MIRA INFORM REPORT

Report Date :

26.12.2006

IDENTIFICATION DETAILS

Name :	UNIMARK REMEDIES LIMITED
Registered Office :	19, Crystal, 1^st Floor, Juhu Road, Santacruz (West), Mumbai – 400 054, Maharashtra, INDIA
Country :	India
Financials (as on) :	31.03.2006
Date of Incorporation :	01.12.1993
Com. Reg. No.:	11-75373
CIN No.: [Company Identification No.]	U23200MH1993PLC075373
TAN No.: [Tax Deduction & Collection Account No.]	MUMU03720G
PAN No.: [Permanent Account No.]	AAACU0589R
Legal Form :	A Closely Held Public Limited Liability Company.
Line of Business :	Manufacturer of Bulk Drugs.

RATING & COMMENTS

MIRA’s Rating :

Aa

RATING		STATUS	PROPOSED CREDIT LINE
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

Maximum Credit Limit :	USD 3500000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well established and reputed company having satisfactory track. Directors are reported as experienced, respectable and having satisfactory means of their own. Their trade relations are reported as fair. Payments are usually correct and as per commitments. The company can be considered good for normal business dealings at usual trade terms and conditions.

LOCATIONS

Registered Office / Corporate office :	19, Crystal, 1^st Floor, Juhu Road, Santacruz (West), Mumbai – 400 054, Maharashtra, INDIA
Tel. No.:	91-22-26464769 / 26040361
Fax No.:	91-22-26463772 / 26007917
E-Mail :	unimark@bom4.vsnl.net.in yogeshparikh@unimarkremedies.com
Website :	http://www.unimarkremedies.com
Factory 1 :	Ø 41/42/42A/43, G.I.D.C. Industrial Estate, 1^st Phase, Vapi – 396 195, Gujarat Ø 300/337/338, Kerala Nalsarovar Road, Village Kerala, Taluka Bavla, Ahmedabad – 380 220, Gujarat
Godown :	Near Marwell Engineering Works, Koparkhairne, Vashi, Navi Mumbai – 400 705, Maharashtra
Tel. No.:	91-22-27687728

DIRECTORS

Name :	Mr. Jayant M. Parekh
Designation :	Chairman (Professional)
Address :	Concord Apartments, 12^th Floor, Bullock Road, Bandstand, Bandra [West], Mumbai – 400050, Maharashtra, India
Date of Birth :	06.09.1930
Qualification :	B.Com. A.C.A.
Experience :	Chartered Accountant with over 44 years of experience in the pharmaceutical industry. Professional experience of 38 years with the Franco Indian Pharmaceuticals
Date of Appointment :	17.07.1995
Functional Responsibilities :	Involved in policy matters of the company
Name :	Mr. Sandip Jayant Parekh
Designation :	Technical Director
Address	Concord Apartments, 12^th Floor, Bullock Road, Bandstand, Bandra [West], Mumbai – 400050, Maharashtra, India
Date of Birth :	24.01.1968
Qualification :	M. Sc.( Org. Chem. ) from IIT, Mumbai
Experience :	Masters in Organic Chemistry from IIT, Mumbai. 13 years of experience in manufacturing and R&D in the pharmaceutical industry
Date of Appointment	01.12.1993
Functional Responsibilities :	Responsible for all the Technical (including R & D) and Human Resources Management of the Production facilities
Name :	Mr. Mehul Jayant Parekh
Designation :	Executive Director
Address	Concord Apartments, 12^th Floor, Bullock Road, Bandstand, Bandra [West], Mumbai – 400050, Maharashtra, India
Date of Birth :	26.11.1958
Qualification :	B.Com
Date of Appointment	06.03.1995
Experience :	20 years of experience in the pharmaceutical industry. Responsible for providing strategic direction to the company and implementation of corporate objectives
Functional Responsibilities :	CEO of the Company. Responsibilities in formulating and implementation of Corporate objectives and direction of the Company
Name :	Mr. Jayant V. Parekh
Designation :	Director
Address	Concord Apartments, 12^th Floor, Bullock Road, Bandstand, Bandra (West), Mumbai – 400 050
Date of Appointment	17.07.1995
Name :	Mr. Yogesh N. Parekh
Designation :	Finance Director
Address	C-36, Gujarat Society, 2^nd Floor, Vile Parle (East), Mumbai – 400 057
Date of Birth :	03.03.1959
Qualification :	B. Com, F.C.A
Date of Appointment	17.07.1995
Experience :	Chartered Accountant with over 20 years of experience in Financial accounting, Taxation and Logistics
Functional Responsibilities :	Looks after complete Financial and Logistic Management
Name :	Mr. Pramod D. Shedde
Designation :	Director
Address	B/11, Ocean Gold, Twin Tower Lane, Prabhadevi, Mumbai – 400 025
Date of Appointment	01.02.2001
Date of Ceasing	07.11.2001
Name :	Mr. Abhijit Sen
Designation :	Director
Address	6, Gurusadan Road, Kolkata – 700 009, West Bengal
Date of Appointment	07.09.2000
Date of Ceasing	07.11.2001
Name :	Mr. Vijay Indravadan Dave
Designation :	Director
Address	7/27, Binakunj, behind Aurora Cinema, Matunga, Mumbai – 400019, Maharashtra, India
Date of Birth :	14.10.1957
Date of Appointment :	20.08.2004
Name :	Harmander Palsingh Chawla
Designation :	Director
Address	1022, Sector 44B, Chandigarh – 160047
Date of Birth :	14.04.1940
Date of Appointment :	04.03.2005

