MIRA INFORM REPORT

Report Date :

15.11.2008

IDENTIFICATION DETAILS

Name :	POLY MEDICURE LIMITED
Registered Office :	First Floor, 12, Sant Nagar, East of Kailash, New Delhi - 110 065.
Country :	India
Financials (as on) :	31.03.2008
Date of Incorporation :	30.03.1995
Com. Reg. No.:	55-66923
CIN No.: [Company Identification No.]	L74899DL1995PLC066923
TAN No.: [Tax Deduction & Collection Account No.]	RTKP01741F
Legal Form :	Public limited liability company. Company’s shares are listed on Stock Exchanges.
Line of Business :	Manufacturer of Disposable Healthcare 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 2115875
Status :	Good
Payment Behaviour :	Slow but Correct
Litigation :	Clear
Comments :	Subject is a well established and reputed company having satisfactory track. Trade relations are fair. Financial positions is satisfactory. Payments are reported as slow but correct. The company can be considered normal for business dealings at usual trade terms and conditions.

LOCATIONS

Registered Office :	First Floor, 12, Sant Nagar, East of Kailash, New Delhi - 110 065, India
Tel. No.:	91-11-26481889, 26481893, 26481899, 26481838
Fax No.:	91-11-26481894, 26481839
E-Mail :	polymed@vsnl.com investorcare@polymedicure.com
Website :	www.polymedicure.com
Factory :	Ø Unit I – Plot No. 104-105, Sector 59, HSIDC Industrial Estate, Ballabhgarh, Faridabad, Haryana, India. Tel No. : 91-129-2307000/01/ 08 Fax No. : 91-129-2307007/2309401 E-Mail: plant@polymedicure.com Ø Unit II – Plot No. 115, Sector 59, HSIDC Industrial Estate, Ballabhgarh, Faridabad, Haryana, India. Ø Unit-lll – Plot No. 113, Sector 59, HUDA Industrial Estate, Ballabhgarh, Faridabad, Haryana, India Ø Unit-III – Plot No. 116, Sector 59, HSIDC Industrial Estate, Ballabhgarh, Faridabad, Haryana, India. Ø UnitIV – Plot No. 17, Sector 3, Industrial Estate IIE, Hardwar, Uttaranchal, India
Marketing Office:
Address:	Plot No.105, Sector-59, HSIDC Industrial Area, Faridabad, Haryana, India.
Tel No:	91-129-2307000 to 08
Fax No:	91-129-2307007 / 2309102
E-Mail:	marketing@polymedicure.com info@polymedicure.com
South East Office:
Address:	#07-304, The Plaza 7500 A Beach Road, Singapore- 199591.
Tel No:	65-62965300
Fax No;	65-62977030
Note:	Export office has been Shifted to Plant.

DIRECTORS

Name :	Mr. D. R. Mehta
Designation :	Chairman
Name :	Mr. Dr. S. R. Mohnot
Designation :	Director
Name :	Mr. J. K. Baid
Designation :	Director
Name :	Mr. Y. S. Choudhary
Designation :	Director
Name :	Mr. P. C. Surana
Designation :	Director
Name :	Mr. Himanshu Baid
Designation :	Managing Director
Qualification :	Electronics Engineer
Age :	37 years
Experience :	15 years
Date of Appointment :	20.09.1996
Last employment :	Hanuman Tin Factory
Name :	Mr. Rishi Baid
Designation :	Executive Director
Qualification :	BSME, MSME
Age :	33 years
Experience :	10 years
Date of Appointment :	1.08.1997
Last employment :	Miles Parma INC, USA
Name :	Mr. D. K. Gupta
Designation :	Senior Executives – Operations
Name :	Mr. V. K. Khera, A V P
Designation :	Senior Executives – Works
Name :	Mr. J. K. Oswal
Designation :	Senior General Manager and Senior Executives – Finance
Name :	Mr. G. R. Bajaj, A V P
Designation :	Senior Executives – Marketing
Name :	Mr. P. S. Negi
Designation :	Senior Executives
Name :	Mr. P P Mata
Designation :	Senior Executives - Production
Audit Committee :
Name :	Dr. S R Mohnot
Designation :	Director
Name :	Mr. Y S Choudhary
Designation :	Director
Name :	Mr. P C Surana
Designation :	Director
Executive Committee:
Name :	Dr. S R Mohnot
Designation :	Director
Name :	Mr. P C Surana
Designation :	Director
Name :	Mr. D R Mehta
Designation :	Director
Name :	Mr. Himanshu Baid
Designation :	Director
Name :	Mr. Rishi Baid
Designation :	Director

