MIRA INFORM REPORT

Report Date :

02.12.2008

IDENTIFICATION DETAILS

Name :	FLAMINGO PHARMACEUTICALS LIMITED

Registered Office :	7/1, Corporate Park,Sion –Trombay Road,Chembur,Mumbai- 400071, Maharashtra, India.

Country :	India

Financials (as on) :	31.03.2007

Date of Incorporation :	12.06.1985

Com. Reg. No.:	11 - 36572

CIN No.: [Company Identification No.]	U51900MH1985PLC036572

TAN No.: [Tax Deduction & Collection Account No.]	MUMF03725B

PAN No.: [Permanent Account No.]	AAACF4211B

Legal Form :	Closely Held Public Limited Liability Company

Line of Business :	Manufacturing of pharmaceutical products such as Tablets, Capsules, Dry Syrups and Injectibles.

RATING & COMMENTS

MIRA’s Rating :

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 1500000

Status :	Good

Payment Behaviour :	Regular

Litigation :	Clear

Comments :	Subject is a well established company controlled and managed by Thacker family. It is engaged in the business of manufacturing and marketing of Pharmaceutical Formulations in the form of Tablets, Capsules, Syrups, Injectables, etc. The company’s profitability is under pressure on account of increase in overheads, interest payment, etc. However, it is optimistic about future growth. Trade relations are reported as fair. Payments are usually made as per commitments. The company can be considered normal for business dealings at usual trade terms and conditions.

INFORMATION PARTED BY

Name :	Mr. Parambadi Madhavan Nair
Designation :	Company Secretary
Date :	22.09.2008

LOCATIONS

Registered Office :	7/1, Corporate Park, Post Box No. 27257, Sion - Trombay Road, Chembur, Mumbai - 400 071, Maharashtra, India
Tel. No.:	91-22-25234120 / 25235242 / 43 / 45 , 67975242 / 43/ 45
Fax No.:	91-22-25233085 / 25246837 / 55975249
E-Mail :	ashf@giasbm01.vsnl.net.in
Website :	http://www.flamingopharma.com
Area:	6767 Sq.ft.
Location:	Owned

Factory 1 :	R-662, T.T.C. Industrial Area, Rabale, Navi Mumbai - 400 071, Maharashtra.
Tel. No.:	91-22-27695593/27696998/27694571/227607130
Fax No.:	91-22-27693844
E-Mail :	mailfplrbl@vsnl.net.in
Area:	4439 Sq.Mtrs
Location:	Owned

Factory 2 :	E-28, Taloja Industrial Area, Taloja, Raigad – 410 208, Maharashtra
Tel. No.:	91-22-27411372 / 65162742
Fax No.:	91-22-27411386
E-Mail :	mailfpltlg@vsnl.net.in
Area:	6480 Sq.Mtrs
Location:	Owned

DIRECTORS

Name :	Mr. Ashwin Jethalal Thacker
Designation :	Chairman and Managing Director
Address :	154-B, Shiv Enclave, Sindhi Society, Chembur, Mumbai – 400071, Maharashtra
Date of Birth :	13.10.1989
Qualification :	B. Sc. (Hons), DBM, DMM (Bom)
Date of Appointment :	23.06.1986
Previous Employment:	Haria Export Limited - Export Executive (4 ½ years)

Name :	Mr. Jethalal Khatau Thacker
Designation :	Director
Address :	154-B, Shiv Enclave, Sindhi Society, Chembur, Mumbai – 400071, Maharashtra
Date of Birth:	29.01.1927
Date of Appointment :	22.12.1986

Name :	Mr. Deepak B. Goradia
Designation :	Director
Address :	806, Somnath Neelkant Valley, Rajawadi, Ghatkopar (East), Mumbai – 400077, Maharashtra
Date of Birth :	09.04.1956
Date of Appointment :	03.09.1997

