MIRA INFORM REPORT

Report Date :

23.06.2007

IDENTIFICATION DETAILS

Name :	OZONE PHARMACEUTICALS LIMITED
Registered Office :	Ozone House, 1 LSC, Block A-3, Janak Puri, New Delhi – 110058
Country :	India
Financials (as on) :	31.03.2006
Date of Incorporation :	13.03.1991
Com. Reg. No.:	55-43461
CIN No.: [Company Identification No.]	U99999DL1991PLC043461
TAN No.: [Tax Deduction & Collection Account No.]	DELO01846F
PAN No.: [Permanent Account No.]	AAAC00056H
Legal Form :	A closely held public limited liability company.
Line of Business :	Manufacturer and Exporter of Skin Care, Eye care, Hair Care Range of Herbal Products.

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 710000
Status :	Satisfactory
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well-established and reputed company having satisfactory track. Directors are reported as experienced and respectable businessmen. Trade relations are reported as 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 :	Ozone House, 1 LSC, Block A-3, Janak Puri, New Delhi – 110058, India
Tel. No.:	91-11-25572371-76 / 25528962 / 25502653 / 45540000
Fax No.:	91-11-25501985 / 25502773 / 25508311 / 25501985
E-Mail :	mmbhasin@gmail.com info@ozoneayurvedics.net export@oplho.com ozone@giasdl01.vsnl.net.in
Website :	http://www.ozone-pharma.com http://www.ozoneayurvedics.com http://www.ozone.net
Factory 1 :	Village Katha Badi 173205, Himachal Pradesh, India
Factory 2 :	EPIP, Amingaon, Guwahati 781031, Assam

DIRECTORS

Name :	Mr. Sudershan Verma
Designation :	Director
Address :	121, Sector 33-A, Chandigarh
Date of Birth/Age :	09.09.1934
Qualification :	Graduate
Date of Appointment :	09.03.1994
Name :	Mr. Sushant Chander Sehgal
Designation :	Director
Address :	C-445, Sushant Lok, Gurgaon, Haryana, India
Date of Birth/Age :	30.04.1952
Qualification :	B. Sc.
Date of Appointment :	21.06.1996
Name :	Mrs. Pushpalata Sehgal
Designation :	Director
Address :	C-445, Sushant Lok, Gurgaon, Haryana, India
Qualification :	Graduate
Date of Birth/Age :	10.09.1930
Date of Appointment :	18.11.1996
Name :	Mr. Suraj Bhan Gupta
Designation :	Director
Address :	A-1/287, Janak Gupta, New Delhi – 110058, India
Qualification :	LLB
Date of Birth/Age :	09.11.1934
Date of Appointment :	20.10.1997
Name :	Mr. Kamal Verma
Designation :	Company Secretary
Address :	B-246, Harinagar, New Delhi – 110064, India
Qualification :	ACA, ACS
Date of Birth/Age :	28.06.1978
Date of Appointment :	15.01.2005

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

Names of Shareholders	No. of Shares
P. L. Sehgal	189791
S. C. Sehgal	2048710
Sudershan Verma	72805
Deepak Varma	7500
M. N. Verma	20570
Sushila Mehta	13172
Manju Bensal	10000
Shruti Sehgal	3100
Karan Sehgal	3223
Anupam Verma	41213
Sadhana Mehta	4223
Chanderksh	2500
Swatantra Aggarwal	2500
B. S. Kalra	3000
Madan Kakkaar	2500
M. L. Verma	2500
O. M. Yunuse Kunju	2500
Paramjit Kaur	2500
Veena Minocha	2500
Veerendra Singh	2500
Md. Israel	2500
Radhey Shyam Gupta	2500
Sudha Rani Gupta	2500
Shakri Srivastava	2500
Pramod Kr. Srivastava	2500
Rajesh Prabhakar Singh	2500
Neeta Aggarwal	2500
Aditya Manglik	2500
Mohammad Shafi	4000
Vijay Aggarwal	2500
Ashesh Nagayach	2500
Urmila Devi	2500
Sonia Bhandari	2500
Romi Kapoor	2500
Shrda Purohit	2500
B. L. Kantroo	2500
Sudesh Gupta	2500
Geeta Sehgal	197106
Amit Sehgal	5707
Vijay Sehgal	15000
Total	2699120
Equity Share Breakup
Category	Percentage of Holding
Directors of relatives of directors	96.00
Other top fifty shareholders	4.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer and Exporter of Skin Care, Eye care, Hair Care Range of Herbal Products.
Products :	Medicines
Exports :
Countries :	West Indies, Africa, South East Asia, united Emirates, Malaysia, Myanmar, Bangladesh, Maldives, Mauritius, Kenya, Nigeria, Ghana, Canada, United Kingdom, Hungary, Poland, Viet Nam and Sri Lanka