KEY EXECUTIVES

Name :	Mr. Anil Singh
Designation :	Company Secretary
Name :	Mr. Y. P. Bansal
Designation :	Company Secretary
Name :	Mr. Vivek Kumar
Designation :	Company Secretary
Name :	Mr. Himanshu Baid
Designation :	Managing Director
Name :	Mr. Rishi Baid
Designation :	Executive Director
Name :	Mr. J. K. Baid
Designation :	Director

MAJOR SHAREHOLDERS

(As on 31.03.2008)

Names of Shareholders	No. of Shares	Percentage of Holding
A) Share holding of Promoter and Promoter Group
1. Indian
a)Individuals/Hindu Undivided Family	2196096	39.88
b)Bodies Corporate	404850	7.35
Sub-Total (A)(1)	2600946	47.24
2. Foreign
a)Individuals/Hindu Undivided Family	14200	0.43
Sub-Total (A) (2)	14200	0.43
Total Shareholding of Promoter and Promoter Group(A)=(A)1+(A)2	2615146	47.66
B) Public Shareholding
1. Institutions
a) Foreign Institutional Investors	39386	0.72
Sub-Total (B) (1)	39386	0.72
2. Non Institutions
a) Bodies Corporate	2008901	36.48
b)
i) Individuals Shareholders holding nominal share capital up toRs.0.100 Million	603263	10.96
ii) Individual shareholders holding nominal share capital in excess of Rs.0.100 Million	192554	3.50
C) Any other (Non Resident Indian/OCB)	36875	0.67
i) Any other (Clearing Member)	10125	0.18
Sub-Total (B) (2)	2851718	51.79
Total Public Shareholding (B)=(B)1+(B)2	2891104	52.51
Total (A)+(B)	5506250	100.16

BUSINESS DETAILS

Line of Business :

Manufacturer of Disposable Healthcare Products

Products :

Products	ITC Code
Blood Bag	090189032
I V Cannula	090183930
Catheters	090183910

PRODUCTION STATUS:

(As on 31.03.2008)

Particulars	Unit	Licensed Capacity	Installed Capacity
Medical Disposables	Lacs Nos.	4835.70 lacs nos.	1540 lacs nos.

GENERAL INFORMATION

Bankers :

State Bank of India

Facilities :

SECURED LOAN	31.03.2008 (Rs. In millions)
Term Loan from Bank
Rupee Loan	211.938
Foreign Currency Loan	18.685
Cash / Export Credit Loan
From Bank	73.074
Other loans
Vehicle Loans	0.428
TOTAL	304.125

Notes :

1) Term Loans and Cash/Export Credit Loan from Bank (State Bank of India, Faridabad) are secured by hypothecation of inventories, present and future Book Debts, Receivables, Total Current Assets and first charge over entire fixed Assets, present and future, movable and immovable and equitable mortgage of all existing Land and Building and personal guarantee by Managing Director and Executive Director of the Company.

2) Vehicle Loans are secured by hypothecation/lien of the respective vehicles.

3) Term Loans repayable within one year Rs.51.207 millions ( previous year Rs.39.455 millions)

4) Other Loans repayable within one year Rs.0.418 millions ( previous year Rs.0.468 millions)

UNSECURED LOANS
Short Term, working capital loan from Bank	50.000
TOTAL	50.000
Note:
Short term working capital loan from bank (Barklays Bank PLC) is to be converted in to a secured loan within a period of 9 months from the date of first disbursement (that is 24.12.2007). The Loan is guaranteed by the Managing Director.