Name :	Mr. Rohit Rajpal Puri
Designation :	Director
Address :	29, Udayagiri Co-operative Housing Society, Opp-Telecom Factory, Sion-Trombay Road, Deonar, Mumbai – 400088, Maharashtra, India
Date of Birth :	05.05.1955
Date of Appointment :	03.09.1997

KEY EXECUTIVES

Name :	Mr. Parambadi Madhavan Nair
Designation :	Company Secretary
Address :	215/5779, Darshan, Pant Nagar Hig Scheme, 90 Feet Road, Ghatkopar [East], Mumbai – 400075, Maharashtra, India

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As On (29.07.2008)

Names of Shareholders		No. of Shares
Mr. Ashwin Jethalal Thacker		4163400
Mr. Jethalal Khatau Thacker		60
Mrs. Raju A. Thacker		1895400
Mrs.Lata Bhalla		30
Mrs.Vishaka Thacker		30
Mrs.Pratima Thacker		30
Mr.Pranay Thacker		722400
Minimed Laboratories Private Limited		22650

Equity Share Breakup
Category		Percentage of Holding
Bodies corporate		0.33
Directors of relatives of directors		99.67
Total		100.00

BUSINESS DETAILS

Line of Business :	Manufacturing of pharmaceutical products such as Tablets, Capsules, Dry Syrups and Injectibles.

Products :	v Anti – injective Orals v Anti – injective injectables v Pain Management and Orthocare v Gastrointestinals v Syrup and Suspension

Exports :
Countries :	Cambodia Sri Lanka Phillippines Vietnam Kenya Ethiopia Australia New Zealand Africa USA UK Spain Netherlands Belgium Other European Union

Import:
Products:	· Raw Materials · Chemicals
Countries:	· China · Europe

Terms:
Selling:	On Credit, LC and DP basis

Purchasing:	On DA, LC and DP basis

GENERAL INFORMATION

Customers/Trade References :	Teva, UK Perrigo, UK Teva Netherlands Farma Projects Spain Galpharma Pharmachemie Teva Pharma, Belgium Kent Pharma, Spain

No. of Employees :	50

Bankers :	v State Bank of India Overseas Branch, World Trade Centre, Cuffe Parade, Mumbai – 400 005, Maharashtra v Canara Bank Sindhi Society Branch, Chembur, Mumbai, Maharashtra v HDFC Bank Limited Dr. D. N. Road, Mumbai, Maharashtra v ICICI Bank Limited ICICI Tower, Bandra-Kurla Complex, Mumbai, Maharashtra v Export Import Bank of India Centre 1, World Trade Centre, Cuffe Parade, Mumbai, Maharashtra v Times Bank Limited Dr. D. N. Road, Mumbai, Maharashtra v State Bank of Bikaner and Jaipur v State Bank of India Madame Cama Road, Mumbai – 400021, Maharashtra, India v Central Bank of India, Mahatma Gandhi Road, Mumbai – 400023, Maharashtra, India

Banking Relations :

Name of Bank	Type of Facility	Rs.in Million
Export Import Bank	Term loan	50.000
State Bank of India	Term Loan	137.041
State Bank of India	Packing Credit	381.484
State Bank of India	Vehicle Loans	2.981
State Bank of India	Export Bill Discount	70.312
State Bank of India	Cash Credit	3.073
Total		644.891

Auditors :

Pravin Sarvaiya and Company

Chartered Accountants

Address :

5, Kermani Building, Sir P. M. Road, Fort, Mumbai – 400 001, Maharashtra, India

Tel. No.:

91-22-2852344

Associates/Subsidiaries :

Minimed Laboratories Private Limited
Rotaline Molekule Private Limited
Flamingo Healthcare Private Limited

CAPITAL STRUCTURE

As on 31.05.2007

Authorised Capital :

