MIRA INFORM REPORT

Report Date :

06.12.2008

IDENTIFICATION DETAILS

Name :	TETRAGON CHEMIE PRIVATE LIMITED
Registered Office :	IS-40, 19^th B Industrial Area, Yelahanka New Town, Bangalore – 560064, Karnataka
Country :	India
Financials (as on) :	31.03.2008
Date of Incorporation :	11.03.1983
Com. Reg. No.:	08-5213
CIN No.: [Company Identification No.]	U24111KA1983PTC005213
TAN No.: [Tax Deduction & Collection Account No.]	BLRT03147E
PAN No.: [Permanent Account No.]	AAACT4909N
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturers, Exporters and Traders of Nutritional and Drugs Products.

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 3428000
Status :	Good
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.

INFORMATION PARTED BY

Name :	Mr. Dinesh
Designation :	Account Department
Date :	03.12.2008

LOCATIONS

Registered/Head Office :	IS-40, 19^th B Industrial Area, Yelahanka New Town, Bangalore – 560064, Karnataka, India
Tel. No.:	91-80-28462055 / 56 / 28461241 / 42 / 28460060
Fax No.:	91-80-28461240
E-Mail :	marketing@vetcareindia.com, btan@giasbg01.vsninet.in vetcare@vsnl.com
Website :	http://www.vetcareindia.com, http://www.petcareindia.com
Location :	Owned
Factory:	v C-7/22, KSSIDC (I. A) Yelahanka New Town, Bangalore – 560 064, Karnataka v No. 4/8E-3, KSSIDC Industrial Estate, Dodaballapur, Bangalore - 561 203, Karnataka v IS-40, KHB Industrial Area, Yelahanka New Town, Bangalore – 560064, Karnataka
Branches :	Located at :- Ø #6-1-119/15, Padmarao Nagar, Walker Town, Secunderabad - 500 025 Andhra Pradesh Tel No:- 91-40-27502386/27501785 Fax No :- 91-40-27502386 E-mail :- tclhyd@sify.com Ø C/o Nutan Ware House Company Private Limited Survey No. 157/5+8, Pune-Saswad Road Village, Fursungi, Pune-412308, Maharashtra Tel No :- 91-20-26989349 Fax No :- 91-20-26989579 E-mail :- tclpune@pn3.vsnl.net.in Ø B-43, Phase-Ii, Noida – 201 305, Uttar Pradesh, India Tel No :- 91-120-24567886 / 245672514 Fax No :- 91-120-24567887 E-mail :- tcldel@rediffmail.com/tclnoida@mantraonline.com Ø No. 19, Kandar Hostel Road, Gandhi Nagar, Namakkal – 637 002, Tamilnadu, India Tel No :- 91-4286-230828 Fax No :- 91-4286-233928 E-mail :- slm@tclnkl@sancharnet.in Ø No. 6/2, Reepal Compound, N.H. No. 8, Ranoli, Vadodara - 391350, Baroda, Gujarat, India Tel No :- 91-265-2241218 E-mail :- tclvad@satyam.net.in Ø No. 91, Golf Club Road, Tolly Gunj, Kolkata-700033, West Bengal, India Tel No :- 91-33-24222614 / 24222674 Fax No :- 91-33-24222674 E-mail:- vetcare@cal3.vsnl.net.in

DIRECTORS

Name :	Mr. Bharat Tandon
Designation :	Managing Director
Address :	No. 2122, ‘D’ Block, Sahakaranagar, Kodigchalli, Bangalore – 560092
Date of Birth/Age :	02.11.1953
Qualification :	B. Sc. (Hons.), M.B.A.
Experience :	29 years
Date of Appointment :	11.03.1983
Previous Employment	Astra-Idl Limited – Project Manager
Name :	Mr. C. Gopalaswamy
Designation :	Joint Managing Director
Address :	No. 17, Sumeru AECS Layout. Ashwath Nagar Post, Gedalahalli, Bangalore – 560094
Date of Birth/Age :	24.07.1947
Qualification :	B. Sc.
Experience :	35 years
Date of Appointment :	11.03.1983
Previous Employment	Medivenk Private Limited - Manager
Name :	Mr. Hashmukh Tailor
Designation :	Director
Address :	Eastern Avenue Lichfield, Staffordshire England, WS13 75E
Date of Birth/Age :	01.12.1950
Date of Appointment :	21.12.1999
Name :	Mr. Roelof Raternik
Designation :	Director
Address :	Binnenmassoever, 22, 3299, L V Maasdam, Netherlands
Date of Birth/Age :	20.05.1950
Date of Appointment :	13.03.2003
Name :	Dr. Frank Cedric Heap
Designation :	Director
Address :	Eastern Avenue Lichfield, Stafordshire, England WS 1375 E
Date of Birth/Age :	26.08.1939
Date of Appointment :	21.12.1999
Date of Ceasing:	14.02.2003