GENERAL INFORMATION

No. of Employees :	100
Bankers :	State Bank of India Citi Bank NA, Jeevan Vihar Building, 3, Sansad Marg, New Delhi – 110001, India ICICI Bank Limited, Landmark Race Cource Circle, Alkapuri, Baroda – 390015, Gujarat, India
Facilities :	--

Banking Relations :	Satisfactory
Auditors :
Name :	M. M. Bhasin and Company Chartered Accountants
Address :	501, Rattan Jyoti Building, 18, Rajendra Place, New Delhi- 110008, India
Memberships :	CHEMEXCIL PHDCCI FICCI
Associates/Subsidiaries :	Ozone UK Limited

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
5000000	Equity Shares	Rs. 10/- each	Rs. 50.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
2699120	Equity Shares	Rs. 10/- each	Rs. 26.991 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		26.991	26.991	26.991
2] Share Application Money		1.235	0.000	0.000
3] Reserves & Surplus		149.908	120.125	91.334
NETWORTH		178.134	147.116	118.325
LOAN FUNDS
1] Secured Loans		72.277	61.303	34.181
2] Unsecured Loans		19.839	19.787	17.450
TOTAL BORROWING		92.116	81.090	51.631
DEFERRED TAX LIABILITIES		2.446	5.676	5.163
TOTAL		272.696	233.882	175.119
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		97.298	67.592	60.442
Capital work-in-progress		10.891	9.861	2.209
INVESTMENT		0.181	0.181	0.182
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	104.175	76.190	40.446
	Sundry Debtors	66.883	31.707	35.410
	Cash & Bank Balances	1.934	22.879	14.213
	Loans & Advances	50.299	52.373	64.937
Total Current Assets		223.291	183.149	155.006
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	94.894	68.720	63.743
	Provisions	5.134	2.136
Total Current Liabilities		100.028	70.856	63.743
Net Current Assets		123.263	112.293	91.263
MISCELLANEOUS EXPENSES		41.063	43.955	21.023
TOTAL		272.696	233.882	175.119

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2006	31.03.2005	31.03.2004
Sales Turnover		582.572	455.967	404.299
Other Income		1.309	1.295	41.554
Total Income		583.881	457.262	445.853
Profit/(Loss) Before Tax		37.134	34.059	29.601
Provision for Taxation		5.191	3.379	3.057
Profit/(Loss) After Tax		31.943	30.680	26.544
Expenditures :
	Opening Stock	0.000	0.000	37.930
	Manufacturing Expenses	0.000	0.000	134.641
	Administrative Expenses	0.000	0.000	35.946
	Selling and Distribution Expenses	0.000	0.000	177.294
	Raw Material Consumed	170.728	145.549	0.000
	Purchases made for re-sale	15.890	16.332	14.118
	Consumption of stores and spares parts	3.399	1.877	0.000
	Increase/(Decrease) in Finished Goods	14.134	33.571	0.000
	Salaries, Wages, Bonus, etc.	25.734	19.051	0.000
	Managerial Remuneration	0.911	0.750	0.000
	Payment to Auditors	0.502	0.268	0.000
	Interest	11.236	9.243	8.225
	Insurance Expenses	0.397	0.336	0.000
	Power & Fuel	3.370	2.635	0.000
	Depreciation & Amortization	13.509	9.072	8.099
	Other Expenditure	286.936	184.522	0.000
Total Expenditure		546.746	423.206	416.253

KEY RATIOS

PARTICULARS		31.03.2006	31.03.2005	31.03.2004
PAT / Total Income	(%)	5.47	6.71	5.95
Net Profit Margin (PBT/Sales)	(%)	6.37	7.47	7.32
Return on Total Assets (PBT/Total Assets}	(%)	11.58	13.58	13.74
Return on Investment (ROI) (PBT/Networth)		0.21	0.23	0.25
Debt Equity Ratio (Total Liability/Networth)		1.08	1.03	0.98
Current Ratio (Current Asset/Current Liability)		2.23	2.58	2.43

