MIRA INFORM REPORT

Report Date :

30.12.2011

IDENTIFICATION DETAILS

Name :	GALAXY LABORATORIES PRIVATE LIMITED
Registered Office :	B – 22, Aurangabad Industrial Area, Station Road, MIDC, Aurangabad – 431005, Maharashtra
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	03.07.1991
Com. Reg. No.:	11-062334
Capital Investment / Paid-up Capital :	Rs.33.300 Millions
CIN No.: [Company Identification No.]	U85190MH1991PTC062334
TAN No.: [Tax Deduction & Collection Account No.]	NSKG01335F
PAN No.: [Permanent Account No.]	AAACG6614K
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer and Exporter of Drugs and Fine Chemicals.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

B (28)

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

Maximum Credit Limit :	USD 170000
Status :	Moderate
Payment Behaviour :	Slow but Correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track. Profitability of the company appears to be low. However, trade relations are reported as fair. Business is active. Payments are reported to be slow but correct. 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/ Corporate Office :	B – 22, Aurangabad Industrial Area, Station Road, MIDC, Aurangabad – 431005, Maharashtra, India
Tel. No.:	91-240-2376119/ 2376105
Fax No.:	91-240-2377119
E-Mail :	glplaur@yahoo.co.in glplaur@sancharnet.in
Website :	www.galaxylaboratories.com

DIRECTORS

As on 09.09.2011

Name :

Mr. Walimbe Nagesh Sayajirao

Designation :

Director

Address :

Plot No. 35, Sri Swami Ayyappa Co-Operative Society, Madhapur, Hyderabad – 500033, Andhra Pradesh, India

Date of Birth/Age :

03.03.1955

Date of Appointment :

30.09.2002

DIN No.:

00236578

Other Directorship :

CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
U28990AP1996PTC024409	Zen Adsorptions Private Limited	Director	21/06/1996	21/06/1996	-	Active	NO
U24230AP1996PTC024479	Zen Chemiconsultech Private Limited	Director	28/06/1996	28/06/1996	-	Active	NO
L24230AP1996PLC023283	Anu's Laboratories Limited	Whole-time director	2/01/2007	26/05/1997	27/07/2009	Active	NO
U24232AP2001PTC036494	Anu Pharma Private Limited	Director	30/03/2001	30/03/2001	1/10/2004	Active	NO
U85190MH1991PTC062334	Galaxy Laboratories Private Limited	Director	30/09/2002	30/09/2002	-	Active	NO
U24110AP2003PTC041787	Aptus Equipments Private Limited	Director	26/09/2003	26/09/2003	31/03/2007	Active	NO
U74999AP2007PLC052432	Sv's Remedies Limited	Director	22/01/2007	22/01/2007	-	Active	NO
U24239AP2003PLC041563	Yegna Manojavam Drugs and Chemicals Limited	Additional director	25/04/2010	25/04/2010	-	Active	NO
U24233AP2010PTC068222	Zen Distillation Technologies Private Limited	Director	3/05/2010	3/05/2010	-	Active	NO

Name :

Mr. Shrikant Ramchandra Deshmukh

Designation :

Director

Address :

F No. 5, Gahakul Apartment, Plot No. 5, Bansilal Nagar, Aurangabad – 431001, Maharashtra, India

Date of Birth/Age :

12.02.1955

Date of Appointment :

03.07.1991

DIN No.:

00641227

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 31.07.2011

Names of Shareholders	No. of Shares
Vikas I. Jagtap	30000
Rajesh Atmaram Mehunkar	54882
Nagesh S. Walimbe	103050
Sadhana S. Deshmukh	120000
Shrikant R. Deshmukh	1939118
Anushree Shrikant Deshmukh	230000
Shrikant R. Deshmukh (HUF)	50000
Nagesh Walimbe and Leena Nagesh Walimbe	267500
Bhagwat Kadu Patil	10000
Dattaraya S Ghodgaonkar	2500
Dilip B. Deshpande	75000
Krishna Technochem	11300
Leena Nagesh Walimbe	15538
Gopal Bhaskar Awadhani	50000
Viraj S Ghate	20000

As on 01.10.2011

Names of Allottees	No. of Shares
Sumedha Uday Patil	10000
Ganesh Dilipkumar Dhool	5000
Total	15000

