MIRA INFORM REPORT

Report Date :

13.12.2008

IDENTIFICATION DETAILS

Name :	MEDREICH LIMITED
Formerly Known As :	MEDREICH STERILAB LIMITED
Registered Office :	Medreich House No 12/8, Saraswati Ammal Street, M. S. Nagar, Bangalore – 560 033, Karnataka
Country :	India
Financials (as on) :	31.03.2008
Date of Incorporation :	16.08.1973
Com. Reg. No.:	08-2383
CIN No.: [Company Identification No.]	U24232KA1973PLC002383
TAN No.: [Tax Deduction & Collection Account No.]	BLRS01934C
PAN No.: [Permanent Account No.]	AABCM1458Q
Legal Form :	A closely held Public Limited Liability Company
Line of Business :	Manufacturers of Pharmaceutical Formulations

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 14000000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well-established company having fine track. Directors are reported as experienced, respectable and having satisfactory means of their own. Their trade relations are fair. Payments are usually correct and as per commitments. The company can be considered good for normal business dealings.

LOCATIONS

Registered Office :	Medreich House No 12/8, Saraswati Ammal Street, Maruthi Seva Nagar, Bengalore – 560033, Karnataka, India
Tel. No.:	91-80-25493334 [10 Lines]
Fax No.:	91-80-25474741
E-Mail :	bnk@ho.medreich.com query@ho.medreich.com medreich@vsnl.com cg@ho.medreich.com info@ho.medreich.com pi@ho.medreich.com medreich@vsnl.com
Website :	http://www.medreich.com
Area :	1500 sq. fts
Location :	Leased
Corporate Office :	Survey No. 4/3, Avalahalli, Off Kanakpura Road, Anjanapura Post, Bangalore, Karnataka, India
Tel. No.:	91-80-25493334
Fax No.:	91-80-25474741
Factory :	· 12^th Mile, Old Madras Road, Virgo Nagar, Bangalore – 560049, Karnataka, India Area : 3500 sq. ft. -- owned · 4/2, Anjanapura, Avalahalli, Karakapura Road, Bangalore, Karnataka, India · 49 B and C, Bommasandra Industrial Area, Bangalore, Karnataka, India · Plot No. 36, Bommasandra Industrial Area, Bangalore, Karnataka, India

DIRECTORS

Name :	Mr. Chandanmal Pukhraj Bothra
Designation :	Managing Director
Address :	14, 7^th Cross, Jaibharat Nagar, Bangalore – 560033, Karnataka, India
Date of Birth/Age :	20.07.1956
Date of Appointment :	01.06.1990
Name :	Mr. J. R. Venu
Designation :	Whole Time Director
Address :	Basanth no. 1, 4^th Main Road, Tata Silk Farm, Bangalore – 560004, Karnataka
Date of Birth/Age :	17.02.1956
Date of Appointment :	01.06.1990
Name :	Mr. Keith De Souza
Designation :	Director
Address :	90 Wyatt Drive, Barnes, London, England
Date of Birth/Age :	01.07.1955
Date of Appointment :	14.09.1996
Name :	Mr. Paul Michael Barett
Designation :	Chairman
Address :	1, Leicester Close, Henley – On – Thames, Oxon, RG92DLD
Date of Birth/Age :	09.11.1945
Date of Appointment :	19.05.2004
Name :	Mr. Rajeev Mehta
Designation :	Director
Address :	80, Wyatt Drive, Barnes, London, England – SW 138AB
Date of Birth/Age :	19.08.1951
Date of Appointment :	19.05.2004
Name :	Mr. Simon George Brundan
Designation :	Director
Address :	Horwood Cottage, Churt Road, Hindhead, Surrey, FU266HZ
Date of Birth/Age :	05.04.1964
Date of Appointment :	19.05.2004
Name :	Mr. Tan Swee Suan
Designation :	Director
Address :	6, Omar Khayyam Avenue, Singapore – 788 540
Date of Birth/Age :	10.04.1956
Date of Appointment :	14.10.2005
Name :	Mr. Seow Teng Peng
Designation :	Director
Address :	2 Avon Road, Singapore – 439780
Date of Birth/Age :	05.05.1945
Date of Appointment :	14.10.2005
Name :	Mr. Anand Govi Ndaluri
Designation :	Director
Address :	2-2-12/1/C, S – 3, Orchids Apartments, Durgabai Deshmukh Colony, Hyderabad 500007, Andhra Pradesh, India
Date of Birth/Age :	14.01.1973
Date of Appointment :	14.10.2005
Name :	Ms. Kushboo Bothra
Designation :	Director
Address :	No. 14, 7^th Cross, Jai Bharat Nagar, Bangalore – 560033, Karnataka
Date of Birth/Age :	30.05.1983
Date of Appointment :	07.06.2004
Name :	Ms. Vandana Bothra
Designation :	Director
Address :	No. 14, 7^th Cross, Jai Bharat Nagar, Bangalore – 560033, Karnataka
Date of Birth/Age :	01.06.1980
Date of Appointment :	03.04.2003
Name :	Mr. Dasari Ramesh
Designation :	Director
Address :	No. 506, II Block, SMR Vinay Estate, Banaswadi, Bangalore – 560043
Date of Birth/Age :	14.05.1967
Date of Appointment :	22.10.2001

