MIRA INFORM REPORT

Report Date :

21.08.2013

IDENTIFICATION DETAILS

Name :	SHANTI FOOD CHEM PRIVATE LIMITED
Registered Office :	Survey No. 270 Behind Jayant Manufacture Ekta Compound, National Highway 8B, Shapar – Veraval Shapar – 360002, Gujarat
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	30.11.2007
Com. Reg. No.:	04-052267
Capital Investment / Paid-up Capital :	Rs.0.100 Million
CIN No.: [Company Identification No.]	U15400GJ2007PTC052267
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer and Exporter Choco Flakes and Rice Crispy
No. of Employees :	10 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (27)

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

Maximum Credit Limit :	USD 2100
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track record. The company is improving its performance and has seen an increase in its sales turnover as well as net profitability during 2012. However profit margin appears to be extremely low. External borrowing seems to be huge which may affect the liquidity position of the company. Trade relations are fair. Business is active. Payments terms are slow but correct. The company can be considered for business dealings with some caution.

NOTES :

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

ECGC Country Risk Classification List – March 31^st, 2013

Country Name	Previous Rating (31.12.2012)	Current Rating (31.03.2013)
India	A1	A1

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

INDIAN ECONOMIC OVERVIEW

We are living in a world where volatility and uncertainty have become the New Normal. We saw a change of government in countries like Tunisia, Egypt, Libya and Vietnam. Once powerful countries in Europe are now fighting for bankruptcy. We have taken growth in the developing part of the world for granted but economic growth in China and India has begun to slow. Companies that were synonymous with their product categories just a few years ago are now no longer in existence. Kodak, the inventor of the digital camera had to wind up its operations, HMV, the British entertainment retailing company and Borders, once the second largest bookstore have shut down due to their inability to evolve their business models with the changing time. Readers’ Digest, Thomson Register are no more !

There is another megatrend happening. The World order is changing as economic power shifts from West to East. According to McKinsey study, it took Britain more than 100 years to double its economic output per person during its industrial revolution and the US later took more than 50 years to do the same. More than a century later, China and India have doubled their GDP per capital in 12 and 18 years respectively. By 2020, emerging Asia will become the world’s largest consuming block, overtaking North America.

The years after the outbreak of the global financial crisis, the world economy continues to remain fragile. The Indian economy demonstrated remarkable resilience in the initial years of the contagion but finally lost ground last year. GDP growth slowed down. Currency has been weakening. There is a marked deceleration in agriculture, industry and services. Dampening sentiment led to a cut-back in investment as well as private consumption expenditure.  Inflation remained at high levels fuelled by the pressure from the food and fuel sectors. The large fiscal and current account deficit s continued to cause grave concern. It is imperative that India regains its growth trajectory of 8-9 % sooner than later. This is crucially important given the need to create gainful livelihood opportunities for the millions living in poverty as also the large contingent of young people joining the job market every year.

RBI DEFAULTERS’ LIST STATUS

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

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

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

INFORMATION PARTED BY

Name :	Mr. Nitesh Patel
Designation :	Sales Manager
Contact No.:	91-7817086111
Date :	19.08.2013

LOCATIONS

Registered Office :	Survey No. 270 Behind Jayant Manufacture Ekta Compound, National Highway 8B, Shapar – Veraval Shapar – 360002, Gujarat, India
Tel. No.:	91-281-2384518
Mobile No.:	91-7817086111 (Mr. Nitesh Patel)
Fax No.:	Not Available
E-Mail :	shantifoods@yahoo.com myonlineforms@yahoo.com
Website :	www.shantis.co.in
Location :	Owned
Factory :	Bhagyalakshmi Industrial Estate, Bhavnagar Road, B/H. Mahesh Timber, Rajkot – 360003, Gujarat, India

DIRECTORS

As on: 29.09.2012

Name :	Mr. Vishal Mansukh Harsoda
Designation :	Director
Address :	Panchratna Appartment, 1, Govind Para, Gundavadi Main Road, Rajkot - 360002, Gujarat, India
Date of Birth/Age :	30.09.1988
Date of Appointment :	30.11.2007
DIN No. :	01740502
Name :	Mr. Mansukhlal Maganlal Bhuva
Designation :	Director
Address :	Village Pardi, Rajkot - 360002, Gujarat, India
Date of Birth/Age :	02.09.1960
Date of Appointment :	21.12.2007
DIN No. :	00492913
Name :	Mr. Dilip Bhurabhai Patel
Designation :	Director
Address :	C/o. Ekta Industries, Near Jaydeep Oxygen, Shapar, Rajkot - 360002, Gujarat, India
Date of Birth/Age :	09.06.1976
Date of Appointment :	18.07.2012
DIN No. :	00498650
Name :	Mr. Bhavesh Pravinbhai Harsoda
Designation :	Director
Address :	Panchratna Appartment, 1, Govind Para, Gundavadi Main Road, Rajkot - 360002, Gujarat, India
Date of Birth/Age :	29.10.1987
Date of Appointment :	18.07.2012
DIN No. :	00716852
Name :	Ms. Ranjita Nilesh Harsoda
Designation :	Director
Address :	1, Govindpara, 1st Floor Panchratna Appartment, Rajkot – 360001, Gujarat, India
Date of Birth/Age :	19.09.1984
Date of Appointment :	18.07.2012
DIN No. :	01997755
Name :	Mr. Jayeshbhai Bhurabhai Vaghasiya
Designation :	Director
Address :	Ardoi, Taluka Kotda Sangani, Rajkot – 360004, Gujarat, India
Date of Birth/Age :	15.03.1985
Date of Appointment :	18.07.2012
DIN No. :	02039062
Name :	Ms. Jyotsanaben Mansukhbhai Bhuva
Designation :	Director
Address :	Via Bhaktinagar, Village Pardi, Taluka Lodhika, Pardi, Rajkot – 360002, Gujarat, India
Date of Birth/Age :	12.01.1968
Date of Appointment :	18.07.2012
DIN No. :	05342305

