MIRA INFORM REPORT

Report Date :

29.03.2007

IDENTIFICATION DETAILS

Name :	ZIM LABORATORIES LIMITED
Registered Office :	41, Manisha Plaza, Ground Floor, Sonapur Lane, Off. L B S Marg, Kurla (West), Mumbai – 400070, Maharashtra
Country :	India
Financials (as on) :	31.03.2002
Date of Incorporation :	14.02.1994
Com. Reg. No.:	11-32172
CIN No.: [Company Identification No.]	U99999MH1984PTC032172
IEC No.:
TAN No.: [Tax Deduction & Collection Account No.]	MUMZ01062F
PAN No.: [Permanent Account No.]	AAACZ0200E
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturing and Marketing of Pharmaceutical formulations.

RATING & COMMENTS

MIRA’s Rating :

B

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average/normal.	Small

Maximum Credit Limit :	USD 127000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Company is engaged in the business as manufacturing and marketing of Pharmaceutical products in the form of tablets, Capsules, Syrup/Liquids etc. During the financial year ended 31/03/2002 (15 month period) the Company made some profit compared to the losses made in the Previous period. Though there have been improvements in its turnover, profit margin is low. Trade relations are reported as slow, but correct. It may be considered for small volume business at usual trade terms and conditions.

LOCATIONS

Registered/ Head Office :	41, Manisha Plaza, Ground Floor, Sonapur Lane, Off. L B S Marg, Kurla (West), Mumbai – 400070, Maharashtra, India.
Tel. No.:	91-22-5163297/25034067/2183, 91-712-2760807/ 2770959
Mobile No.:	91-22-5102183/25035173, 91-712-2770757
Fax No.:	zimltd@sancharnet.in, zimltd@dataone.in
E-Mail :	http://www.zimlabs.com
Corporate Office :	Universal Square, 545, Shantinagar, Nagpur – 440002
Tel. No.:	91-712-2760807/2764597
Fax No.:	91-712-2763212
E-Mail :	zim@tom2.vsnl.net.in/zimaccts@nagpur.dot.net.in calhem@nagpur.dot.net.in
Factory 1 :	Plot No. B-21/22, MIDC Industrial Area, Kalmeshwar – 441501, District – Nagpur, Maharashtra, India
Tel. No.:	91-7118-271370/ 271990/ 271480
Fax No.:	91-7118-271470/ 271780
E-Mail :	calhem_ngp@sancharnet.in
Factory 2 :	Plot No.1, 2 and 13, Mahesh Nagar, Main Road, Shanti Nagar, Nagpur-440002, Maharashtra, India
Tel. No.:	91-712-2770959
Fax No.:	91-712-2760807

DIRECTORS

Name :	Mr. Zakir. S. Vali
Designation :	Director
Address :	545, Shanti Nagar, Nagpur-440002, Maharashtra
Date of Birth/Age :	07.02.1939
Date of Appointment :	16.06.2002
Name :	Mr. Zakir S Vali
Designation :	Chief Managing Director
Qualification :	B. Pharm
Experience :	32 years
Name :	Mr. Riqzahmed. S.Daud
Designation :	Director
Name :	Mr. Zuifiqaar. M. Kamal
Designation :	Finance Director
Qualification :	B.Com., C.A.
Experience :	17 years
Name :	Mr. Anwar. S. Daud
Designation :	Executive Director
Address :	Daud Compound, Shanti Nagar, Nagpur-440002, Maharashtra
Date of Birth/Age :	31.12.1958
Qualification :	M. Pharm
Experience :	17 years
Date of Appointment :	26.09.2002
Name :	Mr. Siraj Zafar. Daud
Designation :	Director
Address :	Daud Compound, Shanti Nagar, Nagpur-4400002, Maharashtra
Date of Birth/Age :	04.06.1961
Date of Appointment :	13.11.1999
Date of Ceasing :	25.09.2002
Name :	Mr. Dayma R. Dhananjaya
Designation :	Director
Address :	Sushil Bhawan, 20, Balraj Marg, Dhantoli, Nagpur-440002, Maharashtra
Date of Birth/Age :	12.11.1962
Date of Appointment :	13.11.1999
Date of Ceasing :	25.09.2002
Name :	Mr. Riaz Ahmed Kikabhai Kamal
Designation :	Wholetime Director
Address :	167/C, Behind MSEB Substation, Shanti Nagar, Nagpur-440002, Maharashtra
Date of Birth/Age :	19.05.1951
Date of Appointment :	07.08.2006
Name :	Mr. Perseed Eruch Jall
Designation :	Managing Director
Address :	27-8, Mount Road, Sadar, Nagpur-440001, Maharashtra, India
Date of Birth/Age :	30.03.1959
Date of Appointment :	29.09.2003

