MIRA INFORM REPORT

Report Date :

02.07.2011

IDENTIFICATION DETAILS

Name :	GALEN PHARMACEUTICALS LIMITED
Formerly Known As :	GALEN PHARMACEUTICALS PRIVATE LIMITED
Registered Office :	334/5, GIDC Estate, Waghodia Road, Baroda – 391760, Gujarat
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	06.02.1990
Com. Reg. No.:	04-013327
Capital Investment / Paid-up Capital :	Rs.0.635 Millions
CIN No.: [Company Identification No.]	U24232GJ1990PLC013327
TAN No.: [Tax Deduction & Collection Account No.]	BRDG01471B
PAN No.: [Permanent Account No.]	AAACG8443J
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer And Exporter Of Pharmaceuticals Tablets And Health Assortments
No. of Employees :	50 [Approximately]

RATING & COMMENTS

MIRA’s Rating :

B [26]

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

Maximum Credit Limit :	USD 388
Status :	Moderate
Payment Behaviour :	Slow
Litigation :	Clear
Comments :	Subject is a relatively small 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 caution.

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 – June 30, 2010

Country Name	Previous Rating (01.04.2010)	Current Rating (30.06.2010)
India	A1	A1

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

INFORMATION PARTED BY

Name :	Mr. Suresh
Designation :	Account Deparment
Contact No.:	91-2668-262308
Date :	02.07.2011
Name :	Mr. Harsh Patel
Designation :	Director
Contact No.:	91-9825247599
Date :	02.07.2011

LOCATIONS

Registered Office/ Factory :	334/5, GIDC Estate, Waghodia Road, Baroda – 391760, Gujarat, India
Tel. No.:	91-2668-262308 / 291870
Mobile No.:	91-9825247599 [Mr. Harsh Patel]
E-Mail :	Galen_pharma@yahoo.com galenpharma10@gmail.com
Website :	http://www.galenpharmaceuticals.com
Area :	800 Sq.ft.
Location :	Owned

DIRECTORS

As on 30.09.2010

Name :	Mr. Harsh Pravinbhai Patel
Designation :	Additional Director
Address :	Plot No 9 - C Opp Ganesh Appt, Jain Mandir Road Deluxe Charrasta Nizampura Vadodara – 390002, Gujarat, India
Date of Birth/Age :	21.09.1984
Qualification :	B. Pharma
Date of Appointment :	23.08.2010
DIN :	03134968
Name :	Mr. Khodabhai Haribhai Patel
Designation :	Director
Address :	26, Patelwas, Mahemdpur, Mahemdpur Patan - 384265, Gujarat, India
Date of Birth/Age :	08.09.1933
Date of Appointment :	06.02.1990
DIN :	03087229
Date of Cessation :	23.08.2010
Name :	Mrs. Shardaben Pravinbhai Patel
Designation :	Director
Address :	Plot no. O 9/C Opposite Ganesh Apartment, Jain Mandir, Nizampura, Vadodara – 390002, Gujarat, India
Date of Birth/Age :	05.01.1973
Qualification :	B.Sc.
Date of Appointment :	06.02.1990
DIN :	02079052
Name :	Mr. Pravinkumar Karsandas Patel
Designation :	Director
Address :	Plot no. O 9/C Opposite Ganesh Apartment, Jain Mandir, Nizampura, Vadodara – 390002, Gujarat, India
Date of Birth/Age :	13.05.1954
Date of Appointment :	06.02.1990
DIN :	01178627

KEY EXECUTIVES

Name :	Mr. Suresh
Designation :	Account Deparment

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2010

Names of Shareholders	No. of Shares
Shardaben Pravinbhai Patel	3210
Pravinkumar Karsandas Patel	17010
Rajnikantbhai K Patel	4005
Khodidas H Patel	14000
Hargavandas K Patel	6500
Mohandas K Patel	4300
Maganbhai Patel	1000
Jyotsnabenp Atel	1100
Nayana Patel	1000
Natubhai Patel	8900
Raghtinatabhai M Patel	2500
Total	63525

