MIRA INFORM REPORT

Report Date :

23.09.2008

IDENTIFICATION DETAILS

Name :	STALLION LABORATORIES PRIVATE LIMITED
Registered Office :	8^th Floor, Devpath, Off C G Road, Navrangpura, Ahmedabad – 380 006, Gujarat
Country :	India
Financials (as on) :	31.03.2008
Date of Incorporation :	18.01.1988
Com. Reg. No.:	04-10285
CIN No.: [Company Identification No.]	U24231GJ1988PTC010285
TAN No.: [Tax Deduction & Collection Account No.]	AHMS04103B
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer, Exporter and Supplier of Pharmaceutical 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 60000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is a well established company having satisfactory track. Trade relations are fair. Financial position is satisfactory. Payments are usually correct and as per commitments. The company can be considered normal for business dealings at usual trade terms and conditions.

LOCATIONS

Registered Office :	8^th Floor, Devpath, Off C G Road, Navrangpura, Ahmedabad – 380 006, Gujarat, India
Tel. No.:	91-79-26560543 / 26441993
Telefax No.:	91-79-26560543
E-Mail :	info@stallionlabs.com dhaval@stallionlabs.com
Website :	http://www.stallionlabs.com

DIRECTORS

Name :	Mr. Ishwarlal Somchand Shah
Designation :	Chairman
Address :	15/115 Agerkar Nagar, Near Alankar Takies, Pune, Maharashtra, India
Date of Appointment :	30.05.1990
Name :	Mr. Vijay Jashwantlal Shah
Designation :	Managing Director
Address :	14, Rajghat Society, Fatehnagar, Paldi, Ahmedabad – 380 007, Gujarat, India
Date of Appointment :	30.05.1990
Name :	Mr. Dhirajlal Somchand Shah
Designation :	Director
Address :	E-24, Ayojan Nagar Society, Mahalaxmi Five Cross Road, Paldi, Ahmedabad – 380 007, Gujarat, India
Date of Appointment :	30.05.1990
Name :	Mr. Jaswantlal Chimanlal Shah
Designation :	Director
Address :	26-B, Jain Merchant Society, Mahalaxmi Fice Cross Road, Paldi, Ahmedabad – 380 007, Gujarat, India
Date of Appointment :	30.05.1990
Name :	Mr. Vipul Rajnikant Shah
Designation :	Director
Address :	E-24, Ayojan Nagar Society, Mahalaxmi Five Cross Road, Paldi, Ahmedabad – 380 007, Gujarat, India
Date of Appointment :	30.05.1990
Name :	Mr. Sharad Bhogilal Shah
Designation :	Director
Address :	A/7, Namohari Flats, B/h Navchetan High School, Dasha Porwad Society, Paldi, Ahmedabad – 380 007, Gujarat, India
Date of Appointment :	30.05.1990

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

(As on 31.03.2007)

Names of Shareholders	No. of Shares
Ishwarlal Shah	100500
Vijay Shah	234500
Dhirajlal Shah	65000
Jashwantlal Shah	60000
Vipul Shah	77500
Sharad Shah	67500
Pannaben S Shah	5000
Nirmalaben J Shah	20000
Shilpa M Shah	50000
Kripa S Shah	10000
Amisha K Shah	30000
Sanjay J Shah	30000
Total	750000

List of Allotment (As on 10.08.2007)

Names of Allottees	No. of Shares
Vijay Jashwantlal Shah	30000
Total	30000

List of Allotment (As on 29.08.2006)

Names of Allottees	No. of Shares
Vijay Jashwantlal Shah	50000
Total	50000

Equity shares Breakup (percentage of total equity)

(As on 30.09.2008)

Category	Percentage
Directors or relatives of directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer, Exporter and Supplier of Pharmaceutical Products.
Products :	· Pharmaceutical Formulations · Complimentary and Alternative Medicines

GENERAL INFORMATION

Bankers :