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

Names of Shareholders (as on 10.09.2008):-	No. of Shares
Ashchem Agrotech Private Limited	25244
Provimi Holding B. V.	445501
Vijaya Gopalaswamy	24255
Total	495000

 As on 10.09.2008

Equity Share Breakup	Percentage of Holding
Category
Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others]	90.00
Bodies corporate	5.10
Directors or relatives of directors	4.90
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturers, Exporters and Traders of Nutritional and Drugs Products.

Products :

Item Code No.	Product Description
23099001	Preparation of a kind in animal feeding – compounded animal feed
30032000	Medicaments (Veterinary) containing other antibiotics

Exports :

Products :

Nutritional and Drugs Products

Countries :

Europe, South America, South East Asia, Sri Lanka, Malaysia, Bangladesh, Africa, Thailand and Singapore

Imports :

Products :

Raw Material

Countries :

China, Germany, USA, Japan and Singapore

Terms :

Selling :

L/C, Cash + Credit (upto 30 days) terms

Purchasing :

L/C or Credit (90 days) terms

PRODUCTION STATUS As on 31.03.2008

Particulars	Unit	Licensed Capacity	Installed Capacity	Actual Production
Animal Feed Supplements	Tons	NA	Not ascertained	12797
Drugs	Tons	NA	Not ascertained	1047

GENERAL INFORMATION

Suppliers :

v Ajino Moto, Japan

v Novus, Singapore

v Mitsubishi Corporation, Japan

v Sinochem Jiangsu Import & Exports Corporation, China

v Shanghai Medicines & Health Products, China

v Degusa, Germany

v Amrith Synthetic Products

v Ashchem Agrotech

v Universal Packaging

Customers :

End Users

v Hindustan Lever Limited, India

v Godrej Agro Vet, India

v SKM Animal Feeds, India

v Pioneer Animal Feeds, India

v Sri Venkateswara Hatchery, India

v Western Hatchery, India

v Dithelm, Thailand

v Jafpa Oberoi, Pune, Maharashtra, India

No. of Employees :

890 (In office – 40, In factory – 450, In branches – 400)

Bankers :

State Bank of Mysore, 13^th Main, Raj Mahal Vilas Extension, Bangalore - 560 080, Karnataka, India

Facilities :

Secured Loans:

	As on 31.03.2008 Rs. in Millions
From a Scheduled Bank Cash Credits	1.774
Total	1.774

Banking Relations :

Satisfactory

Auditors :

Name :

Deloitte Haskins and Sells

Chartered Accountants

Address :

Deloitte Centre, Anchorage II, 100/2, Richmond Road, Bangalore – 560 025, Karnataka, India

Tel. No.:

91-80-66276000

Fax No.:

91-80-66276011

Holding Company :

Provimi Holding BV

Associates/Subsidiaries :

v Vetcare Organics Private Limited

v Aschem Agrotech Private Limited

v Healthline Private Limited

v Bonimex Bondas Importers and Exporters B.V.

v Vetcare Alltech Private Limited

v Provimi Limited UK

v Nutron Alimentos Limited, Brazil

v Provimi B V Netherlands

v Nu Tecsa, France

v Nutiway – Vietnam

v Centralys – France

v Provimi Vetlanka Private Limited, Colombo

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
500000	Equity Shares	Rs.100/- each	Rs.50.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
495000	Equity Shares	Rs.100/- each	Rs.49.500 millions

Of the above:

1) 317500 shares were allotted as fully paid up Bonus shares by capitalization of Rs.23.100 millions and Rs.8.650 millions General Reserve and Revaluation Reserve respectively.

2) 175000 shares were allotted in consideration in terms of scheme of amalgamation.