KEY EXECUTIVES

Name :	Mr. Ramesh Dasari
Designation :	Secretary
Address :	506, II Block, SMR Vinay Estate, Hormavu Ring Road, Near Banaswadi, Bangalore – 560 043, Karnataka, India
Date of Birth/Age :	14.05.1967
Date of Appointment :	22.10.2001
Name :	Mr. Manoj Kumar Khaitan
Designation :	Secretary
Address :	No. 114, 1^st Main Road, 3^rd Phse, Manjunath Nagar, Bangalore – 560 010, Karnataka, India
Date of Birth/Age :	09.02.1970
Date of Appointment :	17.08.2007

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

(As on 25.09.2007)

Names of Shareholders	No. of Shares
Leela Kanwar	10
Vandana Bothra	10
Arun Kumar Chordia	10
Hemanth Kumar Bothra	10
Kushboo Bothra	10
M/s. Med Holdings (UK) Limited	21055093
M/s. Nokha Holdings Private Limited	7787450
M/s. V Sciences Investment Pte Limited	10000
M/s. V Sciences Investment Pte Limited	14196160
Equity Share Break-up [As on 31.03.2007]	Percentage of Holding
Foreign Holdings	73.00
Bodies Corporate	27.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturers of Pharmaceutical Formulations

Products:

Item Code Number	Product Description
30041003	Ampicillin
30041004	Amoxicillin
30041005	Cloxacillin

Exports :

Countries :

· U.K.

· Africa

· Canada

Imports :

Countries :

· U.K.

· Spain

· Germany

· China

· Malaysia

· Italy

Terms :

Selling :

L/C, D/P, Credit [15/60/120 days] terms

Purchasing :

L/C, D/P, Credit [45/90/30-180 days] terms

PRODUCTION STATUS

(As on 31.03.2008)

Particulars	Unit	Installed Capacity
Capsules	Millions / Annum	2750.000
Tablets	Millions / Annum	2160.000
Bottles	Millions / Annum	18.000

Particulars	Unit	Actual Production
Capsules	Millions	951.600
Tablets	Millions	1944.100
Liquids	Kilo Leters	111.300
Vials	Millions	15.473

GENERAL INFORMATION

Suppliers :

· Sel Jegat Printers, Sivakasi,

· Enzed Chloro Products Private Limited, India

· Fine Print Private Limited, India

· Yuno Packaging Private Limited, India

· Biotica, Spain

· Ribbon SCR, Italy

· Sauter AG, Germany

· Shimatzo, Japan

· S. M. Chemicals, Malaysia

Customers :

· Medreich PLC, UK

· Glaxo Smith Kleine

No. of Employees :

Total 462 : In Office 75 persons and In Factory 387 persons

Bankers :

· State Bank of Mysore

Industrial Finance Branch, Bangalore – 560001, Karnataka, India

· Export Import Bank of India

Center one building, 21^st Floor, World Trade Center, Complex, Cuff Parade, Mumbai - 400 005, Maharashtra, India

· YES BANK LIMITED

Nehru Centre, 9^th Floor, Dr. A. B. Road, Worli, Mumbai – 400018, Maharashtra, India

· Canara Bank

· Overseas Bank, M. G. Road, Bangalore – 560001, Karnataka,

· Corporation Bank

Facilities :

