MIRA INFORM REPORT

Report Date :

07.05.2012

IDENTIFICATION DETAILS

Name :	LOKMANGAL AGRO INDUSTRIES LIMITED
Registered Office :	Lokmangal House, 8536A/11, Near Old Pune Naka, Murarji Peth, Solapur-413 001, Maharashtra
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	16.10-1998
Com. Reg. No.:	25-012974
Capital Investment / Paid-up Capital :	Rs.274.467 Millions
CIN No.: [Company Identification No.]	U01122PN1998PLC012974
PAN No.: [Permanent Account No.]	AAACL7933N
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer of Fertilizers, Soil, Additives White Crystal Sugar.
No. of Employees :	800 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (42)

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

Maximum Credit Limit :	USD 1600000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is an 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 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 :	Lokmangal House, 8536A/11, Near Old Pune Naka, Murarji Peth, Solapur-413 001, Pune, Maharashtra, India
Tel. No.:	91-217-2735618 / 17 /
Fax No.:	91-217-2735619
E-Mail :	info@lokmangal.com lokmangal_agro@yahoo.com admin@lokmangalsugar.com
Website :	www.lokmangal.com
Location :	Owned

DIRECTORS

As on 30.09.2011

Name :

Mr. Vaijinath Nagappa Lature

Designation :

Director

Address :

72-73, Co-Operative Industrial Estate, Singnal Camp, Latur - 413531, Maharashtra, India

Date of Birth/Age :

11.04.1941

Date of Appointment :

09.09.1999

DIN No.:

02527496

Name :

Mr. Anil Vasantrao Pandhe

Designation :

Director

Address :

157, Railwaylines, Solapur - 413001, Maharashtra, India

Date of Birth/Age :

18.01.1956

Date of Appointment :

09.09.1999

Name :

Mr. Shahaji Gulchand Pawar

Designation :

Director

Address :

At Post Mardi, Tal. North Solapur – 413221, Maharashtra, India

Date of Birth/Age :

13.04.1971

Date of Appointment :

16.12.2003

DIN No.:

02297166

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	U01122PN1998PLC012974	LOKMANGAL AGRO INDUSTRIES LIMITED	Director	16/12/2003	16/12/2003	-	Active	NO
2	U17120PN2009PLC133548	LOKMANGAL GARMENTS LIMITED	Director	20/02/2009	20/02/2009	-	Active	NO
3	U55101PN2009PTC133641	AAGAM MOTELS AND RESORTS PRIVATE LIMITED	Director	16/03/2009	16/03/2009	-	Active	NO
4	U26950PN2009PTC134141	AAGAM READYMIX PRIVATE LIMITED	Director	15/06/2009	15/06/2009	13/08/2009	Active	NO
5	U15137PN2009PTC134262	AAGAM FOOD PROCESSING PRIVATE LIMITED	Director	7/7/2009	7/7/2009	-	Active	NO

Name :

Mr. Guranna Apparao Teli

Designation :

Director

Address :

At Post Honmurgi, Tal. South Solapur – 413001, Maharashtra, India

Date of Birth/Age :

01.06.1964

Date of Appointment :

16.12.2003

Name :

Ms. Smita Subhash Deshmukh

Designation :

Director

Address :

13 A, Sahyadri Nagar, Hotgi Road, Solapur-413 003, Maharashtra, India

Date of Birth/Age :

15.11.2006

Date of Appointment :

06.08.1964

DIN No.:

02254182

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	U01122PN1998PLC012974	LOKMANGAL AGRO INDUSTRIES LIMITED	Director	5/11/2006	5/11/2006	-	Active	NO
2	U21011PN2008PLC132485	LOKMANGAL PRINT-N-PACK LIMITED	Director	23/07/2008	23/07/2008	-	Active	NO
3	U24119PN2010PLC136014	LOKMANGAL ORGANICS RESEARCH AND DEVELOPMENT LIMITED	Director	6/4/2010	6/4/2010	-	Active	NO
4	U74900PN2010PLC137504	CONVICTION WEALTH MANAGEMENT CONSULTANTS LIMITED	Director	11/10/2010	11/10/2010	-	Active	NO
5	U01110PN2012PTC142120	LOKMANGAL AGRO PRODUCER COMPANY LIMITED	Director	2/2/2012	2/2/2012	-	Active	NO