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

Names of Shareholders	No. of Shares
Mr.Ishwarlal	5
Mr. Mustaga	5
Mr. Zakir	5

BUSINESS DETAILS

Line of Business :	Manufacturing and Marketing of Pharmaceutical formulations.
Exports to :
Countries :	UAE, Kuwait, Hamburg, Egypt, Syris, Nigeria, Vietnam, Bangladesh

PRODUCTION STATUS

Particulars	Unit	Installed Capacity	Actual Production
Tablets	Nos.	3500	3971.34
Capsules	Nos.	700	789.14
Syrup	Ltrs.	15	11.48
Pellets	Kgs.	0.2	0.30

GENERAL INFORMATION

Customers :

v SOL Pharma, Hyderabad, India

v TNT Corporation, Australia

v Centaur Laboratories, Mumbai, India

v Themis Laboratories, Mumbai, India

v Cipex Specialities, Mumbai, India

v Panjon Pharma

v J. K. Drugs

v Phakt Overseas

v Raja Antibiotics

No. of Employees :

Bankers :

Union Bank of India

Central Office : Union Bank Bhuvan, 239, Vidhan Bhavan Marg, Mumbai

Facilities :

Secured Loans :

(Rs. In millions)

Term Loan	4.856
Total	4.856
Working Capital Loan:
Cash Credit Account	34.591
FDBP Limit	2.372
Cash Credit Account (Steel Division)	9.356
UDBP Limit (Steel Division)	3.728
Packing Credit Limit	5.483
Total	55.531
Financial Assistance under Raw Material Purchase Scheme :
From NSIC	9.333
From MSSIDC (Pharma)	0.909
From MSSIDC (Steel)	4.753
Total	14.995
Grand Total	75.382

Unsecured Loans :

From Promoters	0.291
From Companies	2.000
Deposit from Consignee	0.476
Others	10.596
Total	13.363

Banking Relations :	Satisfactory
Auditors :
Name :	Paliwal Modani & Company Chartered Accountants
Address :
Associates :	v Universal Medicaments Private Limited v H Jules & Company v Zain Investments

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
3000000	Equity Shares	Rs.10/- each	Rs.30.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
3000000	Equity Shares	Rs.10/- each	Rs.30.000 millions

FINANCIAL DATA

[all figures are in Rupees Millions]

Financial Information :

Company has not filed any financials after 2002 with the Company Registry

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2002	31.03.2001
SHAREHOLDERS FUNDS
1] Share Capital		30.000	13.094
2] Share Application Money		0.000	0.000
3] Reserves & Surplus		3.504	3.504
4] (Accumulated Losses)		(1.603)	(2.107)
NETWORTH		31.901	14.491
LOAN FUNDS
1] Secured Loans		75.382	59.975
2] Unsecured Loans		13.363	12.706
TOTAL BORROWING		88.745	72.681
DEFERRED TAX LIABILITIES		0.000	0.000
TOTAL		120.646	87.172
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		32.645	13.825
Capital work-in-progress		0.000	0.213
INVESTMENT		0.010	0.010
DEFERREX TAX ASSETS		0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	39.475	26.332
	Sundry Debtors	96.381	96.904
	Cash & Bank Balances	8.067	6.988
	Other Current Assets	0.000	0.000
	Loans & Advances	19.122	23.069
Total Current Assets		163.045	153.293
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	76.608	82.113
	Provisions
Total Current Liabilities		76.608	82.113
Net Current Assets		86.437	71.180
MISCELLANEOUS EXPENSES		1.554	1.944
TOTAL		120.646	87.172

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2002	31.03.2001
Sales Turnover		340.127	239.731
Other Income		11.198	6.568
Total Income		351.325	246.299
Profit/(Loss) Before Tax		0.700	(4.528)
Provision for Taxation		2.807	6.949
Profit/(Loss) After Tax		(2.107)	2.421
Total Earnings		8.661	5.247
Expenditures :
	Manufacturing Expenses	6.462	5.550
	Administrative Expenses	4.848	3.074
	Raw Material Consumed	94.363	47.671
	Purchases made for re-sale	181.100	155.205
	Salaries, Wages, Bonus, etc.	8.365	5.400
	Interest	22.232	15.570
	Depreciation & Amortization	2.058	1.066
	Other Expenditure	31.196	17.292
Total Expenditure		350.625	250.828

KEY RATIOS

PARTICULARS		31.03.2002	31.03.2001
PAT / Total Income	(%)	(0.60)	0.98
Net Profit Margin (PBT/Sales)	(%)	0.20	1.84
Return on Total Assets (PBT/Total Assets}	(%)	0.36	2.71
Return on Investment (ROI) (PBT/Networth)		0.02	(0.31)
Debt Equity Ratio (Total Liability/Networth)		5.18	10.68
Current Ratio (Current Asset/Current Liability)		2.13	1.87