Banking Relations :	Satisfactory
Auditors :	Chaturvedi and Company, Chartered Accountants
Associates :	o Ultra for Medical Products (UMIC), Egypt.
Subsidiary Company:	o US Safety Syringes Company. LLC, USA
	o Subsidiary (with. effect .from. 4^th june,2007)
Company under common control:	o Jai Polypan Private Limited o Vitromed Healthcare (Partnership firm) o Polycure Martech Limited o Stilocraft (Partnership Firm)

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
9000000	Equity Shares	Rs.10/- Each	Rs.90.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
5506250	Equity Shares	Rs.10/- Each	Rs.55.062 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		55.063	54.000	54.000
2] Share Warrants		3.379	4.505
3] Reserves & Surplus		364.733	291.485	224.573
NETWORTH		423.175	349.990	278.573
LOAN FUNDS
1] Secured Loans		304.125	264.627	148.282
2] Unsecured Loans		50.000	0.000	0.000
TOTAL BORROWING		354.125	264.627	148.282
DEFERRED TAX LIABILITIES		28.333	25.074	20.619
DEFERRED PAYMENT CREDIT		5.265	18.693	8.875
TOTAL		810.898	658.384	456.349
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		513.938	452.818	322.017
Capital work-in-progress		67.596	72.193	31.620
INVESTMENT		44.239	21.899	22.041
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	134.654	109.982	75.014
	Sundry Debtors	134.901	96.547	86.089
	Cash & Bank Balances	6.991	5.876	7.160
	Other Current Assets	9.107	5.799	4.162
	Loans & Advances	56.598	31.587	22.307
Total Current Assets		342.251	249.791	194.732
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	133.608	118.457	99.329
	Provisions	24.657	21.569	17.010
Total Current Liabilities		158.265	140.026	116.339
Net Current Assets		183.986	109.765	78.393
MISCELLANEOUS EXPENSES		1.139	1.709	2.278
TOTAL		810.898	658.384	456.349

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2008	31.03.2007	31.03.2006
Sales Turnover		883.817	848.969	705.764
Other Income		60.740	2.833	0.000
Total Income		944.557	851.802	705.764
Profit/(Loss) Before Tax		83.227	103.012	85.162
Provision for Taxation		4.074	20.306	13.409
Profit/(Loss) After Tax		79.153	82.706	71.753
Export Value		598.86	598.171	525.156
Import Value		248.761	351.176	200.772
Expenditures :
	Manufacturing Expenses	526.657	502.417	NA
	Prior Period Adjustments	NA	0.023	NA
	Administrative Expenses	96.263	79.330	NA
	Increase/(Decrease) in Finished Goods	(9.161)	(9.659)	NA
	Employees Remuneration	153.125	114.048	NA
	Interest	38.284	22.890	NA
	Deferred Revenue Expenditure	0.569	0.570	NA
	Depreciation & Amortization	55.593	39.171	NA
Total Expenditure		861.330	748.790	620.602

QUARTERLY RESULTS

PARTICULARS	30.06.2008
Type	1^st Quarter
Sales Turnover	234.500
Other Income	0.100
Total Income	234.600
Total Expenditure	194.100
Operating Profit	40.500
Interest	9.900
Gross Profit	30.600
Depreciation	17.100
Tax	0.100
Reported PAT	13.000

KEY RATIOS

PARTICULARS	31.03.2008	31.03.2007	31.03.2006
Debt-Equity Ratio	0.84	0.71	0.65
Long Term Debt-Equity Ratio	0.61	0.61	0.60
Current Ratio	1.11	1.22	1.36
TURNOVER RATIOS
Fixed Assets	1.31	1.58	1.65
Inventory	7.34	9.31	9.21
Debtors	7.76	9.43	9.82
Interest Cover Ratio	2.92	4.74	4.77
Operating Profit Margin(%)	20.29	19.73	19.77
Profit Before Interest And Tax Margin(%)	14.10	15.18	15.03
Cash Profit Margin(%)	15.00	14.16	14.75
Adjusted Net Profit Margin(%)	8.81	9.61	10.01
Return On Capital Employed(%)	18.02	24.65	26.31
Return On Net Worth(%)	20.67	26.50	28.85

LOCAL AGENCY FURTHER INFORMATION

Operations:

The total revenue of the Company has reached a level of Rs.944.500 Millions as compared to Rs. 851.800 Millions in the previous financial year, an increase of 10.89%. The increase in the topline has not been as encouraging as they planned for which is due to the appreciation in the value of Indian rupee against the US dollar leading to reduced sales realisation despite appreciable growth in volume. The rupee appreciation assumes greater relevance since 77% of the sales are export sales which has affected the growth in profit of the company. The Profit before Interest, Depreciation and Taxes is Rs. 177.100 Millions as against Rs.165.100 Millions in the previous year.

