MIRA INFORM REPORT

Report Date :

09.12.2013

IDENTIFICATION DETAILS

Name :	SAYAJI INDUSTRIES LIMITED MAIZE PRODUCTS (A DIVISION OF SAYAJI INDUSTRIES LIMITED)
Registered Office :	P.O. Kathwada, Maizeproducts, Ahmedabad – 382430, Gujarat
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	30.01.1941
Com. Reg. No.:	04-000471
Capital Investment / Paid-up Capital :	Rs. 7.900 Millions
CIN No.: [Company Identification No.]	L99999GJ1941PLC000471
TAN No.: [Tax Deduction & Collection Account No.]	AHMS00665A/ AHMS07196A
PAN No.: [Permanent Account No.]	AADCS0861R
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer of Starch and Derivatives.
No. of Employees :	1200 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (49)

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

Maximum Credit Limit :	USD 1370000
Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Exist
Comments :	Subject is a well established company having satisfactory track record. The ratings takes into account the established track record of more than seven decades of the company in manufacturing starch and its derivatives and a diversified product profile, storng and repurted clientele base of the company, steady growth in operating income and low working capital intensity. Trade relations are reported as fair. Business is active. Payments are usually correct. The company can be considerd 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.

INDIAN ECONOMIC OVERVIEW

The current downturn provides an opportunity to push ahead with reforms to accelerate growth, says the latest India Development Update report released by the World Bank. The report says that the adverse effects of rupee depreciation are likely to be offset by the gains in the exports performance due to improved external competitiveness. Since May this year, the local currency has depreciated substantially and fell to a record level of Rs 68.85 to a dollar on August, 28.

A stagflation like situation appears to have arisen as inflation jumped to an eight month high of 6.46 % for the month of September. It is up from 6.10 % in August. Growth continues to be muted with factory output plunging to 0.6  % in August. Onion prices have risen nearly 300 % from last September. Vegetables cost nearly 90 % more than they did last year. Wake up to the economic contribution of slum dwellers. They contribute more than 7.5 % to the country’s gross domestic product, according to a recent study conducted in 50 top cities.

136000 estimated number of jobs created during the second quarter of the current financial year. 50000 estimated number of additional jobs in the field of corporate social responsibility in the coming years.

The International Finance Corporation expects to come out with its rupee linked bonds issue before the end of 2013 as a part of its plan to raise $ 1 billion. The Apple iPhone 5c (Rs 41900 for 16 GB variant) and 5s (Rs 53500 for 16GB variant) has been launched in India from 1^st November.

The Land Acquisition Act to provide just and fair compensation to farmers will come into force from January 1 next year, said Rural Development Minister Jairam Ramesh. The Act replaces a 119 year old registration. The Securities and Exchange Board of India has approved the trading of currency futures on the Bombay Stock Exchange. The exchange plans to launch the currency futures platform with advanced trading technology by the end of November.

EXTERNAL AGENCY RATING

Rating Agency Name	ICRA
Rating	Term loan: “BBB-”
Rating Explanation	Moderate degree of safety and high credit risk.
Date	February, 2013

Rating Agency Name	ICRA
Rating	Letter of credit: “A3”
Rating Explanation	Moderate degree of safety and higher credit risk.
Date	February, 2013

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. N. J. Deora
Designation :	V P Finance
Contact No.:	91-9898032023
Date :	06.12.2013

LOCATIONS

Registered Office :	P.O. Kathwada, Maizeproducts, Ahmedabad – 382430, Gujarat, India
Tel. No. :	91- 79-22901581 to 85
Mobile No. :	91-9898032023 (Mr. N. J. Deora)
Fax No. :	91- 79-22902424/ 22901013
E-Mail :	rhs@maizeproducts.com njd@maizeproducts.com sales@maizeproducts.com
Website :	www.maizeproducts.com
Area :	507000 sq. m
Location :	Owned