Secured Loans	(As on 31.03.2008) Rs. in millions
From Banks
Term Loan Due within one year Rs.83.333 millions (Secured by way of first charge on certain fixed assets of the Company, both present and future)	83.333
Working Capital loans (Secured by way of first pari-passu charge on certain fixed assets, current assets of the Company, both present and future and second pari-passu charge on certain fixed assets of the Company and are further secured by personal guarantees / certain properties of the Managing Directors and his relative)	225.946
Total	309.279

Banking Relations :	Satisfactory
Financial Institution :	· Housing Development Finance Corporation Limited · Karnataka State Financial Corporation · Karnataka State Industrial Investment and Development Corporation Limited
Auditors :
Name :	· KS Aiyar and Company Chartered Accountant Address: 19/1, 1^st Floor, 2^nd Cross, Lower Palace Orchards, Bangalore – 560003, Karnataka, India · S. R. Batliboi and Associates Chartered Accountants UB City, Camberra Block, 12^th Floor, No. 24, Vittal Malaya Road, Bangalore 560001, Karnataka, India Tel No.: 91-80-40275000 Fax No.: 91-80-22106000
Associates/Subsidiaries :	· Synchron Research Service Private Limited · Kanpha Labs Private Limited, Bangalore, Karnataka, India · Medreich Holdings [UK] Limited · Medreich Plc · Medreich South Africa Limited · LDP – Laboratories Torlan · Trust Chemists and Druggists Limited · Pharmazen Medicals Pte Limited · Medreich Kali Macao Limited · Medreich [M] SDH · Medreich Pte Limited · Medreich Australia Pty Limited · Medreich Far East Limited · SAS Laboratories Torlan · Sarl Medreich France · Medreich China Pharmaceuticals Limited · Medreich Taiwan Pharmaceuticals Limited · Medreich Cephtech Private Limited · SARL Medreich France, France
Collaborators :	Medreich Plc, U.K.
Joint Venture Company :	Adcock Ingram Limited, India

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
44134259	Equity Shares	Rs.10/- Each	Rs.441.343 Millions
14196160	Preference Shares	Rs.78.80/- Each	Rs.1118.657 Millions
	Total		Rs.1560.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
28852593	Equity Shares Out of above · 24719 equity shares were allotted as fully paid as consideration for transfer of business under scheme of amalgamation without payment being received in cash. · 1102820 equity shares were allotted as bonus shares by capitalizing general reserve and share premium account. · 12949803 equity shares allotted on swap basis to acquire 50000 shares of GBP 1 each of Medreich Plc · 21055093 equity shares are held by Med Holdings (UK) Limited, United Kingdom, the Holding Company	Rs.10/- Each	Rs.288.526 Millions
14196160	Non-cumulative participative convertible 1% Preferences Shares The preference shares are convertible into equity shares at the option of the shareholder anytime before the restricted period as prescribed in the Articles of Association. The preference shares are compulsorily convertible into equity shares on or before October 10, 2010 or the date of filing of red herring prospectus with Securities Exchange Board of India in connection with an Initial Public Offer whichever is earlier. The preference shares carry on non-cumulative basis s right to payment of dividend, at the rate of 1% in priority to the payment of dividend on equity shares, with a further right to participate in the profits of the company by way of dividend on a pari-passu basis along with all other holders of equity shares on an as converted basis.	Rs.78.80/- Each	Rs.1118.658 Millions
	Total		Rs.1407.183 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		1407.183	1407.183	1407.183
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		1305.899	1048.217	975.734
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		2713.082	2455.400	2382.917
LOAN FUNDS
1] Secured Loans		309.279	528.410	436.741
2] Unsecured Loans		0.000	0.000	0.000
TOTAL BORROWING		309.279	528.410	436.741
DEFERRED TAX LIABILITIES		93.016	113.915	94.181
TOTAL		3115.377	3097.725	2913.839
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		549.793	795.507	778.599
Capital work-in-progress		59.902	61.206	19.335
INVESTMENT		1635.892	1445.392	1403.152
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	551.181	363.665	382.889
	Sundry Debtors	789.026	576.695	394.932
	Cash & Bank Balances	95.835	251.606	420.336
	Other Current Assets	9.184	20.421	0.000
	Loans & Advances	394.141	227.461	176.074
Total Current Assets		1839.367	1439.848	1374.231
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	870.592	587.313	599.688
	Provisions	98.985	56.915	61.790
Total Current Liabilities		969.577	644.228	661.478
Net Current Assets		869.790	795.620	712.753
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		3115.377	3097.725	2913.839