Expansion Programme:

The expansion programmes of the Company are moving ahead with multidimensional approach covering factors like backward and forward integration of manufacturing facilities, organic expansion of production capacity, and the diversification of the product portfolio. This year saw another achievement in the commissioning of their Plant in Haridwar (Uttarakhand).

Subsidiaries and JV

The Company with effect from 04^th June 2007 viz. US Safety Syringes Company., LLC. The Company based in USA has 2 FDA approvals and 8 patents in Safety Medical Devices which will give the company increased access to US markets. The Company's project of setting up manufacturing facility in Laiyang, in Shandong province of China, with an planned investment of US$ 1.1 million has entered into the production phase commencing commercial production in July 2008. The said project is proposed to become a 100% subsidiary of the company. Company's Joint-Venture in Egypt recognised as Ultra For Medical Products Company (Ultra Med), an Egyptian Joint Stock Company, is doing well and is in operation from about 4 years. For the year ended 31^st December, 2007, UltraMed has achieved a Net Profit of 2.28 million Egyptian Pounds, a 38% growth as compared to previous year profits of 1.65 million Egyptian Pounds. Ultra Med has also issued a bonus to the Company in the ratio 7:10. The Company's holding in the JV now stands at 19550 shares.

Finance Raising Mechanism:

The Company is one of the fast growing Companies in its segment amongst other companies of its size. They have already established their presence in India, Egypt, China and USA. They are determined to enter other international markets with new products having unique features. The company is moving with a ready road map for its future expansion. For all these past and future continuous initiatives of expansion, product diversification and better global presence, company certainly need more capital resources. They are exploiting both debt and equity options for the purpose. In addition to the debt funding, the Company has issued 4,25,000 convertible warrants to the Promoters of the Company on preferential basis in March, 2007 in accordance with Chapter XIII of SEE3I (Disclosure and Investor Protection) Guidelines, 2000 and as per shareholder's special resolution approving the same passed on 5 September, 2006.

In the Year 2007-08 the promoters have exercised the conversion option on 1,06,250 convertible warrants issued to them on preferential basis and have subscribed for Equity Shares of the Company of face value of Rs.10/- each at the price of Rs.106/- per share. Therefore the paid up capital of the Company as on 31st March, 2008 stands increased to Rs.55.062 Millions Further, the prometers have the option to covert the remaining 3,18,750 convertible warrants issued on preferntial basis by 16th September, 2008.

MANAGEMENT DISCUSSION AND ANALYSIS

Industry Structure and Developments

The Indian Healthcare Industry is one of the fast growing industries of the Indian economy and has made rapid strides over the years. The Medical Devices sector has transformed and gained global recognition as a producer of reasonable cost, high quality medical disposables. Currently the industry is going through very big transition phase. The Government has put special focus on the Healthcare Industry in the Union Budget 2008 and is doubling the outlay for healthcare expenditure in the Eleventh Five Year Plan (2007-2012). Currently, the market of medical disposables in India is around Rs.12000.000 Millions-15000.000 Millions. Demand for medical disposables in India is increasing at the rate of about 15-18% every year. Today, factors like global competition, high demand, safety of the users, and stringent government regulations transform the whole dimension and structure of the medical disposable industry into more structured and well organized, entities. The company is constantly focusing on strengthening its hold in export as well as domestic market by creating new products through its strong research and development capabilities. The company practices techniques like 5S, Six Sigma, Kaizen, TQM and TPM for continuous perfection in processes and quality of the products.

