MIRA INFORM REPORT

Report Date :

06.11.2007

IDENTIFICATION DETAILS

Name :	EVEREST ORGANICS LIMITED
Registered Office :	Sadashivpet Mandal Aoor village, Medak – 502 291, Andhra Pradesh.
Country :	India
Financials (as on) :	31.03.2005
Date of Incorporation :	19.02.1993
Com. Reg. No.:	15426
CIN No.: [Company Identification No.]	U24230AP1993PLC015426
TAN No.: [Tax Deduction & Collection Account No.]	HYDE00817F
PAN No.: [Permanent Account No.]	AAACE4400F
Legal Form :	A Closely held Public Limited Company.
Line of Business :	Manufacturing of high quality pharmaceutical raw materials and intermediates such as ciprofloxacin, omeprazole, benzimidazole, enrofloxacin and others

RATING & COMMENTS

MIRA’s Rating :

C

RATING		STATUS	PROPOSED CREDIT LINE
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended

Status :	Poor
Payment Behaviour :	Slow and delayed
Litigation :	Exist
Comments :	Ways and means position is difficult. Payments are reported as slow and delayed The company can be considered for any business dealings on safe and secured trade terms and conditions, only. No subsequent financial information could be available from any sources.

LOCATIONS

Registered Office/ Factory:	Sadashivpet Mandal Aoor village, Medak – 502 291, Andhra Pradesh.
Tel. No.:	91-8455-250113 / 250114 / 250115
Fax No.:	91-8455-250114
Email:	drsksraju@yahoo.co.in
Website :	http://www.everestorganicsltd.com
Administrative Office :	8-3-214/50, 4^th Floor, Srinivasa Nagar Colony West, Hyderabad - 500 090
Tel. No.:	91-40-23737137 / 66510306 /23737139
Fax No.:	91-40-66820511
Corporate Office :	H No. 8-3-222 / 23A, MCH-138, near Allahabad Bank, Yousufguda Road, Madhura Nagar, Hyderabad - 500 038, Andhra Pradesh, India.
Tel. No.:	91-40-23737137 / 138
Fax No.:	91-40-23741007 / 55820511
E-Mail :	everest@hd1.vsnl.net.in gadambur@yahoo.com babladi@hotmail.com srihari_everest@rediffmail.com
Website :	http://everest1.hypermart.net/ http://www.everestorganics.com

DIRECTORS

Name :	Dr. S. K. Srihari Raju
Designation :	Chairman cum Managing Director
Name :	Mr. A. Raja Rao
Designation :	Director
Name :	Mr. C. Prasanna
Designation :	Director
Name :	Mr. Raju S. Kakalapudi
Designation :	Director
Name :	Dr. K. Eswar Reddy
Designation :	Director
Name :	Mr. Krishnam R. Kakarlapudi
Designation :	Director
Name :	Mr. Sundararaman
Designation :	Director
Name :	Mr Ganesh
Designation :	Director
Name :	Mrs. Srimathi Rao
Designation :	Director
Name :	Mr. Ravi Shekar
Designation :	Director
Name :	Mr. Dora
Designation :	Director

BUSINESS DETAILS

Line of Business :

Manufacturing of high quality pharmaceutical raw materials and intermediates such as ciprofloxacin, omeprazole, benzimidazole, enrofloxacin and others

Products :

· 2 - Mercapto - 5 - Methoxy Benzimidazole (Intermediate of Sl. No.3)

· Chloro Compound (Intermediate of Sl. No.3)

· Omeprazole Powder

· Omeprazole Sulphide (Intermediate of Sl. No.3)

· Omeprazole Sodium

· Omeprazole Magnesium

· Ciprofloxacin HCL

· Q-Acid (Intermediate of Sl. No.7)

· Pantoprazole Sodium

· Lansaprazole

· Esomeprazole Magnesium

· Clorsulon

· Carbosteryle

· Aripiprazole

Item Code No. (ITC Code)	29419003
Product Description	Ciprofloxacin
Item Code No. (ITC Code)	29420029
Product Description	Omeprazole

Exports :

Countries :

Far East, Middle east, Europe, United States, Jordan, Spain

Imports :

Countries :

China, Japan

PRODUCTION STATUS AS ON 31.03.2002:-

Particulars	Unit	Installed Capacity
Benzimidazole	TPA	120
Omeprazole Op Sulphide	TPA	30

GENERAL INFORMATION

No. of Employees :	100
Bankers :	· State Bank of India, Hyderabad, Andhra Pradesh · State Bank of Travancore, Hyderabad, Andhra Pradesh