No. of Shares

Type

Value

Amount

10,000,000

Equity Shares

Rs. 10/- each

Rs. 100.000

Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
68,040,00	Equity Shares	Rs. 10/- each	Rs. 68.040 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2008	31.03.2007	31.03.2006
SHAREHOLDERS FUNDS
1] Share Capital		68.040	22.680	22.680
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		359.260	356.875	303.582
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		427.300	379.555	326.262
LOAN FUNDS
1] Secured Loans		644.891	473.933	376.848
2] Unsecured Loans		19.000	19.000	17.500
TOTAL BORROWING		663.891	492.933	394.348
DEFERRED TAX LIABILITIES		56.478	39.813	36.056

TOTAL		1147.669	912.301	756.666

APPLICATION OF FUNDS

FIXED ASSETS [Net Block]		511.772	463.172	433.964
Capital work-in-progress		0.000	0.000	0.000

CURRENT ASSETS, LOANS & ADVANCES
	Inventories	359.960	323.273	236.867
	Sundry Debtors	407.463	304.240	214.333
	Cash & Bank Balances	13.496	6.100	9.204
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	116.476	83.193	93.611
Total Current Assets		897.395	716.806	554.015
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	367.497	276.161	234.219
	Provisions	24.966	11.468	4.387
Total Current Liabilities		392.463	287.629	238.606
Net Current Assets		504.932	429.177	315.409

MISCELLANEOUS EXPENSES		130.965	19.952	7.293

TOTAL		1147.669	912.301	756.666

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2008	31.03.2007	31.03.2006
Sales Turnover		1468.929	1229.671	856.596
Other Income		11.379	2.894	16.910
Total Income		1480.308	1232.565	873.506

Profit/(Loss) Before Tax		80.259	70.005	20.716
Provision for Taxation		28.403	12.833	7.345
Profit/(Loss) After Tax		51.856	57.172	13.371

Expenditures :
	Raw Material Consumed	968.108	778.418	592.849
	Personnel Expenses	69.049	73.518	46.425
	Other Expenditure	287.671	248.989	166.113
	Interest	44.019	33.591	23.192
	Depreciation	31.202	28.044	24.211
Total Expenditure		1400.049	1162.56	852.79

KEY RATIOS

PARTICULARS		31.03.2008	31.03.2007	31.03.2006
PAT / Total Income	(%)	3.5	4.6	1.5

Net Profit Margin (PBT/Sales)	(%)	5.4	5.6	2.4

Return on Total Assets (PBT/Total Assets}	(%)	5.6	5.9	2.1

Return on Investment (ROI) (PBT/Networth)		0.2	0.2	0.1

Debt Equity Ratio (Total Liability/Networth)		0.9	0.7	0.7

Current Ratio (Current Asset/Current Liability)		2.2	2.4	2.3

LOCAL AGENCY FURTHER INFORMATION

HISTORY

Subject was incorporated on 12^th June, 1985 at Mumbai in Maharashtra having Company Registration Number 36572.

The company was originally incorporated under the name and style of Flamingo Impex Private Limited and converted into public limited liability company on 30^th June, 1994. Further the name of the company was changed to the present on 25^th September, 1995.

It’s products range include:-

· Tablets

· Capsules

· Dry Syrup

· Liquid Syrup

· Injection-Sterile Dry Powder

· Liquid Injections

· Dosage Form – Tablets

· Dosage Form – Capsules

· Dosage Form – Injection

· Dosage form – Dry Powder for Suspension

It is in trade terms with :-

² Medral GmbH, Germany

² Pharm Inter Sprl, Italy

² Exphar S.A., Belgium

² M. S. Chemical, Italy

² Ita Lab Private Limited

² Geo Chem Laboratories (Rajkot) Private Limited

² Regal Pharmaceuticals Limited

² Dilip Traders

² Oboi Laboratories

² Elys Chemicals Industries Limited

² Jain Exports

² Minimed Laboratories Private Limited

The company spans some of the largest therapeutic segments in the Health-Care industry, using a selective product mix. From Tablets to Capsules and from Dry Powders for syrups to Dry Powder Injectables, the company can display an extensive list of products. The range of products in capsules form covers : Anti-bacterial, Chloramphenicols, Macrolides, Penicillin in different strengths and packing. Penicillin products are manufactured in a separate area. A wide range of syrups are manufactured in the Dry Syrup department: Dry Powder suspensions such as Ampicillin, Amoxycillin, Cloxacillin, Cefalexin, etc.

