MIRA INFORM REPORT

Report Date :

29.12.2011

IDENTIFICATION DETAILS

Name :	P AND B PHARMACEUTICALS LIMITED
Formerly Known As :	P AND B PHARMACEUTICALS PRIVATE LIMITED
Registered Office :	A/09, Aashirvad, Lokhandwala Complex, Andheri (East), Mumbai – 400 053, Maharashtra
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	15.12.1978
Com. Reg. No.:	11-020846
Capital Investment / Paid-up Capital :	Rs.7.500 millions
CIN No.: [Company Identification No.]	U24230MH1978PLC020846
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer of Pharmaceutical Products.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

B (29)

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Maximum Credit Limit :	USD 16000
Status :	Moderate
Payment Behaviour :	Slow
Litigation :	Clear
Comments :	Subject is an established company having moderate track. There appears some accumulated losses recorded by the company. However, trade relations are reported as fair. Business is active. Payments are reported to be slow. The company can be considered for business dealings with some cautions.

NOTES :

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

ECGC Country Risk Classification List – September 30, 2011

Country Name	Previous Rating (30.06.2011)	Current Rating (30.09.2011)
India	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

LOCATIONS

Registered Office :	A/09, Aashirvad, Lokhandwala Complex, Andheri (East), Mumbai – 400 053, Maharashtra, India
Tel. No.:	Not Available
Fax No.:	Not Available
E-Mail :	pbpharma2@gmail.com pbpharma3@gmail.com
Website :	http://www.pbpharma.co.in
Administration office:	Excel House, Sativali, Vasai (East), District Thane – 401 208, Maharashtra, India
Tel. No.:	91-250-2480668, 2480428
Fax No.:	91-250-2480748
Factory :	Shakarpur, Khambhat, District Anand – 388 620, Gujarat, India
Tel. No.:	91-2698-220278, 221128
Fax No.:	91-2698-220658

DIRECTORS

As on 30.09.2011

Name :

Mrs. Sohini Hemendra Patel

Designation :

Director

Address :

32, Sagar Darshan, Bhulabhai Desai Road, Mumbai – 400 026, Maharashtra, India

Date of Birth/Age :

05.09.1941

Date of Appointment :

01.06.2007

DIN No.:

00557395

Other Directorship :

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	U24110MH1964PLC013023	P and B Laboratories Limited	Director	06-09-68	06-09-68	Active	NO
2	U24110MH1986PTC038783	P and B Parenterals Private Limited	Director	01-06-07	01-06-07	Active	NO
3	U24230MH1978PLC020846	P and B Pharmaceuticals Limited	Director	01-06-07	01-06-07	Active	NO
4	U28129MH1984PLC032421	Excel Paper Tube Limited	Director	05-07-07	05-07-07	Active	NO

Name :

Dr. Khushmanlal Pranjivandas Patel

Designation :

Director

Address :

73, Miramar, 3, Nepean Sea Road, Mumbai – 400 026, Maharashtra, India

Date of Birth/Age :

28.06.1928

Date of Appointment :

15.12.1978

DIN No.:

00557067

Other Directorship :

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	U24110MH1964PLC013023	P and B Laboratories Limited	Director	01-10-64	01-10-64	Active	NO
2	U24230MH1978PLC020846	P and B Pharmaceuticals Limited	Director	15-12-78	15-12-78	Active	NO
3	U24110MH1986PTC038783	P and B Parenterals Private Limited	Director	30-01-86	30-01-86	Active	NO
4	U28129MH1984PLC032421	Excel Paper Tube Limited	Director	05-07-07	05-07-07	Active	NO

Name :

Mr. Hemendra Pranjivandas Patel

Designation :

Director

Address :

32, Sagar Darshan, Bhulabhai Desai Road, Mumbai – 400 026, Maharashtra, India

Date of Birth/Age :

08.07.1937

Date of Appointment :

15.12.1978

DIN No.:

00557183

Other Directorship :

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	U24230MH1978PLC020846	P and B Pharmaceuticals Limited	Director	15-12-78	15-12-78	Active	NO
2	U24110MH1986PTC038783	P and B Parenterals Private Limited	Director	30-03-86	30-03-86	Active	NO
3	U28129MH1984PLC032421	Excel Paper Tube Limited	Director	31-08-96	31-08-96	Active	NO
4	U24110MH1964PLC013023	P and B Laboratories Limited	Director	01-06-07	01-06-07	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2011

Names of Shareholders	No. of Shares
Patel Khushmanlal	160500
Patel Gunvantlal	22000
Patel Hemendra	350500
Patel Sohini	146500
Patel Dhiren	25000
Patel Leela	6000
Patel Mona	6000
Patel Rena	2000
Patel Darshan	2000
Patel Urmila	8000
Patel Dhiren HUF	20500
Patel Rupe	1000
Total	750000

As on 30.09.2011

Equity Share Breakup	Percentage of Holding
Category
Directors or relatives of directors	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Pharmaceutical Products.