LOCAL AGENCY FURTHER INFORMATION

Form 8 Particular for creation or modification of charges

Name of the company	ZIM LABORATORIES LIMITED
Presented By	Mr. Zulfiquar Kamal, Director
1) Date and description of instrument creating the change	Packing Credit Agreement dated 07.07.2001. Letter of Hypothecation dated 07.07.2001.
2) Amount secured by the charge/amount owing on the securities of charge	Letter of Credit Rs.5.000 millions
3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given	Hypothecation of raw materials, work in progress, finished goods and packing material Hypothecation of book debts (bills)
4) Gist of the terms and conditions and extent and operation of the charge.	Rate of Interest 9.5% p.a. with quarterly rests Adhoc FDBP Limit under LC with a total ceiling of Rs.5.000 millions on single transaction basis.
5) Name and Address and description of the person entitled to the charge.	Union Bank of India Central Office : Union Bank Bhuvan, 239, Vidhan Bhavan Marg, Mumbai Through : Chief Manager, Main Branch, Gandhi Bagh, Nagpur
6) Date and brief description of instrument modifying the charge	Packing Credit Agreement dated 28.10.2004 Letter of Hypothecation of Bills dated 28.10.2004 Letter of Hypothecation of Bills dated 28.10.2004 Demand Promissory note dated 28.10.2004
7) Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification.	Union Bank of India has sanctioned to the company an additional Adhoc Packing Credit upto 31.12.2004 for meeting the export obligations under Letter if Credit/ Confirmed Orders and therefore the total ceiling of Advoc Packing Credit Limit/ FDBP Limit under Letter of Credit now stands at Rs.15.000 millions Terms and Conditions : Rate of Interest : 7% per annum on monthly rests The above said additional packing credit limit is sanctioned for the period upto 31.12.2004

BUSINESS

To manufacture Pharmaceutical preparations inform of Tablets, Capsules, Liquid Orals, Powders, Ointments, Emulsions, Tincture, Suspensions, all types of Ayurvaid Medicines, Fine Chemicals and bilk Drugs and to carry on the business of merchants, brokers, sales agents, commission agents and general traders in relations to advertising, marketing and distribution in India and abroad of all types of pharmaceuticals and its bye products to engage in undertaking, performing and carrying on all functions, duties that are ordinarily or particularly undertaken by Pharmaceutical manufacturers or by companies engaged in such business.

During the year the Company registered a growth of 41.88% in Sales.

Exports

At international front there has been an upsurge in herbal medicine all over world and increasingly large number of patients are shifting to plants for their basic health care needs, weary of the Lactrogenic effects of modern medicines. They are poised to explore this vast market through Indian and Traditional system of medicines.

Financial Period :

As per decision of the Board of Directors the financial year ended on 31.12.2001 was further extended to 3 months. In view of the above the audited accounts are represented for the period from 01.01.2001 to 31.03.2002.

Operations :

General

Pharma Division :

An independent sales audit group reported the Indian Pharmaceutical market to be Rs.152320 millions in 2001 with growth of 8.5%. unlike some of the developed markets, the Indian Pharmaceutical market has been doubling every five years since 1970 importing its global standing over the years.

The pharmaceutical industry in India has been n the limelight of public attention, ever since the Prime Minister and a host of other Industrial experts have declared it to be a new vehicle for economic growth along with the pioneering software industry. Thus to facilitate growth of this industry a few steps have been towards easing regulation and rigors of price controls that were counter productive. The new drug policy which is on the anvil, is expected to create operating conditions, which would allow wider access of pharmaceuticals to a large population and encourage more domestic and foreign investment in manufacturing and new drug and research.

Opportunities and Threats

The pharmaceutical environment in India will continue to offer significant growth and income opportunities for pharmaceutical industries. Amongst leading pharmaceutical companies, there seems to be a stronger realization that size does not matter beyond a certain point.

Steel Division

Recessionary condition prevailed in most global steel markets, in what was the worst year for steel industry in a decade. Flagging demand coupled with high supply levels brought about a precipitous fall in prices.

Despite a severe slump in the steel industry, the company achieved a turnover if Rs.177.375 millions in steel division during the period.

Combined Results :

The performance of the company for the year under review has been satisfactory. The combined sales, profit before tax and profit after ax for the year were Rs.340.127 millions, Rs.1.252 millions and Rs.0.504 millions respectively.

During the year, the company registered a growth of 41.88% in sales.