Banking Relations :	----
Auditors :
Name :	PSN Ravi Shanker and Associates Chartered Accountants
Associates/Subsidiaries :	Nil

CAPITAL STRUCTURE

Authorised Capital :

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

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
9270000	Equity shares	Rs.10/- each	Rs. 92.700 millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2005	31.03.2004	31.03.2003
SHAREHOLDERS FUNDS
1] Share Capital		92.700	92.700	92.700
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		[209.600]	[200.100]	[175.600]
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		[116.900]	[107.400]	[82.900]
LOAN FUNDS
1] Secured Loans		225.700	226.700	222.200
2] Unsecured Loans		23.200	22.600	15.300
TOTAL BORROWING		248.900	249.300	237.500
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		132.000	141.900	154.600
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		151.500	161.700	167.500
Capital work-in-progress		0.000	0.000	0.400
INVESTMENT		0.800	0.800	0.800
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	8.500	7.300	13.100
	Sundry Debtors	25.800	22.000	8.600
	Cash & Bank Balances	0.500	1.300	0.700
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	11.600	7.400	8.600
Total Current Assets		46.400	38.000	31.000
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	67.300	60.700	49.000
	Provisions	0.000	0.000	0.000
Total Current Liabilities		67.300	60.700	49.000
Net Current Assets		[20.900]	[22.700]	[18.000]
MISCELLANEOUS EXPENSES		0.600	2.100	3.900
TOTAL		132.000	141.900	154.600

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2005	31.03.2004	31.03.2003
Sales Turnover		116.300	69.300	74.100
Other Income		19.800	17.100	6.800
Stock Adjustments		0.500	[4.500]	[21.400]
Total Income		136.600	81.900	59.500
Profit/(Loss) Before Tax		[9.500]	[23.700]	[98.700]
Provision for Taxation		0.000	0.000	0.000
Profit/(Loss) After Tax		[9.500]	[23.700]	[98.700]
Expenditures :
	Raw materials	66.300	45.700	55.400
	Excise Duty	10.900	4.000	5.700
	Power and Fuel	15.400	11.100	13.700
	Other manufacturing Expenses	18.300	13.700	10.300
	Employee Cost	9.100	7.800	7.800
	Selling and Administration Expenses	11.800	7.700	13.600
	Miscellaneous Expenses	1.500	2.600	35.800
	Interest and financial Charges	0.500	0.800	3.200
	Depreciation	12.300	12.200	12.700
Total Expenditure		146.100	105.600	158.200

KEY RATIOS

Year	31.03.2005	31.03.2004	31.03.2003
Debt-Equity Ratio	0.00	0.00	0.00
Long Term Debt-Equity Ratio	0.00	0.00	0.00
Current Ratio	0.33	0.28	0.54
TURNOVER RATIOS
Fixed Assets	0.48	0.29	0.30
Inventory	14.72	6.79	2.66
Debtors	4.87	4.53	3.19
Interest Cover Ratio	[18.00]	[28.63]	[20.94]
Operating Profit Margin(%)	2.84	[15.44	[73.28]
Profit Before Interest And Tax Margin(%)	[7.74]	[33.04]	[90.42]
Cash Profit Margin(%)	2.41	[16.59]	[77.60]
Adjusted Net Profit Margin(%)	[8.17]	[34.20]	[94.74]
Return On Capital Employed(%)	0.00	0.00	0.00
Return On Net Worth(%)	0.00	0.00	0.00

LOCAL AGENCY FURTHER INFORMATION

HISTORY

The company was incorporated in February, 1993 at Hyderabad in Andhra Pradesh having Company Registration Number 15426.

Subject was promoted by Dr. S. K. Srihari Raju and Mr. S. K. Chittiramabhadra Raju.

The company set up a plant at Aroor in Andhra Pradesh to manufacture bulk drugs and formulations. It came out with a public issue in January, 1995 to part finance the project.

Commercial production of ciprofloxacin and omerprazole commenced in February, 1996. The company preferred to manufacture para hydroxy phynyl glycin (PHPG), but due to market conditions, it dropped to manufacturing of PHPG.

The company’s fixed assets of important value includes:-

· Site Development,

· Vehicles,

· Office Equipments,

· Computers,

· Furniture & Fittings,

· Plant & Machinery

· Unities

· Buildings.