DIRECTORS

As on 14.08.2013

Name :	Mr. Priyam Bipinbhai Mehta
Designation :	Managing director
Address :	Bipin Nivas, Panchvati, Ellisbridge, Ahmedabad – 380006, Gujarat, India
Date of Birth/Age :	01.01.1964
Qualification :	Graduate
Date of Appointment :	18.11.1982
PAN No.:	ABAPM7126N
DIN No. :	00030933
Name :	Mr. Varun Priyam Mehta
Designation :	Whole-time director
Address :	Bipin Nivas, Panchvati, Ellisbridge, Ahmedabad – 380006, Gujarat, India
Date of Birth/Age :	29.06.1986
Qualification :	Graduate
Date of Appointment :	18.10.2006
PAN No. :	AKEPM9196M
DIN No. :	00900734
Name :	Mr. Vishal Priyam Mehta
Designation :	Whole-time director
Address :	Bipin Nivas, Panchvati, Ellisbridge, Ahmedabad – 380006, Gujarat, India
Date of Birth/Age :	14.12.1986
Qualification :	Graduate
Date of Appointment :	16.01.2010
PAN No. :	APVPM4361C
DIN No. :	02690946
Name :	Mr. Mahendrabhai Natvarlal Shah
Designation :	Director
Address :	2 Walkeshware Society, Ambawadi, Ahmedabad – 380015, Gujarat, India
Date of Birth/Age :	02.02.1934
Qualification :	Chartered Accountant
Date of Appointment :	12.08.1983
DIN No. :	00021194
Name :	Mr. Vishvajit Makarand Mehta
Designation :	Director
Address :	‘Makarand’, 4, JP Nagar, Old Padra Road, Vadodara – 390015, Gujarat, India
Date of Birth/Age :	12.01.1930
Qualification :	Graduate
Date of Appointment :	21.10.1993
DIN No. :	00032207
Name :	Mr. Gaurang Kantilal Dalal
Designation :	Additional director
Address :	3, Ashani Society, Behind Aristovilla, Jodhpur, Ahmedabad – 380015, Gujarat, India
Date of Birth/Age :	18.05.1952
Qualification :	Doctor
Date of Appointment :	16.01.2010
DIN No. :	00040924
Name :	Mr. Janak Dinkar Desai
Designation :	Director
Address :	11, Heritage Residency Thaltej, Ahmedabad – 380054, Gujarat, India
Date of Birth/Age :	13.04.1958
Qualification :	Doctor
Date of Appointment :	29.01.2011
DIN No. :	02565216
Name :	Mr. Chirag Mahendrabhai Shah
Designation :	Additional director
Address :	2, Walkeshwara Society, Ambawadi, Ahmedabad – 380015, Gujarat, India
Date of Birth/Age :	27.07.1958
Qualification :	Chartered Accountant
Date of Appointment :	26.07.2011
DIN No. :	00021298
Name :	Sujata Priyambhai Mehta
Designation :	Additional director
Address :	Bipin Nivas, Panchvati, Ellisbridge, Ahmedabad – 380006, Gujarat, India
Date of Birth/Age :	03.12.1962
Date of Appointment :	14.11.2013
PAN No. :	AABPM0160C
DIN No. :	00037746

KEY EXECUTIVES

Name :	Mr. Rajesh Hasmukhlal Shah
Designation :	Secretary
Address :	F-404, Tulip Citadel, Manekbaug, Ahmedabad – 380015, Gujarat, India
Date of Birth/Age :	14.11.1963
Date of Appointment :	15.07.2002
PAN No.:	ALWPS7388G
Name :	Mr. N. J. Deora
Designation :	V P Finance

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 14.08.2013

Note: Shareholding details file attached.

As on 14.08.2013

Equity Share Break up (Percentage of Total Equity)

Category	Percentage of Holding
Nationalised or other banks	0.02
Bodies corporate	36.02
Directors or relatives of Directors	38.99
Other top fifty shareholders	7.58
Others	17.39
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Starch and Derivatives.

