MIRA INFORM REPORT

Report Date :

05.04.2008

IDENTIFICATION DETAILS

Name :	CACHET PHARMACEUTICALS PRIVATE LIMITED
Registered Office :	Exhibition Road, Patna - 800 001, Bihar
Country :	India
Financials (as on) :	31.03.2007
Date of Incorporation :	25.04.1978
Com. Reg. No.:	1328
CIN No.: [Company Identification No.]	U00305BR1978PTC001328
TAN No.: [Tax Deduction & Collection Account No.]	PTNC00270E
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Bulk Drugs and Pharmaceuticals

RATING & COMMENTS

MIRA’s Rating :

A

RATING		STATUS	PROPOSED CREDIT LINE
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

Maximum Credit Limit :	USD 478000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well established and reputed company having fine track records. Trade relations are fair. Business is active. General financial position is satisfactory. Payments are reported as 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 :	Exhibition Road, Patna - 800 001, Bihar, India.
E-Mail :	pareshs@cachetindia.com
Corporate Office :	415, Shah Nahar Industrial Estate, Dr. E. Moses Road, Worli Naka, Mumbai 400018, Maharashtra, India
Tel. No.:	91-22-24965831-32-33-35-37 / 24970011
Fax No. :	91-22-24973691
	International Operation :
Tel. No.:	91-22-66611304
Fax No.:	91-22-24973691
E-Mail :	skagrawal@cachetindia.com
	Research Center :
Tel. No.:	91-1493-220237/220389 / 91-1493-220889
Fax No.:	91-1493-220188
	Manufacturing :
Tel. No.:	91-9816682474 / 5
Fax No.:	91-1795-308141
E-Mail :	corporate@cachetindia.com
Website :	www.cachetindia.com

DIRECTORS

Name :	Mr. Rajeev Ranjan
Designation :	Director
Address :	Sushila Bhavan, East Boring Canal Road, Budha Colony, Patna 800001, Bihar, India
Date of Birth/Age :	05.06.1966
Date of Appointment :	24.10.1992
Name :	Mr. Rajesh Kumar
Designation :	Director
Address :	Sushila Bhawan, East Boring Canal Road, Budha Colony, Patna 800001, Bihar, India
Date of Birth/Age :	18.06.1969
Date of Appointment :	16.06.2001
Name :	Mr. Lalan Kumar Singh
Designation :	Director
Address :	Biscoman Colony, Sandalpur, Patna 800006, Bihar, India
Date of Birth/Age :	18.08.1942
Date of Appointment :	15.01.1983
Name :	Mr. Satish Kumar Singh
Designation :	Director
Address :	303, Richox Building, Plot No. 365, Kantwadi, Bandra [West], Mumbai 400050, Maharashtra, India
Date of Birth/Age :	05.08.1960
Date of Appointment :	16.06.2001

KEY EXECUTIVES

Name :	Mr. Paresh Jaysih Sampat
Designation :	Secretary
Address :	Green Hills, 44-503, Lokhandwala Township, Akurli Road, Kandivali {East], Mumbai 400101, Maharashtra, India
Date of Birth/Age :	25.11.1970
Date of Appointment :	01.06.2001
Name :	Mr. Dinesh Kumar Deora
Designation :	Secretary
Address :	209B, 2^nd Floor, Pandya Mansion, 625 JSS Road, Marine Lines, Mumbai – 400002
Tel. No.:	91-22-22068518/22071215/66351457

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

Names of Shareholders	No. of Shares
Prabhat Singh	675
Samprada Singh	300
Basudeo Singh	960
Kishore Kumar Singh	450
Deepak Kumar Singh	450
Dhananjay Singh	525
Rajesh Kumar	225
Rekha Singh	881
Samprada Singh [HUF]	683
Nanhamati Singh	1350
Nawal Kishore Singh	150
Anju Singh	120
Manju Singh	660
Satish Kumar Singh	450
Sarvesh Singh	525
Sandeep Singh	525
Basudeo Singh [HUF]	915
Madhurima Singh	365
Mritunjay Singh	525
Seema Singh	365
Archana Singh	150
Rajeev Ranjan	150
Anita Singh	585
Prerna Kumar	758
Jayanti Sinha	983
Tushar Kumar	375
Ashok Kumar	450
Alok Kumar	450
Total	15000
Equity Share Break-up	Percentage of Holding
Directors or relatives of the Directors	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Bulk Drugs and Pharmaceuticals

Products :