As on 30.09.2010

Category	Percentage
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer And Exporter Of Pharmaceuticals Tablets And Health Assortments

Products :

Products Description	ITC Code No.
Tablets And Capsules	30011099

Exports :

Products :

• Pharmaceutical Products

Countries :

• Africa
• Russia

Terms :

Selling :

L/C / Cash / Credit

Purchasing :

Cash / Credit

GENERAL INFORMATION

Customers :

• Wholesalers
• Retailers
• End Users

No. of Employees :

50 [Approximately

Bankers :

• State Bank of India, SSI Branch, Sai Road, Baddi, Solan – 173205, Himachal Pradesh, India
• ICICI Bank
• State Bank of Travancore
• HDFC Bank

Facilities :

Secured Loan [Rs. in million]	31.03.2010	31.03.2009
ICICI Bank Car Loan	0.160	0.236
Car Loan	0.401	0.000
Total	0.561	0.236
Unsecured Loan [Rs. in million]	31.03.2010	31.03.2009
Loans and Deposit	2.512	1.039
Sales Tax Deferred Payment Loan	0.201	0.201
Total	2.713	1.240

Banking Relations :	--
Auditors :
Name :	D.K. Devpura Chartered Accountant
Address :	209/B, Ivory Terrace, R. C. Dutt Road, Alkapuri, Vadodara – 390007, Gujarat, India
Mobile No.:	91-9426007812

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
500,000	Equity Shares	Rs.10/-each	Rs.5.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
63,525	Equity Shares	Rs.10/-each	Rs.0.635 millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

Particulars		31.03.2010	31.03.2009	31.03.2008
SHAREHOLDERS FUNDS
1] Share Capital		0.635	0.635	0.635
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		0.289	0.289	0.289
4] (Accumulated Losses)		[0.827]	[0.932]	[0.969]
NETWORTH		0.097	[0.008]	[0.045]
LOAN FUNDS
1] Secured Loans		0.561	0.236	0.304
2] Unsecured Loans		2.713	1.240	0.939
TOTAL BORROWING		3.274	1.476	1.243
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		3.371	1.468	1.198
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		3.242	3.008	2.365
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	2.489	0.868	1.318
	Sundry Debtors	3.361	1.769	9.476
	Cash & Bank Balances	1.008	0.439	0.056
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	1.611	1.942	1.127
Total Current Assets		8.469	5.018	11.977
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	6.656	6.470	12.730
	Other Current Liabilities	0.000	0.000	0.000
	Provisions	1.684	0.088	0.414
Total Current Liabilities		8.340	6.558	13.144
Net Current Assets		0.129	[1.540]	[1.167]
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		3.371	1.468	1.198

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	24.602	22.389	30.347
		Indirect Income	0.683	1.336	1.914
		TOTAL (A)	25.285	23.725	32.261
Less	EXPENSES
		Raw Material Consumed	17.601	17.901	16.602
		Employee Cost	1.644	2.238	2.515
		Manufacturing Expenses	0.675	0.748	9.623
		Administrative and other Expenses	5.424	2.128	3.460
		Preliminary Expenses written off	0.000	0.000	0.004
		Increase decrease in stock	[0.689]	0.187	[0.497]
		TOTAL (B)	24.655	23.202	31.707
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		0.630	0.523	0.554
Less	FINANCIAL EXPENSES (D)		0.036	0.052	0.046
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		0.594	0.471	0.508
Less/ Add	DEPRECIATION/ AMORTISATION (F)		0.452	0.386	0.394
	PROFIT BEFORE TAX (E-F) (G)		0.142	0.085	0.114
Less	TAX (I)		0.037	0.048	0.023
	PROFIT AFTER TAX (G-I) (J)		0.105	0.037	0.091
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		[0.932]	[0.969]	[1.060]
	BALANCE CARRIED TO THE B/S		[0.827]	[0.932]	[0.969]
	Earnings Per Share (Rs.)		1.65	1.34	--

Particulars	31.03.2011
Sales Turnover [Approximately]	35.000

Expected Sales (2011-2012) : Rs.50.000 millions

The above information has been parted by Mr. Harsh Patel [Director]