3) 445500 shares are held by Holding company, Provimi Holding BV, Netherlands.

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		49.500	49.500	49.500
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		636.079	536.394	444.613
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		685.579	585.894	494.113
LOAN FUNDS
1] Secured Loans		1.774	7.389	5.000
2] Unsecured Loans		0.000	0.000	0.000
TOTAL BORROWING		1.774	7.389	5.000
DEFERRED TAX LIABILITIES		34.870	30.894	28.062
TOTAL		722.223	624.177	527.175
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		237.244	212.965	208.390
Capital work-in-progress		13.625	8.357	1.782
INVESTMENT		1.874	0.009	0.009
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	289.405	227.435	185.287
	Sundry Debtors	339.271	286.656	221.834
	Cash & Bank Balances	118.017	187.566	138.276
	Other Current Assets	0.473	0.507	0.184
	Loans & Advances	208.719	137.608	113.020
Total Current Assets		955.885	839.772	658.601
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	251.764	220.315	149.476
	Provisions	234.641	216.611	192.131
Total Current Liabilities		486.405	436.926	341.607
Net Current Assets		469.480	402.846	316.994
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		722.223	624.177	527.175

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2008	31.03.2007	31.03.2006
Sales Turnover		1846.132	1477.203	1209.333
Other Income		0.000	13.150	14.871
Total Income		1846.132	1490.353	1224.204
Profit/(Loss) Before Tax		267.288	233.245	152.922
Provision for Taxation		78.152	54.592	0.000
Profit/(Loss) After Tax		189.136	178.653	152.922
Earnings in Foreign Currency :
	Export Earnings	394.534	380.500	286.970
	Commission / Rebate received / Others	0.346	0.184	NA
Total Earnings		394.880	380.684	286.970
Imports :
	Raw Materials	261.589	236.619	424.926
	Purchase for resale	352.448	242.676	NA
	Capital Goods	2.779	0.000	NA
Total Imports		616.816	479.295	424.926
Expenditures :
	Financial Charges	NA	1.377	3.014
	Other Expenditure	1564.086	1215.095	1068.268
Total Expenditure		1564.086	1216.472	1071.282

KEY RATIOS

PARTICULARS		31.03.2008	31.03.2007	31.03.2007
PAT / Total Income	(%)	10.24	11.99	12.57
Net Profit Margin (PBT/Sales)	(%)	14.48	15.79	12.65
Return on Total Assets (PBT/Total Assets}	(%)	22.11	21.98	17.60
Return on Investment (ROI) (PBT/Networth)		0.39	0.40	0.31
Debt Equity Ratio (Total Liability/Networth)		0.71	0.76	0.70
Current Ratio (Current Asset/Current Liability)		1.97	1.92	1.93

LOCAL AGENCY FURTHER INFORMATION

TRADE REFERENCES:

• Sugna Poutry Farm Limited, Bangalore
• Nutron Brazil Limited, Brazil

FORM 8:-

Corporate identity number (CIN) Foreign company registration number	U24111KA1983PTC005213
Name of the Company	TETRAGON CHEMIE PRIVATE LIMITED
Address	IS-40, K H B Industrial Area, Yelahanka New Town, Bangalore – 560064, Karnataka
This form is for	Modification Charge
Type of Charge	Hypothecation
Particulars of the charge holder	State Bank of Mysore, Rajmahal Vilas Extension Branch, No. 138/6, 10^th Main, 6^th ‘A’ Cross, Rajmahal Vilas Extension, Bangalore – 560080
Nature of the instrument	Agreement for hypothecation, hypothecation of goods, machinery, beek – debts and other assets Hypothecation of letter of credit
Date of the instrument creating charge	03.06.1983
Amount secured by the charge	Rs. 0.310 Millions
Brief of the principal terms and conditions	Interest and margin as applicable from time to time repayable on demand
Description of the property charged indicating	Stock in Trade and Book Debts
Charge identification	Original charge dated 03.06.1983 registered on 02.09.1983 06 for Rs. 0.310 Millions
Brif description of the instrument modifying the charge under section	Agreement of hypothecation of goods and assets Letter of extension of equitable mortgage Omni Bus Counter Guarantee
Date of Instrument	04.03.2006