Erythromycin, Cotrimoxazole, Paracetamol and Metronidazole. Syrups are packed in P.E.T. or glass bottles, which in turn are packed individually in cartons with measuring cups and leaflets. Injectables included in the product range are Penicillins, Cephalosporins, Chloramphenicols, Kanamycin and Aminoglycoside.

Fixed Assets

Leasehold Land
Factory Building
Office Premises Building
Plant and Machinery
Furniture and Fixtures
Office Equipments
Vehicles

Bankers Charges Report as per Registry

This form is for	Creation of charge
Corporate identity number of the company	U51900MH1985PLC036572
Name of the company	FLAMINGO PHARMACEUTICALS LIMITED
Address of the registered office or of the principal place of business in India of the company	7/1, Corporate Park, Post Box No. 27257, Sion - Trombay Road, Chembur, Mumbai - 400 071, Maharashtra
Type of charge	Movable property
Particular of charge holder	Export Import Bank of India Centre One, Floor 21, World Trade Centre Complex, Cuffe Parade, Mumbai – 400005, Maharashtra, India eximoif@vsnl.com
Nature of description of the instrument creating or modifying the charge	Unattested deed of hypothecation of movable fixed assets dated 23 February 2007, Executed by flamingo pharmaceuticals limited in favour of Export Import Bank of India
Date of instrument Creating the charge	23.02.2007
Amount secured by the charge	Rs. 50.000 Millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest The per annum rate equal to Exim Bank’s PLR less a spread of 1.75 % subject to minimum of 9.75 % p.a. payable the borrower with monthly rests on 20^th day of each month each year. Provided however Exim Bank shall be at liberty to revise th spread on PLR and Provided further that interest rate shall be subject to reset in accordance with provisions of the loan agreement. Terms of repayment The Rupee loan shall be repaid by the borrower in 16 substantially equal quarterly installments commencing at the end of one year from the date of first disbursement. Extent operation of the charge The charge created by the aforesaid deed of hypothecation shall operate as a continuing security by way of first pari-passu charge for repayment by the borrower to Exim Bank of the loan of Rs. 50.000 Millions The said charge shall bank in the order of property set out in schedule IV to the deed of hypothecation.
Short particulars of the property charged	Movable plant and machinery, equipment, appliances, furniture, vehicles, machinery, spares and stores, tools and accessories, whether or not installed and Related movable in the course of transit or delivery whether now belonging to borrower or which maybe held by any person at any place within or outside India to the order disposition of borrower and all documents or title including bills or landing, shipping documents, polices of insurance and other instruments.

On Tablet and Capsule Dosage forms.

AS PER WEB SITE DETAILS

Introduction

They are one such rare company that has drawn the attention of many in Indian pharmaceutical industry, because, in the times when other Indian companies are striving to reach global customers and achieve standards for global presence, they already have an impressive and impeccable achievement of having their wings of success spread all across the globe in as many as 50 countries world wide, by achieving and maintaining global healthcare standards backed by their contemporary marketing strategies.

They are now marching ahead in India with their key customer specialties and therapeutic areas, for ensuring that every Indian is benefited with their global expertise of quality healthcare. Their business objective is to achieve leadership in key therapeutic areas. They operate with innovative and advanced formulations for notable therapeutic benefits, thereby, achieving a value turnover of 3000 Millions INR in the next three years of operation.

Milestones

Started in 1986 as Flamingo Impex Private Limited as trading company by Ashwin Thacker , with export of branded and generic formulations to East Africa . Ashwin Thacker is a science graduate from Bombay university with post graduate specialisation in marketing management.