Exports :

The company had achieved the export turnover of Rs.25.200 millions of medicine during the year. The company has achieved milestone of export that was set during the previous year and the company is now expecting to cross the export sale during the current year over Rs.50.000 millions. The company is exporting goods in countries like UAE, Kuwait, Hamburg, Egypt, Syris, Nigeria, Vietnam, Bangladesh etc, and efforts have been made to increase exports in other countries like UAE and Malaysia.

Future Plan of Action :

The company is making efforts to design its own formulation for innovating products. Special care is also taken to equipped quality assurance laboratories with new sophisticated technology and instruments.

Company’s fixed assets include Leasehold Land, Site Development, Building, Plant and Machinery, Electric Installation, Furniture and Fixtures, Office Equipments, Computer, Vehicles, Fax Machine, Air Conditioner, Trade Marks and Xerox Machine.

Website Details :

Their Strengths

v More than 10 years of experience in the development and manufacture of pharmaceuticals.

v Promoters are technocrats.

v Well qualified, approved and trained personnel.

v Well laid-out manufacturing facility meeting CGMP requirements (WHO-GMP certified)

v Current capacity utilization 50% on a single shift basis; toll manufacturing capacity available.

v Use of in-house developed modern technology for manufacture of controlled release multiparticulate drug delivery systems.

v Experience in timely delivery of quality products in large output to their customers.

Their Technological Prowers

v Specialists in the development and manufacture of pellet products.

v Out controlled release pellet products are bioequivalent to standard marketed formulations and / or comply with USP dissolution profiles.

v Ability to develop multiparticulates containing upto 90% of active ingredients.

The Plant

Zim Laboratories Limited (ZLL) is situated in Central India near Nagpur MIDC area. The plant location is well connected to all major Indian cities by air, rail and roads. It occupies about 40,000 square feet plot area with a built-up area of more than 14,000 square feet.

The Promoters

The company has been promoted by a team of professionals and technocrats headed by Shri Z. S. Vali, Chairman and Managing Director, with wide experience in this field and recipient of ‘Udyog Patra’ award for being a self-made industrialist.

The senior management of the company is dedicated to the philosophy of Total Quality Management. That dedication has led to the implementation of continuous improvement programs and practices throughout the organization.

The management has always promoted personnel’s individual growth by reinforcing positive attitudes and technical skills. Restrictions and inefficiencies of hierarchical organizational structures are removed by identifying, simplifying and re-designing key business processes.

The Products

Zim Laboratories Limited uses state-of-the-art technology for manufacturing the following dosage forms :

v Tablets / Coated Tablets / Sustained Release Tablets.

v Dispersible and effervescent tablets.

v Multiparticulate drug delivery systems.

v Hard gelatin capsules.

The ethical products of Zim Laboratories Limited are promoted in Central India and Western India through a well-developed marketing network. Institutional supplies are made to all premier government / semi-government / autonomous institutions throughout India.

In addition to manufacturing and processing of various pharmaceutical formulations, Zim Laboratories limited specializes in the development and manufacture of various controlled release multiparticulate oral drug delivery systems.

v Antihypertensives like nifedipine, isosorbide dinitrate, diltiazem etc.

v Nasal decongestants like pseudoephedrine, phenylpropanolamine HCl, etc.

v Antihistamines like chlorpheniramine maleate, cetirizine, etc.

v Hematinics, calcium, zinc and vitamin supplements.

v Antiasthmatcs like salbutamol, theophylline, etc.

v Antimalarials like chloroquine phosphate

v NSAIDs like diclofenac sodium, ibuprofen, aspirin, indomethacin, nimesulide, etc.

The company also specializes in the manufacture of nonpareil seeds of various size range. It supplies this product to pharmaceutical industries like Lupin Laboratories, Ankur Pharma, Indo-overseas Health Limited, B. R. Laboratories etc.

Clientele

Successful tie-ups for contract manufacturing with reputed companies have resulted because of people working together effectively, openly and co-operatively without duplication of efforts. Zim Laboratories Limited develops and manufacturers products for companies like:

v SOL Pharma, Hyderabad, India

v TNT Corporation, Australia

v Centaur Laboratories, Mumbai, India

v Themis Laboratories, Mumbai, India

v Cipex Specialities, Mumbai, India

v Panjon Pharma

v J. K. Drugs

v Phakt Overseas

v Raja Antibiotics

At Zim Laboratories Limited, their mission is to anticipate and fulfill customers needs for new products and technologies that help maintain and achieve quality and innovative products.

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] 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.43.59
UK Pound	1	Rs.85.53
Euro	1	Rs.58.14

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	4
--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	YES
--AFFILIATION	YES/NO	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	NO
TOTAL		40

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	Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average/normal.	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
NR		In view of the lack of information, we have no basis upon which to recommend credit dealings	No Rating

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