MAJOR SHAREHOLDERS

Names of Shareholders	No. of Shares
Mr. Jayant M. Parekh Joint with Madhukanta Parekh	105570
Madhukanta J Parekh Joint with Jayant M Parekh	160380
J M Parekh – HUF	350190
Nandini S Parekh	270
Sonali M Parekh Through Natural Guardian Beena M Parekh	218970
Pooja M Parekh – through Natural Guardian Beena M Parekh	8370
J M Parekh Jointly with Madhukanta Parekh and Mehul Parekh	150000
J M Parekh Jointly with Madhukanta Parekh and Sandeep Parekh	150000
Swiss Tec VCF Private Limited	470588
Mehul J Parekh Joint with Beena M Parekh	4904550
Sandip Parekh Joint with Nandini S Parekh	817200
Beena M Parekh Joint with Mehul J Parekh	634500
As on 28.03.2006
Dr. Hitesh Parikh	229412
Dr. Priti Parikh	200000
Dr. Ashok Palvia	125000
Mr. Paresh Kadakia	125000
Mr. Ketan Sukhadia	175000
Mr. Anuj Sukhadia	175000
Jigna Sukhadia	150000
Chaya Sukhadia	150000
Pooja Sukhadia	50000
Aesha Sukhadia	50000
Mr. Niranhan Gupta	100000
Mr. Jayesh Gandhi	100000
Mr. Amul Vora	75000
Mr. Nilay Vora	75000
Mr. Shahid Rangoonwala	75000
Mr. Roopa Rangoonwala	75000
Amrita Advisors Private Limited	100000
Total	2029412

BUSINESS DETAILS

Line of Business :

Manufacturer of Bulk Drugs.

Products :

Product Description	ITC Code No
Nalidixic Acid	2934
Albendazole	2942
Cephalixin	3003

Exports to :

Europe and Asian countries

Imports from :

China and Europe

Terms :

Purchasing :

L/C, D/A or D/P

GENERAL INFORMATION

No. of Employees :	600
Bankers :	v Bank of Maharashtra, S. V. Road, Khar Branch, Mumbai – 400 052, Maharashtra v Bank of Baroda, Santacruz (West) Branch, Mumbai - 400 054 v Canara Bank, Tamarind Lane, 8/10, Calicot House, Mumbai - 400 023 v Citi Bank v State Bank of Indore v The Hong Kong and Shanghai Banking Corporation Limited
Facilities :	--

Banking Relations :	Good
Auditors :	Rege & Thakker Chartered Accountants
Address :	5B, Fairy Manor, 13, Rustom Sidhwa Marg, Fort, Mumbai – 400 001
Tel. No.:	91-22-22658613
Fax No. :	91-22-22632884
Email :	randt@vsnl.net
Associates/Subsidiaries :	Unimark Remedies Hong Kong Limited Eastern Remedies

