MIRA INFORM REPORT

Report Date :

01.04.2008

IDENTIFICATION DETAILS

Name :	MERIDIAN MEDICARE LIMITED
Registered Office :	Village Shamti, Solan, 173212, Himachal Pradesh.
Country :	India
Financials (as on) :	31.03.2006
Date of Incorporation :	10.06.1997
Com. Reg. No.:	020064
CIN No.: [Company Identification No.]	U24231HP1997PLC020064
TAN No.: [Tax Deduction & Collection Account No.]	PTLM11669A
Legal Form :	Closely held Public Limited Liability Company
Line of Business :	Manufacturing and Marketing of Medicines.

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 63120
Status :	Satisfactory
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well established and reputed Company having Satisfactory track. Trade relations are fair. Business is active. Payments are reported as 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 :	Village Shamti, Solan, 173212, Himachal Pradesh, India.
Tel. No.:	91-1792-229739, 229779
Fax No.:	91-1792-229839
E-Mail :	vineet@meriodin.com info@meridian.com
Website :	www.meriodin.com

DIRECTORS

Name :	Mr. Vinod Gupta
Designation :	Managing Director
Address :	Surya Nagar, Chauhan Building, Rajgarh Road, Solan, 173212, Himachal Pradesh, , India.
Date of Birth/Age :	22/04/1943
Date of Appointment :	01.10.2007
Name :	Mrs. Madhu Gupta
Designation :	Whole-time Director
Address :	Surya Nagar, Chauhan Building, Rajgarh Road, Solan, 173212, Himachal Pradesh, India.
Date of Birth/Age :	13/05/1947
Date of Appointment :	01.10.2007
Name :	Mr. Suresh Kumar Chaudhary
Designation :	Whole-time director
Address :	1082, DLF Colony, Ward-23, Rohtak, 124001, Haryana, India.
Date of Birth/Age :	02/06/1950
Date of Appointment :	01.10.2007
Name :	Mr. Satinder Singh
Designation :	Whole-time Director
Address :	6, Village Aanji, H.No. 622, Tehsil, Solan, 173212, Himachal Pradesh, India.
Date of Birth/Age :	20/12/1956
Date of Appointment :	01.10.2007
Name :	Mr. Vikas Agarwal
Designation :	Whole-time Director

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2006

Names of Shareholders	No. of Shares
Mr. Sumit Gupta	200
Mrs. Madhu Gupta	3500
Mr. Arun Trehan	400
Mrs. Sangeeta Trehan	100
Mr. Shiv Kumar Khosla	400
Mr. Jagmohan Malhotra	100
Mrs. Rashmi Khosla	100
Mr. Suresh Kumar Chaudhary	3100
Mr. Vinod Gupta	29100
Mrs. Shalika Agarwal	3000
Mr. Prem Vati	10000
Total	50000

Equity Share breakup (Percentage of Total Equity)

As on 31.03.2006

Sr. No.	Category	Percentage
1.	Directors or relatives of directors.	97.8
2.	Other top 5 Share Holders (Other than those listed above)	2.2
	Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturing and Marketing of Medicines.

Products :

Alimentry System 1.Antacid, Anti-ulcerantes 2. GIT regulators, Anti-flatulence 3. Antispasmodics 4. Laxatives and Purgatives 5. Anti-diarrhoea 6. Anti emetic 7. ORS Powder Cardiovascular System: 1.Anti Anginal  drugs 2. Calcium channel  Blockers 3. Diuretics Respiratory System: 1.Anti asthmatic Preparations 2. Cough and cold remedies Neuro-Muscular System 1.Analgesic and Antipyretics 2. Anti inflammatory enzymes 3. Anti rheumatic, Anti-inflammatory, Analgesics 4. Minor Tranquilizers 5. Anti emetic drugs 6. Anti depressant 7. Muscle relaxants Antibiotics: 1. Tetracycline 2. Ciprofloxacin 3. Norfloxacin 4. Anti bacterial combinations 5. Anti fungal 6. Aminoglycosides 7. Quinolones 8. Other antibiotics Other Chemo-therapeutics: 1. Anti amoebic 2. Anti helmintic 3. Anti viral 4. Anti septic Genito Urinary Track system 1. Urinary Antiseptics 2. Urinary Infection antibiotics 3. Preparation for Vaginal Infection 4. For erectile dysfunction Vitamins and minerals: 1 Vitamin B / with C 2. Vitamin C 3. Vitamin and Calcium 4. Multi Vitamins with Minerals 5. Pediatrics Dry Syp, Vitamins and Minerals 6. Anti anemic and Pre & Post natal vitamins Allergy and Immune System: 1. Anti histaminics 17. Anti allergics

PRODUCTION STATUS

Particulars	Actual Production
Tablet	144 million
Capsules	72 million ton
Liquids External Preparations	0.360 million Litre
Powder	6.25 million pouches

GENERAL INFORMATION

Bankers :	v ABN AMRO Bank v Baghat Urban Co-op Bank Limited, Solan - 173212 v HDFC Bank, Chandigarh v HDFC Bank, Solan v State Bank of India, Solan
Banking Relations :	Satisfactory
Auditors :
Name :	Jagmohan Chohda and Company, Chartered Accountant
Address :	Near LIC Building, The Mall, Solan, 172312, Himachal Pradesh, India.