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2008	31.03.2007	31.03.2006
Sales Turnover		2860.189	2262.023	2225.726
Other Income		327.058	101.730	95.990
Total Income		3187.247	2363.753	2321.716
Profit/(Loss) Before Tax		437.704	158.897	208.722
Provision for Taxation		141.625	48.018	0.000
Profit/(Loss) After Tax		296.079	110.879	208.722
Export Turnover
Sale of Goods Manufactured		2201.498	1582.803	1437.840
Sale or supply of services		36.925	12.003	10.424
Total		2238.423	1594.806	1448.264
Expenditures :
	Raw Material Consumed	2059.544	1584.211	1598.178
	Consumption of stores and spares parts	4.606	3.095	2.747
	Increase/(Decrease) in Finished Goods	(21.113)	23.851	24.587
	Salaries, Wages, Bonus, etc.	187.836	15.407	121.810
	Managerial Remuneration	9.880	7.800	8.864
	Payment to Auditors	2.414	1.311	0.423
	Interest	83.363	90.088	66.907
	Insurance Expenses	3.018	5.869	9.314
	Power & Fuel	53.424	55.437	49.710
	Depreciation & Amortization	41.272	38.663	40.028
	Other Expenditure	325.299	379.124	190.426
Total Expenditure		2749.543	2204.856	2112.994

KEY RATIOS

PARTICULARS		31.03.2008	31.03.2007	31.03.2006
PAT / Total Income	(%)	9.29	4.69	8.99
Net Profit Margin (PBT/Sales)	(%)	15.30	7.02	9.38
Return on Total Assets (PBT/Total Assets}	(%)	18.32	7.11	9.70
Return on Investment (ROI) (PBT/Networth)		0.16	0.06	0.09
Debt Equity Ratio (Total Liability/Networth)		0.47	0.48	0.46
Current Ratio (Current Asset/Current Liability)		1.90	2.23	2.08

LOCAL AGENCY FURTHER INFORMATION

History

Subject was incorporated on 16^th August, 1973 at Bangalore in Karnataka under the name and style ‘Sterilab Private Limited’

The company’s name was changed to ‘Medreich Sterilab Private Limited’ w. e. f. 12.09.1996, consequent to financial collaboration with ‘Med Holding [U.K.] Limited], Surrey, U.K. for 51% holding.

It was converted from private limited company to public limited company w. e. f. 01.07.1997.

The company was merged with ‘Krystal Parenterals Private Limited’ w. e. f. 01.04.1999

The company’s name was changed to present recently.

Contingent Liabilities not provided for

	As on 31.03.2008) Rs. in millions
Claims against the Company not acknowledged as debts	6.675
Bills discounted	437.487
Bank Guarantees	5.560
Corporate Guarantee (including guarantees for loan taken by subsidiary companies)	900.000
Outstanding Letters of Credit	67.683
Customs Duty on balance export obligation under the Advance Licenses	20.404

During 2005-06, the Company had acquired 100000 equity shares of GBP 1 each being the 100% paid-up share capital of Medreich Plc, United Kingdom from Med Holdings (UK) Limited, United Kingdom in consideration for issue of 12949803 equity shares of Rs.10 each at a premium of Rs.43 each by way of swap as per the approval received from Foreign Investment Promotion Board, Ministry of Finance Department of Electronic Affairs vide their letter no, FC 11.137 (2005) dated June 17, 2005.

The Company has a 50.06% interest in the assets, liabilities, expenses and output of Adcock Ingram Limited, a company incorporated in India, which is involved in outsourced manufacture of pharmaceutical products. The Company’s share of the assets, liabilities, income and expenses of the jointly controlled entity as follows at March 31, 2008

FIXED ASSETS

· Land

· Factory Buildings

· Office Buildings

· Plant and Machinery

· Electrical Equipments and Installations

· Furniture and Fittings

· Vehicles

· Office Equipments

· Computers

It is in trade terms with :

· Medreich Plc, U.K.