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
10000000	Equity shares	Rs. 10/- each	Rs. 100.000 millions
5000000	Cumulative Convertible Preference Shares	Rs. 10/- each	Rs. 50.000 millions
	Total		Rs. 150.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
10000000	Equity shares	Rs. 10/- each	Rs. 100.000 millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2006	31.03.2005	31.03.2004
SHAREHOLDERS FUNDS
1] Share Capital		100.000	79.706	79.700
3] Reserves & Surplus		762.386	511.144	369.000
NETWORTH		862.386	590.850	448.700
LOAN FUNDS
1] Secured Loans		1080.188	1076.414	1014.000
2] Unsecured Loans		1.950	1.750	26.800
TOTAL BORROWING		1082.138	1078.164	1040.800
DEFERRED TAX LIABILITIES		210.201	162.501	--
Deferred Credit		23.218	23.218
TOTAL		2177.943	1854.733	1489.500
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		1305.693	1102.504	929.200
Capital work-in-progress		142.328	59.853	--
INVESTMENT		0.352	0.346	0.800
DEFERREX TAX ASSETS
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	613.066	575.970	485.800
	Sundry Debtors	734.154	387.851	438.000
	Cash & Bank Balances	51.933	25.321	19.000
	Loans & Advances	60.845	45.995	39.700
Total Current Assets		1459.998	1035.137	982.500
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	696.750	344.490	431.000
	Provision	37.721	4.661
Total Current Liabilities		734.471	349.151	431.000
Net Current Assets		725.527	685.986	551.500
MISCELLANEOUS EXPENSES		4.043	6.044	8.000
TOTAL		2177.943	1854.733	1489.500

PROFIT & LOSS ACCOUNT

PARTICULARS	31.03.2006	31.03.2005	31.03.2004
Sales Turnover [including other income]	3064.761	2054.307	2120.300
Profit/(Loss) Before Tax	358.838	198.412	162.900
Provision for Taxation	107.594	56.210	50.900
Profit/(Loss) After Tax	251.244	142.202	112.000
Export Value	NA	963.878	607.790
Import Value	NA	465.632	542.653
Total Expenditure	2705.923	1855.895	1957.400

KEY RATIOS

PARTICULARS		31.03.2006	31.03.2005	31.03.2004
PAT / Total Income	(%)	8.20	6.92	5.28
Net Profit Margin (PBT/Sales)	(%)	11.71	9.66	7.68
Return on Total Assets (PBT/Total Assets}	(%)	12.97	9.28	8.52
Return on Investment (ROI) (PBT/Networth)		0.42	0.34	0.36
Debt Equity Ratio (Total Liability/Networth)		2.11	2.42	3.28
Current Ratio (Current Asset/Current Liability)		1.99	2.96	2.28

LOCAL AGENCY FURTHER INFORMATION

HISTORY :

The company was incorporated on 1^st December, 1993 at Mumbai in Maharashtra having Company Registration Number 75373.

The company was incorporated with the main objects to purchase or otherwise acquire and takeover as going concern of Eastern Organics together with all or any of the assets and liabilities of the proprietors of that business.

BUSINESS :

Generic Names of the Principal Products / Services of the company are :

Ø Bulk Drugs

Ø Traded and Operational Sale

The company owns a division known as Eastern Organics. This division is engaged in trading activity.

The company's manufacturing facilities are fitted with modern machinery and housed on independent plots of land.

The company is a Registered Small Scale Industry.

The company is in trade terms with :

Ø BASF, Germany

Ø Dupont, Germany

Ø Wacker, Germany

Ø Pfizer India Limited

Ø Wockhardt Limited

Ø Ranbaxy Laboratories Limited

Ø Lyka Labs Limited

The company’s fixed assets of important value include leasehold land, freehold land, buildings, plant & machinery, furniture & fixture, vehicles, computer systems, water/air pollution control equipment and office equipments.

As per website

Unimark Remedies Limited (“URL”) is a Research Driven Pharmaceutical Company primarily engaged in the manufacturing of APIs and Advanced Intermediates. Since 1995 company has developed vast skills in the areas of Process R & D, Process Chemistry Skills, Handling Complex Chemical Reactions and expertise in marketing of APIs and Speciality Intermediates in India and Globally.

In a challenging economic environment Unimark Remedies Limited has emerged as a leading manufacturer of Active Pharmaceutical Ingredients (APIs) and Speciality Intermediates in India with current Sales Turnover of approx. US $ 50 Million.

OVER VIEW OF URL:

URL was set up in 1984 as the exclusive Marketing Agent for Pfizer, BASF, UB Petro Products. URL’s core competence in marketing and logistics facilitated inroads to successfully access more than 75% of the domestic pharma market in value terms of its range of products. Currently URL manages throughput of approximately INR 11000 millions (in value terms) for Pfizer, Aventis, ICI, Solutia and many other Indian and MNCs.

In 1996, URL entered the API manufacturing Activity as part of backward integration with an emphasis on cost effective process and economics of scale. URL has successfully grown this business to INR 1940 mn in FY04. URL has today strategically positioned itself as a non competing supplier to Global Generic players such as Ranbaxy, West-ward Pharm, Pfizer (USA), GSK (UK), Apotex Canada and few other Pharma majors.

COVERAGE:

After consolidating and sustaining its growth in the unregulated market, strategic plans have been put into action for opportunities in the Regulated markets after the expiry of their patent. Present market coverage encompasses more than 40 countries with appreciable market share in few major countries.