Products :

Item Code No. (ITC Code)	Product Description
11081200	Maize Starch Powder

Exports :

Products :

Starch and Liquid Glucose

Countries :

Middle East

Imports :

Products :

Spare Parts

Countries :

Germany

Terms :

Selling :

L/C, Credit and Advance

Purchasing :

Cash (30 Days) and Advance

GENERAL INFORMATION

Suppliers :

Gujarat Mining Development Corporation Private Limited

Customers :

Manufacturer

· Colgate Limited

FDC

No. of Employees :

1200 (Approximately)

Bankers :

· Punjab National Bank, Vanijya Bhavan Branch, Vanijya Bhavan, Kankaria, Ahmedabad - 380022, Gujarat, India

HDFC Bank Limited, HDFC Bank Housesenapati Bapat Marg, Lower Parel W, Mumbai - 400013, Maharashtra, India

Kotak Mahindra Bank Limited, 36-38A, Nariman Bhavan, 227, D, Nariman Point,, Mumbai - 400021, Maharashtra, India

Facilities :

Cash Credit: Rs. 300.000 Millions (From Punjab National Bank)

SECURED LOANS	31.03.2013 (Rs. in Millions)	31.03.2012 (Rs. in Millions)
LONG TERM BORROWINGS
Rupee term loans from banks	157.702	111.755
SHORT TERM BORROWINGS
Working capital loans from banks	276.962	235.367
Total	434.664	347.122

NOTE:

LONG TERM BORROWINGS:

(i) Term loan from Punjab National Bank of Rs. 29.994 Millions (Previous year Rs. 49.994 Millions) is collaterally secured by hypothecation of plant and machineries of Kathwada Unit excluding specific plant and machinery, if any, purchased and/or to be purchased under any scheme of financial institution/bank and other assets excluded for the charge and also by mortgage of land and building of Kathwada Unit. This loan is repayable in 20 equal quarterly instalments.

(ii) Term loans from HDFC Bank of Rs. 84.913 Millions (Previous year - Rs. 97.715 Millions) are secured by way of equitable mortgage of the building at Mumbai. The said loan is repayable in 20 equal quarterly instalments.

(iii) Term Loan of Kotak Mahindra Bank of Rs. 90.000 Millions (Previous Year NIL) is secured by way of Equitable mortgage of building in Mumbai. The said loan is repayable in 20 equal quarterly instalments.

(iv) Vehicle loans from Bank and Financial Institution amounting to Rs. 22.252 Millions (Previous year Rs. 4.379 Millions) are secured by way of hypothecation of respective motor vehicles purchased. The said loans are repayable in 36 equal monthly instalments.

SHORT TERM BORROWINGS:

Working Capital loans are secured by hypothecation of stock of stores, stock-in-trade including stock meant for exports and book debts present and future and collaterally secured by hypothecation of plant and machineries of Kathwada Unit excluding specific plant and machinery, if any, purchased and/or to be purchased under any scheme of financial institution/bank and other assets excluded for the charge and also by mortgage of land and building of Kathwada Unit.

Banking Relations :	--
Auditors :
Name :	Deloitte Haskins and Sells Chartered Accountants
Address :	3rd Floor, Heritage, Near Gujarat Vidhyapith, Ahmedabad – 380014, Gujarat, India
Income-tax PAN of auditor or auditor's firm :	AABFD7919A
Associate :	· Viva Tex-Chem Private Limited CIN No.: U24231GJ1992PTC016940 Varun Travels Private Limited CIN No.: U63090GJ1987PTC010020 Sayaji Sethness Limited CIN No.: U24110GJ1993PLC020479 N B Commercial Enterprises Private Limited CIN No.: U65910GJ1982PTC005052 C V Mehta Private Limited CIN No.: U65910GJ1941PTC000367 Bini Commercial Enterprises Private Limited CIN No.: U65910GJ1982PTC005053