Item Code No. (ITC Code)	300450.02
Product Description	Haematinic

Item Code No. (ITC Code)	300420.19
Product Description	Ceftriaxone Sodium

Item Code No. (ITC Code)	300450.03
Product Description	Nutritional Supplement

PRODUCTION STATUS

As on 31.03.2005

Particulars	Unit	Installed Capacity	Actual Production
Tablets	Nos.	525000	23607
Liquid Orals	Nos.	15600	19362
Granules	Nos.	1800	664
Capsules	Nos.	120000	5016
Injections	Nos.	NIL	3143

GENERAL INFORMATION

Suppliers :

Ø Autofits

Ø Amijal Chemicals

Ø Astral Industries Limited

Ø Capital Print Pack

Ø Gaurav Industries

Ø Ruby Biotech Private Limited

Ø Vamsi Labs

Ø Zen Pharma Private Limited

Ø Daman Foil Private Limited

Ø Ruby Organics Private Limited

Ø Creative Hygenic Products

Ø The Madras Pharmaceuticals

No. of Employees :

About 350

Bankers :

Ø The Saraswat Co-operative Bank Limited

Worli Branch, Mumbai 400018

Ø Kotak Mahindra Bank Limited

Facilities :

Particulars	As on 31.03.2005 [Rupees in Millions]
SECURED LOAN
Cash Credit
From Saraswat Co-operative Bank Limited	63.601
Hire Purchase :
From Finance Companies	1.732
Total	65.333

Note :

Ø Cash Credit Facility by Bank of Baroda and the Saraswat Co-operative Bank Limited is secured against hypothecation of Company’s stocks, book debts, receivables, land and properties belonging to the Company shortly described as Factory Plot No. C-582 A, RIICO Industrial Area, Bhiwadi and Building constructed thereon.

The loan is further guaranteed by the Directors of the Company

Ø Hire Purchase Loans from Finance companies are secured against respective assets financed by them.

Particulars	As on 31.03.2005 [Rupees in Millions]
UNSECURED LOAN
From Bank Term Loan from Kotak Mahindra Bank Limited	22.168
From Directors	0.140
From Shareholders and Relatives	13.325
Trade Deposits	7.405
Total	43.038

Banking Relations :	Satisfactory
Auditors :
Name :	R. S. Singhai and Associates Chartered Accountants
Address :	216, Ghanshyam Tower, M. G. Road, Boriwali [East], Mumbai 400066, Maharashtra, India

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
15000	Equity Shares	Rs. 100/- each	Rs. 1.500 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
15000	Equity Shares	Rs. 100/- each	Rs. 1.500 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2007	31.03.2006	31.03.2005
SHAREHOLDERS FUNDS
1] Share Capital		1.500	1.500	1.500
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		118.032	99.148	82.437
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		119.532	100.648	83.937
LOAN FUNDS
1] Secured Loans		234.145	107.255	65.333
2] Unsecured Loans		53.365	48.088	43.039
TOTAL BORROWING		287.510	155.343	108.372
DEFERRED TAX LIABILITIES		8.475	3.875	0.000
TOTAL		415.517	259.866	192.309
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		248.495	63.044	62.372
Capital work-in-progress		13.450	133.394	9.378
INVESTMENT		0.025	0.025	0.025
DEFERREX TAX ASSETS		0.000	0.000	1.325
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	171.316	124.711	84.111
	Sundry Debtors	111.785	88.004	64.933
	Cash & Bank Balances	25.866	26.669	10.264
	Other Current Assets	0.032	0.016	0.013
	Loans & Advances	36.280	29.929	20.686
Total Current Assets		345.279	269.329	180.007
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	164.935	180.147	44.587
	Provisions	26.797	25.779	16.211
Total Current Liabilities		191.732	205.926	60.798
Net Current Assets		153.547	63.403	119.209
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		415.517	259.866	192.309

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2007	31.03.2006	31.03.2005
Sales Turnover		905.737	764.112	552.186
Other Income		1.451	1.621	2.754
Total Income		907.188	765.733	554.940
Profit/(Loss) Before Tax		30.280	30.910	[11.098]
Provision for Taxation		11.450	29.200	3.600
Profit/(Loss) After Tax		18.830	16.710	[7.498]
Import Value		NA	7.454	NA
Earnings in Foreign Currency :		4.433	15.933	23.659
Expenditures :
	Cost of Materials	0.000	0.000	310.785
	Manufacturing Expenses	0.000	0.000	4.573
	Personal Costs	0.000	0.000	95.995
	Other Expenses	0.000	0.000	142.554
	Financing Charges	18.413	9.787	7.642
	Depreciation	12.606	4.845	4.489
	Other Expenditure	845.889	720.191	0.000
Total Expenditure		876.908	734.823	566.038