Name :

Mr. Mahesh Satish Deshmukh

Designation :

Director

Address :

13 A, Sahyadri Nagar, Hotgi Road, Solapur-413 003, Maharashtra, India

Date of Birth/Age :

04.06.1979

Date of Appointment :

31.03.2009

DIN No.:

01184179

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	U24116PN2003PLC017746	LOKMANGAL SUGAR ETHENOL AND GENERATION INDUSTRIES LIMITED	Director	5/12/2006	5/12/2006	-	Active	NO
2	U36910PN2007PTC130282	LOKMANGAL MAULI JEWELLERS PRIVATE LIMITED	Director	8/6/2007	8/6/2007	-	Active	NO
3	U15421PN2007PLC130585	LOKMANGAL MAULI INDUSTRIES LIMITED	Director	20/08/2007	20/08/2007	-	Active	NO
4	U60232PN2008PTC131938	LOKMANGAL LOGISTICS PRIVATE LIMITED	Director	5/5/2008	5/5/2008	-	Active	NO
5	U01122PN1998PLC012974	LOKMANGAL AGRO INDUSTRIES LIMITED	Director	30/09/2009	31/03/2009	-	Active	NO
6	U55101PN2009PTC133967	SHRADDHA RESORTS PRIVATE LIMITED	Additional director	16/08/2010	16/08/2010	-	Active	NO
7	U45203PN2005PTC020584	LOKMANGAL INFRASTRUCTURE PRIVATE LIMITED	Director	30/09/2011	1/3/2011	-	Active	NO
8	U17122PN2011PTC141209	LOKMANGAL FABTEX PRIVATE LIMITED	Additional director	12/2/2012	12/2/2012	-	Active	NO

Name :

Mr. Parag Surehbhai Patil

Designation :

Director

Address :

C-26, Dahibha Nagar Society, Nrae Deep Chamber, Manjalnpur, Vadodara – 390011, Gujarat, India

Date of Birth/Age :

04.11.1980

Date of Appointment :

01.02.2010

DIN No.:

02943511

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2011

Names of Shareholders	No. of Shares
Subhash Sureshchandra Deshmukh	10
Pandurang Krushnat Lamkane	10
Padmakar Balasaheb Salunke	10
Dinaker Krushnaji Patil	10
Chandrakant Abasaheb Killedar	10
Vilas Ramchandra Kshirsagar	10
Rajan Tukaram Jagtap	10
Subhash Sureshchandra Deshmukh	169420
Sureshchandra Keshavrao Deshmukh	112640
Hemlata Satish Deshmukh	20400
Rajesaheb Keshavrao Deshmukh	20000
Subhash Sureshchandra Deshmukh HUF	35340
Rohan Electronic Bhui Kata	1370
Smita Subhash Deshmukh	650
Mahesh Satish Deshmukh	1450
Mahesh Satish Deshmukh	400
Sambhaji Patil	200
Shobha Sambhaji Patil	200
Rohan Roadways	200
Sahakar Agency	200
Sai Got Farm	200
Anil Vasant Pandhe	100
Savita Mahadev Ghodake	100
Subhash Sureshchandra Deshmukh	300
Jagdevi Vaijinath Lature	12000
Vaijinath Nagappa Lature	12000

As on 30.09.2011

Equity Share Break up (Percentage of Total Equity)

Category	Percentage
Directors or relatives of Directors	53.17
Other top fifty shareholders	9.19
Others	37.64
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Fertilizers, Soil, Additives White Crystal Sugar.