· Formulation Plc, U.K.

· Karib Chenie, U.K.

· Glaxo Smith Kleine, U.K.

· Formulex, Canada

Form 8

Name of the company	MEDREICH LIMITED
Presented By	Mr. C. P. Bothra, Managing Director
1) Date and description of instrument creating the change	17^th March, 2005 Deed of hypothecation [copy is enclosed]
2) Amount secured by the charge/amount owing on the securities of charge	Term loan of Rs. 250 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 of the borrowers present and future moveable fixed assets including the plant and machinery, furniture and fixtures, lightings, etc. situated at company’s Unit – I, at 12^th Mile, Old Madras Road, Virgonagar, Bangalore – 49 and at company’s corporate office at Medreich House, No. 12/8, Saraswathi Ammal Street, M. S. Nagar, Bangalore – 33 and morefully described in the schedule attached to the hypothecation agreement.
4) Gist of the terms and conditions and extent and operation of the charge.	YES BANK LIMITED Nehru Centre, 9^th Floor, Dr. A. B. Road, Worli, Mumbai – 18 2.39% p.a. prevalent from time to time Overdue rate : 2% p.a. Principal repayment : 6 equal half yearly installments, first installment payable at the end of 18 months from the date of first drawdown Prepayment : Allowed on the interest reset dates
5) Name and Address and description of the person entitled to the charge.	YES BANK LIMITED Nehru Centre, 9^th Floor, Dr. A. B. Road, Worli, Mumbai – 400018
6) Date and brief description of instrument modifying the charge	Not Applicable
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.	Not Applicable

Corporate identity number of the company	U24232KA1973PLC002383
Name of the company	MEDREICH LIMITED
Address of the registered office or of the principal place of business in India of the company	Medreich House No 12/8, Saraswati Ammal Street, M. S. Nagar, Bangalore – 560 033, Karnataka, India
This form is for	Modification of charge
Type of charge	· Immovable property · Movable property (not being pledge)
Particular of charge holder	Export Import Bank of India Center one building, 21^st Floor, World Trade Center, Complex, Cuff Parade, Mumbai - 400 005, Maharashtra, India
Nature of instrument creating charge	Letter of Confirmation dated 27.06.2008 executed by Medreich Limited (Guarantor) confirming that Deed of Hypothecation and Mortgage executed / created by it in favor of Export-Import Bank of India (Exim Bank) shall continue to remain in full force and effect and be available to Exim Bank during the renewal period of 1 year from 29.02.2008 of Buyer’s credit upto the revolving limit of USD mn (INR 220.000 millions) granted by Exim Bank to Medreich Plc UK (Borrower) as per Renewal Letter dated 29.02.2008.
Date of instrument Creating the charge	27.06.2008
Amount secured by the charge	Rs.220.000 millions
Brief of the principal terms an conditions and extent and operation of the charge	· Rate of interest LIBOR (12 months) plus 250 basis points per annum (all inclusive) payable quarterly. · Terms of repayment Each disbursement shall be repaid within 360 days from the sate of such disbursement with an option to Exim Bank to renew the limit at its discretion. · Margin Not applicable · Extent and operation of the charge The Charges by way of Deed of Hypothecation and Mortgage executed / created by Guarantor over its movable and immovable properties operate as continuing security by way of first charge to secure the due performance and discharge by the Guarantor of its obligations under Deed of Guarantee dated March 12, 2007 executed in favour of Exim Bank for buyer’s credit upto revolving limit of USD 5.00 Million (equivalent to Rs.220.000 millions) granted by Exim Bank to the Borrower.
Particulars of the property charged	All the Immovable properties of the Guarantor situated at No.4/3, Avalahalli Village, Uttarahalli Hobli, Bangalore and New Immovable Properties of the Guarantor situated at No.4/2, Avalahalli Village, Uttarahalli Hobli, Bangalore more particularly described in Part A and B respectively to the Second Schedule of the Memorandum of Entry dated 11.06.2007 and all movable properties more particularly described in Schedule III of Deed of Hypothecation dated 12.03.2007.