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on: 29.09.2012

Names of Shareholders	No. of Shares
Vishal Mansukhbhai Harsoda	2000
Ranjita Nilesh Harsoda	1000
Mansukhlal Maganlal Bhuva	1100
Patel Dilipbhai Bhuvabhai	1500
Jayeshbhai Bhurabhai Vaghasiya	1400
Bhavesh Pravinbhai Harsoda	2000
Jyotsnaben Mansukhlal Bhuva	1000
Total	10000

As on: 29.09.2012

Equity Share Break up (Percentage of Total Equity)

Category	Percentage
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer and Exporter Choco Flakes and Rice Crispy
Products :	Ø Corn Flakes Ø White Oats Ø Choco Flakes Ø Muesli Ø Rice Crispy Ø Oat Flour
Exports :
Products :	Choco Flakes Rice Crispy
Countries :	USA UK Europe Srilanka Australia
Terms :
Selling :	Cash and Credit
Purchasing :	Cash and Credit

GENERAL INFORMATION

Supplier :	Ø M. Patel and Company Ø Amardeep Oil Sales Ø Asian Flexi Pack India Private Limited Ø Comet Engineering Company Ø Galaxy Electric Company Ø Ganga Enterprise Ø Hitesh Packaging Industries Ø M.J. Patel and Company Ø Maruti Ele. And Motor Rewinding Ø Maruti Petroleum Ø Prime Packaging Ø Sanraj Polyprinters
Customers :	End Users
No. of Employees :	10 (Approximately)
Bankers :	HDFC Bank Limited, Rajkot, Gujarat, India

Banking Relations :

--

Auditors :

Name :

R.P.C and Company

Chartered Accountants

Address :

203-204, Race Course Plaza, Near Excise-Custom Building, Race Course Ring Road, Rajkot – 360001, Gujarat, India

Tel. No.:

91-281-6543054, 2457392

Mobile No.:

91-9998820487

Fax No.:

91-281-2457392

E-Mail :

rpcnco@gmail.com

PAN No. :

AAJFR1869F

Sister Concern :

Name :	Shanti Foods (India)
Address :	Bhagyalakshmi Industrial Estate, Bhavnagar Road, B/H. Mahesh Timber, Rajkot – 360003, Gujarat, India
Line of Business:	Manufacturer and Exporter Choco Flakes and Rice Crispy
Name :	Shanty Snacks Private Limited
Address :	Bhagyalakshmi Industrial Estate, Bhavnagar Road, B/H. Mahesh Timber, Rajkot – 360003, Gujarat, India
Line of Business:	Manufacturer and Exporter Choco Flakes and Rice Crispy

CAPITAL STRUCTURE

As on: 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
10000	Equity Shares	Rs.10/- each	Rs.0.100 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
10000	Equity Shares	Rs.10/- each	Rs.0.100 Million

FINANCIAL DATA

[all figures are in Rupees Millions]

.

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2012	31.03.2011
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	0.100	0.100
(b) Reserves & Surplus	0.440	0.145
(c) Money received against share warrants	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000
Total Shareholders’ Funds (1) + (2)	0.540	0.245
(3) Non-Current Liabilities
(a) long-term borrowings	3.470	3.143
(b) Deferred tax liabilities (Net)	0.190	0.149
(c) Other long term liabilities	0.000	0.000
(d) long-term provisions	0.000	0.000
Total Non-current Liabilities (3)	3.660	3.292
(4) Current Liabilities
(a) Short term borrowings	0.000	0.000
(b) Trade payables	3.461	2.182
(c) Other current liabilities	6.287	3.152
(d) Short-term provisions	0.505	0.272
Total Current Liabilities (4)	10.253	5.606
TOTAL	14.453	9.143
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	3.749	3.098
(ii) Intangible Assets	0.000	0.000
(iii) Capital work-in-progress	0.000	0.000
(iv) Intangible assets under development	0.000	0.000
(b) Non-current Investments	0.000	0.000
(c) Deferred tax assets (net)	0.000	0.000
(d) Long-term Loan and Advances	0.000	0.000
(e) Other Non-current assets	0.000	0.003
Total Non-Current Assets	3.749	3.101
(2) Current assets
(a) Current investments	0.000	0.000
(b) Inventories	0.580	1.286
(c) Trade receivables	5.286	3.425
(d) Cash and cash equivalents	4.538	1.280
(e) Short-term loans and advances	0.266	0.051
(f) Other current assets	0.034	0.000
Total Current Assets	10.704	6.042
TOTAL	14.453	9.143