Products :

Product Description	Item Code No. (ITC Code)
Sugar	1542

PRODUCTION STATUS (As on 31.03.2010)

Particulars	Unit	Licensed Capacity	Installed Capacity
Sugar	TCD	2500	2500
Power	MW	3	3
Distillery Division – Rectified Spirit	KLPD	80	80

Particulars	Unit	Actual Production
Sugar	Qtls	415580
Distillery Division – Rectified Spirit	Ltrs	248812

GENERAL INFORMATION

No. of Employees :

800 (Approximately)

Bankers :

State Bank of India, Industrial Finance Branch, 'The Arcade' 2nd Floor, World Trade Centre, Colaba, Mumbai - 400005, Maharashtra, India

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2011	As on 31.03.2010
Rupee term loans banks secured	471.473	571.278
Working capital loans banks secured	931.556	1050.878
Loans taken for vehicles secured	53.634	9.302
Total	1456.663	1631.458

Banking Relations :	--
Auditors :
Name :	V P Patil and Company Chartered Accountants
Address :	Mauli Chambers, 2^nd Floor, Above Vikas Co-Operative Bank, Near Yashwantrao Chavan Complex, Main Road, Latur – 413512, Maharashtra, India
PAN.:	AADFV7186M

CAPITAL STRUCTURE

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
10000000	Equity Shares	Rs.100/- each	Rs.1000.000 Millions

Issued Capital :

No. of Shares	Type	Value	Amount
10000000	Equity Shares	Rs.10/- each	Rs.1000.000 Millions

Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
2744670	Equity Shares	Rs.10/- each	Rs.274.467 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		274.467	272.727	254.717
2] Share Application Money		115.921	247.859	49.482
3] Reserves & Surplus		28.976	18.632	18.632
4] (Accumulated Losses)		0.000	(18.044)	(22.207)
NETWORTH		419.364	521.174	300.624
LOAN FUNDS
1] Secured Loans		1456.663	1631.458	950.737
2] Unsecured Loans		0.000	0.000	131.200
TOTAL BORROWING		1456.663	1631.458	1081.937
DEFERRED TAX LIABILITIES		51.864	39.595	6.934
TOTAL		1927.891	2192.227	1389.495
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		957.572	892.324	534.623
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		314.741	263.308	254.926
DEFERREX TAX ASSETS		0.000	0.000	2.686
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	827.984	946.558	492.047
	Sundry Debtors	0.000	13.875	412.105
	Cash & Bank Balances	136.268	162.266	15.594
	Other Current Assets	3.659	0.756	4.505
	Loans & Advances	256.919	179.139	153.613
Total Current Assets		1224.830	1302.594	1077.864
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	268.557	115.137	382.501
	Other Current Liabilities	110.697	9.305	3.781
	Provisions	193.022	143.237	99.103
Total Current Liabilities		572.276	267.679	485.385
Net Current Assets		652.554	1034.915	592.479
MISCELLANEOUS EXPENSES		3.024	1.680	4.781
TOTAL		1927.891	2192.227	1389.495

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	1780.470	812.239	1125.595
		Other Income	78.155	29.717	40.350
		TOTAL (A)	1858.625	841.956	1165.945
Less	EXPENSES
		Consumption materials changes inventories	1168.926	389.016
		Manufacturing service costs	223.263	157.074	1035.269
		Employee related expenses	53.148	41.485
		Administrative selling other expenses	26.820	40.159
		TOTAL (B)	1472.157	627.734	1035.269
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		386.468	214.222	130.676
Less	FINANCIAL EXPENSES (D)		200.912	129.843	107.605
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		185.556	84.379	23.071
Less/ Add	DEPRECIATION/ AMORTISATION (F)		133.899	35.678	37.657
	PROFIT / (LOSS) BEFORE TAX (E-F) (G)		51.657	48.701	(14.586)
Less	TAX (H)		23.269	44.538	0.495
	PROFIT / (LOSS) AFTER TAX (G-H) (I)		28.388	4.163	(15.081)
	BALANCE CARRIED TO THE B/S		28.388	4.163	(15.081)
	Earnings Per Share (Rs.)		10.34	NA	NA

