MIRA INFORM REPORT

Report Date :

17.03.2008

IDENTIFICATION DETAILS

Name :	CENTURY PHARMACEUTICALS LIMITED
Registered Office :	406 World Trade Centre, Sayajigunj, Vadodara – 390 005, Gujarat
Country :	India
Financials (as on) :	31.03.2007
Date of Incorporation :	16.11.1989
Com. Reg. No.:	04-13000
CIN No.: [Company Identification No.]	U24230GJ1989PLC013000
TAN No.: [Tax Deduction & Collection Account No.]	BRDC00529E
PAN No.: [Permanent Account No.]	AAACC7646K
Legal Form :	A closely held Public Limited Liability Company
Line of Business :	Manufacturing of pharmaceuticals, medical and botanical products.

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 300000
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 / Head Office :	406 World Trade Centre, Sayajigunj, Vadodara – 390 005, Gujarat, India
Tel. No.:	91 –265 – 2361581/ 2361978 / 2362509 / 2328681
Fax No.:	91– 265 – 2226023 / 2363423
E-Mail :	support@centurypharma.com info@centurypharma.com century.baroda@bigfoot.com
Website :	www.centurypharma.com
Factory :	Plot No. 103/104/105, GIDC Halol – 389350, Dist. Panchmahal, Gujarat, India
Tel. No.:	91– 2676 – 220912 / 223220
Fax No.:	91– 265 – 2226023
E-Mail :	info@centurypharma.com

DIRECTORS

Name :	Mr. Vishnu Rajaram Vashney
Designation :	Director
Address :	Sai Kutir 4 Radhe Kishan Bungalows, Near Prernadeep, Judges Bungalows Road, Bodakdev, Ahmedabad – 380054
Date of Birth/Age :	11.04.1947
Date of Appointment :	17.01.2008
Name :	Mr. Kamlesh Ratilal Gadesha
Designation :	Director
Address :	F Shreeji Aastha Avenue, Near Balaji Hospital Ellora Park, Baroda – 390 023, Gujarat, India
Date of Birth/Age :	06.02.1963
Date of Appointment :	11.10.2002
Name :	Mr. Kanaiyalal Natwarlal Sheth
Designation :	Director
Address :	54 Suvernapuri Society Jetalpur Road, Chikuwadi, Baroda – 390 007, Gujarat, India
Date of Birth/Age :	13.10.1927
Date of Appointment :	16.11.1989
Name :	Mr. Janak Kanaiyalal Sheth
Designation :	Director
Address :	54 Suvernapuri Society Jetalpur Road, Chikuwadi, Baroda – 390 007, Gujarat, India
Date of Birth/Age :	17.10.1953
Date of Appointment :	16.11.1989
Name :	Mrs. Roshni Janak Sheth
Designation :	Director
Address :	54 Suvernapuri Society Jetalpur Road, Chikuwadi, Baroda – 390 007, Gujarat, India
Date of Birth/Age :	27.09.1984
Date of Appointment :	10.06.2003
Name :	Mrs. Manjula Sheth
Designation :	Director
Address :	54 Suvernapuri Society Jetalpur Road, Chikuwadi, Baroda – 390 007, Gujarat, India
Date of Birth/Age :	12.03.1929
Date of Appointment :	16.11.1989
Name :	Mrs. Vaishali Janak Sheth
Designation :	Director
Address :	54 Suvernapuri Society Jetalpur Road, Chikuwadi, Baroda – 390 007, Gujarat, India
Date of Birth/Age :	31.08.1959
Date of Appointment :	16.11.1989
Name :	Mr. Rajendra Navnitlal Choksi
Designation :	Director
Address :	54 Suvernapuri Society Jetalpur Road, Chikuwadi, Baroda – 390 007, Gujarat, India
Date of Birth/Age :	25.11.1932
Date of Appointment :	16.11.1989
Name :	Mr. Rishabh Janak Sheth
Designation :	Director
Address :	54 Suvernapuri Society Jetalpur Road, Chikuwadi, Baroda – 390 007, Gujarat, India
Date of Birth/Age :	05.01.1998
Date of Appointment :	11.04.2006
Name :	Mr. Manhar Ratanlal Katwala
Designation :	Director
Address :	21 Anupam Society, rAce course, Baroda – 390 007, Gujarat, India
Date of Birth/Age :	01.08.1931
Date of Appointment :	20.07.2000

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

Names of Shareholders (as on 31.03.2007):-		No. of Shares
Mr. Janak K Sheth		691890
Mr. Kanaiyalal Sheth		100100
Mrs. Manujula K Sheth		773290
Mrs. Vaisdhali Sherth		6700
Mr .Manharlal Katwala		10
Mr. Rajesh Sheth		3010
Mr. Jai Shastry		3000
Mr. Subhodh Shroff		3010
	Total	1581010

Equity Shares Breakup (Percentage of Total Equity): (as on 31.03.2007)

Sr No.	Category	Percentage
1	Directors or relative of directors	100.00

BUSINESS DETAILS

Line of Business :

Manufacturing of pharmaceuticals, medical and botanical products.