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
250,000	Equity Shares	Rs. 10/- Each	Rs. 2.500 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
50,000	Equity Shares	Rs. 10/- Each	Rs. 0.500 million

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		0.500	0.500	0.500
2] Share Application Money		0.000	1.070	0.000
3] Reserves & Surplus		15.280	3.884	0.569
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		15.780	5.454	1.069
LOAN FUNDS
1] Secured Loans		1.770	1.837	0.673
2] Unsecured Loans		0.350	0.535	0.586
TOTAL BORROWING		2.120	2.372	1.259
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		17.900	7.826	2.328
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		10.027	6.721	2.985
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		1.800	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	24.785	11.031	0.000
	Sundry Debtors	11.045	4.682	0.000
	Cash & Bank Balances	6.072	2.200	0.000
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	1.254	0.200	8.862
Total Current Assets		43.156	18.113	8.862
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	35.798	16.678	9.527
	Provisions	1.291	0.337	0.000
Total Current Liabilities		37.089	17.015	9.527
Net Current Assets		6.067	1.098	(0.665)
MISCELLANEOUS EXPENSES		0.006	0.007	0.008
TOTAL		17.900	7.826	2.328

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2006	31.03.2005	31.03.2004
Sales Turnover		172.596	69.029	12.952
Other Income		0.110	0.455	1.058
Total Income		172.706	69.484	14.010
Profit/(Loss) Before Tax		12.736	3.667	0.586
Provision for Taxation		1.072	0.287	0.062
Profit/(Loss) After Tax		11.664	3.380	0.524
Expenditures :
	Raw Material Consumed	136.736	52.085	0.000
	Material and Factory Expenses	0.000	0.000	10.868
	Consumption of stores and spares parts	5.178	2.017	0.000
	Salaries, Wages, Bonus, etc.	7.734	3.956	0.000
	Managerial Remuneration	0.240	0.240	0.000
	Selling and Distribution Expenses	0.000	0.000	0.149
	Payment to Auditors	0.005	0.005	0.000
	Interest	0.238	0.203	0.000
	Insurance Expenses	0.055	0.052	0.000
	Personal Expenses	0.000	0.000	0.859
	Financial Expenses	0.000	0.000	0.157
	Power & Fuel	0.298	0.071	0.000
	Depreciation & Amortization	1.499	1.594	0.623
	Other Expenditure	7.987	5.594	0.766
Total Expenditure		159.970	65.817	13.423

KEY RATIOS

PARTICULARS		31.03.2006	31.03.2005	31.03.2004
PAT / Total Income	(%)	6.75	5.28	3.74
Net Profit Margin (PBT/Sales)	(%)	7.38	5.31	4.52
Return on Total Assets (PBT/Total Assets}	(%)	7.37	5.28	4.18
Return on Investment (ROI) (PBT/Networth)		0.81	0.67	0.55
Debt Equity Ratio (Total Liability/Networth)		2.35	3.12	8.91
Current Ratio (Current Asset/Current Liability)		1.16	1.06	0.93

LOCAL AGENCY FURTHER INFORMATION

This form is for	Creation of Charge
Corporation identity number (CIN) or foreign company registrations number of the company	U24231HP1997PLC020064
Name of the company	MERIDIAN MEDICARE LIMITED
Address	Village Shamti, Solan, 173212, Himachal Pradesh, India.
Type of Charges	Others
Whether consortium finance is involved	No
Whether joint charge involved	No
Number of charge holder(s)	1
Particular of the charge holder	Name : Directors of Industries City : Solan State : Himachal Pradesh ISO Country Code : IN Pin Code : 173211 e-mail ID : info@merimed.com
Nature or description of the instrument creating or modifying the charge	v Agreement of Hypothecation for Central Investment Subsidy v Agreement for availing Central Investment Subsidy. v No objection letter from Bhagat Urban Co-operative Bank Limited, Solan for ceding first pari passu charge in favour of G.M. DIC, Solan
Date of the instrument creating charge	23.03.2007
Whether charge created or modified outside India	No
Amount Secure by the charge	Rs. 972.381 millions
Brief particulars of the principal terms and conditions and extent and operation of the charge	(d) Extent and operation of the charge The charge shall rank pari passu with the charge of Bhagat Urban Co-operative Bank Limited, Solan
Short particulars of the Property charged	Machinery and Equipment situated at the factory site of the company at Village Shamti, Solan, Himachal Pradesh.
Whether any of the property or interest therein under reference is not registered in the name of the company	No

