MIRA INFORM REPORT

Report Date :

06.03.2012

IDENTIFICATION DETAILS

Name :	DEVANS MODERN BREWERIES LIMITED
Registered Office :	Bohri, Talab Tillo, Jammu – 180002, Jammu and Kashmir
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	12.02.1963
Com. Reg. No.:	07-000273
Capital Investment / Paid-up Capital :	Rs.19.000 Millions
CIN No.: [Company Identification No.]	U15511JK1963PLC000273
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer, Exporter and Supplier of alcohol, beer, whiskey, vodka, wine, etc.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (48)

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

Maximum Credit Limit :	USD 1120000
Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is an old and 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/ Head Office :	Bohri, Talab Tillo, Jammu – 180002, Jammu and Kashmir, India
Tel. No.:	91-191-2505365
Fax No.:	91-191-2505254
E-Mail :	dmbjammu@devans.co.in
Website :	www.devans.co.in
Sales and Marketing Office :	S.C.O. 33, 3^rd Floor, Sector – 14, Huda Market, Gurgaon – 122002, Haryana, India
Jaipur Brewery :	SP3-6, RIICO Industrial Area, Keshwana, Rajasthan, India

DIRECTORS

As on 29.09.2011

Name :

Mr. Prem Narain Dewan

Designation :

Managing director

Address :

9, Canal Road, Jammu – 180001, Jammu and Kashmir, India

Date of Birth/Age :

10.01.1956

Date of Appointment :

01.09.1982

DIN No.:

00781297

Other Directorship :

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	U15511JK1963PLC000273	DEVANS MODERN BREWERIES LIMITED	Managing director	3/08/2009	1/09/1982	-	Active	NO
2	U51109JK1952PTC000075	DEVSON PRIVATE LIMITED	Director	6/09/1982	6/09/1982	-	Active	NO
3	U15531JK1999PTC001954	DEVANS BEVERAGE PRIVATE LIMITED	Director	16/09/1999	16/09/1999	-	Active	NO

Name :

Mr. Tilak Raj Gupta

Designation :

Director

Address :

07.01.1942

Date of Birth/Age :

Opposite Government Guest House, Canal Road, Jammu – 180001, Jammu and Kashmir, India

Date of Appointment :

09.09.1978

DIN No.:

00781830

Name :

Mr. Kewal Rattan Gupta

Designation :

Director

Address :

26-B/B, Gandhi Nagar, Jammu – 180004, Jammu and Kashmir, India

Date of Birth/Age :

06.11.1927

Date of Appointment :

30.09.1991

DIN No.:

00781771

Name :

Mr. Rajesh Dewan

Designation :

Director

Address :

Chand Nagar, Jammu – 180001, Jammu and Kashmir, India

Date of Birth/Age :

25.09.1953

Date of Appointment :

01.04.1990

DIN No.:

00781478

Name :

Mr. Ved Bhasin

Designation :

Director

Address :

340-C/C, Green Belt Park, Gandhi Nagar, Jammu – 180004, Jammu and Kashmir, India

Date of Birth/Age :

01.05.1929

Date of Appointment :

25.04.1981

DIN No.:

00781732

Other Directorship :

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	U15511JK1963PLC000273	DEVANS MODERN BREWERIES LIMITED	Director	25/04/1981	25/04/1981	-	Active	NO
2	U22122JK1987PTC000931	KASHMIR TIMES PRESS PRIVATE LIMITED	Director	22/01/1987	22/01/1987	-	Dormant	NO

KEY EXECUTIVES

Name :	Mr. Vijay Kumar Dewan
Designation :	Secretary
Address :	Bohri, Talab Tillo, Jammu – 180002, Jammu and Kashmir, India
Date of Birth/Age :	13.02.1949
Date of Appointment :	09.04.1980
	ABDPD8272F