Products :

v Bulk Drugs

v Active Ingredients

v Formulations – Human

v Formulations – Veterinary

Product Description	ITC Code
Chloramphenical Salts	29414000
Erythromycin Salts	29415000
Ocytetracycline Salts	29413000

Exports :

Products :

Ertyhromycin BP, Erythromycin Stearate, Erythromycin Ethyl Succinate, Oxytetracucline BP and Chloramphenicol BP

Countries :

United Kingdom, Germany, France, Iran, Kenya, Mexico, Turkey, Indonesia, Uganda, Sri Lanka and Pakistan

Imports :

Products :

Erythromycin Thiocyanate, Ethyl Succinyl Chloride, L-base and Steroyl Chloride

Countries :

China, U.S.A., France and Russia

Terms :

Selling :

L/C terms.

Purchasing :

L/C, D/A or D/P terms.

GENERAL INFORMATION

No. of Employees :	Around 36
Bankers :	· Bank of Baroda, Overseas Branch, Suraj Plaza, Sayajigunj, Vadodara 390 001, Gujarat, India · Export Import Bank of India, Floor 21, Centre One Building, World Trade Centre Complex, Cuffe Parade, Mumbai – 400 035, Maharashtra, India
Banking Relations :	Satisfactory
Auditors :
Name :	Naresh and Company Chartered Accountants
Address:	City Enclave, Near Baroda High School, Opposite Polo Ground, Vadodara – 390 001, Gujarat, India
Associates/Subsidiaries :	Nil

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
4000000	Equity shares	Rs. 10/- each	Rs. 40.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1581010	Equity shares	Rs. 10/- each	Rs.15.810 millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2007	31.03.2006	31.03.2005
SHAREHOLDERS FUNDS
1] Share Capital		15.810	15.810	15.810
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		44.978	37.944	27.840
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		60.788	53.754	43.650
LOAN FUNDS
1] Secured Loans		29.022	4.092	4.989
2] Unsecured Loans		0.000	0.000	0.000
TOTAL BORROWING		29.022	4.092	4.989
DEFERRED TAX LIABILITIES		2.067	2.096	1.942
TOTAL		91.877	59.942	50.581
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		13.703	14.927	14.130
Capital work-in-progress		15.104	0.000	0.000
INVESTMENT		3.060	4.003	0.000
DEFERREX TAX ASSETS		0.055	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	22.839	39.420	25.789
	Sundry Debtors	40.726	35.361	21.378
	Cash & Bank Balances	1.745	6.696	2.609
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	10.979	7.608	4.478
Total Current Assets		76.289	89.085	54.254
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	8.506	34.505	10.821
	Provisions	7.828	13.568	6.982
Total Current Liabilities		16.334	48.073	17.803
Net Current Assets		59.955	41.012	36.451
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		91.877	59.942	50.581

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2007	31.03.2006
Sales Turnover		170.762	198.637
Other Income		0.120	0.783
Total Income		170.882	199.420
Profit/(Loss) Before Tax		14.356	19.943
Provision for Taxation		5.520	6.955
Profit/(Loss) After Tax		8.836	12.988
Expenditures :
	Raw Material Consumed	128.707	152.098
	Purchases made for re-sale	11.399	2.410
	Consumption of stores and spares parts	0.513	0.724
	Salaries, Wages, Bonus, etc.	2.483	2.569
	Managerial Remuneration	1.580	1.848
	Payment to Auditors	0.082	0.025
	Interest	1.263	2.011
	Insurance Expenses	0.344	0.329
	Power & Fuel	1.537	1.990
	Depreciation & Amortization	0.913	0.933
	Other Expenditure	7.705	14.540
Total Expenditure		156.526	179.477