CAPITAL STRUCTURE

As on 31.03.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
200,000	Equity Shares	Rs.100/- each	Rs. 20.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
79,000	Equity Shares	Rs.100/- each	Rs. 7.900 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2013	31.03.2012	31.03.2011
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	7.900	7.900	7.900
(b) Reserves & Surplus	334.662	274.256	252.761
(c) Money received against share warrants	0.000	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000	0.000
Total Shareholders’ Funds (1) + (2)	342.562	282.156	260.661
(3) Non-Current Liabilities
(a) long-term borrowings	311.666	263.040	216.268
(b) Deferred tax liabilities (Net)	99.226	85.164	75.639
(c) Other long term liabilities	0.000	0.000	0.000
(d) long-term provisions	21.675	29.045	28.524
Total Non-current Liabilities (3)	432.567	377.249	320.431
(4) Current Liabilities
(a) Short term borrowings	306.957	271.266	284.594
(b) Trade payables	684.617	553.353	396.134
(c) Other current liabilities	132.219	86.580	112.071
(d) Short-term provisions	69.268	57.955	53.135
Total Current Liabilities (4)	1193.061	969.154	845.934
TOTAL	1968.190	1628.559	1427.026
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	832.683	820.591	683.503
(ii) Intangible Assets	0.000	0.000	0.000
(iii) Capital work-in-progress	32.643	13.731	83.104
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	15.139	15.139	15.130
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	17.125	23.318	18.985
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	897.590	872.779	800.722
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	468.669	407.228	317.649
(c) Trade receivables	397.548	303.259	266.684
(d) Cash and cash equivalents	9.909	11.149	9.238
(e) Short-term loans and advances	194.474	34.144	32.733
(f) Other current assets	0.000	0.000	0.000
Total Current Assets	1070.600	755.780	626.304
TOTAL	1968.190	1628.559	1427.026

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013	31.03.2012	31.03.2011
	SALES
		Income	4713.636	3627.661	3136.691
		Other Income	26.699	30.991	19.211
		TOTAL (A)	4740.335	3658.652	3155.902
Less	EXPENSES
		Cost of materials consumed	2597.769	2213.574	1785.923
		Purchases of stock-in-trade	585.425	6.639	4.649
		Employee benefit expense	257.086	240.643	233.143
		Other expenses	1127.344	1051.724	970.818
		Changes in inventories of finished goods, work-in-progress and stock-in-trade	(31.467)	(21.091)	(8.348)
		TOTAL (B)	4536.157	3491.489	2986.185
	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		204.178	167.163	169.717
Less	FINANCIAL EXPENSES (D)		78.760	67.110	66.341
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		125.418	100.053	103.376
Less/ Add	DEPRECIATION/ AMORTISATION (F)		60.521	51.700	46.226
	PROFIT/ (LOSS) BEFORE TAX (E-F) (G)		64.897	48.353	57.150
Less	TAX (H)		(6.138)	17.676	26.391
	PROFIT/ (LOSS) AFTER TAX (G-H) (I)		71.035	30.677	30.759
	EARNINGS IN FOREIGN CURRENCY		1056.943	991.075	805.239
	Earnings / (Loss) Per Share (Rs.)		899.18	388.32	427.99

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
PAT / Total Income	(%)	1.50	0.84	0.97
Net Profit Margin (PBT/Sales)	(%)	1.38	1.33	1.82
Return on Total Assets (PBT/Total Assets}	(%)	3.38	3.02	4.30
Return on Investment (ROI) (PBT/Networth)		0.19	0.17	0.22
Debt Equity Ratio (Total Debt/Networth)		1.81	1.89	1.92
Current Ratio (Current Asset/Current Liability)		0.90	0.78	0.74

