MIRA INFORM REPORT

Report Date :

06.06.2011

IDENTIFICATION DETAILS

Name :	MEPRO PHARMACEUTICALS PRIVATE LIMITED
Registered Office :	1003, G.I.D.C., Wadhwan, District Surendra Nagar – 363 035, Gujarat
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	31.08.1982
Com. Reg. No.:	04-005451
Capital Investment / Paid-up Capital :	Rs.18.000 Millions
CIN No.: [Company Identification No.]	U24231GJ1982PTC005451
TAN No.: [Tax Deduction & Collection Account No.]	AHMM05214G
PAN No.: [Permanent Account No.]	AABCM4177G
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Pharmaceuticals Formulation and Specialise in Tablets/ Capsules/ Injectables.
No. of Employees :	250 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (46)

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

Maximum Credit Limit :	USD 714000
Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track. Trade relations are reported as fair. Business is active. Payments are reported to be usually correct and as per commitments. The company can be considered normal for business dealings at usual trade terms and conditions. Profit and loss account for the current year is not available.

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. Mukesh
Designation :	Company Assistant
Contact No.:	91-2752-241416
Date :	04.06.2011

LOCATIONS

Registered Office/ Factory :	1003, G.I.D.C., Wadhwan, District Surendra Nagar – 363 035, Gujarat, India
Tel. No.:	91-2752-241416
Mobile No. :	91-9920102888 (Mr. Rajesh Shah)
Fax No.:	91-2752-241178
E-Mail :	info@mepropharmaceuticals.com admin@mepropharmaceuticals.com dhsejpal44@yahoo.co.in vkmassociates@yahoo.com bhavin@mepromax.com unit_1@mepropharmaceuticals.com
Website :	www.mepropharmaceuticals.com
Area :	4000 sq. ft.
Location :	Owned
Correspondence Address :	108/109, Dalamal Chambers, New Marine Lanes, Mumbai – 400020, Maharashtra, India
Tel. No.:	91-22-66372777 (4 Lines)
Fax No.:	91-22-66385339

DIRECTORS

As on 30.09.2010

Name :	Mr. Vijay Chhabildas Shah
Designation :	Director
Address :	5th Floor, Flat No.501, Panchsheel, Churchgate, C-Road, Marine Drive, Mumbai – 400 020, Maharashtra, India
Date of Birth/Age :	19.02.1945
Date of Appointment :	31.08.1982
DIN No.:	00453308
Name :	Mr. Rajesh Sumanlal Shah
Designation :	Director
Address :	173, Jolly Maker, Apartment-II, 94, Cuffe Parade, Coloba, Mumbai - 400 005, Maharashtra, India
Date of Birth/Age :	24.06.1961
Date of Appointment :	30.09.1987
DIN No.:	00821466
Name :	Mr. Bharat Kumar Chhabildas Shah
Designation :	Director
Address :	102, Tareti Apartment, 29/C, Doongarsi Road, Walkeshwar, Mumbai – 400 006, Maharashtra, India
Date of Birth/Age :	07.04.1942
Date of Appointment :	31.08.1982
DIN No.:	00867909
Name :	Mr. Suresh Chhabildas Shah
Designation :	Director
Address :	5^th Floor, Surya Kiron, 551 Pan Gully, Off Huges Road, P.O. 26 WB, Mumbai – 400 036, Maharashtra, India
Date of Birth/Age :	22.02.1947
Date of Appointment :	31.08.1982
DIN No.:	00477470
Name :	Mr. Prakash Navinchandra Shah
Designation :	Director
Address :	25, Vishne Mahal, 59 - D – Road, Churchgate Reclamation, Mumbai – 400 020, Maharashtra, India
Date of Birth/Age :	22.06.1953
Date of Appointment :	17.07.2004
DIN No.:	00641718
Name :	Mr. Jaswantlal Shantilal Shah
Designation :	Director
Address :	144, Jain Society, Shanti Niwas, 3rd Floor, Sion (West), Mumbai – 400 022, Maharashtra, India
Date of Birth/Age :	19.11.1936
Date of Appointment :	31.08.1982
DIN No.:	00822700
Name :	Mr. Mahendra Chhabildas Shah
Designation :	Director
Address :	2301A-2301B, Sterling Tower, Harishchandra Goregaonkar Marg, Gamdevi, Mumbai – 400 007, Maharashtra, India
Date of Birth/Age :	26.07.1934
Date of Ceasing :	01.07.2008
DIN No.:	00668760

KEY EXECUTIVES

Name :	Mr. Mukesh
Designation :	Company Assistant

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2010

Names of Shareholders	No. of Shares
Indumati S. Shah	5945
Kaushik N. Shah	12200
Prakash N. Shah	6268
Rajesh S. Shah	9098
Sonal P. Shah	6430
Smita S. Shah	9057
Sumanlal C. Shah	12409
Nainchandra C. Shah	330
Kalpana	720
Suresh C. Shah	18393
Sonal B. Shah	6155
Bharat C. Shah	10103
Bhavesh B. Shah	11192
Sharmistha M. Shah	13132
Dharmesh M. Shah	14318
Navinchandra C. Shah (HUF)	1500
Jayshree V. Shah	15287
Vijay C. Shah	12163
Jaswant S. Shah	3600
Ketan J. Shah	1000
Chandra J. Shah	1450
Beena K. Shah	1450
Ashish D. Shah	3330
Mansi K. Shah	150
Vinod S. Shah	900
Saroj V. Shah	420
Kiran D. Shah	1620
Snehlata D. Shah	600
Ketan J. Shah (HUF)	300
Preyas V. Shah	480
Total	180000

As on 30.09.2010

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

BUSINESS DETAILS

Line of Business :

Manufacturer of Pharmaceuticals Formulation and Specialise in Tablets/ Capsules/ Injectables.

