MIRA INFORM REPORT

Report Date :

16.08.2011

IDENTIFICATION DETAILS

Name :	FLAMINGO PHARMACEUTICALS LIMITED
Formerly Known As :	FLAMINGO IMPEX PRIVATE LIMITED
Registered Office :	7/1, Corporate Park, Sion –Trombay Road, Chembur, Mumbai- 400071, Maharashtra
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	12.06.1985
Com. Reg. No.:	11-036572
Capital Investment / Paid-up Capital :	Rs. 68.040 millions
CIN No.: [Company Identification No.]	U51900MH1985PLC036572
TAN No.: [Tax Deduction & Collection Account No.]	MUMF03725B
PAN No.: [Permanent Account No.]	AAACF4211B
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturing of pharmaceutical products such as Tablets, Capsules, Dry Syrups and Injectibles.
No. of Employees :	100 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (51)

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Maximum Credit Limit :	USD 3500000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is an established company having fine track. Financial position of the company appears to be sound. Trade relations are reported as fair. Business is active. Payments are reported to be regular and as per commitments. The company can be considered normal for business dealings at usual trade terms and conditions.

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

INFORMATION PARTED BY

Name :	Mr. Sanjay
Designation :	Accountant
Contact No.:	91-22-30009300
Date :	11.08.2011
Name :	Mr. Nirmal B
Designation :	Purchases General Manager
Contact No.:	91-9324154884
Date :	11.08.2011
Name :	Mr. Murli
Designation :	Chief Executive Officer
Date :	11.08.2011

LOCATIONS

Registered Office :	7/1, Corporate Park, Sion –Trombay Road, Chembur, Mumbai- 400071, Maharashtra, India.
Tel. No.:	91-22-25234120 / 25235242 / 43 / 45 , 67975242 / 43/ 45/25275242
Fax No.:	91-22-25233085 / 25246837 / 55975249 / 25233095
E-Mail :	ashf@giasbm01.vsnl.net.in
Website :	http://www.flamingopharma.com
Area:	6767 Sq. ft.
Location:	Owned
Factory 1 :	R-662, T.T.C. Industrial Area, Rabale, Navi Mumbai - 400 071, Maharashtra, India
Tel. No.:	91-22-27695593 / 27696998 / 27694571 / 227607130
Fax No.:	91-22-27693844
E-Mail :	mailfplrbl@vsnl.net.in
Area:	4439 Sq. Mtrs
Location:	Owned
Factory 2 :	E-28, Taloja Industrial Area, Taloja, Raigad – 410 208, Maharashtra, India
Tel. No.:	91-22-27411372 / 65162742
Fax No.:	91-22-27411386
E-Mail :	mailfpltlg@vsnl.net.in
Area:	6480 Sq. Mtrs
Location:	Owned

DIRECTORS

AS ON 30.09.2010

Name :	Mr. Ashwin Jethalal Thacker
Designation :	Chairman and Managing Director
Address :	702, Sabari Aangan, 11^th Road, Chembur, Mumbai – 400077, Maharashtra, India
Date of Birth :	13.10.1989
Qualification :	B. Sc. (Hons), DBM, DMM (Bom)
Date of Appointment :	23.06.1986
DIN No :	00048595
Name :	Mr. Jethalal Khatau Thacker
Designation :	Director
Address :	701, Sabari Aangan, 11^th Road, Chembur, Mumbai – 400077, Maharashtra, India
Date of Birth:	29.01.1927
Date of Appointment :	22.12.1986
DIN No :	00048679
Name :	Mr. Deepak Bhupatrai Goradia
Designation :	Director
Address :	806, Somnath Neelkant Valley, Rajawadi, Ghatkopar (East), Mumbai – 400077, Maharashtra
Date of Birth :	09.04.1956
Date of Appointment :	03.09.1997
DIN No :	00058544
Name :	Mr. Suhas Sadanand Ganpule
Designation :	Director
Address :	236, Pratiksha Building, 3^rd Floor, Flat No.10, Borivali (West), Mumbai-400092, Maharashtra, India
Date of Appointment :	17.11.2009
DIN No :	00179817