1988 - Commenced Trading Operations in pharmaceutical formulations in Europe

1991 - Commenced exporting formulations to South East Asia and Central America

1995 - Started manufacturing unit - Rabale - on the outskirts of Mumbai

1997 - Received WHO GMP status for the Rabale facility

1998 - Received ISO 9000 status for the Rabale facility

2001 - Started second manufacturing facility in Taloja (in the Raigad district) for regulated markets

2003 - Received WHO GMP accredition for the Taloja facility

2004 - Received plant approval from Uganda, Zimbabwe for the Taloja facility

2005 - Received UK MHRA approval for the Taloja facility

2005 - Received IDMA quality excellence award for the Taloja manufacturing facility

2006 - Received 100% EOU certification for the Rabale and Taloja manufacturing facilities

2006 - Successfully launched Domestic Division

2007 - Received plant approval from Ethopia and Yemen (GCC countries)

Domestic Operations

In the first year of their domestic operations, they intend to extend the benefit of their world class products to significant number of patients with the help of sales force of approximately 500 Managers and Officers across India. Their launch operation has already started in the state of Uttar Pradesh, Andrapradesh, Maharahstra, Jammu and Kashmir, Rajsthan, Bihar, Karnataka and Tamilnadu. By mid-end of year 2007, they will be operational all across the country.

Flamingo has a wide range of generics and branded Quality Pharmaceutical Products for both regulated and semi-regulated markets.

Flamingo currently in its Domestic Division engages 300 employees – all experienced and competent in the field of pharmaceutical marketing and sales.

Their products are a outcome of highly advanced manufacturing facilities supported by advanced well equipped Laboratory facilities, Analytical Method Development, and sophisticated RandD departments.

Their Quality level is no mere coincidence. They aim at safeguarding quality and delivering products that match their clients expectations and needs.

They follow international and national regulations. Their facility is approved by WHO-GMP, MHRA, and RSSL

The company recognized as a prestigious Export House by the Government of India. This is a distinction conferred upon only selected companies with proven track record in the international markets.

Since its formative years, the company has strived to establish a firm foothold in the highly competitive Pharma Industry. This, they achieved, by creating the perfect blend of a professional business approached with the caring human touch. Their, meticulous planning, focused team effort instant innovations helps them to achieve impressive year after year.

Subject has been recognised as a prestigious Export House by the Government of India. This is a distinction conferred upon only selected companies with proven track record in the international market.

Since its formative years, the company has strived to establish a firm foothold in the highly competitive pharma industry. This it achieved, by creating the perfect blend of a professional business approach with the caring human touch. Their meticulous planning, focused team effort and instant innovations help to achieve impressive growth year after year.

It has a professional expert group of 30 pharmaceuticals, 15 Post Graduate pharmacists, 5 doctors and a number of other qualified personnel in production team.

Their marketing set up consists of 20 management experts with specialisation in exports, are fully geared to service the vast clientele all over the world.

With this vast pool of resources at their disposal, the company is fully immersed in the business of manufacturing and marketing latest pharmaceutical formulations catering to a wide variety of therapeutic catagories across, the globe. Its’ business clientele from 50 countries from Europe, Africa, South America, Southeast Asia and New Zealand spans five continents of the globe.

“Quality Medicines at Affordable Prices” had been the company’s motto for the past few years. Being quality driven had brought the prestigious ISO 9002 certification and also the WHO GMP certification for own manufacturing facility.

To meet the growing demands of clientele, they are in the process of setting up a world class pharma plant at Taloja Industrial Area in Navi Mumbai with excellent infrastructural facilities at par with the international standards. The company has earmarked an investment of about 5 Mio USD for this prestigious project. One of its kind in Asia.

Subject is an organisation in tune with the current trends and the growing technological expertise in its chosen field.

Tapping into this knowledge, they had consciously invested capital and efforts, to create global class manufacturing facilities.

Their manufacturing site at Mumbai, in India, is a picture of the optimum blend of production and the most stringent quality control procedures.