KEY RATIOS

PARTICULARS		31.03.2007	31.03.2006	31.03.2005
PAT / Total Income	(%)	5.17	6.51	NA
Net Profit Margin (PBT/Sales)	(%)	8.41	10.04	NA
Return on Total Assets (PBT/Total Assets}	(%)	13.27	18.46	NA
Return on Investment (ROI) (PBT/Networth)		0.24	0.37	NA
Debt Equity Ratio (Total Liability/Networth)		0.75	0.97	0.59
Current Ratio (Current Asset/Current Liability)		4.67	1.85	3.05

LOCAL AGENCY FURTHER INFORMATION

FORM 8:-

Corporation identity number or foreign company registrations number of the company	U24230GJ1989PLC013000
Name of the company	CENTURY PHARMACEUTICALS LIMITED
Address	406 World Trade Centre, Sayajigunj, Vadodara – 390 005, Gujarat, India
This Form is for	Creation of Charge
Type of Charges	· Book Debts · Others
Particular of the charge holder	Bank of Baroda Address: IBB Branch, Ground Floor, Suraj Plaza Building, Sayajigung, Vadodara – 390 005, Gujarat, India Email ID: ovebar@bankofbaroda.com
Nature or description of the instrument creating charge	Hypothecation agreement dated 12.01.2008
Date of the instrument creating charge	12.01.2008
Amount Secure by the charge	Rs. 85.000 millions
Brief of the principal terms and conditions and extent and operation of the charge	Rate of Interest : Fund Based Cash Credit : 1.75% below BPLR i.e 11.50% at present with monthly rests PC / PCFC FBP / FCBP/ FCBD/ FBD : As per RBIO bank guidelines : at present 8.75% upto 180 Days Non Fund Based Foreign LC (DP / DA 180 Days issuance) As per banks guidelines and concessions considered in commitments and Usance charges. Terms of Repayment: Repayable on Demand Margin: Cash Credit 25% on stock and book debts PC/PCFC/FBD/FCBP/FCBD : 10% Foreign LC: 10% in cash at the time of opening of L/C Bank guarantee: 10% in cash at the time of issuance of bank guarantee Extent and operation of the charge: First charge by way of hypothecation on the stocks and book debts of the company Other terms and conditions as per banks sanction letter bearing number dated 16.11.2007 Others: Collateral security: The proposed facilities are to be further secured by: second charge on the fixed assets factory land building , plant and machinery , situated at 103, 104, 105, 106 GIDC Halol, Panchmahal All the facilities are secured by personal guarantee of following Director of the company Shri Janak LK Sheth -worth Rs. 14.600 millions Shri K N Sheth -Worth Rs. 10.300 millions
Short particulars of the Property charged	Hypothecation of stocks and book debts of the company

OTHER INFORMATION:

The company accredited following awards.

v Rajiv Gandhi Excellence Award

v Vijay Ratna Award

v Jamnalal Bajaj Award for Fair Business Practices

v International Commendation of Success Award

v Rajiv Gandhi National Unity Award 96 for Excellence

WEBSITE DETAILS:

The company is a limited liability company engaged in the business of manufacturing and marketing of Bulk Drugs for over 25 years. After showing a continuous growth, the company started expanding into new markets. In 1997, subject introduced Veterinary products to its existing product line. In January 2007, a new US FDA approvable active ingredient manufacturing plant was set up. The company plans to introduce new products and undertake Research and Development in its new state of the art facility. The company's focus is manufacturing off patented products using new non-infringing processes.

ACTIVE PHARMACEUTICALS INGREDIENTS

Oxytetracycline and Salts
	· Oxytetracyline Dihydrate (For Injection)
	· Oxytetracycline Hcl  (For Injection)
Erythromycin and Salts
	· Erythromycin
	· Erythromycin Stearate
	· Erythromycin Estolate
	· Erythromycin Ethyl Succinate
	· Roxithromycin
Chloramphenicol and Salts
	· Chloramphenicol Palmitate
	· Chloramphenicol Stearate
Acenocoumarol/ Nicoumalone
Fluticasone Propionate

ANIMAL HEALTH PRODUCTS

Albendazole Bolus and Suspension

· Broad Spectrum Dewormer. An Ovicidal As Well As Larvicidal

Buparvaquone 5% Injection 40 Ml and 50 Ml

· Pthelmiosis - For Throats

Cencal Powder

· Calcium In Powder Form Along With Jeera - A Time Tested Digestive Tonic

Cencef Injection 3 Gm

· Ceftriaxone Sodium

Cenclox Injection

· High Tech Armoury - Boon To Animals And Curse To Infections

Centamox Injection 500 Mg, 2 Gm and 3 Gm

· Reliable And Powerful Combination To Treat Severe Infections In Animals

Centox 10 Ml, 15 Ml 50 Ml and 1 Litre

· Cypermethrin 10 % E.C - Ectoparasiticide For Effective TICK Control

Centrogyl Lm Bolus

· With Proven Results In Diarrhoea And Dysentery - For Protozoal, Anaerobic And Aerobic Infections

