MIRA INFORM REPORT

Report Date :

14.06.2014

IDENTIFICATION DETAILS

Name :	KAYEMPEE FOODS PRIVATE LIMITED
Registered Office :	Plot No. 14/P, CIE Gandhi Nagar, Near Balanagar Hyderabad – 500037
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	16.10.1989
Com. Reg. No.:	01-010558
Capital Investment / Paid-up Capital :	Rs.5.000 Millions
CIN No.: [Company Identification No.]	U15499TG1989PTC010558
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturers of chocolate products.
No. of Employees :	Not Divulged

RATING & COMMENTS

MIRA’s Rating :

B (28)

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

Maximum Credit Limit :	USD 53000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track record. External borrowings of the company seems to be huge during 2013. However, trade relation are reported to be fair. Business is active. Payment terms are reported to be slow but correct. The company can be considered for business dealing with some cautions.

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, 2014

Country Name	Previous Rating (31.12.2013)	Current Rating (31.03.2014)
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

US investment bank Goldman Sachs  has upgraded its outlook on Indian markets as it expects positive impact of the election cycle.

India’s economy may grow 4.7 % in the current financial year, lower than the official estimate of 4.9 %, Fitch Rating said. The global rating agency expects the economy to pick up in the next two financial years.

Global ratings agency Standard & Poor said increasing focus by India Inc on lowering debt is likely to improve their credit profiles.

Singapore (1.1 million Indian tourists in 2012), Thailand (one million), the United Arab Emirates ().98 million) and Malaysia ().82 million) emerged as the preferred holidays hotspots for Indians. The total figure is expected to increase to 1.93 million by 2017, according to the latest Eurmonitor international report.

There is a $29.34 bn outward foreign direct investment by domestic companies between April and January of 2013/14 which has seen some signs of recovery according to a Care Ratings report.

There are 264 number of new companies being set up every day on average during 2014. Most of them are registered in Mumbai. India had 1.38 million registered companies at the end of January, 2014.

Twitter like messaging service Weibo Corporation has filed to raise $ 500 million via a US initial public offering. Alibaba, which owns a stake in Weibo is expected to raise about $ 15 billion New York this year in the highest profile Internet IPO since Facebook’s in 2012.

Bharti Airtel has raised Rs.2,453.2 crore (350 million Swiss Francs) by selling six-year bonds at a coupon rate of three per cent and maturing in 2020. This is the largest ever bond offering by an Indian company in Swiss Francs. Bharat Petroleum Corporation raised 175 million Swiss Francs by selling five year bonds at 2.98 % coupon rate in February.

Indian Oil Corporation plans to invest Rs 7650 crore in setting up a petrochemical complex at its almost complete Paradip refinery in Odhisha in three to four years. The company board is set to consider the setting up of a 700000 tonne per annum polypropylene plant at an estimated cost at Rs.3150 crore.

Global chief information officers at gathering in Bangalore in April to meet Indian startups at an event called Tech50 Watchout for Little Eye Labs-Facebook type deals in the making.

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 DENIED BY

Name :	Mr. Mukesh Kumar
Designation :	Sales Manager
Contact No.:	91-9959588858
Date :	13.06.2014

LOCATIONS

Registered Office/ Factory :	Plot No. 14/P, CIE Gandhi Nagar, Near Balanagar Hyderabad – 500037, India
Tel. No.:	91-40-23080614 / 23085739 / 23088559
Mobile No.:	91-9959588858
Fax No.:	91-40-23080933
E-Mail :	nukala2000@gmail.com

DIRECTORS

AS ON 28.09.2013

Name :

Mr. Kothapally Ramesh Kumar

Designation :

Director

Address :

1-8-54/7, Venkatrao Nagar Colony, Secunderabad – 500003, Andhra Pradesh, India

Date of Birth/Age :

07.05.1956

Date of Appointment :

16.10.1989

DIN No.:

00285191

Other Directorship:

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Company/ LLP Status	Defaulting status
1	U15499TG1989PTC010558	KAYEMPEE FOODS PRIVATE LIMITED	Director	16/10/1989	16/10/1989	Active	NO
2	U99999AP1995PLC020539	RAJ CLASSIC FOODS LIMITED	Director	31/05/1995	31/05/1995	Active	NO
3	U55101TG1991PTC012223	SAMA INTERNATIONAL PRIVATE LIMITED	Director	01/01/2005	01/01/2005	Active	NO
4	U17229TG2005PTC047238	PRIME FORM PRIVATE LIMITED	Director	07/06/2007	07/06/2007	Active	NO

Name :

Mr. Kothapally Ravikumar

Designation :

Director

Address :

1-8-54/7, Venkatrao Nagar Colony, Secunderabad – 500003, Andhra Pradesh, India

Date of Birth/Age :

02.06.1969

Date of Appointment :

01.09.2012

DIN No.:

00285198

Other Directorship:

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Company/ LLP Status	Defaulting status
1	U15499TG1994PTC019074	ZEN FOODS PRIVATE LIMITED	Director	28/12/1994	28/12/1994	Active	NO
2	U15499TG1989PTC010558	KAYEMPEE FOODS PRIVATE LIMITED	Director	01/09/2012	01/09/2012	Active	NO

Name :

Mr. Kothapally Sirish Kumar

Designation :

Director

Address :

1-8-54/7, Venkatrao Nagar Colony, Secunderabad – 500003, Andhra Pradesh, India

Date of Birth/Age :

25.06.1980

Date of Appointment :

01.09.2003

DIN No.:

00285289

Name :

Mr. Usha Rani Kothapally

Designation :

Director

Address :

1-8-54/7, Venkatrao Nagar Colony, Secunderabad – 500003, Andhra Pradesh, India

Date of Birth/Age :

27.05.1964

Date of Appointment :

18.10.1993

DIN No.:

02409963

KEY EXECUTIVES

Name :	Mr. Mukesh Kumar
Designation :	Sales Manager

MAJOR SHAREHOLDERS

AS ON 28.09.2013

Names of Shareholders	No. of Shares	% of Holding
K. B. Ramesh Kumar	9850	19.70
K. Usha Rani	2850	5.70
K. Ravi Kumar	13300	26.60
K. Anuradha	150	0.30
K. Rajender Kumar	12150	24.30
K. Sirish Kumar	10000	20.00
K. Jayapradha	1700	3.40
Total	50000	100.00

Equity Share Break up (Percentage of Total Equity)

AS ON 28.09.2013

Category	Percentage
Directors or relatives of Directors	100.00

BUSINESS DETAILS

Line of Business :

Manufacturers of chocolate products.

GENERAL INFORMATION

No. of Employees :

Not Divulged

Bankers :

ING Vysya Bank Limited, 1-7-1 T. Subbarami Reddy Complex, Sardar Patel Road, Secunderabad – 500003, Andhra Pradesh, India

Facilities :

SECURED LOANS	31.03.2013 Rs. In Millions	31.03.2012 Rs. In Millions
Long Term Borrowings
Vehicle Loans from HDFC Bank	0.000	0.157
Short Term Borrowings
Cash Credit from ING Vysya Bank	0.000	17.464
WCTL from APSFC	30.000	0.000
Total	30.000	17.621

NOTES:

LONG TERM BORROWINGS

Vehicle Loans is Secured against Hypothecation of Vehicles.

SHORT TERM BORROWINGS

The cash credit and WCTL is secured by way of hypothecation of current and fixed assets including personal guarantee of directors.

Banking Relations :	--
Financial Institution :	Andhra Pradesh State Financial Corporation, Chirag Ali Lane, Abids, Hyderabad – 500001, Andhra Pradesh, India
Auditors :
Name :	N. Venkataram Chartered Accountants
Address :	1-10-63/16, Chikoti Garden, Begumpet, Hyderabad – 500016, Andhra Pradesh, India
PAN No.:	AAUPN9039L

CAPITAL STRUCTURE

AS ON 28.09.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
1300000	Equity Shares	Rs.100/- each	Rs.130.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
50000	Equity Shares	Rs.100/- each	Rs.5.000 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	5.000	5.000	5.000
(b) Reserves & Surplus	8.359	5.753	3.434
(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)	13.359	10.753	8.434
(3) Non-Current Liabilities
(a) long-term borrowings	0.000	0.157	0.408
(b) Unsecured Loans	84.032	51.446	0.000
(c) Deferred tax liabilities (Net)	0.000	0.000	0.000
(d) Other long term liabilities	0.000	0.000	30.975
(e) long-term provisions	0.000	0.000	0.000
Total Non-current Liabilities (3)	84.032	51.603	31.383
(4) Current Liabilities
(a) Short term borrowings	30.000	17.464	7.063
(b) Trade payables	25.400	26.091	12.480
(c) Other current liabilities	5.170	3.812	1.293
(d) Short-term provisions	2.831	2.514	2.285
Total Current Liabilities (4)	63.401	49.881	23.121
TOTAL	160.792	112.237	62.938
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	59.614	48.666	21.932
(ii) Intangible Assets	0.000	0.000	0.000
(iii) Capital work-in-progress	0.000	0.000	0.000
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	3.197	2.132	0.000
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	0.000	0.000	0.000
(e) Other Non-current assets	0.000	0.000	1.332
Total Non-Current Assets	62.811	50.798	23.264
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	37.761	26.735	21.869
(c) Trade receivables	40.931	32.130	15.566
(d) Cash and cash equivalents	17.573	1.236	0.843
(e) Short-term loans and advances	0.000	0.000	0.000
(f) Other current assets	1.716	1.338	1.396
Total Current Assets	97.981	61.439	39.674
TOTAL	160.792	112.237	62.938