LOCAL AGENCY FURTHER INFORMATION

CURRENT MATURITIES OF LONG TERM DEBTS

Particulars	31.03.2013 (Rs. In Millions)	31.03.2012 (Rs. In Millions)	31.03.2011 (Rs. In Millions)
Current maturities of long-term debt	69.457	42.333	45.218

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	Yes
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	No
15]	Capital in the business	Yes
16]	Details of sister concerns	Yes
17]	Major suppliers	Yes
18]	Major customers	Yes
19]	Payments terms	Yes
20]	Export / Import details (if applicable)	Yes
21]	Market information	-----
22]	Litigations that the firm / promoter involved in	Yes
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
31]	Date of Birth of Proprietor/Partner/Director, if available	Yes
32]	PAN of Proprietor/Partner/Director, if available	Yes
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	Yes

LITIGATION DETAILS:

HIGH COURT OF GUJARAT TAX APPEAL No. 1295 of 2008
Status: PENDING (Converted from : ST/2960/2008) CCIN No : 001092200801295 Last Listing Date: 02/03/2009 Coram: HONOURABLE THE CHIEF JUSTICE Not Before : HONOURABLE MR.JUSTICE MR. K.S.RADHAKRISHNAN AKSHAY H.MEHTA HONOURABLE MR.JUSTICE AKIL KURESHI
S.NO.	Name of the Petitioner			Advocate On Record
1	COMMISSIONER OF INCOME TAX-IV			MS PAURAMI B SHETH for: Appellant(s) 1
S.NO.	Name of the Respondant			Advocate On Record
1	SAYAJI INDUSTRIES LTD
Presented On		: 08/09/2008			Registered On		: 08/09/2008
Bench Category		: DIVISION BENCH			District		: AHMEDABAD
Case Originated From		: THROUGH ADVOCATE			Listed		: 122 times
StageName		: FOR FINAL HEARING - TAX MATTERS
Act		INCOME-TAX ACT, 1961
Office Details
S. No.	Filing Date	Document Name	Advocate Name			Court Fee on Document		Document Details
1	15/08/2008	VAKALATNAMA	MS PAURAMI B SHETH ADVOCATE for PETITIONER(s) 1			-		MS PAURAMI B SHETH:1
2	09/05/2012	APPEARANCE NOTE	MS PAURAMI B SHETH ADVOCATE for PETITIONER(s) 1			-		MS PAURAMI B SHETH:1
Linked Matters

S. No.	CaseDetail	Status Name	Disposal Date	Action/Coram
1	CIVIL APPLICATION/213/2010	DISPOSED	11/10/2010	ANY OTHER MODE @ ADM.STAGE · HONOURABLE MR.JUSTICE K.A.PUJ · HONOURABLE MS.JUSTICE HARSHA DEVANI
2	TAX APPEAL/2486/2010	PENDING	-	- · HONOURABLE MR.JUSTICE AKIL KURESHI · HONOURABLE MS JUSTICE SONIA GOKANI
Court Proceedings

S. No.	Notified Date	CourtCode	Board Sr. No.	Stage	Action	Coram
1	02/03/2009	1	-	FOR FINAL HEARING - TAX MATTERS	RULE/ADMIT	· HONOURABLE THE CHIEF JUSTICE MR. K.S.RADHAKRISHNAN · HONOURABLE MR.JUSTICE AKIL KURESHI
Available Orders

S. No.	Case Details	Judge Name	Order Date	CAV	Judgment/Order
1	TAX APPEAL/1295/2008	· HONOURABLE THE CHIEF JUSTICE MR. K.S.RADHAKRISHNAN · HONOURABLE MR.JUSTICE AKIL KURESHI	02/03/2009	N	ORDER
Certified Copy

S. No.	ApplicantName	ApplicationType	Application Date	UOL Number	Order Date	Notify Date	Delivery Date	Status	Nature Of Document
1	MRS MAUNA M BHATT	ORDINARY	03/03/2009	O/6002/2009	02/03/2009	18/03/2009	18/03/2009	Delivered	ORDER