As on 09.09.2011

Names of Allottees	No. of Shares
Vikas I. Jagtap	7500
Jayant Mahadeo Kanhere	625
Dattaraya S Ghodgaonkar	625
Chandrakant S. Ghodgaonkar	250
Deepak M. Godbole	500
Rajesh Atmaram Mehunkar	13720
Srikant R. Deshmukh (A/c. Technochem Pro.)	625
Dilip B. Deshpande	18750
Sham S. Wagh	2525
Kirshna Technochem (Anushri Shrikant)	10825
Kirshna Technochem (Ratnakar B. Deshmukhj)	2825
Kirshna Technochem (Rajesh A. Mehunkar)	2825
Nagesh S. Walimbe	25762
Ratnakar B. Deshmukh	7500
Sadhana S. Deshmukh	30000
Shrikant R. Deshmukh	484779
Prakash Bhave	2750
Dhendiba P. Surash	6061
Swati D. Deshpande	7041
B. V. Retarekar and S. G. Thakur	10000
Vivek L. Kulkarni	1250
Leena N. Walimbe	3885
Anushree Shrikant Deshmukh	70000
Gopal B. Awadhani	12500
Madhuri S. Dabke	2500
Mohan Sundersan	2500
Surekha N. Bangad	2500
Manjusha S. Bangad	2500
Shrikant R. Deshmukh (HUF)	12500
Nagesh Walimbe and Leena Nagesh Walimbe	66875
Viraj S. Ghate	5000
Bhagwat Kadu Patil	2500
Devayani N. Walimbe	12500

Equity Share Break up (Percentage of Total Equity)

As on 09.09.2011

Category	Percentage
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer and Exporter of Drugs and Fine Chemicals.

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

· IDBI Bank Limited, IDBI Tower, WTC Complex, Cuffe Parade, Mumbai – 400005, Maharashtra, India

· State Bank of India, IFB Branch, Aurangabad, Maharashtra, India

· Axis Bank Limited

· IDBI Bank Limited, City MSME Center, Navi Mumbai, IDBI Bank Building, 2nd Floor, Sector 11, CBD Belapur, Navi Mumbai – 400614, Maharashtra, India

Facilities :

Secured Loans	As on 31.03.2011 (Rs. in Millions)	As on 31.03.2010 (Rs. in Millions)
Cash Credit (Hypothecation) and bills discounting limits
From IDBI Bank Limited, Aurangabad (Secured by Hypothecation of Stocks of raw materials, finished goods etc. book debts and the personal guarantee of some of the Directors and IInd charge on Fixed Assets.)	24.153	22.663
Corporate loan from IDBI Bank Limited (Secured by Fixed Assets) (Installment repayable in next 12 months Rs.3.800 millions)	13.616	17.617
Car Loan from Axis Bank Limited (Secured by Hypo. Car) (Installment repayable in next 12 months Rs.0.225 million)	0.626	0.852
Total	38.395	41.132

Unsecured Loans	As on 31.03.2011 (Rs. in Millions)	As on 31.03.2010 (Rs. in Millions)
Loan from others (including Shareholders)	1.496	1.400
Provisional sales tax loan (under PSI-93 scheme) (To the extent availed but not finalized as per sales tax asst.)	2.019	2.019
Sales Tax Differal (finalized as per Sales Tax Asst. order)	0.773	0.990
Total	4.288	4.409

Banking Relations :	--
Auditors :
Name :	S. M. Bangad and Company Chartered Accountants
Address :	1^st Floor, Tapadia Terraces, Adalat Road, Aurangabad – 431005, Maharashtra, India
Tel. No.:	91-240-2333140/2328467/2363165
Mobile No.:	91-9325212946/9822073563
E-Mail :	nitin_bangad@rediffmail.com bipinbagad@yahoo.co.in
PAN.:	AAMFS9561J

CAPITAL STRUCTURE

As on 09.09.2011

Authorised Capital : Rs.100.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
4177500	Equity Shares	Rs.10/- each	Rs.41.775 Millions

As on 31.03.2011

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
3330000	Equity Shares	Rs.10/- each	Rs.33.300 Millions

Notes :

(Out of the above 420000 shares were issued for consideration otherwise than in cash)

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		33.300	33.300	33.300
2] Share Application Money		0.000	0.096	0.000
3] Reserves & Surplus		9.760	4.496	1.430
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		43.060	37.892	34.730
LOAN FUNDS
1] Secured Loans		38.395	41.132	37.304
2] Unsecured Loans		4.288	4.409	4.520
TOTAL BORROWING		42.683	45.541	41.824
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		85.743	83.433	76.554
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		44.337	43.170	26.549
Capital work-in-progress		2.834	0.168	4.020
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	28.961	28.012	29.672
	Sundry Debtors	28.528	21.306	30.749
	Cash & Bank Balances	0.656	0.390	2.559
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	11.665	9.070	9.177
Total Current Assets		69.810	58.778	72.157
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	28.238	18.034	25.972
	Other Current Liabilities	0.000	0.000	0.000
	Provisions	3.000	0.649	0.200
Total Current Liabilities		31.238	18.683	26.172
Net Current Assets		38.572	40.095	45.985
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		85.743	83.433	76.554