Opportunities

The Company was established with a belief that small opportunities are often the beginning of great enterprise. Global economy and business practices are rapidly changing. The whole world is now converted into a global village and cross border acquisitions, joint-ventures and takeovers has become a regular phenomenon. The company produced more than 150 million types of pieces of different medical devices in their various facilities all over the world. The company is also a certified R and D house approved by Ministry of Science and Technology and has applied for new patents. Innovation is the key in their company today. The Medical Healthcare Industry in India is growing with public-private partnership. Healthcare and other allied sectors are in priority list of Government as well as private players. Emergence of Indian Corporate Hospitals with a established brand is the positive indicator of Indian healthcare becoming global. Medical tourism looks very upbeat today with low cost and hi-tech surgeries, thereby attracting patients from world over. Health insurance will play a major role in the structured growth of this important sector. The growth of health insurance will stimulate faster growth of healthcare sector and will have a positive impact on overall growth of medical disposables sector as a whole. As per recently published report in "The Economic Times" dated 22nd February, 2008, based on the survey conducted by Walton and HCL technologies, majority of medical device manufacturers in Developed economies see a great potential in outsourcing and better return on investment through R and D and off shoring activities. As per the survey, over a next few years, majority of the medical device manufacturers in western world are trying and outsourcing due to intense competition, shrinking margins and high device development cost. The U.S. market today is around 74 billion $ worth of medical devices And if they include Western Europe and Japan, the market is over 150 billion $. In this big outsourcing opportunity for Indian companies, The company has a great future. Medical devices industry has the potential of being the next hub of major outsourcing in India after the IT and BPO industry.

Threat

Business in healthcare sector is subject to rules and regulations framed by the Government, as this sector works under stringent government regulations and require approvals at each stage for new developments. Borderless world increases the level of competition from national to global. This competition may affect domestic or export sales of the Company. Natural and external factors like earthquake, flood, change in international laws, global recession, and appreciating rupee may affect the prospects of the Company.

Segment-wise Performance

The company presently operates in one Business Segment i.e., Medical Disposables and two market domains domestic and exports. During the year, the Company has increased the capacity of healthcare disposables to 1540 lacs nos per annum as against 1360 lacs of last year. Company has registered an increase of 4% ton the quantum of production this year and reached the level of 1411.90 lacs nos. as against 1356.8 lacs nos. in the previous financial year.

Risks and Concerns

Key risks to the company's business include loss of key personnel, increase in input costs including personnel and material costs, crude oil prices, exchange rate fluctuations and changing import duty structures. Change in regulatory policies and geo-political situation in India and other countries where company is exporting its products can affect company's business.

Internal Control System and their Adequacy

Subject has a well defined and established organisation structure. An extensive system of internal controls to ensure optimal utilisation of resources, accurate reporting of financial transactions and strict compliances with applicable laws and regulations has been intact all the times. The Company has put in place sufficient systems to ensure that assets are safeguarded against loss from unauthorized use or disposition and that transactions are authorised, recorded and reported correctly. The Company has continued its efforts to align all its process and control with global best practices. The internal control system is getting strengthened with the ongoing implementation of ERP in the company. An audit committee of the Board of Directors, comprising of independent directors, regularly reviews the audit plans, significant audit findings, adequacy of internal controls, compliance with Accounting Standards as well as reasons for changes in accounting policies and practices, if any. Financial Performance Vis-a-vis Operational Performance

Fixed Assets :

Tangible Assets:

Ø Freehold Land

Ø Building

Ø Plant and Machinery

Ø Furniture and Fixture

Ø Office Equipment

Ø Vehicles

Ø Lease hold Land

Intangible Assets:

Ø Patent and Trade Marks

Ø Software

Capital Work in Progress

Ø Building

(Including capital advances Rs.2.052 Millions, previous year Rs.7.539 Millions)

Ø Plant and Machinery

(Including capital advances Rs.0.971 Million, previous year Rs.3.940 Millions)

Ø Preoperative expenses

Contingent liabilities not provided for:

PARTICULARS	31.03.2008 (Rs. In Millions)
Unexpired letters of credit (Net of margins)
Counter Guarantees given to bankers for guarantees issued by them	40.330
Bills discounted but not matured	1.857
Demand from custom contested in Appeal (Amount paid Rs.0.120 Million, previous year Rs.0.120 Million)	71.445
Custom duty payable against import under Advance Licence Scheme	0.120
Custom duty payable against import under EPCG Scheme	11.668
Compensation for enhanced cost of Land contested in Punjab and Haryana	12.257
High Court (Amount paid Rs.0.233 Million, Previous year Rs.0.233 Million)	0.934
Income tax matters contested in appeal	0.040

AS PER WBSITE

Company history and profile

Subject was conceived and established by a group of making the benefit of modern healthcare available to the mankind at affordable price. This unique philosophy has been the driving force behind the company since its inception in 1995. Today it has grown into one of the most dynamically versatile manufacturers of disposable healthcare products in the region with over 40 different products.