Centromin Powder 1 Kg and 10 Kg

· Mineral Mixture For Large Animals

Centroplex 30 Ml and 100 Ml Injection

· Vitamin B Complex With Liver Extract

Centroton - U Bolus and Granules

· An Ayurvedic Herbal Ecbolic As Uterine Tonic And Cleansing Agent

Cistamin Injection 30 Ml and 100 Ml

· An Excellent Antihistaminic And Antiallergic Provides Quick Relief From Allergic Manifestations In Animals

Clonim Plus Bolus

· Nimesulide, Paracetamol And Chlorzoxazone

Dp Cal Bolus, Suspension and Granules

· Tri Calcium Phosphate With Vit D3 And B12

Enrofloxacin Injection 15 Ml, 50 Ml and 100 Ml

· A Broad Spectrum Antibiotic Which Assures Rapid Therapeutic Response

Galactomax Bolus and Granules

· An Ayurvedic Galactogouges For Increasing Milk Yield

Heat Up Capsules and Granules

· An Ayurvedic Preparation For Inducing Heat In Animals

Fenbendazole Bolus and Suspension

· Broad Spectrum Anthelmintic - Enemy To Parasites, Friendly To Host 1%

IVERMECTIN INJECTION 7 ML, 20 ML, 50 ML And 100 ML

Liv Up Powder and Liquid

· Ayurvedic Liver Tonic For Animals And Poultry

Maggout Spray 75 Ml and 100 Ml

Mascure Powder 60 Gm

· The Unmatched Oral Therapy - To Control Mastitis

Oxytetracycline Injection 5% 50ml and 100 Ml

Oxytetracycline Injection 10% 30 Ml, 50ml and 100 Ml

Oxytetracycline Injection 20% 50 Ml and 100 Ml

· Oxytetracycline Long Acting 200 MG/ML Injection

Restamin Injection 30 Ml and 100 Ml

· Diclofenac Sodium 25 MG/ML Injection

Restamin Plus Injection 100 Ml

· Diclofenac Sodium 25 MG/ML And Paracetamol 150 MG/ML Injection

Restamin Plus Bolus

· Diclofenac Sodium 200 MG And Paracetamol 1500 MG

Rumioton Bolus

· A Rumenotoric Bolus For Off-Feed Conditions

Sulphadimidine 5 Gm Bolus

Vgenta Injection 100 Ml

· Gentamycin Sulphate 50 MG/ML Injection

Zear Out 500 Ml and 1 Litre Jar

· Herbal Ecobolic - Expels Retained Placenta : Uterine Cleanser and Restorative

BIOTECHNOLOGY

The companys the role of biotechnology as the future of the global pharmaceutical industry in enhancing therapeutic effectiveness, improving lifestyle quality and strengthening corporate profitability. In view of this, the company is involved in the creation of significant biotechnology capabilities and capacities especially in the area of targeted human therapeutic proteins. 

API - RESEARCH

At the company, they have a sharp focus on R and D. They have started working on the development of the following products in house. They are also working with a few companies for development of their new products.

New Products under development:-

· Florfenicol

· Paroxetine Hydrochloride Hemihydrate.

· Atompxetine Hydrochloride.

· Irbesartan

· Calcium Oxytetracycline

INVESTOR INFORMATION

The company has a vision to enter into new markets, launch innovative products, and build a brand that will carry itself across the world.

CMT REPORT (Corruption, Money Laundering & Terrorism]

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

1] INFORMATION ON DESIGNATED PARTY

No records exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

2] Court Declaration :

No records exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

3] Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

4] Record on Financial Crime :

Charges or conviction registered against subject: None

5] Records on Violation of Anti-Corruption Laws :

Charges or investigation registered against subject: None

6] Records on Int’l Anti-Money Laundering Laws/Standards :

Charges or investigation registered against subject: None

7] Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

8] Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

9] Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

10] Press Report :

No press reports / filings exists on the subject.

CORPORATE GOVERNANCE

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

CONTRAVENTION

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.40.45
UK Pound	1	Rs.81.20
Euro	1	Rs.63.48

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	7
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	6
--RESERVES	1~10	6
--CREDIT LINES	1~10	6
--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		54

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