KEY EXECUTIVES

Name :	Mr. Sanjay
Designation :	Accountant
Name :	Mr. Nirmal B
Designation :	Purchases General Manager
Name :	Mr. Murli
Designation :	Chief Executive Officer
Name :	Mr. Murlidharan K
Designation :	Secretary
Address :	Flat No.103, Neelam Nagar, Phase II, Mulund (East), Mumbai-400018, Maharashtra, India
Date of Appointment :	01.07.2010
PAN No :	AGEPK5441P

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 30.09.2010

Names of Shareholders	No. of Shares
Ashwin Jethalal Thacker	4163400
Jethalal Khatau Thacker	60
Raju Thacker	1895400
Pranay Thacker	722400
Joyce John	30
Raechella Murzello	30
Sanjay Gujar	30
Minimed Laboratories Private Limited, India	22650
Total	6804000

AS ON 30.09.2010

Category	Percentage
Bodies corporate	0.33
Directors or relatives of Directors	99.67
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturing of pharmaceutical products such as Tablets, Capsules, Dry Syrups and Injectibles.

Products :

Products Description	ITC CODE
Containing penicilins or derivatives thereof with a penicillanic acid structure or streptomycins or their derivatives	300410
Containing other antibiotics	300420
Paracetamol, Aspirin etc in tablets, syrup etc.	30049062

Exports :

Products :

· Pharmaceutical Products

Countries :

· Europen Countries

· United Kingdom

· USA

Imports :

Products :

· Raw Material

· Chemical

Countries :

· China

Terms :

Selling :

L/C, Cash, Credit

Purchasing :

L/C, Cash, Credit

PRODUCTION STATUS AS ON 31.03.2010

Particulars	Unit	Licensed Capacity	Installed Capacity	Actual Production
Tablets	In Lacs / (000’s)	NA	24494	1926721
Capsules	In Lacs/ (000’s)	NA	9624	873953
Dry Syrups	In Lacs/ Bottles	NA	84	4058397
Injectibles	In Lacs/ Vials	NA	585	12497362

GENERAL INFORMATION

No. of Employees :

100 (Approximately)

Bankers :

· Bank of India, Andheri Corporate Banking Branch, M. D. I. Building, 28, S. V. Road, Andheri (West), Mumbai-400058, Maharashtra, India

Facilities :

Secured Loan	Rs. In Millions 31.03.2010	Rs. In Millions 31.03.2009
Term Loans:-
- Rupee loans	67.234	212.628
- Foreign Currency Loans	105.752	0.000
Working Capital Loans:-
- Rupee loans	315.438	339.907
- Foreign Currency Loans	127.048	0.000
Vehicles Loans	0.749	1.514
Total	616.221	554.049

Notes:

1. Terms loans are secured by way of first charge by mortgage of the immovable properties of the company at

(a) Plot No.R-662, MIDC, Rabale, Navi Mumbai

(b) Plot No.E-28, MIDC, Taloja

(c) 7/I and 7/G, Corporate Park, Chembur, Mumbai and by hypothecation of all movable assets of the company on a pari passu basis with State Bank of India, Exim Bank, Bank of India and personal guarantee of two directors. Due within a year Rs. 64.300 millions (P. Y. Rs. 86.468 millions)

2. Working Capital loans are secured by

(a) Hypothecation of inventories, book debts, other current assets,

(b) Second charge by mortgage of immovable properties and hypothecation of movable assets of the company

(c) Personal guarantee of two directors

3. Vehicle Loans are secured by hypothecation of Vehicles financed under the loans. Due within a year Rs. 0.525 million (P. Y. 0.764 million)

