MIRA INFORM REPORT

Report Date :

29.06.2011

Tel. No.:	91-11-22161934
Fax No.:	91-11-22162353

IDENTIFICATION DETAILS

Name :	SBL PRIVATE LIMITED
Registered Office :	SBL House 2, Commercial Complex, Ashish Chamber, Shrestha Vihar, New Delhi – 110 092
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	31.08.1979
Com. Reg. No.:	55-9838
Capital Investment / Paid-up Capital :	Rs.24.701 millions
CIN No.: [Company Identification No.]	U72990DL1979PTC009838
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturers and Exporters of Homeopathic Medicine, Herbal Products and Consumer Products.

RATING & COMMENTS

MIRA’s Rating :

Ba (49)

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

Maximum Credit Limit :	USD 1400000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is a well 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.

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 – April 1, 2010

Country Name	Previous Rating (31.12.2009)	Current Rating (01.04.2010)
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 :	SBL House 2, Commercial Complex, Ashish Chamber, Shrestha Vihar, New Delhi – 110 092, India
Tel. No.:	91-11-22161934 / 22161935 / 22155268 / 22165145 / 22162239
Mobile No.:	91-9811448556 / 9811642511
Fax No.:	91-11-22162353
E-Mail :	sbl@vsnl.com
Plants 1 :	A-3, Site IV, Sahibabad 201 010, Uttar Pradesh, India
Tel. No.:	91-120-2895944/2895851/2895273/2895434
Fax No.:	91-120-2770338
E-Mail :	sblw@vsnl.com
Plants 2 :	533, Sitapura Industrial Area, Jaipur – 302 022, Uttar Pradesh, India
Tel. No.:	91-141-2770201/2770197
E-Mail :	sbljpr@sanchar.net.in
Plants 3 :	Majitar Rangpo, Sikkim

DIRECTORS

As on : 17.08.2010

Name :	Ms. Shobha Shrestha
Designation :	Director
Address :	Development Area, Gangtok – 737 131, Sikkim, India
Date of Appointment :	20.11.2002
Name :	Mr. Romesh Lal
Designation :	Director
Address :	G-65, Venus Apartments, Plot No. 43, Sector 9, Rohini, New Delhi – 110 085, West Delhi, India
Date of Appointment :	07.12.2004
Name :	Mr. Jugal Kishore
Designation :	Director
Address :	86, Golf Links, New Delhi – 110 003, South Delhi, Delhi, India
Date of Appointment :	31.08.1979
Name :	Mr. Tejinder Singh Shergil
Designation :	Director
Address :	God’s Palm Village, Chauki Dhaulas Via, Ganghora, Dehradun – 248 141, U.A., India
Date of Appointment :	01.01.2006

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on : 17.08.2010

Names of Shareholders	No. of Shares
B K Shrestha	1000
Shobha Shrestha	2500
Himal Enterprises Private Limited	225507
SB Lab (Private) Limited	18000
Total	247007

Equity share breakup (percentage of total equity)

As on : 17.08.2010

Category	Percentage
Directors or relatives of directors	15.97
Other top fifty (50) shareholders	84.03
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturers and Exporters of Homeopathic Medicine, Herbal Products and Consumer Products.

Products :

Product Description	ITC Code
Homoeopathic Medicines	300390.02
Ayurvedic Medicines	300390.01

· SBL’s Mother Tinctures

· SBL’s Dilutions

· Bio Chemic/Bio Combinations

· Ointments (Pomades)

· Tablets

· Liquids

Herbal Products :-

· O’Liver T

· Vital Plus

· Bronchoherb

· Convocard

· Diaboherb

· Leukoherb

· Pelvospasm

· Oramil

· Wormoherb

· O’Liver – T Capsules – Liver Problems

· Oramil Suspension – Teething Problems

· Aciherb – for acidity

· Laxoherb – for constipation

· Respiwin – for asthma

· Haemoglow – for blood purification, acne, etc

· Monta Hair Oil

· Herbokoool Hair Oil

Consumer Products :-

· Montana Shampo

· Homeodent Toothpaste

PRODUCTION STATUS : (AS ON) 31.03.2010

Particulars	Unit	Installed Capacity	Actual Production
Mother Tincture and mother substance	Ltrs	90000	53797.00
Dilutions	Ltrs	70000	4863.99
Bio Chemie / Boi Combinations	Kgs	75000	117761.23
Specialties	Ltrs	250000	252596.16
Ointment / Toothpaste	Kgs	11000	--
CME Eye Drops	Ltrs	30000	5577.55
Homoeodent	Kgs	--	50419.95
Pomade	Kgs	--	49469.50
Home kit	Ltrs	--	3494.00
Hair Oil and Shampoo	Ltrs	--	2744.00
Herbal Products	Strps	--	91058.00
Herbal Products	Ltrs	--	34303.60

GENERAL INFORMATION

Bankers :

Oriental Bank of Commerce

Faculties :

Particulars (Rs. In Millions)	31.03.2010	31.03.2009
Himal Enterprises Private Limited	0.400	0.400
(secured by first charge of company against Fixed Assets and Stocks )
Total	0.400	0.400

