MIRA INFORM REPORT

Report Date :

02.11.2011

IDENTIFICATION DETAILS

Name :	SHARMA PHARMACEUTICAL PRIVATE LIMITED
Registered Office :	444, GIDC, Waghodia, Vadodara -391 760, Gujarat
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	23.03.2004
Com. Reg. No.:	04-43834
Capital Investment/ Paid-up Capital:	Rs.5.147 Millions
CIN No.: [Company Identification No.]	U24231gj2004ptc043834
IEC No.:	3404002199
TAN No.: [Tax Deduction & Collection Account No.]	BRDS05472f
PAN No.: [Permanent Account No.]	AAICS2527B
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer and exporter of Orthopedics Implants and Instruments.
No. of Employees:	100 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (45)

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

Maximum Credit Limit :	USD 100000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track. Trade relations are reported as fair. 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 – 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

INFORMATION PARTED BY

Name :	Mr. Dayanand Kumar M Sharma
Designation :	Director
Contact No.:	91-9825321470
Date :	29.10.2011

LOCATIONS

Registered Office/ Factory :	444, GIDC Estate, Waghodia, Vadodara -391 760, Gujarat, India
Tel. No.:	91-265-2520246
Mobile No. :	91-9825321470 (Mr. Dayanand M Sharma)
Fax No.:	91-265-2511997
E-Mail :	spcpl@spcpl.com
Website :	www.spcpl.com
Area :	2500sq.fts
Location :	Owned
Corporate Office :	102/103, Girikandra Society, Opposite Bapod Talav, Near HDFC ATM, Waghodia Road, Vadodara - 390 019, Gujarat, India.
Tel. No.:	91 - 265 – 2520245 / 2520246 / 6581525 / 6581669 / 6581526
Fax No.:	91-265-2521145
E-Mail :	dksortho@spcpl.com exports@spcpl.com adm@spcpl.com
Website :	www.spcpl.com
Location :	Owned

DIRECTORS

As on 28.09.2010

Name :	Mr. Dayanand Kumar M Sharma
Designation :	Whole Time Director
Address :	B-12, Vrajdarshan Society, Near Hariganga Tenaments, Opposite Bapod Talav, Waghodia Road, Baroda – 390 019, Gujarat, India
Date of Birth/Age :	05.05.1975
Date of Appointment:	27.10.2005
DIN No.:	00469598
Pan No :	AGYPS4230Q
E-Mail :	dksortho@spcpl.com exports@spcpl.com
Name :	Mr. Vivekanand Kumar Sharma
Designation :	Additional Director
Address :	B-12, Vrajdarshan Society, Near Hariganga Tenaments, Opposite Bapod Talav, Waghodia Road, Baroda – 390 019, Gujarat, India
Date of Birth/Age :	28.11.1984
Date of Appointment:	25.06.2009
Din No :	00468563
Pan No :	ARPPS4888N
Name :	Mrs. Seema Dayanand Sharma
Designation :	Additional Director
Address :	B-12, Vrajdarshan Society, Near Hariganga Tenaments, Opposite Bapod Talav, Waghodia Road, Baroda – 390 019, Gujarat, India
Date of Birth/Age :	25.10.1981
Date of Appointment:	10.11.2007
DIN No.:	00469695
Pan No :	AMMPS0746F
Name :	Mr. Anand Kumar Sharma
Designation :	Additional Director
Address :	B-10, Vrajdarshan Society, Near Hari Ganag Tenaments Waghodia Road, Baroda – 390 019, Gujarat, India.
Date of Birth/Age :	15.06.1973
Din No :	00464518

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 28.09.2010

Names of Shareholders	No. of Shares
Dayanand Kumar Sharma	72900
Seema Dayanand Sharma	168300
Vivekanand Kumar Sharma	64900
Sachidanand Kumar Sharma	66700
Mithilesh Kumar Sharma	41900
Ananta Orthosystem Private Limited	50000
Unique Orthosystem Private Limited	50000
Total	514700

Equity Share Breakup (Percentage of Total Equity)

AS ON (30.09.2010)

Category		Percentage of Holding
Directors or relatives of directors		100.00
	Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer and exporter of Orthopedics Implants and Instruments.
Products :	v Locking Plates and Locking Screws v Bone Plates v Bone Screws v Interlocking Nails v Nail Caps v Segmental Spinal System v Arthoscopy Implants v Total Knee and Total Hip Replacement
Exports :
Products :	Orthopedics Implants and Instruments
Countries :	European Countries Asian Countries
Imports
Products :	Raw Material
Countries :
Terms :
Selling :	L/C
Purchasing :	Advance Payment

PRODUCTION STATUS (31.03.2009)

Particulars	Unit	Actual Production
Orthopedic Implants	Nos.	70.884 Millions

GENERAL INFORMATION

Customers :

Distributors

No. of Employees :

100 (Approximately)

Bankers :

v Bank of Baroda, University Campus Branch, University Campus, Fetehgunj, Vadodara - 390002, Gujarat, India

v Centurion Bank

v ICICI Bank, Landmark Building, Vadodara

Facilities: 