This form is for	Modification of charge
Charge identification number of the modified	90194708
Corporate identity number of the company	U24111KA1983PTC005213
Name of the company	TETRAGON CHEMIE PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	IS-40, 19^th B Industrial Area, Yelahanka New Town, Bangalore – 560064, Karnataka, India
Type of charge	Immovable Property Book Debts Movable Property
Particular of charge holder	State Bank of Mysore, 13^th Main, Raj Mahal Vilas Extension Branch, Bangalore - 560 080, Karnataka, India E-Mail: gss_comsecy@rediffmail.com
Nature of description of the instrument creating or modifying the charge	Agreement of Hypothecation of Goods and Assets. Letter of Extension of Equitable Mortgage Omnibus Counter Guarantee
Date of instrument Creating the charge	04.05.2007
Amount secured by the charge	Rs.190.000 millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest: Cash Credit – 1% below SBMPLR, 1.75% below the applicable rate i.e. 11.50% floating Terms of Repayment: Cash Credit – Repayable on demand Margin: Cash Credit – 1) Stocks – 25% Book debts – 25% cover period 60 days PC/ FDBD/FUBD – 25% Bank Guarantee – 5% LCs – 5% Extent and Operation of the charge: The charge on the property being charged shall operate to the extent of Rs.190.000 millions plus interest, costs, commission, expenses and other charges thereon.
Short particulars of the property charged	a) Hypothecation of whole of the present and future stocks and book debts, plant and machinery, electrical installations, office equipment, computer equipments, generators and other assets belonging to the company. b) Deposits of title deeds of factory land and building situated at shed No.C-7, C-22, Industrial Estate, Yelahanka New Town, Bangalore 560 064 and at IS – 40, KHB (Industrial Area), Yelahanka New Town, Bangalore 560 064 belonging to the company.
Date of latest modification prior to the present modification	04.03.2006

Contingent liabilities not provided for:

Particulars	31.03.2008 Rs. in millions
Letters of Credit outstanding	151.334
Outstanding guarantees furnished by bankers	4.025
Disputed dues against which appeals are pending a) Sales Tax	1.314
b) Customs	2.249
c) Others	0.395

FIXED ASSETS:

• Bore Well
• Buildings
• Buildings Research Farm
• Computer Equipment
• Electrical Installations
• ETP
• Furniture and Fixture
• Generators and Other Assets
• Lease / Free Hold Land
• Office Equipment
• Partition Panel
• Plant and Machinery
• Vehicles
• R&D – Capital Expenses
• Typewriters

REVIEW OF OPERATIONS:

In spite of 4^th quarter being seriously affected by Avain influenza, they managed a successful year with healthy growth. This confirms the basic strategy of diversification by species so as not to be overly dependent on Poultry. The integration of Vetcare Organics Private Limited, with the main company has also been validated as good strategy with the sharp fluctuation of the USD $ which did not create exchange losses in the books.

Poultry: With the 4^th quarter set back Poultry division did not grow as substantially as it could have. However, it could achieve its budgeted objectives with sharp rise in cost of production (feed ingredients) and erosion of profitability of Broiler farming it is increasingly difficult to maintain growth rates specially with all key clients becoming integrated and exercising huge downward pressure on the prices and demanding increasingly longer credit periods.

Other business units within Poultry division like IBG and Premix have done well and produced results that diluter the set back in the Poultry market.

Dairy: Diary division has shown substantial growth over last year. They intend to continue the thrust in this division as they see enormous potential to build stable brands. Profits from this division however have been low due to high promotional costs which are needed while pushing for greater market share and brand building.

Petcare: Petcare business was separated into 2 groups to maintain focus on prescription products as well as pet food. This decision has borne out well, both groups have performed excellently showing substantial growths. They now need to back up this division with greater investment both in market as well as in plant and machinery whose capacity is fast running out.

The division is future ‘Bread Winner’ for the company and has shown robustness in brands by taking price increase and sharply reducing market credit without effecting sales volumes.

Premix Operations: Operated under a division called PNP this division has shown beter than expected response even though margins are slim. With the commissioning of PROVIMI VETLANKA PRIVATE LIMITED (PVPL) this group will show substantial growth although will continuously need tight monitoring on pricing and working capital management.

The commissioning of PVPL has been some what delayed first due to delay from Buhler and later from Indian vendor who is responsible for structural, erection and commissioning.