INDEX OF CHARGES

S.NO.	CHARGE ID	DATE OF CHARGE CREATION/MODIFICATION	CHARGE AMOUNT SECURED	CHARGE HOLDER	ADDRESS	SERVICE REQUEST NUMBER (SRN)
1	10367927	25/07/2012	100,000,000.00	KOTAK MAHINDRA BANK LIMITED	36-38A, NARIMAN BHAVAN, 227, D, NARIMAN POINT, MUMBAI - 400021, MAHARASHTRA, INDIA	B44651651
2	10021607	29/09/2006	80,000,000.00	HDFC BANK LIMITED	HDFC BANK HOUSESENAPATI BAPAT MARG, LOWER PAREL (WEST), MUMBAI - 400013, MAHARASHTRA, INDIA	A05367693
3	10007887	04/02/2013 *	180,000,000.00	HDFC BANK LIMITED	HDFC BANK HOUSESENAPATI BAPAT MARG, LOWER PAREL (WEST), MUMBAI - 400013, MAHARASHTRA, INDIA	B69523868
4	80005786	31/10/2013 *	466,500,000.00	PUNJAB NATIONAL BANK	VANIJYA BHAVAN BRANCH, VANIJYA BHAVAN, KANKARIA, AHMEDABAD - 380022, GUJARAT, INDIA	B89170096
5	80005787	31/10/2013 *	466,500,000.00	PUNJAB NATIONAL BANK	VANIJYA BHAVAN BRANCH, VANIJYA BHAVAN, KANKARIA, AHMEDABAD - 380022, GUJARAT, INDIA	B89171649

* Date of charge modification

UNSECURED LOANS

PARTICULAR	31.03.2013 (Rs. in Millions)	31.03.2012 (Rs. in Millions)
LONG TERM BORROWINGS
Deposits from shareholders	18.677	18.673
Intercorporate deposits	84.350	91.850
Public deposits	50.937	40.762
SHORT TERM BORROWINGS
Deposits from shareholders	9.240	7.372
Intercorporate deposits	2.500	5.000
Public deposits	18.255	23.527
Total	183.959	187.184

YEAR IN RETROSPECT :

During the year, the revenue from operations (gross) of the company has increased by 30% from Rs.3916.805 Millions to Rs.5076.305 Millions. There has been increase in the cost of almost all the inputs during the year. However, with better price realization of finished products, better product mix, improved technical parameters, reduction in power cost and application of stringent cost cutting measures, the company has been able to increase its profitability. The operating profit of the company is Rs.204.178 Millions as against Rs.166.713 Millions in the previous year. The gross profit of the company stands at Rs.125.418 Millions as against Rs.99.603 Millions in the previous year. During the year, the profit before tax of the company increased by 35% from Rs. 47.903 Millions to Rs.64.897 Millions and the net profit after tax increased by almost 130% from Rs.30.677 Millions to Rs.71.035 Millions as the company has written back the MAT credit of current year as well previous years.

The company has also entered into an exclusive agreement with Yashwant Sahakari Glucose Karkhana Limited, located at Siddheshwar Nagar, Taluka - Shirala, Dist. Sangli, Maharashtra since July, 2012 whereby the starches, liquid glucose and other by-products manufactured by the said factory is purchased/dealt in by the company. This arrangement has resulted into substantial increase in the top line of the company and the company has been able to cater to the markets in western and southern India more effectively.

FUTURE OUTLOOK :

The prices of all inputs including maize, lignite, chemicals, electricity, labour etc. during the current year is showing a sharp upward trend. The company would be able to further improve its profitability by better price realization of its products, change in the product mix, further improvement in technical efficiency and continued application of stringent cost cutting measures at all levels. With a better monsoon expected this year, the company is hopeful that there would be some stabilization in the price of maize during the current year which in turn may improve the operating margins.