· Bank of Baroda Navrangpura Branch, Ahmedabad · HDFC Bank Limited · ICICI Bank Limited · Small Industries Development Bank of India SIDBI Tower, 15, Ashok Marg, Lucknow – 226 001, Uttar Pradesh, India

Banking Relations :	Satisfactory
Auditors :
Name :	Parimal S Shah and Company Chartered Accountants
Address :	104/B, 105/B, Anand Chambers, Near Old High Court under Bridge, Navrangpura, Ahmedabad – 380 009, Gujarat, India
Tel. No.:	91-79-40050210
Fax No.:	91-79-26460442
Associates/Subsidiaries :	· Stallion Distributors · V Jashwantlal and Company · Endurance Healthcare Limited · Medico Labs · Espee Pharmachem Private Limited · Espee Pharma Supply · Pharma Care

CAPITAL STRUCTURE

(As on 30.09.2008)

Authorised Capital :

No. of Shares	Type	Value	Amount
750000	Equity Shares	Rs.10/- each	Rs.7.500 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
750000	Equity Shares	Rs.10/- each	Rs.7.500 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		7.500	7.200	6.700
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		4.481	3.731	3.134
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		11.981	10.931	9.834
LOAN FUNDS
1] Secured Loans		13.446	16.721	8.893
2] Unsecured Loans		11.113	11.481	11.424
TOTAL BORROWING		24.559	28.202	20.317
DEFERRED TAX LIABILITIES		0.070	0.088	0.090
TOTAL		36.610	39.221	30.241
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		11.806	11.292	10.208
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.013	0.014	0.013
DEFERREX TAX ASSETS		0.000	0.067	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	11.840	15.472	14.553
	Sundry Debtors	40.749	37.343	27.598
	Cash & Bank Balances	0.454	0.718	0.575
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	7.601	3.926	3.613
Total Current Assets		60.644	57.459	46.339
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	35.665	29.299	25.986
	Provisions	0.188	0.312	0.333
Total Current Liabilities		35.853	29.611	26.319
Net Current Assets		24.791	27.848	20.020
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		36.610	39.221	30.241

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2008	31.03.2007	31.03.2006
Sales Turnover		106.668	94.370	73.494
Other Income		0.626	0.708	0.431
Total Income		107.294	95.078	73.925
Profit/(Loss) Before Tax		1.161	1.042	0.579
Provision for Taxation		0.611	0.445	0.180
Profit/(Loss) After Tax		0.550	0.597	0.399
FOB Value
In USD		$892380	$322755	$326465
In Euro		19200 €	14696 €
Expenditures :
	Financial charges	3.446	2.947	2.337
	Increase/(Decrease) in Finished Goods	(0.869)	(0.999)	(0.170)
	Depreciation & Amortization	1.742	1.650	1.642
	Prior Period Adjustment	0.324	0.000	0.054
	Other Expenditure	101.490	90.438	69.483
Total Expenditure		106.133	94.036	73.346

KEY RATIOS

PARTICULARS		31.03.2008	31.03.2007	31.03.2006
PAT / Total Income	(%)	0.51	0.63	0.54
Net Profit Margin (PBT/Sales)	(%)	1.09	1.10	0.79
Return on Total Assets (PBT/Total Assets}	(%)	1.60	1.52	1.02
Return on Investment (ROI) (PBT/Networth)		0.10	0.10	0.06
Debt Equity Ratio (Total Liability/Networth)		5.04	5.29	4.74
Current Ratio (Current Asset/Current Liability)		1.69	1.94	1.76

LOCAL AGENCY FURTHER INFORMATION

Form No. 8

Name of the company

STALLION LABORATORIES PRIVATE LIMITED

Presented By

Mr. Vijay Shah, Director

1) Date and description of instrument creating the change

Hypothecation of Goods dated 10.06.1994

2) Amount secured by the charge/amount owing on the securities of charge

Rs.1.000 million

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

Hypothecation of all Book Debts of the company

4) Gist of the terms and conditions and extent and operation of the charge.

Margin : 50% P.A.

Interest : 13.5% P.A.

5) Name and Address and description of the person entitled to the charge.