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 29.09.2011

Names of Shareholders	No. of Shares
Ashwani Arora	120
Pratap Singh Arora	160
Bari Ram	564
T. R. Gupta	496
Rajinder Singh	106
Darshan Singh	193
V. K. Dewan	133
Prem Narain Dewan	55644
Devson Private Limited, India	19479
Ravi Mahajan	20223
Kanta Rani	21922
Renu Dewan	50770
Munish Dewan	14100
Kamla Gupta	552
Lalit Dewan	14554
Krishna Choudhary	337
Ujjwal Dewan	45498
Uday Dewan	36508

Equity Share Break up (Percentage of Total Equity)

As on 29.09.2011

Category	Percentage
Bodies corporate	6.87
Directors or relatives of Directors	74.51
Other top fifty shareholders	18.62
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer, Exporter and Supplier of alcohol, beer, whiskey, vodka, wine, etc.
Products :	· IMFL · Spirits · Beer

PRODUCTION STATUS AS ON 31.03.2011

Particulars	Unit	Installed Capacity
IMFL/Desi Whisky	KL	5299
Beer	KL	103000
Spirit	KL	3000

Particulars	Unit	Actual Production
IMFL	LPL	3334182
Beer	BL	53865934
Spirit	LPL	1076430

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

The Jammu and Kashmir Bank Limited, Chand Nagar, Jammu – 180001, Jammu and Kashmir, India

Facilities :

Secured Loan	As on 31.03.2011 (Rs. in Millions)	As on 31.03.2010 (Rs. in Millions)
Rupee term loans banks secured	231.127	295.892
Working capital loans banks secured	443.909	404.957
Total	675.036	700.849
Unsecured Loan	As on 31.03.2011 (Rs. in Millions)	As on 31.03.2010 (Rs. in Millions)
Public deposits unsecured	27.980	28.155
Fixed deposits unsecured	6.500	6.500
Total	34.480	34.655

Banking Relations :	--
Auditors :
Name :	A. K. Anand and Company Chartered Accountants
Address :	111/4, Trikuta Nagar, Jammu – 180012, Jammu and Kashmir, India
PAN.:	ACCPA1867H

CAPITAL STRUCTURE

As on 29.09.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
990000	Equity Shares	Rs.100/- each	Rs.99.000 Millions
10000	Preference Shares	Rs.100/- each	Rs.1.000 Million
	Total		Rs.100.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
283701	Equity Shares	Rs.100/- each	Rs.28.370 Millions

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
190000	Equity Shares	Rs.100/- each	Rs.19.000 Millions
10000	9% Cumulative Preference Shares	Rs.100/- each	Rs.1.000 Million
	Total		Rs.20.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
190000	Equity Shares	Rs.10/- each	Rs.19.000 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		19.000	19.000	19.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		261.556	271.279	236.966
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		280.556	290.279	255.966
LOAN FUNDS
1] Secured Loans		675.036	700.849	612.501
2] Unsecured Loans		34.480	34.655	34.115
TOTAL BORROWING		709.516	735.504	646.616
DEFERRED TAX LIABILITIES		42.350	41.950	47.967
TOTAL		1032.422	1067.733	950.549
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		494.014	538.772	555.391
Capital work-in-progress		0.000	20.862	0.000
INVESTMENT		0.002	0.002	0.002
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	239.594	220.851	216.866
	Sundry Debtors	508.112	429.817	336.207
	Cash & Bank Balances	61.020	95.715	37.364
	Other Current Assets	12.596	15.040	7.237
	Loans & Advances	65.824	68.321	113.849
Total Current Assets		887.146	829.744	711.523
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	229.332	209.962	231.621
	Other Current Liabilities	114.391	102.563	75.900
	Provisions	5.017	9.122	8.846
Total Current Liabilities		348.740	321.647	316.367
Net Current Assets		538.406	508.097	395.156
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		1032.422	1067.733	950.549