Form 8

Name of the company	M/s MERIDIAN MEDICARE LIMITED
Presented By	Mr. Vinod Gupta, Director
1) Date and description of instrument creating the change	17.04.2003 : Agreement for Cash Credit / Overdraft
2) Amount secured by the charge/amount owing on the securities of charge	Rs. 0.600 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	General lien and right of set of and combine account without notice and charge on all movable property of every description coming into the possession and control of the said bank on account of the borrowers or any one of them or for the time being held by the said bank on behalf , of the borrowers or any one of them whether alone or jointly with others in India or elsewhere including without prejudice to this generality, any moneys, bank drafts, deposits, deposit receipts for moneys, promissory notes, bills of exchange, cheques, hundies, stocks and shares, goods and merchandise, bills of lading, railway receipts, lorry receipts, government bills with inspection notes and other bills in course of collection and other documents of title of immovable property and mercantiles documents of every description including hire-purchase agreement or contracts, (other than those affecting immovable property and requiring registration under law relating to registration) and other documents evidencing the title of the borrowers as creditors or members of any corportation association, registered society, company or syndicate in India or elsewhere.
4) Gist of the terms and conditions and extent and operation of the charge.	Rate of Interest: Interest shall be charged at 15 percent per annum subject to the change in interest rates made by the Reserve Bank of India from time to time. Repayable on demand. Extent and operation of charge: 100%.
5) Name and Address and description of the person entitled to the charge.	The Baghat Urban Co-operative Bank Limited Solan – 173212, (H.P.)

Form 8 Particular for creation or modification of charges

Name of the company	M/s MERIDIAN MEDICARE LIMITED
Presented By	Mr. Vinod Gupta, Director
1) Date and description of instrument creating the change	08.11.2004 v Term Loan Agreement dated 08.11.2004 v Deed of Hypothecation dated 08.11.2004
2) Amount secured by the charge/amount owing on the securities of charge	Rs. 1.000 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	Land and Machinery Purchased from/out of the advance made by the Bank.
4) Gist of the terms and conditions and extent and operation of the charge.	Rate of Interest: Interest shall be charged at 12.50 % per annum or as per RBI Directors / Bank rules. Repayment : Repayable in 120 monthly Instalments of Rs. 14000/- starting from 08.12.2004 Extent and operation of charge : 100%
5) Name and Address and description of the person entitled to the charge.	The Baghat Urban Co-operative Bank Limited, Solan – 173212, (H.P.)

Fixed Assets:

v Land and Building

v Vehicles

v Furniture and Fixtures

v Car

v Water Tank

v Plant and Machinery

v EPABX

v Computers

v Laboratory Equipments

COMPANY PROFILE:

Subject is in the service of society by manufacturing and marketing quality medicines since 1988. Shri Vinod Gupta who has 25 years experience of marketing pharmaceutical products and 18 years experience in manufacturing quality medicines promoted the Company.

Initially the products were manufactured and marketed by the name of Meridian Laboratories Pvt. Ltd established at Saproon (Solan) in the year 1987. The new unit has been established at Shamti, 5 Km. from Solan, on Rajgarh Road by the name of Meridian Medicare Ltd in the year 2002.

The unit has three sections and manufactures products in the forms of Tablets, Capsules and Syrups. The unit is set up in pristine surroundings of the Shivalik foothills in Himachal Pradesh and has been built and equipped keeping in view the requirements laid down by GMP and Schedule M (revised) of the Drugs & Cosmetics Act, 1940. They hold GMP certification as well as ISO 9001:2000 certificate.

The packing and designs of products are very sophisticated and of highest standards. The products are well accepted by Medical fraternity, sold all over India, and supplied to various Government Institutions, health clinics and hospitals.

PRODUCTION LINES AND SECTIONS:

The factory has three production lines in three sections:.

. Tablet – Two Sections (Betalactum and Non Betalactum)

.  Capsule – Two Sections (Betalactum and Non Betalactum)

.  Syrup – Two Sections (Oral and External Applications)

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 :

The 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.

The 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. 40.02
UK Pound	1	Rs. 78.77
Euro	1	Rs. 62.97

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	NO
--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.	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, they 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