LOCAL AGENCY FURTHER INFORMATION

FIXED ASSETS

• Land
• Building
• Generator
• Machinery
• Computer
• Office Equipments
• Computer
• Furniture
• Electrical Installations
• Air Conditioner
• Motor Vehicles

Bankers Charges Report as per Registry

Name of the company	OZONE PHARMACEUTICALS LIMITED
1) Date and description of instrument creating the change	Goods security agreement dated 22.01.2003
2) Amount secured by the charge/amount owing on the securities of charge	Total facilities of Rs. 15.000 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	First exclusive charge on Plant and Machinery of the company at Baddi, Himachal Pradesh, First Paripassu charge on all present and future stock and book debts of the company. Pari Passu charge with North Eastern Development Finance Corporation Limited
4) Gist of the terms and conditions and extent and operation of the charge.	Repayable on demand Cash Credit at 14.50 % p.a. Other interest rates as per RBI mandated rates specified from time to time.
5) Name and Address and description of the person entitled to the charge.	Citi Bank NA, Jeevan Vihar Building, 3, Sansad Marg, New Delhi – 110001, India
6) Date and brief description of instrument modifying the charge	Deed of Modification dated 23.05.2005
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.	Fund based facility enhanced form Rs. 15.000 Millions to Rs. 30.000 millions. Other terms and conditions remain same.

Corporate identity number of the company	U99999DL1991PLC043461
Name of the company	OZONE PHARMACEUTICALS LIMITED
Address of the registered office or of the principal place of business in India of the company	B-43, Shankar Garden, Najar Garh Road, Delhi, India
This form is for	Creation of charge
Type of charge	Hypothecation Equitable mortgage or mortgage of property by deposition the title deeds
Particular of charge holder	ICICI Bank Limited Landmark Race Cource Circle, Alkapuri, Baroda – 390015, Gujarat, India
Nature of instrument creating charge	Master Facility agreement and deed of hypothecation
Date of instrument Creating the charge	29.05.2006
Amount secured by the charge	Rs. 20.000 Millions
Description of the property charged indicating whether it is a charged on	Immovable properties Plant and Machinery Furniture and Fixture Stock in trade Book debts Vehicles
Particulars of the property charged	Mortgage by deposit of title deeds in favour of the bank as security on : Office No. 401, 4^th Floor, Omega, Powai, Mumbai New Factory and Building at Naroli

AS PER WEBSITE

Subjects have Two Manufacturing Unit that are WHO GMP certified and they can undertaken manufacturing of Foreign Company products in these Units Four Pharmaceutical products. They have as Office and Infrastructure in London and a Company with good products can approach them for exporting to London and carrying out Sales activities there for them.

They are a 270 Millions WHO GHP approved, professionally managed Delhi based Pharmaceutical company with a vision to attain trends of 500 Millions per annum in the current year

Ozone Pharmaceuticals is the parent company of the Ozone Group and was founded in 1991.With the launch of Ozone Ayurvedics in 2001, the company diversified into over the counter herbal health and beauty care products category. Ozone Ayurvedic's flagship brand Nomarks has been highly successful and has launched a number of category pioneer products such as Nomarks mark removal cream, Nomarks elbow cream and Nomarks scrub soap.

Ozone Ayurvedics offers a natural, organic way to health and healing. Established in 1991 by its parent company, Ozone Pharmaceuticals Limited, the move represented a well-planned diversification into herbal products. It was also in line with the 'natural' wave that was sweeping across the world. Spurred by the realisation that allopathic medicines could, in some cases,be a double-edged sword, Ozone added a whole new dimension to its healing mission by evolving a diverse portfolio of herbal products ranging from skincare and pain relievers to eye care and cough formulae. 

The technology at Ozone's manufacturing units is world class - this enables the company to match international levels of excellence in respect of not only manufacturing but also finishing and packaging. The technology is backed by highly skilled personnel who are trained to use the equipment with precision and in-depth expertise. 

Browse category  

Bath Range

Ozone's Herbal Bath Gel
Ozone's Day Protection Lotion
Ozone's Hair cleanser
Ozone's Hair conditioner

Soaps

Ozone's Lavender Sponge Soap
Ozone's Lime Loofah Soap
Ozone's Sweetheart Soap

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.40.71
UK Pound	1	Rs.81.24
Euro	1	Rs.54.63

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	7
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	6
--RESERVES	1~10	6
--CREDIT LINES	1~10	6
--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	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		54

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