Bank of Baroda

Navrangpura Branch, Ahmedabad

6) Date and brief description of instrument modifying the charge

Supplemental Composite Instruments and Hypo. Of Goods, book Debts, Movable Machinery and Vehicles dated 03.05.2002

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.

The charge was extended from Rs.1.200 millions to Rs.3.000 millions by Supplement Composite Instrument dated 26.06.1999

The charge created on the goods and Book Debts were extended under this Supplement Composite Instrument to the extent of Rs.10.200 millions, which are as under :

Name of Facilities	Rs. In Millions
Cash Credit (Hypo. Of Stock)	Rs.2.000
Cash Credit (Hypo. Of book debts)	Rs.4.500
Bank Guarantee	Rs.1.500
Term Loan II	Rs.1.200
Inland / Foreign LC	Rs.1.000
Total	Rs.10.200

Corporate identity number of the company	U24231GJ1988PTC010285
Name of the company	STALLION LABORATORIES PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	8^th Floor, Devpath, Off C G Road, Navrangpura, Ahmedabad – 380 006, Gujarat, India
`	Modification of charge
Type of charge	· Book debts · Movable property (not being pledge)
Particular of charge holder	Small Industries Development Bank of India SIDBI Tower, 15, Ashok Marg, Lucknow – 226 001, Uttar Pradesh, India
Nature of instrument creating charge	Deed of Hypothecation
Date of instrument Creating the charge	17.08.2007
Amount secured by the charge	Rs.4.500 millions
Brief of the principal terms an conditions and extent and operation of the charge	· Rate of interest As may be determined by the Bank from time to time · Terms of repayment More particularly described in the agreement · Margin As determined by the Bank · Extent and operation of the charge SIDBI shall have 1^st charge on all the movables (save and except book debts) and 2^nd charge on all the current assets including stocks of raw materials, SIP, finished and semi finished goods and book debts etc.
Particulars of the property charged	All the Movables (save and except Bookdebts) including movable plant and machinery, spares, tools, accessories, office equipment, computers situated at company’s godown, factory premises at 305/2, 305/3, GIDC, Kerala Tal: Bavla Dist: Ahmedabad or wherever else and 2^nd charge on Current Assets including stocks, stock in process, semi finished and finished goods and bookdebts etc situated at aforesaid place.
Particulars of the present modification	All Movables including Plant and Machinery, spares, tools, accessories and other assets acquired/ proposed to be acquired out of Loan of SIDBI are hypothecated by way of 1^st charge in favour of SIDBI and 2^nd charge on Current Assets including stocks, stock in process, semi finished and finished gods and bookdebts etc

Web Details

A WHO-GMP, ISO-9001:2000 certified company; Subject serves its healthcare commitment with a wide range of Pharmaceutical Formulations and Complimentary and alternative medicines. Today subject is amongst the fastest growing pharmaceutical companies in India. 

Assisted by host of experienced professionals and given the current pace of activities with constant efforts for improvement and innovation, Stallion Laboratories is poised to make its presence felt globally.

Ever since its inception, Subject has achieved an average growth of 30%, three times higher than the industry average. Subject began its corporate journey as a Pharmaceutical Agency and Manufacturer in the late Eighties. It has a state of the art facility located in the GIDC Estate in Ahmedabad, Gujarat province of India. 

The whole edifice has been constructed by FDCA-approved technicians and engineers. The manufacturing facility and laboratory is in tandem with the highest standards of medicinal formulation environment. In fact it is this stringent quality orientation, that has availed us the coveted WHO's Good Manufacturing Practices certificate. Our operational activities too have an equally professional approach, and our certification by ISO 9001:2000, is a testimony of the same

Facility

· Granulation

· Compression

· Coating Section

· Blister Section

· Quality Control

· Instrumentation

· Capsule Section

· Liquid Section

· Shipping Section

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.45.40
UK Pound	1	Rs.83.15
Euro	1	Rs.65.74

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--CREDIT LINES	1~10	5
--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	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		47

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