FINANCIAL RESULTS/ DIVIDEND:

During the year, the company has earned profit of Rs.265.41 millions as compared to the corresponding previous year of Rs.233.25 millions. A growth of over 14% similarly sales grew by over 25% in an extremely competitive market.

A sum of Rs.19.20 millions is recommended to transfer to general reserve leaving a balance of Rs.499.22 millions in the Profit and Loss Account.

The directors are to recommend 150% dividend including an interim dividend of 100% already paid, on paid up Equity Capital of Rs.49.5 millions for the year ended 31^st March, 2008.

DEFINED BENEFIT PLAN:

Contribution to Gratuity Fund:

During the year, the company has adopted Accounting Standard AS 15 (revised 2005) on Employee Benefits. Consequent to the adoption, an amount of Rs.0.310 million (net of deferred tax of Rs.0.146 million) has been adjusted against opening balance of General Reserve.

In accordance with Accounting Standard 15 (revised 2005) actuarial valuation has been carried out at Projected Unit Credit method in respect of the aforesaid defined plan of Gratuity based on the following assumption.

Particulars	31.03.2008
Discount Rate	8%
Expected Rate of Return on Plan Assets	8%
Salary Escalation Rate	7%
Expected Average remaining working lives of the employees (Years)	13.57

The estimated of future salary increases, considered in actuarial valuation, take account of inflation, seniority promotion and other relevant factors, such as supply and demand in the employment market.

Secondary segment: (Geographical) (Rs. in Millions)

Sales	2007-2008	2006-2007
Domestic	1435.575	1085.680
Asia Pacific	220.261	208.982
Europe	2.976	1.452
South America	180.267	168.725
Africa	0.554	0.000
Others	6.499	12.364
Total	1846.132	1477.203

HISTORY

The company was incorporated on 11^th March, 1983 at Bangalore, in Karnataka having Company Registration Number 5213.

The company was incorporated as a private limited company and became deemed public limited company under section 43A(1), with effect from 1^st July 1994.

Again, it was converted into a private limited liability company with effect from 21^st February, 2001.

The company has entered into joint venture with Provimi Holdings BV, Holland with an equity participation of 51% and Indian equity of 49% held by Ashchem Agrotech Limited.

J. T. Electronics Limited, a subsidiary was merged with the company w.e.f. 1^st April, 1999 and the merger was approved by the Karnataka High Court vide its order dated 31^st March, 2000.

It represents the following:

v BASF, Germany

v Alltech Inc., USA

v Meiji Seika Pharma International Limited, Japan

The company's fixed assets of important value include

· Land (Free Hold Land),

· Building,

· Plant and Machinery,

· Research and Development Equipments,

· Electrical Installations,

· Furniture and Fixtures,

· Typewriters,

· Office Equipments,

· Computer Equipments,

· Generators and Vehicles.

As per website details

Innovation, Customer Satisfaction and Technology Transfer In the farming community

VETCARE is one of the divisions of Tetragon Chemie Private. Limited is an ISO 9001:2000 and GMP (WHO) certified company and 100% EOU driven by a vision to continually generate bold new ideas and concepts, and products in the field of Animal Agriculture in the Indian subcontinent since 1983. VETCARE markets quality products not only in India, but also to more than 30 countries.

VETCARE has got wide range of therapeutic and nutritional products for large and small animals catering domestic and overseas market. It operates under four divisions to meet the diverse needs of the veterinary and animal farming community. These are:

v VETCARE, in poultry and dairy segments

v PETCARE, in the pet segments

v AQUACARE, for aquaculture

v INSTITUTIONAL BUSINESS GROUP (IBG), trading in amino acids, feed ingredients and specialized premixes.

VETCARE's remarkable growth and progress over the years in both domestic and overseas markets is easily attributed to a single factor - undiluted focus on evolving customer needs. This explains the role of the company's R and D at the core of the planning process and its strong reliance on quality. VETCARE's RandD facilities are recognized by Dept. of Science and Technology, Govt of India.

VETCARE operates from its Corporate Office situated at Bangalore and all its production facilities based at Bangalore and Noida. In addition, the company has Seven Regional Offices and depots located at key agribusiness centers to cater to the diversified needs of customers spread across the length and breadth of the country.

