal, B J Road, Bandra West, Mumbai – 400050, Maharashtra, India

Date of Birth/Age :

19.03.1985

Date of Appointment :

01.07.2003

Din No.:

01757566

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 27.09.2010

Names of Shareholders	No. of Shares
Mukhtar Akbarally Tejani	186000
Sahil Raju Gilani	186000
Akbarally Khan Mohamed Tejani	186000
Raju Harji Gilani	186000
Total	744000

As on 27.09.2010

Category	Percentage
Directors or relatives of directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Exporters, Manufacturers and supplier of instant food and ready to eat food – snack mixes, desert mixes, papads, savories, meals, desserts, biscuits and cookies, dairy mate and pure ghee.

PRODUCTION STATUS As on 31.03.2011

Particulars	Unit	Licensed Capacity	Actual Production
Gulab Jamun	No. of Packets	-	8428806
Idli	No. of Packets	-	1490846
Dosai	No. of Packets	-	1094582
Vadai	No. of Packets	-	662413
Other Instant Products	No. of Packets	-	7454014
Installed Capacity – 2700 Tons

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

Jammu And Kashmir Bank Limited, (Corporate Headquarters), M.A.Road, Srinagar,Kashmir, Srinagar - 190001, Jammu And Kashmir, India

Facilities :

Rs. In Millions

SECURED LOAN	31.03.2011	31.03.2010
From HDFC Bank Limited on Hypothecation of Vehicles	3.952	8.069
Term Loan - J and K Bank Mumbai - (on Additional Factory building and Machinery installed at Pune)	20.166	36.300
From Jammu and Kashmir Bank Ltd. (against the Hypothecation of Stock-in-Trade, Book Debts, Fixed Assets and Personal guarantee of Directors)	94.051	64.085
Total	118.169	108.454

UNSECURED LOAN	31.03.2011	31.03.2010
Unsecured Loan	9.445	6.419

Banking Relations :	--
Auditors :
Name :	Shroff and Company Chartered Accountant
Address :	503, Delux Court, 5^th Floor, Rao Bahadur BHandarkar Marg, Mumbai – 400050, Maharashtra, India
Pan No.:	AALPS0110J

CAPITAL STRUCTURE

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
3,000,000	Equity Shares	Rs.10/-each	Rs.30.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
744,000	Equity Shares	Rs.10/-each	Rs.7.440 millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2011	31.03.2010	31.03.2009
SHAREHOLDERS FUNDS
1] Share Capital		7.440	7.440	7.440
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		103.493	80.492	55.978
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		110.933	87.932	63.418
LOAN FUNDS
1] Secured Loans		118.169	108.454	89.638
2] Unsecured Loans		9.445	6.419	4.450
TOTAL BORROWING		127.614	114.873	94.088
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		238.547	202.805	157.506
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		128.995	119.166	117.450
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		4.002	0.002	0.002
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	43.107	43.682	30.267
	Sundry Debtors	60.610	38.614	30.596
	Cash & Bank Balances	31.224	8.180	3.827
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	101.722	126.365	88.304
Total Current Assets		236.663	216.841	152.994
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditor	28.940	49.445	45.647
	Other Current Liabilities	16.447	14.185	10.467
	Provisions	85.726	69.574	56.826
Total Current Liabilities		131.113	133.204	112.940
Net Current Assets		101.550	83.637	40.054
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		238.547	202.805	157.506

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income			523.288
		Other Income			3.860
		TOTAL (A)	679.626	593.451	527.148
Less	EXPENSES
		Material Cost			302.785
		Employee Cost			42.751
		Administrative, selling and distribution Expenses			106.062
		TOTAL (B)	587.169	498.601	451.598
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		92.457	94.850	75.550
Less	FINANCIAL EXPENSES (D)		9.006	9.130	9.543
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		83.451	85.720	66.007
Less/ Add	DEPRECIATION/ AMORTISATION (F)		15.723	15.847	12.921
	PROFIT BEFORE TAX (E-F) (G)		67.728	69.873	53.086
Less	TAX (H)		23.612	25.126	19.694
	PROFIT AFTER TAX (G-H) (I)		44.116	44.747	33.392
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		42.831	24.498	17.923
Add	Deferred Tax Liability / Assets		0.467	0.318	(0.056)
	Earlier year W/back		0.050	0.000	0.000
Less	APPROPRIATIONS
		Transfer to General Reserve		5.000	5.000
		Interim Dividend		11.160	11.160
		Tax on Interim Dividend		1.897	1.897
		Proposed Dividend		7.440	7.440
		Tax on Proposed Dividend		1.235	1.264
	BALANCE CARRIED TO THE B/S		60.832	42.831	24.498
	EARNINGS IN FOREIGN CURRENCY		260.691	226.597	208.692
	Earnings Per Share (Rs.)		59.30	-	44.88

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	6.49	7.54	6.33
Net Profit Margin (PBT/Sales)	(%)	NA	NA	10.14
Return on Total Assets (PBT/Total Assets}	(%)	18.53	20.79	19.63
Return on Investment (ROI) (PBT/Networth)		0.61	0.79	0.84
Debt Equity Ratio (Total Liability/Networth)		2.33	2.82	3.26
Current Ratio (Current Asset/Current Liability)		1.80	1.63	1.35