KEY RATIOS

PARTICULARS		31.03.2007	31.03.2006	31.03.2005
PAT / Total Income	(%)	2.07	2.18	(1.35)
Net Profit Margin (PBT/Sales)	(%)	3.34	4.04	(2.00)
Return on Total Assets (PBT/Total Assets}	(%)	5.09	9.29	(4.57)
Return on Investment (ROI) (PBT/Networth)		0.25	0.30	(0.13)
Debt Equity Ratio (Total Liability/Networth)		4.00	3.58	2.01
Current Ratio (Current Asset/Current Liability)		1.80	1.30	2.96

LOCAL AGENCY FURTHER INFORMATION

Fixed Assets

Ø Land

Ø Building

Ø Office Building

Ø Plant and Machinery

Ø Air Conditioner

Ø Refrigerator

Ø Water Coolers

Ø Electrical Installation

Ø Computer and Software

Ø Typewriters

Ø Office Equipments

Ø Furniture and Fixtures

Ø Motor Cars, Scooters and Cycles

Ø Vehicles

Ø Water Pump

Form 8

Bankers Charges Report as per Registry

This Form is for	Creation of charge
Charge identification number of the charge to be modified	NA
Corporate identity number of the company	U00305BR1978PTC001328
Name of the company	CACHET PHARMACEUTICALS PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	Exhibition Road, Patna 1, Bihar 800001, India
Type of charge	Movable Property
Particular of charge holder	The Saraswat Co-operative Bank Limited Worli Branch, Mumbai 400030, Maharashtra, India
Nature of description of the instrument creating or modifying the charge	Agreement of hypothecation of movable property
Date of instrument Creating the charge	12.11.2006
Amount secured by the charge	Rs. 10.000 Millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	[a] Rate of interest interest @ 11.50% p.a. [b] Terms of repayment Repayment at any time to the bank on demand dated 12.12.2006. [c] Margin NIL [d] Extent and operation of the charge The charge to extent of Rs. 10.000 Millions operating on security offered by the company
Short particulars of the property charged	Borrowers doth do hereby hypothecate to and in favour of the bank all the tangible movable property [both present and future] belonging to the Borrowers and lying being at the Borrowers place of business at Exhibition Road, Patna 1, Bihar
Date of latest modification prior to the present modification	NA
Particulars of the present modification	NA

Name of the company	CACHET PHARMACEUTICALS PRIVATE LIMITED
Presented By	The Saraswat Co-operative Bank Limited Worli Branch, Mumbai 400018
1) Date and description of instrument creating the change	Agreement of hypothecation of movable property dated 15.12.2005
2) Amount secured by the charge/amount owing on the securities of charge	Rs. 41.300 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	All that plant and machinery of the Borrower
4) Gist of the terms and conditions and extent and operation of the charge.	To secure the due repayment of Loan granted by the Bank to the Borrower. Rate of interest : 10% p.a. or at such rate as may from time to time be fixed by the bank
5) Name and Address and description of the person entitled to the charge.	The Saraswat Co-operative Bank Limited Worli Branch, Mumbai 400018
6) Date and brief description of instrument modifying the charge	NA
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.	NA

AS PER WEBSITE DETAILS:

PROFILE

From it's inception in 1978, subject has steadily grown in pharmaceutical sector by manufacturing of pharmaceutical formulations. Cachet, established his own manufacturing plant at Bhiwadi (Rajasthan) in 1987. Cachet undertook manufacturing for leading Indian transnational and multinational companies and subsequently in 1993, Cachet commenced marketing of their own branded pharmaceutical formulation.

Thus, by turn of the century, Cachet achieved three significant milestones.

Ø WHO GMP certification in 2004

Ø ISO/9001(2000) certification in 2004.

Ø UKAS quality management certification in 2005.

Ø Encouraged by the success and patronage, by Indian medical profession for its medicines, Cachet took a step ahead and initiated its international operations.

Ø Early 2006 witnessed the commencement of Cachet’s 2nd state of the art production plant at Baddi (Northern India). This new manufacturing plant is compliant to WHO

Ø GMP,  USFDA  &  UKMHRA  standards.

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. 39.97
UK Pound	1	Rs. 79.78
Euro	1	Rs. 62.60

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	7
PAID-UP CAPITAL	1~10	7
OPERATING SCALE	1~10	7
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	9
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	8
--LEVERAGE	1~10	8
--RESERVES	1~10	7
--CREDIT LINES	1~10	7
--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		66

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.	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