MIRA INFORM REPORT

Report Date :

13.07.2007

IDENTIFICATION DETAILS

Name :	GELNOVA LABORATORIES (INDIA) PRIVATE LIMITED
Registered Office :	C – 125, TTC Industrial Area, Mahape, Navi Mumbai - 400 705, Maharashtra.
Country :	India
Financials (as on) :	31.03.2006
Date of Incorporation :	14.01.1997
Com. Reg. No.:	11-105706
CIN No.: [Company Identification No.]	U17000MH1997PTC105076
TAN No.: [Tax Deduction & Collection Account No.]	MUMG06968D
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Capsules, Bulk Drugs, Pharmaceuticals and Foods

RATING & COMMENTS

MIRA’s Rating :

Ba

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

Maximum Credit Limit :	USD 156000
Status :	Satisfactory
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well established and reputed company having satisfactory track records. Directors are reported as experienced and respectable businessmen. Trade relations are fair. Business is active. Payments are usually correct and as per commitments. The company can be considered normal for business dealings at usual trade terms and conditions.

LOCATIONS

Registered Office/Factory :	C – 125, TTC Industrial Area, Mahape, Navi Mumbai - 400 705, Maharashtra, India.
Tel. No.:	91-22-27621908/27821269/27686411
Fax No.:	91-22-27686411
E-Mail :	gelnova@vsnl.net

DIRECTORS

Name :	Mr. Vasant Kumar Keshavji Thakkar
Designation :	Director
Address :	L – 3-4, Eden Hall, Dr. Annie Besant Road, Worli, Mumbai – 400018, Maharashtra, India
Date of Birth/Age :	29.11.1936
Date of Appointment :	18.08.2000
Name :	Mr. Jatin Vasant Kumar Thakkar
Designation :	Director
Address :	L – 3-4, Eden Hall, Dr. Annie Besant Road, Worli, Mumbai – 400018, Maharashtra, India
Date of Birth/Age :	07.12.1967
Date of Appointment :	18.08.2000
Name :	Ms. Bharati Vasant Kumar Thakkar
Designation :	Director
Address :	L – 3-4, Eden Hall, Dr. Annie Besant Road, Worli, Mumbai – 400018, Maharashtra, India
Date of Birth/Age :	22.06.1940
Date of Appointment :	18.08.2000
Name :	Mr. Krishnan V Kavassery
Designation :	Director
Address :	Krishna Plot No. 203, Sector – 8, Vashi, Navi Mumbai – 40018, Maharashtra, India
Date of Birth/Age :	05.01.1939
Date of Appointment :	04.10.2000

KEY EXECUTIVES

Name :	Mr. S Sathyanaryan & Company
Designation :	Company Sectary

MAJOR SHAREHOLDERS

Names of Shareholders	No. of Shares
Mr. Vasant K Thakkar	39000
Mr. Jatin V Thakkar	19500
Ms. Bharati V Thakkar	71500
Mr. Vasant K Thakkar	5150
Mr. Jatin V Thakkar	6000
Ms. Bharati V Thakkar	15000
Mr. Jatin V Thakkar	8000
Ms. Monica J Thakkar	6500
Mr. Vasant K Thakkar	9350

Names of Shareholders	% of Holdings
Directors and Relatives of Directors	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer of Capsules, Bulk Drugs, Pharmaceuticals and Foods
Products :	Pharmaceuticals – 3003.10 Foods - 21.08

PRODUCTION STATUS

Particulars	Installed Capacity	Actual Production
Capsules	400000000 Per Annum	405926437 Per Annum

GENERAL INFORMATION

No. of Employees :	150
Bankers :	v Bank of India, Mumbai Corporate Banking Branch, Bank of India Building, 4^th Floor, 70/80 M G Road, Fort, Mumbai – 400023, Maharashtra, India v Citibank Various Bank Limited

Banking Relations :	Satisfactory
Auditors :	E A Patil and Company Chartered Accountant
Adders:	316, 3^rd Floor, Nirman Vyapar Kendra, Sector – 17, Vashi, Navi Mumbai – 400 705, Maharashtra, India
Tel. No.:	91-22-27890594

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
150000	Equity Shares	Rs. 100/- Each	Rs. 15.000 Millions
50000	Preferences Shares	Rs. 100/- Each	Rs. 5.000 Millions
	Total		Rs. 20.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
130000	Equity Shares	Rs. 100/- Each	Rs. 13.000 Millions
50000	Preferences Shares	Rs. 100/- Each	Rs. 5.000 Millions
	Total		Rs. 18.000 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		18.000	18.000	15.000
2] Reserves & Surplus		21.006	0.000	0.000
4] (Accumulated Losses)		0.000	(6.128)	(16.369)
NETWORTH		39.006	11.872	(1.000)
LOAN FUNDS
1] Secured Loans		51.457	55.592	50.040
2] Unsecured Loans		20.500	20.500	23.490
TOTAL BORROWING		71.957	76.092	73.530
DEFERRED TAX LIABILITIES		6.749	7.403	5.495
TOTAL		117.712	95.367	78.025
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		64.159	67.088	65.195
Capital work-in-progress		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	45.561	27.428	14.692
	Sundry Debtors	59.546	37.718	26.744
	Cash & Bank Balances	0.158	0.247	0.438
	Other Current Assets	0.000	0.000	1.224
	Loans & Advances	11.577	4.826	1.584
Total Current Assets		116.842	70.219	44.682
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	57.103	39.680	31.997
	Provisions	6.234	2.357	0.000
Total Current Liabilities		63.337	42.037	31.997
Net Current Assets		53.505	28.182	12.685
MISCELLANEOUS EXPENSES		0.048	0.097	0.145
TOTAL		117.712	95.367	78.025