LOCAL AGENCY FURTHER INFORMATION

Check List by Info Agents	Available in Report [Yes/No]
Year of Establishment	Yes
Locality of the Firm	Yes
Constitution of the firm	Yes
Premises details	No
Type of Business	Yes
Line of Business	Yes
Promoters background	Yes
No. of Employees	Yes
Name of Person Contacted	No
Designation of contact person	No
Turnover of firm for last three years	No
Profitability for last three years	Yes
Reasons for variation <> 20%	-
Estimation for coming financial year	No
Capital the business	Yes
Details of sister concerns	No
Major Suppliers	No
Major Customers	No
Payment Terms	No
Export / Import Details [If Applicable]	No
Market Information	-
Litigations that the firm / promoter involved in	-
Banking Details	Yes
Banking Facility Details	Yes
Conduct of the banking account	-
Buyer visit details	-
Financials, if provided	Yes
Incorporation details, if applicable	Yes
Last accounts filed at ROC	Yes
Major Shareholders, if applicable	Yes

Financial Performance

Local Turnover for the year increased by 14.61 % (from Rs.359.370 millions during F.Y2009-2010 to Rs.411.874 millions during F.Y 2010-2011)

During the year Export Turnover has increased by substantially by Rs.34.094 Millions (From Rs225.597 millions during F.Y2009-2010 to Rs.260691 millions during the F.Y 2010-11) registering a growth of 15.05%

DEPB License Sales increased by Rs.0.711 million as compared to previous year.

The Company has been investing substantial amount in Capital Assets for modernization and up gradation of technology.

Total addition in Capital Assets during the financial year is arrived Rs.25.848 out of this Factory Building Rs21.539 Million

Interest Out go for the current year has decreased by Rs0.124 million

Contribution to employment Cost this year is 53.592 millions as compared to previous year 48.235 millions. This is 7.97% of total turnover. In preceding year this was 8.23%.

Profit (Before depreciation and Tax) is Rs. 83.451 millions as compared to Previous year’s Rs.85.721. millions there is slightly dropped in profit as compare to pervious year. It is due to substantially in cost as well as absorption local increased tax in respective state

Provision for Income Tax for the current year is Rs.23.621 millions as compared to previous year 25.125 millions

Future Outlook

A motivated team, new products, better marketing and distribution, tighter cost and Inventory Control and the burning desire to capture all profitable market segments.

Bankers Charges Report as per Registry

Corporate identity number of the company	U15443MH1994PTC079891
Name of the company	GITS FOOD PRODUCTS PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	Gits House Hadapsarindustial Estate, Pune – 411013, Maharashtra, India Email: gitsfood@bom3vsnl.net.in
This form is for	Modification of charge
Charge identification number of the modified	90090056
Type of charge	· Movable Property (not being pledge)
Particular of charge holder	Jammu And Kashmir Bank Limited, (Corporate Headquarters), M.A.Road, Srinagar,Kashmir, Srinagar - 190001, Jammu And Kashmir, India Email: parvezahmad@jkbmail.com
Nature of description of the instrument creating or modifying the charge	Loan- cum- seventh Supplemental Hypothecation Agreement dated 11th February, 2011. Memorandum of entry (Extension of charge) dated 11th February, 2011.
Date of instrument Creating the charge	11.02.2011
Amount secured by the charge	Rs.181.000 millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate Of Interest Cash Credit- BSR+4.50%(13.25%) ; PCL- As applicable ; PSL- As applicable ; Bank Guarantee- PLR+4% (17.25%) ; Term loan facility I- PLR-2% (11.25%) ; Term loan facility II- PLR- 2% (11.25%) Terms of repayment Repayable on demand Margin – Cash Cerdit- 25% PCL- 15% PSL- NIL Bank Guarantee- 25% Extent And Operation Of The Charge By this modification, the enhancement of Rs.21.000 Millions has been made over and above Rs.160.000 Millions as mentioned above thus aggregating total charge of Rs.181.000 Millions
Short particulars of the property charged	Hypothecation of stocks of raw material, semi-finished and finished goods in trade or in transit. Hypothecation of book debts/ documents of title to goods and export receivables and hypothecation of furniture and fixture. Hypothecation of entire plant and machinery (old and new) installed or to be installed in the entire factory premises spread over plot no. 18/1, 18/2, 18/3, 18/5 and 18/6 at Hadapsar Industrial Estate, Pune. Equitable mortgage of entire factory land and building premises (old and new) spread at an area of 4617 sq. meter at plot No.18/1, 18/2, 18/3, 18/5 and 18/6 at Hadapsar Industrial Estate, Pune valuing Rs.83.042 Milions ECGC of India cover under WTPCG/ WTPSG schemes. Pledge of original valid letters of credit of prime banks/ confirmed order of Financially sound overseas buyers.
Date of latest modification prior to the present modification	22.04.2009
Particulars of the present modification	By this present modification, it is been decided by the bank that the forward contract facility of Rs.120.000 Millions would not constitute part of working capital or term loan. Hence, the charge amount will reduce to Rs.160.000 Millions from the existing charge of Rs.280.000 Millions No separate agreement has been executed. By this present modification, the existing working facility has been enhanced/ advanced by Rs.21.000 Millions over and above Rs.160.000 Millions aggregating to total charge of Rs.181.000 Millions

FIXED ASSETS :

· Land

· Building

· Plant and Machinery

· Furniture and Fixtures

· Computer

· Office Equipments

· Laboratory Equipments

· Electrical Installations

· Vehicles

· Air Conditioner

· Xerox Machine

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.55.42
UK Pound	1	Rs.86.04
Euro	1	Rs.68.61

INFORMATION DETAILS

Report Prepared by :

BYI

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--CREDIT LINES	1~10	5
--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		46

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.