With stabilization of all technical parameters at the Yashwant Sahakari Glucose Karkhana Limited and stabilization in the prize of maize, the company would be able to further improve its top-line and operations in the years to come.

The company has continued its efforts to further increase its activity by introduction of new equipments and concentrate on de-bottlenecking and automisation in the existing production processes. Efforts also continue to further improve the quality of the products and efficiency of the plants.

MANAGEMENT DISCUSSION AND ANALYSIS

INDIAN ECONOMY

As per United Nations Report, Indian economy is expected to grow at 6.4% rate in 2013, outpacing the 6% expansion in developing Asia-Pacific economies in the same period.

India is expected to recover from its relatively low 5% growth in 2012 to 6.4% in 2013. As projected by minister's economic advisory council - chairman C Rangarajan, India's economic growth in 2013-14 will be better than 2012-13, but will be lower than the pre-crisis level and India need to organize itself to go back to pre-crisis level of growth rate of 9%.

While talking about India's current account deficit which has touched a record high of 6.7%, Mr. C Rangarajan said that he believe that macroeconomic stability is necessary pre-condition for faster economic growth. He also believed that falling prices in the commodities like gold, crude oils and other commodities would be beneficial to India. World bank also said in its report that India is regaining economic momentum and growth is expected to recover to its high long-term potential in the times to come. Recent structural reforms like the cabinet committee on investments (CCI), decontrol of sugar and oil, FDI in Retail and other measures have helped in improving the general investment mood in the country. The Chairman ADB believes that if India can get its investment story right and manage to get a political consensus on reform measures like GST, it has the potential to grow at 8-9% annually.

STARCH INDUSTRY – AN OVERVIEW

GLOBAL STARCH MARKET

Global starch consumption is projected to reach 133.5 million metric tons by the year 2018, driven primarily by the diversity and sheer number of end-use applications in both food and non-food industries, according to a new report from market researcher global industry analysts, inc. (GIA).

According to " Starch: A Global strategic business report" economic recovery, rise in per capita consumption, and growing demand for starch products from developing nations translates into a bright outlook for the sector. Starch end-use applications have grown in number over the years, and now include diverse applications ranging from food and beverages to medicine, cosmetics, pharmaceuticals and more.

Growing consumption of liquid starches and modified starches has been one of the key reasons behind the quick recovery of the market post recession. With the global economy gradually improving and resulting in an increased intake of processed and convenience foods, the market for modified starch, which finds substantial usage in these food applications, is finding increased demand, thereby driving the overall market at a CAGR of more than 7% till 2018.

According to the report, the United States is the largest supplier of starch in the world, followed by China. Recent growth in the global starch market has been particularly driven by developing markets in Asia-Pacific. In fact, the sector, which includes China, India, Thailand, South Korea and Philippines, is slated to have a CAGR of 9% till 2018.

INDIAN STARCH SCENARIO

Over the past five years, production of maize has only risen by 0.9%, against which consumption grew by 1.7%. In 2013-14, however, production is expected to shoot up by 10.3% and consumption by 6.2%. Spot prices of maize have fallen from their peak of Rs 15,770 a MT on the MCX in August 2012 and is expected to stabilize with good monsoon expected this year. Maize is the third-largest agricultural crop in India, accounting for over 50% of total kharif coarse cereal production. Production of maize has grown at a CAGR of 4.9% over the past decade and amounted to 21.5 MT in 2011-12. In contrast, consumption of maize has grown at a CAGR of 3.28% and stood at 18-18.5 MT last fiscal. Around 50% of total consumption is used for feed, primarily poultry feed, while around 5-10% is used by the starch industry. The weather will play an important role in determining the extent of maize production and price of the same in 2013-14.