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Sales (Net of Excise Duty)	162.628	120.111	61.368
		Other Income	NA	NA	NA
		TOTAL	NA	NA	NA
Less	EXPENSES
		Office Expenses	NA	NA	NA
		Administrative Expenses
		Advertising Expenses
		TOTAL	NA	NA	NA
	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION		20.183	13.301	7.455
	FINANCIAL EXPENSES		5.956	4.627	3.738
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION		14.227	8.673	3.717
	DEPRECIATION/ AMORTISATION		5.964	5.142	3.356
	NET PROFIT		8.263	3.531	0.361
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	0.000	0.045	2.300
	TOTAL EARNINGS		0.000	0.045	2.300
	Earnings Per Share (Rs.)		1.59	0.87	0.05

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
Net Profit Margin (PBT/Sales)	(%)	5.08	2.94	0.59
Return on Total Assets (PBT/Total Assets}	(%)	7.24	3.46	0.37
Return on Investment (ROI) (PBT/Networth)		0.19	0.09	0.01
Debt Equity Ratio (Total Liability/Networth)		1.72	1.69	1.96
Current Ratio (Current Asset/Current Liability)		2.23	3.15	2.76

LOCAL AGENCY FURTHER INFORMATION

PERFORMANCE OF THE COMPANY DURING THE PERIOD

During the period the sales turnover and profitability to the company have continued to improve. The sales turnover during the year has increased by 35%, as compared to sales turnover of the previous year. Further the company has earned a profit of Rs.8.263 Millions as against the previous year of Rs.3.531 Millions before provision for tax. Looking at the performance of the company for the period 31.08.2011 and the position of orders and contracts on hand the Directors are confident that the same trend of improvement in sales-turnover and profitability will continue during the current year 2011-12.

FORM 8

Corporate identity number of the company	U85190MH1991PTC062334
Name of the company	GALAXY LABORATORIES PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	B-22, Aurangabad Industrial Area, Station Road, MIDC, Aurangabad – 431005, Maharashtra, India Email Id : glplaur@yahoo.co.in
This form is for	Modification of charge
Charge identification (ID) number of the charge to be modified	10124909
Type of charge	Immovable property Book debts Movable property (not being pledge)
Particular of charge holder	IDBI Bank Limited, City MSME Center, Navi Mumbai, IDBI Bank Building, 2nd Floor, Sector 11, CBD Belapur, Navi Mumbai – 400614, Maharashtra, India Email Id : pm.awate@idbi.co.in
Nature of instrument creating charge	1. Sanction letter. 2. Supplemental Deed of Hypothecation 3. Declaration of Undertaking
Date of instrument Creating the charge	26.02.2011
Amount secured by the charge	Rs.52.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest For CC: at BBR+4.75% p.a., Payable monthly For LC Commission as per Trade Finance SoC Terms of repayment i) CC : Repayable on demand ii) Honoring of commitment on due date (Tenure not to exceed 90 days for individual LC), facility valid for 12 months Margin For CC: 25% on Stocks and 40% on Book Debts For Letter of Credit: 25% in the form of FDR Extent and operation of the charge 1. Charge over immovable and movable properties including movable plant and machinery, spares, stocks, book debts and other current assets of the company 2. The charge will operate as a continuing security for due repayment by the company to IDBI, of the CC of Rs.25.500 Millions, Term Loan of Rs.19.000 Millions and LC of Rs.7.500 Millions, together with interest, other interest, L. D., cost etc. to be paid by the company as per loan agreement/deep of hypothecation agreement attached, as amended from time to time
Short particulars of the property or asset(s) charged (including complete address and location of the property)	Borrower's entire stocks and other movables including book debts, bills, outstanding monies receivables, plant and machinery, spares, tools and accessories wherever lying, both present and future Immovable properties of the company situated at Plot No.B-22, MIDC Industrial Area, Railway Station Road, Within The Villate Limits of Satara, District Aurangabad admeasuring 8158 sq. mtrs. in the state of Maharashtra
Particulars of the present modification	Security by way of hypothecation of entire movable and current assets of the company and mortgage of immovable properties of the company situated at Plot No.B-22, MIDC Industrial Area, Railway Station Road, within the villate limits of Satara, Dist. Aurangabad admeasuring 8158 Sq. Mtrs. in the state of Maharashtra extended to cover the enhancement of Loan From Rs.43.000 Millions to Rs.52.000 Millions

FIXED ASSETS

· Land

· Site Development

· Plant and Machinery

· Effluent Treatment Plant

· Factory Building

· Vehicle (Two Wheeler)

· Vehicle (Four wheeler)

· Electrifications

· Furniture and Fixture

· Office Equipments

· R and D Laboratory Equipments

· Computer

· Borewell

· Security Equipment

· Patent Know-How

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 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.53.36
UK Pound	1	Rs.82.51
Euro	1	Rs.68.99

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
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		28

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.