Banking Relations :	Satisfactory
Auditors :
Name :	B.R. Maheshwari and Company Chartered Accountant
Address :	M-118, Connaught Circus, New Delhi – 110001, Delhi, India
Tel. No.:	91-11-23416341
Fax No.:	91-11-23415796
E-Mail.:	brmc@brmco.com
Associate Companies :	· SBL Industries Private Limited · Team Design Private Limited · Himal Enterprises Private Limited · Tirupati Complex Private Limited · SB Lab Private Limited · Aspire Investments Private Limited

CAPITAL STRUCTURE

As on : 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
500000	Equity Shares	Rs.100/- each	Rs.50.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
247007	Equity Shares	Rs.100/- each	Rs.24.701 millions

Of the above

· 164000 fully paid up equity shares of Rs.100/- each are held by holding company viz,

· Himal Enterprise Private Limited (72007 Equity Shares of Rs.100/- each fully paid up are issued without payment being received in cash in pursuance of scheme of amalgamation)

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		24.700	24.700	24.701
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		329.232	321.845	318.116
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		353.932	346.545	342.817
LOAN FUNDS
1] Secured Loans		0.400	0.400	0.000
2] Unsecured Loans		0.000	0.000	17.736
TOTAL BORROWING		0.400	0.400	17.736
DEFERRED TAX LIABILITIES		3.988	5.258	5.406
TOTAL		358.320	352.203	365.959
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		241.519	217.349	218.610
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		9.939	14.653	14.652
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	66.391	56.625	62.672
	Sundry Debtors	48.094	54.609	53.871
	Cash & Bank Balances	44.678	52.619	45.716
	Other Current Assets	0.237	0.217	0.300
	Loans & Advances	45.503	47.263	31.416
Total Current Assets		204.903	211.333	193.975
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	53.936	52.977	43.960
	Provisions	44.105	38.155	17.318
Total Current Liabilities		98.041	91.132	61.278
Net Current Assets		106.862	120.201	132.697
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		358.320	352.203	365.959

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Sales		270.252	297.896
		Miscellaneous Income	268.339	36.392	72.190
		Provision Written Back		0.617	0.779
		Transfer from Revaluation Reserves		0.172	0.172
		TOTAL (A)	268.339	307.433	371.037
Less	EXPENSES
		Raw Material Cost		40.290	55.567
		Cost of Traded Goods		33.072	40.088
		Packing Materials		45.673	47.969
		Manufacturing		21.224	23.527
		Personnel Expenses		53.107	64.984
		Office and Administration		26.537	40.400
		Increase/(Decrease) in Finished Goods		4.218	(16.531)
		Selling and Distribution		63.426	94.404
		Directors Remuneration		0.000	0.456
		Research and Development		1.277	1.387
		TOTAL (B)	285.877	288.824	352.251
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)			18.609	18.786
Less	FINANCIAL EXPENSES (D)			1.056	0.562
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)			17.553	18.224
Less/ Add	DEPRECIATION/ AMORTISATION (F)			7.361	6.690
	PROFIT BEFORE TAX (E-F) (G)		16.341	10.192	11.534
Less	TAX (I)		6.532	4.046	3.688
	PROFIT AFTER TAX (G-I) (J)		9.809	6.146	7.846
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		165.545	159.398	151.551
	BALANCE CARRIED TO THE B/S		NA	165.545	159.398
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	4.342	1.259	1.098
	TOTAL EARNINGS		4.342	1.259	1.098
	IMPORTS
		Raw Materials	8.544	9.058	14.171
	TOTAL IMPORTS		8.544	9.058	14.171
	Earnings Per Share (Rs.)		39.71	31.76	NA

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	3.65	1.99	2.11
Net Profit Margin (PBT/Sales)	(%)	--	3.77	3.87
Return on Total Assets (PBT/Total Assets}	(%)	3.66	2.37	2.80
Return on Investment (ROI) (PBT/Networth)		0.04	0.02	0.03
Debt Equity Ratio (Total Liability/Networth)		0.27	0.26	0.23
Current Ratio (Current Asset/Current Liability)		2.08	2.31	3.17

LOCAL AGENCY FURTHER INFORMATION

OPERATIONS :

The R and D lab. Of the company is the only Lab in the homoeopathic industry in the country. Which has been approved by the Ministry of Science and Technology, Govt of India.

The R and D Department at SBL is involved in various activities such as product formulation, and their clinical trials, methods of improving and upgrading existing Products and manufacturing processes and Drug proving. In the last few years the company has successfully completed three Drug Proving. During the year 2009-10, composition of all specialty products were revised and improved. Additionally, seven new products were also launched in the market which have been well received by the professionals.

FIXED ASSETS

· Leasehold Land

· Factory Building

· Plant and Machinery

· A C Plant

· Vehicles

· Furniture and Fixtures

· Library Books

· EDP Unit

· Moulds and Dies

· Tools and Spares

· Office Equipments

· Electrical Installation

· Calcutta Depot Premises

· LPG Cylinders

· Generator

· Refrigerator

· Projector

· Lab Equipments

· Water Cooler

· Solar Water Heater

· R and D Equipment

· Office Flat

· Submersible Pump

· EPABX System

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. 44.94
UK Pound	1	Rs. 71.91
Euro	1	Rs. 64.60

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	NO
--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.