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013	31.03.2012	31.03.2011
	SALES
		Income	183.116	161.613	124.442
		Other Income	0.158	0.021	0.000
		TOTAL (A)	183.274	161.634	124.442
Less	EXPENSES
		Cost of Materials Consumed	119.696	120.027	89.152
		Manufacturing Expenses	38.327	23.493	21.222
		Increase / Decrease in stock	(7.012)	(7.844)	(1.831)
		Employee Benefits Expenses	4.577	3.109	3.141
		Other Expenses	10.249	8.886	2.989
		Exceptional Items/Prior Period Expenses	0.012	0.012	0.148
		TOTAL (B)	165.849	147.683	114.821
Less	PROFIT/(LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		17.425	13.951	9.621
Less	FINANCIAL EXPENSES (D)		7.162	5.897	3.542
	PROFIT/(LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		10.263	8.054	6.079
Less	DEPRECIATION/ AMORTISATION (F)		4.826	3.222	2.326
	PROFIT/(LOSS) BEFORE TAX (E-F) (G)		5.437	4.832	3.753
Less	TAX (H)		1.660	1.351	1.123
	PROFIT/(LOSS) AFTER TAX (G-H) (I)		3.777	3.481	2.630
	Earnings Per Share (Rs.)		75.53	69.62	52.60

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
PAT / Total Income	(%)	2.06	2.15	2.11
Net Profit Margin (PBT/Sales)	(%)	2.97	2.99	3.02
Return on Total Assets (PBT/Total Assets}	(%)	3.45	4.39	5.96
Return on Investment (ROI) (PBT/Networth)		0.41	0.45	0.44
Debt Equity Ratio (Total Debt /Networth)		8.54	6.42	0.89
Current Ratio (Current Asset/Current Liability)		1.55	1.23	1.72

FINANCIAL ANALYSIS

[all figures are in Rupees Millions]

DEBT EQUITY RATIO

Particular	31.03.2011	31.03.2012	31.03.2013
	Rs. In Millions	Rs. In Millions	Rs. In Millions
Share Capital	5.000	5.000	5.000
Reserves & Surplus	3.434	5.753	8.359
Net worth	8.434	10.753	13.359
long-term borrowings	0.408	0.157	0.000
Short term borrowings	7.063	17.464	30.000
Total borrowings	7.471	17.621	30.000
Debt/Equity ratio	0.886	1.639	2.246

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2011	31.03.2012	31.03.2013
	Rs. In Millions	Rs. In Millions	Rs. In Millions
Sales	124.442	161.613	183.116
		29.870	13.305

NET PROFIT MARGIN

Net Profit Margin	31.03.2011	31.03.2012	31.03.2013
	Rs. In Millions	Rs. In Millions	Rs. In Millions
Sales	124.442	161.613	183.116
Profit	2.630	3.481	3.777
	2.11%	2.15%	2.06%

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	No
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	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 involved in	----------
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	No
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	No

INDEX OF CHARGE:

Sr. No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10447985	12/08/2013	170,000,000.00	ANDHRA PRADESH STATE FINANCIAL CORPORATION	CHIRAG ALI LANE, ABIDS, HYDERABAD, ANDHRA PRADESH - 500001, INDIA	B84532548
2	10421985	28/03/2013	30,000,000.00	ANDHRA PRADESH STATE FINANCIAL CORPORATION	CHIRAJ ALI LANE, ABIDS, HYDERABAD, ANDHRA PRADESH - 500001, INDIA	B73796245
3	10099729	19/01/2012 *	20,000,000.00	ING VYSYA BANK LIMITED	1-7-1, T.SUBBARAMI REDDY COMPLEX, SARDAR PATEL RO AD,, SECUNDERABAD, ANDHRA PRADESH - 500003, INDIA	B32288821
4	90114885	17/01/1994 *	200,000.00	THE VYSYA BANK LIMITED	SARDAR PATEL ROAD BRANCH, SECUNDERABAD, ANDHRA PRADESH, INDIA	-
5	90114809	12/10/1990	932,203.00	THE VYSYA BANK LIMITED	SARDAR PATEL ROAD BRANCH, SECUNDERABAD, ANDHRA PRADESH, INDIA	-

* Date of charge modification

FIXED ASSETS:

· Land

· Building

· Plant and Machinery

· Furniture

· Office Equipment

· Lab Equipment

· Computers

· Electrical Fittings

· Fire Extinguisher Machine

· Vehicles

· Generator

· CC Camera

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 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] 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.59.48
UK Pound	1	Rs.100.93
Euro	1	Rs.80.71

INFORMATION DETAILS

Information Gathered by :	GYT
Analysis Done by :	RAS
Report Prepared by :	NKT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILIRY	1~10	4
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	2
--RESERVES	1~10	3
--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
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		28

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.