Unsecured Loan	Rs. In Millions 31.03.2010	Rs. In Millions 31.03.2009
From Directors	0.000	12.500
Shareholders	0.000	1.500
Total	0.000	14.000

Banking Relations :
Financial Institution :	Axis Trustee Services Limited, Maker Towers, ‘F’, 13^th Floor, Cuffe Parade, Colaba, Mumbai-400005, Maharashtra, India
Auditors :
Name :	Pravin Sarvaiya and Company Chartered Accountant
Address :	5, Kermani Building, Sir P. M. Road, Fort, Mumbai-400001, Maharashtra, India
Associates/Subsidiaries :	- Minimed Laboratories Private Limited - Rotaline Molekule Private Limited - Flamingo Healthcare Private Limited

CAPITAL STRUCTURE

AS ON 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
10000000	Equity Shares	Rs.10/- each	Rs. 100.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
6804000	Equity Shares	Rs.10/- each	Rs. 68.040 Millions

Note:

(Out of the above shares 6748000 (P. Y. 6748000) shares are allotted as per fully paid up by way of Bonus Shares by capitalization of General Reserve)

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2010	31.03.2009	31.03.2008
SHAREHOLDERS FUNDS
1] Share Capital		68.040	68.040	68.040
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		826.888	448.165	359.260
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		894.928	516.205	427.300
LOAN FUNDS
1] Secured Loans		616.221	554.049	644.891
2] Unsecured Loans		0.000	14.000	19.000
TOTAL BORROWING		616.221	568.049	663.891
DEFERRED TAX LIABILITIES		50.665	58.334	56.478
TOTAL		1561.814	1142.588	1147.669
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		877.926	516.923	511.772
Capital work-in-progress		44.495	31.450	0.000
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	319.459	392.023	359.960
	Sundry Debtors	406.202	377.122	407.463
	Cash & Bank Balances	36.875	17.024	13.496
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	224.325	140.341	116.476
Total Current Assets		986.861	926.510	897.395
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	336.213	347.473	305.960
	Other Current Liabilities	40.077	67.379	61.537
	Provisions	30.196	5.970	24.966
Total Current Liabilities		406.486	420.822	392.463
Net Current Assets		580.375	505.688	504.932
MISCELLANEOUS EXPENSES		59.018	88.527	130.965
TOTAL		1561.814	1142.588	1147.669

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	2169.604	1870.509	1480.308
		Other Income	0.000	0.000	0.000
		TOTAL (A)	2169.604	1870.509	1480.308
Less	EXPENSES
		Materials	1315.561	1116.804	968.108
		Personal Expenses	171.456	159.133	68.971
		Operating and Other Expenses	425.785	365.991	286.006
		Deferred Revenue Expenditure W/O	29.508	29.509	1.743
		TOTAL (B)	1942.310	1671.437	1324.828
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		227.294	199.072	155.480
Less	FINANCIAL EXPENSES (D)		70.957	75.532	44.019
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		156.337	123.540	111.461
Less/ Add	DEPRECIATION/ AMORTISATION (F)		42.989	38.425	31.202
	PROFIT BEFORE TAX (E-F) (G)		113.348	85.115	80.259
Less	TAX (I)		(5.571)	(9.761)	28.404
	PROFIT AFTER TAX (G-I) (J)		118.919	94.876	51.855
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		163.165	84.573	46.829
Less	APPROPRIATIONS
		Transfer to General Reserve	15.000	10.313	10.000
		Proposed Dividend	9.525	5.103	3.514
		Tax on Dividend	1.619	0.868	0.597
	BALANCE CARRIED TO THE B/S		255.940	163.165	84.573
	EXPORT VALUE		1964.782	1675.879	1310.469
	IMPORTS
		Raw Materials	241.491	147.734	238.740
		Capital Goods	4.559	11.337	10.355
	TOTAL IMPORTS		246.050	159.071	249.095
	Earnings Per Share (Rs.)		17.48	13.94	21.98