VETCARE entered into the joint venture with PROVIMI, Netherlands in 1999. Provimi has been a European market leader with an annual turnover of Euro 1.6 billion with 100 plants in 30 countries and it employs over 9000 people among which over 600 are scientists.

In keeping with their mission of being Innovators in Veterinary Care and catering to the animal agriculture segment, they acquired AGVET (division of UNICHEM laboratories) to widen its presence in the dairy sector in the year 2003.

Poultrycare

It’s remarkable growth and progress over the years in both domestic and overseas markets are easily attributed to a single factor - undiluted focus on evolving customer needs. This explains the role of the company's R and D at the core of the planning process and its strong reliance on quality. Subject operates from its corporate office at Bangalore and all its production facilities are based at Bangalore and Noida. In addition, the company has seven regional offices and depots located at key agribusiness centers to cater to the diversified needs of customers spread across the length and breadth of the country.

Poultry division is the key business area of VETCARE and contributes maximum to the Company's turnover. The poultry segment which has been consistently witnessing high growth and VETCARE, has always been at the forefront, introducing a range of new concepts and products.

VETCARE known as "Innovators in Veterinary Care", is focused on providing comprehensive, value-added solutions to customers. The division deals with the nutritional and therapeutic range required for poultry farming activity. VETCARE's initiative in the field of bio-technological tools in feed industry coupled with interactive programmes and strong technical back-up have gone a long way in solving the most difficult problems faced by the farmers in the field.

Some of the innovative concepts introduced by VETCARE include toxin prevention programme, chelated minerals, immune potentiation and heat stress prevention programmes. Some of the well-known brands of VETCARE in the market include 3-Care Forte, Neodox Forte, Colidox, E-Care Se Herbal, E-Care Se, G PROmin, UTPP-5, UTPP Biotech.

Nutrition

Nutrition forms the hub of efficient poultry farming, be it a broiler, layer or breeder operation. The industry is facing newer challenges on economic viability and higher productivity in terms of weight gain, FCR, egg production, hatchability etc. Today's bird requires less feed per unit production. Hence, the efficiency of poultry operation largely depends on nutrient supply and effectiveness of their utilization. The company, at VETCARE have set this vision since its inception and has been committed towards Research and Development in bringing out biotechnological and nutritional solutions in the area of animal agriculture. This concept gained further momentum after the company joined hands with one of the global leaders in animal nutrition Provimi.

Provimi has been a European market leader with an annual turnover of 1.25 billion US$. With 95 plants in 28 countries, the core business of the PROVIMI group is Nutrition with strong product lines like premixes, micro components of feed, complete feed and standard feed for commercial animals.

VETCARE, after entering into a joint venture with PROVIMI Holding, has the advantage of sourcing their widest database network where common ideologies are shared. VETCARE, having leverage on the group knowledge of PROVIMI network, would like to efficiently translate the same as a Nutritional / Biotechnological solution for the Indian animal industry.

Foreseeing the growth of the animal production, with the technical know-how and the biggest infrastructure base, VETCARE-PROVIMI NUTRITION DIVISION has taken birth within VETCARE. This would promise effective solutions for the important aspects in animal nutrition in India like:

v Early Chick Nutrition

v Comprehensive solutions through tailormade premixes

v Probiotics and other biotech applications.

v Technical services in feed optimization etc.

Export

The Export activity started with one product, catering to the needs of South East Asian Markets. It now offers a gamut of more than 30 products and has expanded its operations to Europe, South America, South East Asia and Africa.

Needless to say that their Exports division has come a long way and now making major contribution to Group's total turnover. Its remarkable growth and progress over the years can be attributed to single factor - undiluted focus on evolving customer needs.

Vetcare's Exports division is one of the major drug-manufacturing units in India producing Halquinol, Oxine Copper and latest Acaricide - Amitraz, of which their exports are substantial. This explains the role of the company's RandD at the core of the planning process and its strong reliance on quality.

A strong and reliable distribution network, and relentless commitment to quality and technical service has helped the export division to spread its wings across the globe. Quality pervades, commitment remains and focus undeterred, that is the motto of Exports division.

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.49.69
UK Pound	1	Rs.72.96
Euro	1	Rs.63.46

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	9
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	7
--LEVERAGE	1~10	7
--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		60

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