WEBITES DETAILS:

The company was incorporated on 19.02.1993 to carry on the business of manufacturing of bulk drugs viz. Omeprazole, Ciprofloxacin, Dichloroflurobenzene, Benzimadizole, etc., having its factory at Sadasivpet Medak District Hyderabad. The construction activities have started in the year 1994 and the commercial production of the company has started in 1996. During the Year 1995 the company went into public issue and the shares of the company have been Over-subscribed by 39.632 times. With full swing the company started its production and got a good market share for their products.

The Company is headed by Dr. S.K. Srihari Raju who is a NRI and also a Doctor by profession. He brings in his rich and varied experience of more than 25 years in the field of Medical Science to develop Products and enhance marketability by focusing on Therapeutic areas which are of strategic importance and growth.

The Company's Factory has a total area of 32 acres with 23 acres of green belt and 9 acres covered under buildings and roads. A massive plantation has been done in and around the process plants. There are totally 2000 plants and 2036 trees in the Company factory premises. These trees and plants include different varieties like Subabul, Neem, Gulmohar etc., Beautiful lawns between the buildings give a pleasant view for the unit that relieves the stress of the workers.

The Industry has a very good service facility for steam, cooling and power. It has a 6 tonne and a 2.3 tonne boiler for steam, 260 TR of cooling and generator of 895 KV Capacity.

Utilities

Safety Systems

Safety in this industry is a major issue and hence all the equipment are specially designed with Rupture disks and solenoid valves are kept for the reactors undergoing exothermic and pressure reactions. Pressure and vacuum gauges are calibrated periodically. Ample space is provided between the reactors. Centrifuges are provided with limit switches. Pressure tests are done for the Reactors periodically. Reactor and jacket thickness tests are conducted regularly. All the equipments are earthed to avoid static electricity. The industry is also equipped with a good fire Hydrant System and fire extinguishers for each and every critical as well as production areas.

SERVICES:

They are one of the Major Manufacturers and Exporters of Active Pharmaceutical Ingredients and its intermediates in India. They are an ISO 9002 certified company. Their facilities comply to GMP standards and is certified by the Drug Control Authority of the Government of Andhra Pradesh, India. Their Products have been well accepted in the Global Market. They supply their products to major multinational companies abroad, prominent well established formulation companies in India, Europe, USA, Far East and the Middle East, and also to Latin / Central / South American Countries. They also provide adequate technical and documentary support for their products. Their products comply to various pharmacopial standards like BP, USP, EP and IP Standards as desired by the customer. They also have their own in house specifications. If required, they can provide Drug Master Files (DMF) and Common Technical Documents (CTD) for their products. They have also achieved a high degree of purity standards consistently for all their products and their documentation support is extensive as they have been dealing with these products since 1996.

Their standard Packing is in 25kg HDPE Drums, Validity of their offer is normally one week from the date of mailing. Payment terms are Negotiable and normal delivery terms are three to four weeks from the date of receipt of confirmed order.

The activities of the Company are executed by a team of professionals with expertise in the areas of production, planning, inventory and quality control. This team of professionals brings in there experience and expertise developed in the pharmaceutical industry. This helps in achieving world class products at very competitive prices and excellent proven quality, which is of utmost importance in a critical industry like healthcare.

Products:

Existing Production Facilities

SL. NO.	Name of the Product	Capacity In Tons
1.	2 - Mercapto - 5 - Methoxy Benzimidazole (Intermediate of Sl. No.3)	150
2.	Chloro Compound (Intermediate of Sl. No.3)	36
3.	Omeprazole Powder	36
4.	Omeprazole Sulphide (Intermediate of Sl. No.3)	(Made to Order)
5.	Omeprazole Sodium	(Made to Order)
6.	Omeprazole Magnesium	(Made to Order)
7.	Ciprofloxacin HCL	240
8.	Q-Acid (Intermediate of Sl. No.7)	240

Future Capital expansion Programme

The Company is under the process of introducing 6 new products to its existing production facilities.

SL. NO.	Name of the Product	Capacity In Tons
1.	Pantoprazole Sodium	12
2.	Lansaprazole	2.4
3.	Esomeprazole Magnesium	2.4
4.	Clorsulon	2.4
5.	Carbosteryle	1.2
6.	Aripiprazole	1.2

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.32.29
UK Pound	1	Rs.81.91
Euro	1	Rs.56.96

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
PAID-UP CAPITAL	1~10	---
OPERATING SCALE	1~10	---
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	---
--PROFITABILIRY	1~10	---
--LIQUIDITY	1~10	---
--LEVERAGE	1~10	---
--RESERVES	1~10	---
--CREDIT LINES	1~10	1
--MARGINS	-5~5	---
DEMERIT POINTS
--BANK CHARGES	YES/NO	NO
--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
TOTAL		4

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