Modern production facilities and processes

Subject manufactures its products using state of the art technology in ultra modern factories covering over 100000 square feet of manufacturing floor space with about 10,000 square feet of clean rooms of class 100,000 to class 100. A tool room with modern facilities and CNC machine supports the production processes. A high degree of automation and an effective process control help in complying with GMP requirements.

Highly trained and experienced personnel

Subject's main strength is its fully committed, well trained and technically competent personnel. A highly qualified, experienced and motivated management provides guidance and support to the team of over 500 people employed in different activities to factory operations are round to clock.

Quality assurance

Subject's quality assurance system encompasses a comprehensive and exhaustive series of visual, physical, chemical and biological and microbiological tests and inspection at different stages in the production cycle. Beginning with constant surveillance of raw materials of raw materials and it's suppliers; intensive in-process control of all manufactured components and sub-assemblies to the final inspection and testing of the finished products. The systems are well documented and the adherences to quality norms meticulous. Subject has successfully implemented a quality management system and has been accredited by SGS Yarsley International Certification Services, United Kingdom with ISO 9001:2000, ISO-13488:1996 and CE mark for some of its products. For rest of the products, the company has been accredited CE mark by DNV, Norway thus making the entire product range match up to International Quality Standards.

Innovation and continues improvement

To keep pace with the ever changing requirements of the market, Subject has a fully staffed and highly equipped R and D section to design and develop new and innovative products. Using the latest CAD / CAM technology, the new product development in fast and improvements, based on market response and customer feedback, are made with ease. Assuring world class products at affordable prices is the hall mark of subject.

Infusion Therapy Product

Ø I.V. Cannulae 1001-1005, 1007,1018-19-22

Ø Three Way Stop Cock –1006

Ø Three Way Stop Cock Hp-1020

Ø Stop cock with Ext. Tube- 1008A, 1008 B

Ø I.V. Infusion Sets- 1009,1013,1014,1017

Ø Flow Regulator – 1011

Ø Obturator – 1015

Ø Extension Tube (High Pressure)- 1012 H

Ø Extension Tube (Low Pressure) – 1012 L

Ø Polyvol Burette Set – 1016

Press Release:

Poly Medicure Limited applies for 8 Patents and 2 FDA approvals:

Published on Monday, July17, 2006 at 20:01.

Poly Medicure Limited, the leading manufacturers of health medical devices and disposables under the brand name POLYMED has applied for 8 new patents and 2 FDA approvals for its new range of Safety Syringes & Safety Blood Collection Holders. Polymed, which posted a turnover of Rs 73 crores for the year 2005-06 manufactures more than 40 different products under different categories like IV Cannulaes, Infusion Therapy Devices, Central Venous Access Catheters, Anesthesia, Blood management devices and other surgical products. The company is already exporting its range of products to more than 50 countries across different continents including Europe/ Africa/ Asia and South America.

Sharing the details, Mr. Himanshu Baid, Managing Director, Poly Medicure Limited said, "The safety products are used so that the Healthcare workers like Doctors, Nurses, etc are protected from Needle Stick injuries, which can cause HIV and Hepatitis A & B infections. In our latest safety syringe, the needle retracts back in the plunger and gets locked after administering the shot so that it does not remain exposed after use. This is done by activation of spring in the device. The important feature is that it cannot be reused preventing needle stick injuries. The same concept is for blood collection holders. The only difference is that there is no spring for activation. The activation is done manually."

Polymed is growing at a phenomenal rate of 40% (Domestic) compared to the industry growth rate of 10-15%. It is also expanding its present capacity of 130 million to 180 million with the capital expenditure of 25 crores to cater to the burgeoning demand in the domestic and international market.

Poly Medicure Limited, fully owned Indian Healthcare Company started operations in 1997, with the aim of manufacturing and marketing a wide range of International quality disposable Medical and Surgical Devices by bringing dependable manufacturing and innovative engineering solutions to its 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 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.49.46
UK Pound	1	Rs.73.17
Euro	1	Rs.62.96

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	6
--PROFITABILIRY	1~10	6
--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	NO
--LISTED	YES/NO	YES
--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/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

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