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	0.41	0.15	0.28
Net Profit Margin (PBT/Sales)	(%)	0.58	0.38	0.37
Return on Total Assets (PBT/Total Assets}	(%)	1.21	1.06	0.79
Return on Investment (ROI) (PBT/Networth)		1.46	[10.62]	[2.53]
Debt Equity Ratio (Total Liability/Networth)		119.73	[1004.25]	[319.71]
Current Ratio (Current Asset/Current Liability)		1.01	0.76	0.91

LOCAL AGENCY FURTHER INFORMATION

TRADE REFERENCES:

Ø General Pharmaceuticals

Financial Results and Operations : During the year the company has made a Profit of Rs.0.092 million ( 0.037 million) after –providing depreciation of Rs.0.436 (0.386 million) and Income Tax of Rs.0.050 million [0.048 million]

Contingent Liabilities

Contingent Liabilities not provided for :

16.000 millions (16.000 millions) (Being guarantee for loan taken by Oskar Laboratories Limited from Bank)

Bankers Charges Report as per Registry

This form is for	Creation of charge
Corporate identity number of the company	U24232GJ1990PLC013327
Name of the company	GALEN PHARMACEUTICALS LIMITED
Address of the registered office or of the principal place of business in India of the company	334/5 GIDC Estate, waghodia Road, Baroda - 391760, Gujarat, India
Type of charge	Immovable Property Any Interest in immovable property
Particular of charge holder	State Bank of India, SSI Branch, Sai Road, Baddi, Solan – 173205, Himachal Pradesh, India
Nature of description of the instrument creating or modifying the charge	1. Letter of Arrangement (Form-SME-1) 2. Guarantee Agreement (Form SME-3) 3. Memorandum for deposit of Title Deeds
Date of instrument Creating the charge	11.11.2006
Amount secured by the charge	Rs.16.000 millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest - Working Capital: 0.50% above SBAR, Minimum 11.50% p.a. Term Loan: 0.50% above SBAR, Minimum 11.50% p.a. Terms of Repayment - Working capital: on Demand Term Loan: is repayable in 20 quarterly installments of Rs.0.700 million, beginning from Oct., 2007, monthly interest will be separately recovered as and when falling due. Margin - Working Capital : on Raw material, SIP, Finished Goods: 25%, and on receivables 50% Term Loan: 41.67% Extent and Operation of the charge - The Company has provided Corporate Guarantee and Collateral Security to the Bank in favour of Oscar Analytical Private Limited for the total loan of Rs.16.000 million js has been divided as Working Capital CC-Hypo loan of Rs.2.000 millions (Sub divided in CC Hypo Book Debts of Rs.1.000 million within the working capital limit) and Term Loan of Rs.14.000 millions only Others - Personal Guarantee of Shri Vedant Mahehwari, Shri Sidhharth Jain, Shri Rajesh Shrivastava and Shri Atul K.Nigam Directors and third party Guarantee of Shri N.K.Maheshwari,and Corporate Guarantee of Galen Pharmaceuticals Ltd and Dallas Formulations Private Limited -Ist exclusive paramount charge by way of HY of entire fixed assets of Dallas Formulations Private Limited and - Ist Paramount charge on entire current asses and fixed assets of borrower Oscar Analytical Private Limited
Short particulars of the property charged	Ist exclusive paramount Charge by way of Hypothecation on entire Fixed Assets present and future including EM of factory land and building measuring 660 Sq.Mtr and covered area 390.89 Sq.Mtrs situated at Block 334/5 GIDC Estate, Taluka Waghodia, District Baroda to secure the loan amount of Rs.16.000 millions of Oscar Analytical Private Limited

FIXED ASSETS :

· Land

· Building

· Plant and Machinery

· Furniture and Fixtures

· Computer

· Air Condition

· Laboratory Equipment

· Maruti Esteem Car

· Accent Car

· Electronics Weight Scale

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.44.58
UK Pound	1	Rs.71.75
Euro	1	Rs.64.80

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILIRY	1~10	2
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	2
--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	YES
--AFFILIATION	YES/NO	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		26

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.