In few Latin American countries the company is already registered as approved Generic Supplier along with few International major API Suppliers.

The key driver of growth is the implementation of niche higher margin low value APIs with scope of improved potential across the Globe.

The company covers more than 70% of the Formulation companies in India demonstrating its wide Customer Base Coverage.

GLOBAL LEADERSHIP:

Today the company enjoys Global Leadership for products like Nalidixic Acid, Nimesulide, Oxolinic Acid, Albendazole, Cefaclor, Lisinopril and Intermediates like 7-ANCA and 7-ACCA.

MANUFACTURING PLANTS:

The Company has two State of Art Manufacturing facilities at Vapi and Ahmedabad in the State of Gujarat. Ahmedabad facility is the dedicated facility for Cephalosporins. The Research and Development headquarters are located at Ahmedabad and both manufacturing facilities hold the following major Accredition.

WHO GMP Certified facilities

ICHQ7a Compliant

Facility ready for US FDA Inspection

ISO 14001 Certified

Facility approved by Ministry of Science & Technology, India for

R & D purposes

NET WORTH:

As of 31/03/2005 the Net worth of the company is US $ 15 Million

Corporate identity number of the company	U23200MH1993PLC075373
Name of the company	UNIMARK REMEDIES LIMITED
Address of the registered office or of the principal place of business in India of the company	19, Crystal, 1^st Floor, Juhu Road, Santacruz (West), Mumbai – 400 054, Maharashtra, INDIA
This form is for	Modification of charge
Type of charge	Hypothecation
Particular of charge holder	Export Import Bank of India Centre on Building, Floor 21, World Trade Centre Complex, Cuffe Parade, Mumbai – 400005, Maharashtra, India
Nature of instrument creating charge	Deed of hypothecation executed by Unimark Remedies Limited in favour of Export Import Bank of India
Date of instrument Creating the charge	17.05.2004
Amount secured by the charge	Rs. 2.000 millions
Brief of the principal terms an conditions and extent and operation of the charge	As per schedule Ii of the deed of hypothecation dated 17.05.2004
Description of the4 property charged	Furniture and Fixture, Plant and Machinery, Stock in trade, Book debts and Vehicles
Charge identification number of the charge to be modified	90164479
Date of instrument modifying	14.06.2006
Particulars of the present modification	The security created under the deed of hypothecation dated 17.05.2004 in favour of Export Import Bank of India for the dollar loan of USD 2 millions over the borrowers moveable assets briefly descried in schedule III to the principal deed and also in schedule II B to the supplemental deed of hypothecation dated 14.06.2006 shall stand modified so as to be now available for the dollar loan upto the enhanced limit of USD 6.45 million dated 14.06.2006 service fee, costs charges and expenses and all other monies payable by the borrower to Exim Bank under the supplemental dollar loan agreement. The charge created by the supplemental deed of hypothecation shall operate as a continuing by way of pari passu first charge over the borrower movable fixed assets and pari passu first charge over the borrower current assets for the due repayment by the charged created under the principal deed as modified by the supplemental deed of hypothecation in favour of Exim bank shall rank in the order or priority set out in schedule III to the supplemental deed of hypothecation. Save as so modified all the terms, conditions, covenants undertakings and indemnities contained in the principal deed and applicable to the enhanced dollar loan and the principal deed as remain in full force and effect until the enhanced dollar loan of USD 6.45 million interest and all other monies payable under the supplemental dollar loan agreement shall have been paid to Exim Bank in full and the principal deed shall be read and construed in all respects accordingly.

CMT REPORT [Corruption, Money laundering & Terrorism]

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

1] INFORMATION ON DESIGNATED PARTY

No records exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

2] Court Declaration :

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

3] Asset Declaration :

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

4] Record on Financial Crime :

Charges or conviction registered against subject: None

5] Records on Violation of Anti-Corruption Laws :

Charges or investigation registered against subject: None

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

Charges or investigation registered against subject: None

7] Criminal Records

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

8] Affiliation with Government :

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

9] Compensation Package :

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

10] Press Report :

No press reports / filings exists on the subject.

CORPORATE GOVERNANCE

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

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

CONTRAVENTION

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

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs. 44.20
UK Pound	1	Rs. 86.88
Euro	1	Rs. 58.53

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	8
PAID-UP CAPITAL	1~10	8
OPERATING SCALE	1~10	8
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	8
--PROFITABILIRY	1~10	8
--LIQUIDITY	1~10	8
--LEVERAGE	1~10	8
--RESERVES	1~10	8
--CREDIT LINES	1~10	8
--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	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		72

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		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

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