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	1.53	0.49	(1.29)
Net Profit Margin (PBT/Sales)	(%)	2.90	6.00	(1.30)
Return on Total Assets (PBT/Total Assets}	(%)	2.37	2.22	(0.90)
Return on Investment (ROI) (PBT/Networth)		0.12	0.09	(0.05)
Debt Equity Ratio (Total Liability/Networth)		13.58	3.64	5.21
Current Ratio (Current Asset/Current Liability)		2.14	4.87	2.22

LOCAL AGENCY FURTHER INFORMATION

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	Yes
8) No. of employees	Yes
9) Name of person contacted	No
10) Designation of contact person	No
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	No
19) Payments terms	No
20) Export / Import details (if applicable)	No
21) Market information	--
22) Litigations that the firm / promoter	--
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

FINANCIAL RESULTS

The any has marked the resources to generate better results which shows the turnover of Rs.1780.400 Millions as against Rs.812.200 Millions for the last year.

During the year the company has also generated income from sale of Power at Rs.38.237 Millions. After meeting all expenses your company posted Profit of Rs.28.388 Millions which is far greater than the last years Profit of Rs.4.163 Millions.

BANKERS CHARGES REPORT AS PER REGISTRY

Corporate identity number of the company	U01122PN1998PLC012974
Name of the company	LOKMANGAL AGRO INDUSTRIES LIMITED
Address of the registered office or of the principal place of business in India of the company	Lokmangal House, 8536A/11, Near Old Pune Naka, Murarji Peth, Solapur-413 001, Maharashtra, India lokmangal_agro@yahoo.com
This form is for	Modification of charge
Charge identification (ID) number of the charge to be modified	10158053
Type of charge	Immovable Property Others (Guarantee)
Particular of charge holder	State Bank of India, Industrial Finance Branch, 'The Arcade' 2nd Floor, World Trade Centre, Colaba, Mumbai - 400005, Maharashtra, India bhushan.mahajan@sbi.co.in
Nature of instrument creating charge	Memorandum of Entry for extension of Equitable Mortgage as Collateral Security
Date of instrument Creating the charge	18.10.2011
Amount secured by the charge	Rs.2115.500 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest As per sanctioned terms and conditions of respective bank Terms of Repayment As per sanctioned terms and conditions of respective bank Margin As per sanctioned terms and conditions of respective bank Extent and Operation of the charge First charge was created for Rs.400.000 Millions for Term Loan granted to the Company by State Bank of India and Second Pari Passu charge basis for Rs.1715.500 Millions Term Loans granted to Lokmangal Sugar Ethanol Co generation Industries Limited (LSECIL) by State Bank of India Consortium (Now aggregating Rs.2115.500 Millions). Others As per sanctioned terms and conditions of respective bank
Short particulars of the property or asset(s) charged (including complete address and location of the property)	Immovable Properties of the Company as detailed in Memorandum of Entry for extension of Equitable Mortgage as Collateral Security dated. 18.10.2011
Particulars of the present modification	The Original equitable mortgage charge was created on 12.05.2009 for Term Loan of Rs.400.000 Millions granted by State Bank of India to the Company and modified on 18.08.2010 in fvg of State Bank of India Consortium for TL of Rs.865.500 Millions sanctioned to LSECIL. Now by this modification First charge was created for Rs.400.000 Millions for Term Loan granted to the Company by State Bank of India I and Second Pari Passu charge basis for Rs.1715.500 Millions Term Loans granted to LSECIL by State Bank of India Consortium (Now aggregating Rs.2115.500 Millions).

Fixed Assets:

· Land

· Building

· Plant and Machinery

· Furniture and Fitting

· Site Developers

· Vehicles

· Office Equipments

· Computer Systems

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.53.72
UK Pound	1	Rs.86.98
Euro	1	Rs.70.65

INFORMATION DETAILS

Report Prepared by :

NTH

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
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	5
--CREDIT LINES	1~10	3
--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	NO
--AFFILIATION	YES/NO	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		42

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.