Indian Corn Starch Market is forecasted to double in the next four years. The utilization of corn starch in wide array of industries and new food consumption habits are the major drivers of the market. The end user industries such as paper, textile, pharmaceutical and confectionery are

witnessing positive growth rate, thus increasing demand for corn starch in the country. India currently has more than 5,000 Tons per Day (TPD) of wet milling processing capacity spread across the country. Combined revenue of major corn starch companies have grown at a rapid pace in last five years. The growth potential for corn starch is tremendous in the country with current starch consumption per capita way below global average.

The Indian organized starch industry has an estimated size of around Rs.4000 Crores. The industry is at a nascent stage comprising around 40 starch and derivative products from corn as against international market which comprises more than 800 such products. Thus there is a huge scope of increase in demand in the coming years. During the period 2005-10, the Indian starch industry grew at a CAGR of 21% and is expected to grow at 15% p.a. in the coming years. The size of the starch industry in India is negligible as compared to international market. The profits of the industry also fluctuate from year to year due to erratic availability of the basic raw material- corn being an agri-product and depends on natural vagaries.

BUSINESS OUTLOOK

The company continues to remain one of the market leaders in the starch industry. The products of the company are very well accepted in local and international markets due to its quality and applications. There has been continuous increase in the maize grinding activity of the company. The company has also entered into an exclusive agreement with Yashwant Sahakari Glucose Karkhana Limited, located at Siddheshwar Nagar, Taluka - Shirala, Dist. Sangli, Maharashtra since July, 2012 whereby the starches, liquid glucose and other by-products manufactured by the said factory is purchased/dealt in by the company. This arrangement has resulted into substantial increase in the turnover of the company and the company has been able to cater to the markets in western and southern India more effectively.

There has also been further improvement in the technical parameters of the company. This coupled with better realization of the products of the company has resulted in the higher turnover by 30% during the year 2012-13 as compared to previous year. Despite of consistent rise in the cost of maize and other inputs, the company has been able to improve its profitability due to stringent cost cunting measures, debottlenecking, atomization and diversified product portfolio. The operating profit of the company is Rs.204.178 Millions as against Rs.166.713 Millions in the previous year. The gross profit of the company is Rs.125.418 Millions as against Rs.99.603 Millions in the previous year and the net profit of the company is Rs.71.035 Millions as against Rs.30.677 Millions in the previous year as the company has written back the MAT credit of current year as well previous years.

Export during the year has increased to Rs.1130.000 Millions during the year 2012-13 as against Rs.1050.000 Milions in the previous year. The company is the largest exporter of starches and its derivatives in India. This is possible due to quality of the products of the company and its ability to adhere to the delivery requirements of its international clientele at competitive rates. The company has received ISO 9001:2008 which certifies the quality standards of the products and processes which the company adopts to manufacture its products. The efforts have been put to enlarge the product portfolio of the company by including the high value products to ensure that the bottom line is improved. Efforts are also on to further improve the technical efficiency of the company with the help of the consultants and experts in the field. The company has been able to establish its name in the industry and boost of reputed clients like Colgate, Hindustan Unilever, Asian Paints, ITC, Berger Paints, West Coast Papers, Zydus Cadila, Torrent etc. to name a few.

With all the efforts as aforesaid, it is expected that the operating efficiency of the company may further improve resulting into enhanced top line and bottom line in the years to come.

CONTINGENT LIABILITIES:

PARTICULARS	31.03.2013 (Rs. In Millions)	31.03.2012 (Rs. In Millions)
(a) Bills discounted but not matured	42.337	36.589
(b) Guarantees given by the Bankers on behalf of the Company.	8.162	5.386
(c) Disputed demand of Income tax as the Company expects to succeed in the appeal.	0.623	0.516

FIXED ASSETS

· Land

Buildings

Plant and equipment

Furniture and fixtures

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 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.61.67
UK Pound	1	Rs.100.65
Euro	1	Rs.84.25

INFORMATION DETAILS

Information Gathered by :	HNA
Report Prepared by :	MRI

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	7
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--CREDIT LINES	1~10	6
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	YES
--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		49

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.