AS PER WEBSITE

History  

In 1994, when Smithkline Beecham tasked Medreich plc to source quality generic drugs, for its Africa operations, it came upon a little company that had world class quality parameters. This company was guided by the Beecham technical and regulatory protocols that it used in its own facility in UK. The little company, Medreich, has come a long way since then. But the guiding principles remain the same - aim to make a difference through leveraging technological excellence by way of building partnerships with strong and vibrant local partners, around the globe.

Global Reach – Local Partnerships

The combination of worldwide scale and local insight gives the organisation solid foundations on which to grow. Good internal and external communication between the partners and the centre will help ensure long-term prosperity. The organisation nurtures the key values of customer, performance, innovation and sense of urgency in the way they work.

As the world is shrinking and trade barriers are beginning to come down, the pharmaceutical industry is constantly in search of ways to reduce cost without compromising on quality or service; so as to retain a competitive edge in the global market place.

Subject is an Indian Company and forms part of the UK Group of companies comprising of Medreich plc. They have an international focus, and world-class accredited plants that are capable of offering low cost, high quality out-sourcing solutions for its customers.

They specialise in developing and delivering bespoke solutions for their major international customers. They have the capability to handle significant complexity and to produce a wide range of products and dosage forms, in varied packing presentations.

Company strictly adheres to all cGMP requirements and through regular Audit interactions with International agencies, they are constantly upgrading their plants to meet the needs of the changing Regulatory scenario, Quality requirements, while keeping an eye on Environment, Health and Safety.

Company plants are certified by the UK MHRA, TGA Australia, South Africa MCC as well as leading multinational and Indian pharmaceutical companies.

They are committed to setting the best standards in the industry, to build long-term relationships with their customers, deliver complete satisfaction, while improving business performance.

They actively seek strategic alliances with growing, dynamic and leading companies that share their Vision of offering very competitively priced formulations without compromise on Quality and Service.

Company is a pharmaceutical company that has been in existence since 1976, manufacturing generic and branded drugs in several therapeutic areas. In 1994 a strategic joint venture with Medreich plc of UK put the company firmly in the global arena. With more than 1500 employees worldwide, exceptional quality standards and a client base that is spread across 54 countries, Medreich has built a reputation for raising the bar on product superiority with every undertaking.

Medreich’s R and D and manufacturing facilities have received the seal of approval from leading global regulatory bodies such as –UK MHRA, Australia TGA, SA MCC, Health Canada, French FDA. The company produces drugs for leading, global pharmaceutical companies such as GSK, Pfizer, Sanofi Aventis, Wyeth, Merck, among others.

Quality

Every Unit produced by the Company, will totally conform to the quality systems and procedures laid down by the company.

Every Unit produced by the Company, will be in accordance with the process, procedures and controls as laid down by the company.

Every input and component that goes into the product produced, will conform to all standards laid down by the Company.

Every manual, document, certificates, approvals, will be made to conform to the highest quality standards.

Every human resource available in the Company, while they are directly or indirectly connected with the production of every Unit will adhere to all quality systems, controls, and procedure.

Every Unit produced by the Company, will carry the Company’s commitment to quality and customer satisfaction.

The Company will make constant and continuous endeavors to upgrade and enhance its procedures, systems and controls to keep up to the latest Quality Standards in vogue at any given point in time.

Support

Regulatory Affairs:

Fully equipped and staffed by a team of professionals that can compile and update all regulatory documents in line with International requirements, including those of the UK MHRA, TGA Australia and South African MCC. Speed of response according to the customer’s requirements is paramount to this team, together with the accuracy and presentation of the data.

Shelf Life Claim and Stability testing:

Fully equipped to undertake multiple studies on both finished product packs as well as active ingredients. Stability studies can be done according to the full range of ICH Guidelines as well to more stringent standards of analysis and accelerated stability testing. They always make sure they have the full supporting data and documentation to underpin shelf-life claims.

Logistics:

In-house experienced and professional logistics department capable of delivering the products at a very competitive cost and speed any where in the world.

Packaging development:

In-house experienced technical and creative professionals offering diverse packaging presentations custom made for all the customers.

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.48.71
UK Pound	1	Rs.72.86
Euro	1	Rs.64.70

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	7
PAID-UP CAPITAL	1~10	7
OPERATING SCALE	1~10	8
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	9
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	8
--LEVERAGE	1~10	8
--RESERVES	1~10	8
--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		68

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