SOURCES OF FUNDS		31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		0.100
2] Share Application Money		0.000
3] Reserves & Surplus		0.085
4] (Accumulated Losses)		0.000
NETWORTH		0.185
LOAN FUNDS
1] Secured Loans		Nil
2] Unsecured Loans		0.187
TOTAL BORROWING		0.187
DEFERRED TAX LIABILITIES		0.057
TOTAL		0.429
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		3.367
Capital work-in-progress		0.000
INVESTMENT		Nil
DEFERREX TAX ASSETS		0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	0.243
	Sundry Debtors	1.593
	Cash & Bank Balances	0.698
	Other Current Assets	0.000
	Loans & Advances	0.162
Total Current Assets		2.696
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	1.351
	Other Current Liabilities	3.902
	Provisions	0.388
Total Current Liabilities		5.641
Net Current Assets		(2.945)
MISCELLANEOUS EXPENSES		0.007
TOTAL		0.429

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	34.013	22.213	15.337
		Other Income	0.038	0.182	0.043
		TOTAL	34.051	22.395	15.380
Less	EXPENSES
		Raw material and store consumption		13.841	8.973
		Manufacturing expenses		3.450	2.229
		Administrative and selling expenses		4.549	3.419
		Preliminary expenses W/Off		0.003	0.003
		TOTAL		21.843	14.624
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION		(Including Financial and Depreciation)
Less	FINANCIAL EXPENSES			0.313	0.158
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION		33.618
Less/ Add	DEPRECIATION/ AMORTISATION			0.500	0.465
	PROFIT BEFORE TAX		0.433	0.167	0.132
Less	TAX		0.135	0.093	0.041
	PROFIT AFTER TAX		0.298	0.074	0.091
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		0.145	0.085	(0.001)
Less	SHORT IT/FBT PROVISION OF PREVIOUS YEAR		0.000	0.014	0.005
	BALANCE CARRIED TO THE B/S		0.443	0.145	0.085
	EARNINGS IN FOREIGN CURRENCY
		Export at FOB Value	Nil	1.075	Nil
	TOTAL EARNINGS		Nil	1.075	Nil
	Earnings Per Share (Rs.)		29.86	7.44	9.10

Particulars	31.03.2013
Sales Turnover	31.000
	(Due to market condition)

Expected Sales (2013-2014): Rs. 40.000 Millions

The above information has been parted by Mr. Nitesh Patel

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	0.87	0.33	0.59
Net Profit Margin (PBT/Sales)	(%)	1.27	0.75	0.86
Return on Total Assets (PBT/Total Assets}	(%)	2.99	1.83	2.18
Return on Investment (ROI) (PBT/Networth)		0.80	0.68	0.71
Debt Equity Ratio (Total Debt /Networth)		6.42	12.82	1.01
Current Ratio (Current Asset/Current Liability)		1.04	1.08	0.48

LOCAL AGENCY FURTHER INFORMATION

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

UNSECURED LOAN:

Particulars	31.03.2012 [Rs. in Millions]	31.03.2011 [Rs. in Millions]
Long Term Borrowing
Loan and Advance from Related Parties	3.470	3.143
Total	3.470	3.143

REVIEW OF OPERATION:

The total turnover of the company has been increased this year as against the turnover of the last year. However, the expenditure has also been increased as compared to that of the last year. Further, the increased profit shows the overall growth of the company. The Net Profit of the company for the year is Ms. £98,630. The directors are very positive for the coming year.

FIXED ASSETS:

Ø Plant and Machinery

Ø Electrification

Ø 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 exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

2] Court Declaration :

No exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

3] Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

4] Record on Financial Crime :

Charges or conviction registered against subject: None

5] Records on Violation of Anti-Corruption Laws :

Charges or investigation registered against subject: None

6] Records on Int’l Anti-Money Laundering Laws/Standards :

Charges or investigation registered against subject: None

7] Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

8] Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

9] Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

10] Press Report :

No press reports / filings exists on the subject.

CORPORATE GOVERNANCE

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

CONTRAVENTION

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.63.73
UK Pound	1	Rs.99.79
Euro	1	Rs.85.07

INFORMATION DETAILS

Information Gathered by :	SVA
Report Prepared by :	ANK

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	4
--LEVERAGE	1~10	3
--RESERVES	1~10	3
--CREDIT LINES	1~10	2
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	NO
--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
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		27

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

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

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

RATING EXPLANATIONS

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

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.