Products :

Item Code No. (ITC Code)	300310
Product Description	Pharmaceutical Products

PRODUCTION STATUS (AS ON 31.03.2011)

Particulars	Unit	31.03.2011
Production for Sales:
Ointment	KG.	252.105
Liquid	LIT.	844754.895
Tablets/ Caps.	LAKHS.	257.250

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

Bank of India, Malad (West) Branch, Bank of India Building, S.V. Road Malad (West), Mumbai – 400 064, Maharashtra, India

Facilities :

Secured Loans	31.03.2011 Rs. In Millions	31.03.2010 Rs. In Millions
A) From a scheduled Bank against hypothecation of raw materials work-in-process and finished goods	11.170	9.820
B) From bank of India against hypothecation of machinery (Guaranteed by directors)	2.400	3.615
C) From Bank of India against hypothecation of motor car (Guaranteed by Directors)	0.000	1.263
Total	13.570	14.698

Unsecured Loans	31.03.2011 Rs. In Millions	31.03.2010 Rs. In Millions
Other Loans and Advances : A) from directors and others	14.060	17.713
B) Loans from Bank of India (Guaranteed by Directors)	0.908	1.195
Total	14.968	18.908

Banking Relations :	--
Auditors :
Name :	Uday M. Ghanekar and Company Chartered Accountants
Address :	4, Ram Niwas (Laxmidwar), Paranjpe 'B' Scheme, Road No.3, Off Hanuman Road, Vileparle (East), Mumbai – 400 057, Maharashtra, India
Tel. No.:	91-22-26169957/ 26169588
Income-tax PAN of auditor or auditor's firm :	AABPG3243J

CAPITAL STRUCTURE

As on 30.09.2011

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		31.03.2011	31.03.2010	31.03.2009
SHAREHOLDERS FUNDS
1] Share Capital		7.500	7.500	7.500
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		0.353	0.353	0.353
4] (Accumulated Losses)		(3.951)	(4.112)	(6.008)
NETWORTH		3.902	3.741	1.845
LOAN FUNDS
1] Secured Loans		13.570	14.698	18.921
2] Unsecured Loans		14.968	18.908	3.311
TOTAL BORROWING		28.538	33.606	22.232
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		32.440	37.347	24.077
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		22.960	22.678	21.225
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.018	0.018	0.018
DEFERRED TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	16.177	16.257	16.718
	Sundry Debtors	4.962	5.116	29.531
	Cash & Bank Balances	2.718	3.220	2.912
	Other Current Assets	0.179	0.000	0.000
	Loans & Advances	1.551	4.072	3.616
Total Current Assets		25.587	28.665	52.777
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	14.905	13.069	49.038
	Other Current Liabilities	0.653	0.631	0.593
	Provisions	0.567	0.314	0.312
Total Current Liabilities		16.125	14.014	49.943
Net Current Assets		9.462	14.651	2.834
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		32.440	37.347	24.077

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	116.360	102.791	101.139
		Other Income	1.173	0.974	1.601
		TOTAL (A)	117.533	103.765	102.740
Less	EXPENSES
		Materials	71.998	60.607	56.520
		Excise Duty	22.563	15.202	23.143
		Personnel	5.805	5.486	4.757
		Management Expenses	8.931	13.220	9.507
		Variation in Stock	(1.222)	1.642	1.322
		TOTAL (B)	108.075	96.157	95.249
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		9.458	7.608	7.491
Less	INTEREST (D)		2.861	2.741	3.903
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		6.597	4.867	3.588
Less/ Add	DEPRECIATION/ AMORTISATION (F)		3.346	2.969	3.166
	PROFIT BEFORE TAX (E-F) (G)		3.251	1.898	0.422
Less	TAX (H)		0.253	0.002	0.075
	PROFIT AFTER TAX (G-H) (I)		2.998	1.896	0.347
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		(4.111)	(6.008)	(6.355)
Less	APPROPRIATIONS
		Prior Period Items	2.838	0.000	0.000
	BALANCE CARRIED TO THE B/S		(3.952)	(4.112)	(6.008)
	IMPORTS
		Trading Goods	7.354	8.059	NA
	TOTAL IMPORTS		7.354	8.059	NA
	Earnings Per Share (Rs.)		4.00	2.53	0.46