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	5.48	5.07	3.50
Net Profit Margin (PBT/Sales)	(%)	5.22	4.55	5.42
Return on Total Assets (PBT/Total Assets}	(%)	6.08	5.90	5.69
Return on Investment (ROI) (PBT/Networth)		0.13	0.16	0.19
Debt Equity Ratio (Total Liability/Networth)		1.20	2.03	2.60
Current Ratio (Current Asset/Current Liability)		2.43	2.20	2.29

LOCAL AGENCY FURTHER INFORMATION

SUNDRY CREDITORS DETAILS

(RS. IN MILLIONS)

SOURCES OF FUNDS	31.03.2010	31.03.2009	31.03.2008
Sundry Creditors	336.213	347.473	305.960

OPERATIONS:-

During the year, the Income from Operations of the Company registered a growth of about 14%, mainly due to increased exports of Rs. 2000.600 millions (previous year Rs. 1707.400 millions), about Rs. 100.000 millions of which came from the sales to semi-regulated markets and the balance from regulated markets: The Company has been pursuing export of value added products to the European markets and has been fairly successful in achieving this to reasonable extent, though the efforts will be ongoing to diversify these products further. Margin on clperations could be sustained with the support of steady exchange rates and export incentives.

The Company has been operating in the domestic market since the last three years and is in the process of establishing its brands. Though there has been only marginal growth in domestic sales for the year, the company is endeavouring to improve its margin by enhancing productivity per sales person. The sales strategy is being re-oriented with emphasis on orals and specialized promotional efforts in injectibles. The company expects that the new strategy will bring in additional business and along with it, better working results.

FORM 8

Corporate identity number of the company	U51900MH1985PLC036572
Name of the company	FLAMINGO PHARMACEUTICALS LIMITED
Address of the registered office or of the principal place of business in India of the company	7/1, Corporate Park, Post Box No. 27257, Sion - Trombay Road, Chembur, Mumbai - 400 071, Maharashtra
This form is for	Creation of charge
Type of charge	Immovable property
Particular of charge holder	Bank of India, Andheri Corporate Banking Branch, M. D. I. Building, 28, S. V. Road, Andheri (West), Mumbai-400058, Maharashtra, India
Nature of instrument creating charge	The Indenture of Mortgage dt 02/12/2010 for the First Pari Passu Charge for the Term Loan amounting to Rs. 170.000 millions and Second Paripassu charge for the working capital loan amounting to Rs. 15.5 Crore on the immovable property of the company situated at Plot No NPH -1, in the Kushnoor SEZ, within the village limit of Kushnoor sub district Naigaon, District and Registration district Nanded
Date of instrument Creating the charge	02.12.2010
Amount secured by the charge	Rs. 325.000 millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of interest as described in the Statement of Interest Terms of repayment as described in the Statement of Interest Margin as described in the Statement of Interest Extent and operation of the charge First Pari passu charge for term loan and second pari passu charge for working capital loan as described in the Statement of Interest Other The immovable property of the company situated at Plot No NPH -1, in the Kushnoor SEZ, within the village limit of Kushnoor sub district Naigaon, District and Registration district Nanded
Short particulars of the property charged (Including location of the property)	Plot No NPH -1, in the Kushnoor SEZ, within the village limit of Kushnoor sub district Naigaon, District and Registration district Nanded

TRADE REFERENCE

• Gem Pharma Machineries – Navi Mumbai
• Kent Pharma – Spain
• Teva Pharma - Belgium

FIXED ASSETS

• Leasehold Land
• Factory Building
• Office Premises Building
• Plant and Machinery
• Furniture and Fixtures
• Office Equipments
• Vehicles

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. 45.37
UK Pound	1	Rs. 73.53
Euro	1	Rs. 64.36

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	5
--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		51

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	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
-	NB	New Business	-

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

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.