Products :

Item Code No. (ITC Code)	29419001
Product Description	Gatifloaxcin
Item Code No. (ITC Code)	29031200
Product Description	Methylene Chloride
Item Code No. (ITC Code)	Aspirin
Product Description	29182200

Terms :

Selling :

Cash and Credit

Purchasing :

Cash and Credit

GENERAL INFORMATION

Customers :

Manufacturer

No. of Employees :

250 (Approximately)

Bankers :

Bank of India, Bullion Exchange Branch, 185 Sheikh Memon Street, Zaveri Bazar, Mumbai – 400 002, Maharashtra, India

Facilities :

Secured Loans	31.03.2010 Rs. In Millions	31.03.2009 Rs. In Millions
CASH CREDIT FACILITIES FROM BANK OF INDIA, MUMBAI (Secured against Hypothecation of Raw Materials, Stock in process Movable Machineries, Stores spares parts, Furniture and all other tangible movable assets wheresoever situated or in transit and personally, guaranteed by all Directors of the Company)
Bank of India, C/C Hypothecation	0.490	1.719
Total	0.490	1.719

Unsecured Loans	31.03.2010 Rs. In Millions	31.03.2009 Rs. In Millions
From Share Holders	0.000	4.279
From Others	1.198	1.134
Total	1.198	5.413

Banking Relations :	--
Auditors :
Name :	Dineshkumar V. Shah and Company Chartered Accountants
Address :	Opposite Peoples Co-Operative Bank, Derasar Road, Wadhwan, Surendra Nagar – 363 001, Gujarat, India
Tel. No.:	91-2752-222144/223446

CAPITAL STRUCTURE

As on 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
200000	Equity Shares	Rs.100/- each	Rs.20.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
180000	Equity Shares	Rs.100/- each	Rs.18.000 Millions

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		18.000	18.000	4.500
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		160.577	150.871	143.460
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		178.577	168.871	147.960
LOAN FUNDS
1] Secured Loans		0.490	1.719	8.604
2] Unsecured Loans		1.198	5.413	25.121
TOTAL BORROWING		1.688	7.132	33.725
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		180.265	176.003	181.685
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		69.520	75.371	80.458
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.002	0.002	0.002
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	43.965	58.796	53.252
	Sundry Debtors	140.185	122.734	140.585
	Cash & Bank Balances	21.303	4.186	3.286
	Other Current Assets	0.000	0.000	0.000
	Loans, Advances & Deposits	32.907	31.221	30.045
Total Current Assets		238.360	216.937	227.168
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	108.364	93.047	107.828
	Other Current Liabilities	10.517	16.070	8.602
	Provisions	8.736	7.190	9.513
Total Current Liabilities		127.617	116.307	125.943
Net Current Assets		110.743	100.630	101.225
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		180.265	176.003	181.685

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2009	31.03.2008
	SALES
		Income	415.504	409.403
		Other Income	7.214	0.415
		TOTAL (A)	422.718	409.818
Less	EXPENSES
		Raw Material Consumed	180.099	178.778
		Trading Purchase	24.580	3.897
		Manufacturing and Other Expenses	114.397	108.687
		Packing Material Consumed	78.938	77.816
		Increase/Decrease in stock	(4.159)	1.145
		TOTAL (B)	393.855	370.323
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		28.863	39.495
Less	INTEREST (D)		2.497	3.941
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		26.366	35.554
Less/ Add	DEPRECIATION/ AMORTISATION (F)		11.426	11.439
	PROFIT BEFORE TAX (E-F) (G)		14.940	24.115
Less	TAX (H)		5.085	8.197
	PROFIT AFTER TAX (G-H) (I)		9.855	15.918
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		128.734	115.328
Less	APPROPRIATIONS
		Short/Excess Provision of Tax	0.339	0.195
		Interim/Proposed Dividend	1.800	1.125
		Dividend Tax	0.305	0.191
		Transfer to General Reserve	1.000	1.000
	BALANCE CARRIED TO THE B/S		135.144	128.734
	IMPORTS
		Raw Materials	3.655	13.516
		Capital Goods	1.031	0.365
	TOTAL IMPORTS		4.686	13.881
	Earnings Per Share (Rs.)		55.00	NA

Particulars	31.03.2011 (Approximately)	31.03.2010 (Approximately)
Sales Turnover	450.000	420.000

Expected Sales (2011-2012): Rs.500.000 millions

The above information has been parted by Mr. Mukesh (Company Assistant).