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	2.55	1.83	0.34
Net Profit Margin (PBT/Sales)	(%)	2.79	1.85	0.42
Return on Total Assets (PBT/Total Assets}	(%)	6.70	3.70	0.57
Return on Investment (ROI) (PBT/Networth)		0.83	0.51	0.23
Debt Equity Ratio (Total Liability/Networth)		11.45	12.73	39.12
Current Ratio (Current Asset/Current Liability)		1.59	2.05	1.06

LOCAL AGENCY FURTHER INFORMATION

WORKING AND FUTURE PROSPECTS:

The Pharmaceuticals industry as a whole and in particular the small scale enterprises are working under great stress due to stiff competition in the market, due to the price control. Gross margins on domestic's sales are eroded by cost escalation in inputs due to devaluation of the Indian currency and high inflation. The Government raised the cost of finance and also made import of material prohibitively difficult by imposing margin requirements on the value of letter of credit. The current situation has become very alarming due to devaluation, partial convertibility and increase in custom duty resulting in increase cost of the inputs.

CONTINGENT LIABILITIES NOT PROVIDED FOR: (As on 31.03.2011)

(a) Excise duty demands disputed by the company for which company is in appeal – Rs.24.528 millions

FORM 8:

This form is for	Creation of charge
Corporate identity number of the company	U24230MH1978PLC020846
Name of the company	P AND B PHARMACEUTICALS LIMITED
Address of the registered office or of the principal place of business in India of the company	A/09, Aashirvad, Lokhandwala Complex, Andheri (East), Mumbai – 400 053, Maharashtra, India
Type of charge	Book Debts Movable Property
Particular of charge holder	Bank of India, Malad (West) Branch, Bank of India Building, S.V. Road Malad (West), Mumbai – 400 064, Maharashtra, India E-Mail: maladw@bankofindia.co.in
Nature of description of the instrument creating or modifying the charge	Hypothecation cum Loan Agreement (Plant and Machinery, Stocks and Book Debts)
Date of instrument Creating the charge	05.08.2008
Amount secured by the charge	Rs.11.500 millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest: 1.25% above BPLR Min. 14% p.a. with monthly rests or at such other rate as may be notified by the bank from time to time. Terms of Repayment: On demand Margin: 25% against raw material , finished goods , stores and goods in process, 40% against Book debts outstanding of 2 or 3 months or as specified by Bank from time to time. Extent and Operation of the charge and Others : Security and charge hereby created shall be by way of first charge on all the said hypothecated assets for due payment as provided in the deed of all monies including the principal sums, interest/commission costs charges and expenses and all other monies whatsoever due owing and payable by the Borrower to the Bank under or in respect of or in connection with or in any wise concerning or relating to the said facilities agreed to be granted and/or granted by the Bank to the borrower and also for due repayment of all present and future indebtedness and liabilities of the borrower to the Bank of any kind in any manner whether solely or jointly primary or collateral accrued or accruing with all relative interest/commission, charges , costs (between advocate and client) and expenses. Limits: CC (Stock and Book Debts) Rs.11.500 millions.
Short particulars of the property charged	a) All tangible movable machineries and plant, both present and future, b) All tangible movable properties and assets of whatsoever nature of the Borrower both present and future wheresoever situate at Shakharpur, Khambhat or elsewhere. c) All present and future book debts, outstanding, money receivables, claims, bills which are now due and owing or which may any time hereafter during continuance of this security become due and owing to the Borrower.

FIXED ASSETS:

· Freehold Land

· Buildings

· Plant and Machinery

· Equipments

· Computers

· Vehicles

· Furniture

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.52.89
UK Pound	1	Rs.82.71
Euro	1	Rs.69.15

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	3
--CREDIT LINES	1~10	2
--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	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		29

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.