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	2388.053	2004.103	1438.077
		Other Income	35.682	23.557	28.195
		TOTAL (A)	2423.735	2027.660	1466.272
Less	EXPENSES
		Consumption materials changes inventories	1235.702	1045.918	1311.529
		Manufacturing service costs	144.784	130.900
		Employee related expenses	93.529	77.140
		Administrative selling other expenses	806.287	584.312
		TOTAL (B)	2280.302	1838.270	1311.529
Less	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		143.433	189.390	154.743
Less	FINANCIAL EXPENSES (D)		76.873	77.031	60.264
	PROFIT/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		66.560	112.359	94.479
Less/ Add	DEPRECIATION/ AMORTISATION (F)		74.940	78.211	75.522
	PROFIT/ (LOSS) BEFORE TAX (E-F) (G)		(8.380)	34.148	18.957
Less	TAX (H)		1.343	(0.165)	23.909
	PROFIT/ (LOSS) AFTER TAX (G-H) (I)		(9.723)	34.313	(4.952)
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		202.848	168.735	173.887
Less	APPROPRIATIONS
		Transfer to General Reserve	0.200	0.200	0.200
	BALANCE CARRIED TO THE B/S		192.925	202.848	168.735
	IMPORTS
		Material - Hop Pellets	9.193	1.672	NA
		Material - Yeast	0.124	0.138	NA
	TOTAL IMPORTS		9.317	1.810	NA
	Earnings/ (Loss) Per Share (Rs.)		51.17	--	--

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	0.40	1.69	0.34
Net Profit Margin (PBT/Sales)	(%)	0.35	1.70	1.32
Return on Total Assets (PBT/Total Assets}	(%)	0.61	2.50	1.50
Return on Investment (ROI) (PBT/Networth)		0.03	0.12	0.07
Debt Equity Ratio (Total Liability/Networth)		3.77	3.64	3.76
Current Ratio (Current Asset/Current Liability)		2.54	2.58	2.25

LOCAL AGENCY FURTHER INFORMATION

Bankers Charges Report as per Registry

Corporate identity number of the company	U15511JK1963PLC000273
Name of the company	DEVANS MODERN BREWERIES LIMITED
Address of the registered office or of the principal place of business in India of the company	Bohri, Talab Tillo, Jammu – 180002, Jammu and Kashmir, India Email : dmbjammu@devans.co.in
This form is for	Creation of charge
Type of charge	Immovable property Movable property (not being pledge)
Particular of charge holder	The Jammu and Kashmir Bank Limited, Chand Nagar, Jammu – 180001, Jammu and Kashmir, India Email : dkpa1@rediffmail.com
Nature of instrument creating charge	Loan Agreement Hypothecation Agreement
Date of instrument Creating the charge	24.10.2011
Amount secured by the charge	Rs.12.200 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest Interest @ base rate + 1.50% i.e 11.50% per annum with monthly rests or such other rates as may be prescribed by the bank from time to time Terms of repayment To be repaid along with interest in 7 years in 82 equated monthly installments of Rs. 0.220 Million each. The first installment to commence after 2 months from the date of first disbursement. interest during the moratorium period of 2 months to be serviced separately Margin 15% i.e Rs. 2.200 Millions Extent and operation of the charge 100% Others Term loan of Rs.12.200 Millions with sub limit of FLC of 38801 Euros and custom duty within the overall exposure of Rs. 12.200 Millions. Total amount of FLC and custom duty should not exceed Rs. 3.400 Millions
Short particulars of the property or asset(s) charged (including complete address and location of the property)	Hypothecation of machines to be purchased out of bank finance to be installed at Rajasthan unit extension of charge on mortgage of 34 Kanals 1/2 Marlas and 6 1/2 Sersai of land situated at tope Sherkhania (Talab Tillo), Jammu Standing in the name of company along with factory building/ plant and machinery and all fixed assets of Jammu Unit Extension of charge on mortgage of 498 Kanals of land situated at village Kartholi, Tehsil Samba Standing In The Name of Mr. Prem Narayan Dewan Personal Guarantee of Mr. P. N. Dewan

FIXED ASSETS

· Land

· Building

· Plant and Machinery

· Laboratory Equipments

· Electronics Fittings

· Furniture and Fixtures

· Office Equipment

· 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 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.49.80
UK Pound	1	Rs.78.79
Euro	1	Rs.65.74

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	8
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	4
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	6
--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		48

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.