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	NA	2.33	3.88
Net Profit Margin (PBT/Sales)	(%)	NA	3.59	5.89
Return on Total Assets (PBT/Total Assets}	(%)	NA	5.11	7.84
Return on Investment (ROI) (PBT/Networth)		NA	0.08	0.16
Debt Equity Ratio (Total Liability/Networth)		0.72	0.73	1.07
Current Ratio (Current Asset/Current Liability)		1.87	1.86	1.80

LOCAL AGENCY FURTHER INFORMATION

Details of Sundry Creditors:

Particulars	31.03.2010 (Rs. in millions)	31.03.2009 (Rs. in millions)	31.03.2008 (Rs. in millions)
Sundry Creditors	87.848	76.118	99.178
Sundry Creditors (Expenses)	20.516	16.929	8.650
	108.364	93.047	107.828

FINANCIAL RESULTS:

After meeting all the expenses, the accounts for the period shows a Profit Rs.148.002 millions.

FORM 8

Corporate identity number of the company	U24231GJ1982PTC005451
Name of the company	MEPRO PHARMACEUTICALS PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	Surendra Nagar, Gujarat, India
This form is for	Creation of charge
Type of charge	Equitable mortgage or mortgage of property by depositing the title deeds
Particular of charge holder	Bank of India, Bullion Exchange Branch, 185 Sheikh Memon Street, Zaveri Bazar, Mumbai – 400 002, Maharashtra, India E-Mail: boibulliobr@vsnl.net
Nature of instrument creating charge	Oral Assent
Date of instrument Creating the charge	14.08.2006
Amount secured by the charge	Rs.37.000 millions
Brief of the principal terms an conditions and extent and operation of the charge	Working capital limits : (1) Cash credit hypothecation of stocks: Rs.15.000 millions; (2) Cash credit hypothecation of book debts: Rs.25.000 millions; (3) FBP/FBN: Rs.10.000 millions; Max. (1+2+3): Rs.35.000 millions; (4) L/C (I/F) DP/DA 90 days: (Rs.9.000 millions). Non-fund based limits: Inland guarantee: Rs.2.000 millions. Aggregate limit: Rs.37.000 millions.
Date of instrument creating or evidencing the charge	14.08.2006
Description of the instrument creating or evidencing the charge	Oral Assent
Date of acquisition of the property	25.07.2006
Amount owing on security of the charge	Rs.37.000 millions
Particulars of the property charged	Equitable mortgage by deposit of title deeds with the bank of the company's immovable properties being all that piece and parcel of land, building thereon and plant and machinery at Plot Nos.1001/B, 1003, 1412, 1311-1312, 1413-1310, GIDC, Wadhwan Area Within The Village Limits of Wadhwan admeasuring 11692.80 sq. mtrs.
Description of the property charged indicating whether it is a charged on	Immovable properties
Particulars of the property charged	Equitable mortgage by deposit of title deeds with the bank of the company's immovable properties being all that piece and parcel of land, building thereon and plant and machinery at Plot Nos.1001/B, 1003, 1412, 1311-1312, 1413-1310, GIDC, Wadhwan Area Within The Village Limits of Wadhwan admeasuring 11692.80 sq. mtrs.

Corporate identity number of the company	U24231GJ1982PTC005451
Name of the company	MEPRO PHARMACEUTICALS PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	1003, G.I.D.C., Wadhwan – 363 035, District Surendra Nagar, Gujarat, India
This form is for	Creation of charge
Type of charge	Hypothecation
Particular of charge holder	Bank of India, Bullion Exchange Branch, 185 Sheikh Memon Street, Zaveri Bazar, Mumbai – 400 002, Maharashtra, India Email :- boibulliobr@vsnl.net
Nature of instrument creating charge	Charge and hypothecation of book debts.
Date of instrument Creating the charge	25.07.2006
Amount secured by the charge	Rs.25.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Interest at the rate of 1.25% below bank rate with a minimum of 10% p. a. with monthly rests or at such other rate as may be fixed by the bank from time to time for the cash credit hypothecation of book debts limit of Rs.25.000 millions granted by the bank to the company.
Description of the property charged indicating whether it is a charged on	Book Debts
Particulars of the property charged	The borrower hypothecates and charges to the bank all the book debts outstandings, moneys receivable, claims and bills which are now due and owing or which may at any time hereafter during the continuance of this security become due and owing to the borrower in the course of its business by any person, company or by the government or any local or public body or authority.

FIXED ASSETS:

v Leasehold Land

v Building

v Plant and Machinery

v Utility

v Research and Development Equipment

v Electricity and Fittings

v Furniture and Fitting

v Computer

v Office Equipment

v Motor Car

v Office Premises

v Employees Residential Quarter

v Office Building

v Pollution Control Equipment

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.44.85
UK Pound	1	Rs.73.29
Euro	1	Rs.64.89

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	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	YES
--AFFILIATION	YES/NO	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		46

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.