PROFIT & LOSS ACCOUNT

PARTICULARS	31.03.2006	31.03.2005	31.03.2004
Sales Turnover [including other income]	272.150	183.766	116.161
Profit/(Loss) Before Tax	30.255	12.111	(3.775)
Provision for Taxation	0.000	1.869	0.000
Profit/(Loss) After Tax	30.255	10.242	(3.775)
Export Value	41.983	47.719	33.433
Import Value	NA	NA	1.729
Expenditures :
Interest	5.626	5.920
Depreciation	5.696	3.083	129.887
Other Expenses	230.573	162.653
Total Expenditure	241.895	171.656	129.887

KEY RATIOS

PARTICULARS		31.03.2006	31.03.2005	31.03.2004
PAT / Total Income	(%)	11.12	5.57	(3.24)
Net Profit Margin (PBT/Sales)	(%)	11.12	6.59	(3.24)
Return on Total Assets (PBT/Total Assets}	(%)	16.71	70.34	(3.43)
Return on Investment (ROI) (PBT/Networth)		0.77	0.06	(3.77)
Debt Equity Ratio (Total Liability/Networth)		4.64	6.40	(105.52)
Current Ratio (Current Asset/Current Liability)		1.84	1.67	1.39

LOCAL AGENCY FURTHER INFORMATION

Directors Report

The company in its second year of commercial operation was introduced intruded various products on third party basis and on loan and license basis. The companys manufactures capacity is well appreciated in the market and the products are getting encouraging response. The company also entered in to the market and achievel on export sale. Future negotiation are in progress for exploring and the company expects a good growth in products in various countries.

Fixed Assets

v Leasehold Land

v Plant & Machinery

v Building

v Computer

v Car

v Office Equipment

Business

To carry on all or any of the following business as manufacturer, weavers, knitters, doublers, twisters, texturising, worsted stuff manufacturer, buyers, sellers, exports, importers, dealers, distributors of Cotton Viscos Rayon, Silk, Staple, Fibre Yarn, Jute and Fabrics and Such other fibres.

Form 8 Particular for creation or modification of charges

Corporation identity number or foreign company registrations number of the company	U17000MH1997PTC105076
Name of the company	GELNOVA LABORATORIES PRIVATE LIMITED
Address	C – 125, TTC Industrial Area, Mahape, Navi Mumbai - 400705
This Form is for	Modification Charge
Type of Charge	Hypothecation and Equitable mortgage
Particular of the charge holder	Bank of India, Mumbai Corporate Banking Branch, Bank of India Building, 4^th Floor, 70/80 M G Road, Fort, Mumbai – 400023 E-Mail – boiagm@vsnl.com
Description of the property charge whether it is a charge on	Immovable, Stock in trade, Book Debts and other
Modification charge Charge identification number of the charge to be modified	80004040
Date of instrument modifying the charge	31.05.2006

Corporation identity number (CIN) or foreign company registrations number of the company	U17000MH1997PTC105076
Name of the company	GELNOVA LABORATORIES PRIVATE LIMITED
Address	C – 125, TTC Industrial Area, Mahape, Navi Mumbai - 400705
This Form is for	Modification of charge
Type of Charges	Immovable property
Particular of the charge holder	Bank of India, Mumbai Corporate Banking Branch, Bank of India Building, 4^th Floor, 70/80 M G Road, Fort, Mumbai – 400023 E-Mail – boiagm@vsnl.com
Nature or description of the instrument creating charge	Supplemental memorandum entry
Date of the instrument creating charge	22.12.2006
Amount Secure by the charge	Rs. 78.000 millions
Brief of the principal terms and conditions and extent and operation of the charge	Rate of Interest: Cash Credit and Term Loan – Interest @ 2.00 over BOI PLR Terms of Repayment: on demand Margin: as may be stipulated by Bank fro time to time Extent and operation of the charge: the company accorded and gave oral consent to Bank to continue to hold and retain the title deeds (by way of Constructive delivery) in respect of its immovable properties as mentioned under item no. 14 as security for following facilities
Description of the property charge whether it is a charge on	--
Modification charge Charge identification number of the charge to be modified	80004040
Date of instrument modifying the charge	22.12.2006
Particulars of the Property charged	All that piece or parcel of land with buildings, sheds and structures standing thereon situate at Plot No. C-125 in TTC Industrial Area, within the village limits of Borivali, Taluka and Registration Sub District Thane, District and Registration District Thane containing by measurement 3920 square meters, together with fixed machinery and plant, fixtures and fittings both present and future.
Particulars of the present modification	The mortgage security stands extended to cover the increased facilities aggregating Rs. 78.000 millions

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.40.38
UK Pound	1	Rs.82.04
Euro	1	Rs.55.56

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	4
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--CREDIT LINES	1~10	5
--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		45

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