Secured Loans	31.03.2010 Rs. in Millions	31.03.2009 Rs. in Millions
Bank of Baroda – Term Loan – 7359	2.253	3.232
Bank of Baroda – CC -25043	13.697	11.719
(All the loans are secured against first charge of land, building, plant and machineries, current assets and vehicles etc.)
F.D. Loan Bank of Baroda	0.666	0.546
Bank of Baroda- Mercedes Loan	2.834	0.000
Car Loan- 0191060000000667	1.438	1.611
TML Loan Account	1.120	1.805
Bank of Baroda Car Loan – Innova	0.000	0.535
Total	22.008	19.448

Banking Relations :

--

Auditors :

Prakash Chandra Jain and Company

Chartered Accountant

Address :

74-76, Gayatri Chambers, Near Rajpath Hotel Alkapuri, Vadodara – 390 005, Gujarat, India.

Associates/Subsidiaries :

Unique Ortho System – Vadodara

Line of Business: Manufacturing of Orthopedics Implants.

Sharma Ortho System – Vadodara

Line of Business: Manufacturing of Orthopedics Implants.

CAPITAL STRUCTURE

AS ON (31.03.2010)

Authorised Capital :

No. of Shares	Type	Value	Amount
1000000	Equity Shares	Rs. 10/- Each	Rs.10.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
514700	Equity Shares	Rs. 10/- Each	Rs.5.147 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

Particulars	31.03.2011
Sales Turnover (Approximately)	120.000

Expected Sales (2011-2012) : Rs. 150.000 Millions

The above information has been parted by (Mr. Dayanand Kumar M Sharma - Director)

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2010	31.03.2009	31.03.2008
SHAREHOLDERS FUNDS
1] Share Capital		5.147	5.147	3.847
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		20.321	12.658	7.852
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		25.468	17.805	11.699
LOAN FUNDS
1] Secured Loans		22.007	19.447	11.419
2] Unsecured Loans		0.000	0.000	0.401
TOTAL BORROWING		22.007	19.447	11.820
DEFERRED TAX LIABILITIES		3.280	2.739	1.837
TOTAL		50.755	39.991	25.356
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		44.014	31.405	25.149
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		4.300	0.800	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	5.543	7.519	5.015
	Sundry Debtors	16.805	13.743	7.300
	Cash & Bank Balances	0.400	0.312	0.481
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	0.937	5.810	1.060
Total Current Assets		23.685	27.384	13.856
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	15.466	10.736
	Other Current Liabilities	2.193	5.416	11.759
	Provisions	3.591	3.453	1.899
Total Current Liabilities		21.250	19.605	13.658
Net Current Assets		2.435	7.779	0.198
MISCELLANEOUS EXPENSES		0.006	0.007	0.009
TOTAL		50.755	39.991	25.356

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	98.176	71.158	47.243
		Other Income
		TOTAL	98.176	71.158	47.243
Less	EXPENSES
		Office Expenses
		Administrative Expenses
		Advertising Expenses	87.252	63.331	40.441
		Interest
		Depreciation
		TOTAL	87.252	63.331	40.441
	PROFIT BEFORE TAX		10.924	7.827	6.802
Less	TAX		3.261	3.022	2.499
	PROFIT AFTER TAX		7.663	4.805	4.303
	EARNINGS IN FOREIGN CURRENCY
		Other Earnings	NA	22.839	5.432
	TOTAL EARNINGS		NA	22.839	5.432
	Earnings Per Share (Rs.)		14.89	--	--

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	7.81	6.75	9.11
Return on Total Assets (PBT/Total Assets}	(%)	16.14	13.31	49.09
Return on Investment (ROI) (PBT/Networth)		0.43	0.43	0.58
Debt Equity Ratio (Total Liability/Networth)		1.70	2.19	1.17
Current Ratio (Current Asset/Current Liability)		1.11	1.39	1.01

LOCAL AGENCY FURTHER INFORMATION

Form: 8

Name of the company	SHARMA PHARMACEUTICALS PRIVATE LIMITED
Presented By	Shri Anand Kumar Sharma, Director
1) Date and description of instrument creating the change	Memorandum of entry/equitable mortgage by way of deposit of title deeds dated 8^th December, 2004.
2) Amount secured by the charge/amount owing on the securities of charge	Rs.9.500 Millions Term loan Rs.7.000 Millions C.C. Hyp Rs.2.500 Millions Total Rs.9.500 Millions
3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given	Immovable property being land known as plot No.444 in Vaghodiya Industrial Estate R.S. No.1315/P, 1318/P, 1319/P and 1368/P admeasuring 4192 59 mtrs in vill. Vaghodiya, District: Vadodara.
4) Gist of the terms and conditions and extent and operation of the charge.	Interset – BPLR – 10.50% p.a. monthly rest. Margin – 30%
5) Name and Address and description of the person entitled to the charge.	Bank of Baroda, University Campus Branch, Fateganj, Vadodara.

This form is for	Modification of charge
Charge identification number of the modified	80052145
Corporate identity number of the company	U24231GJ2004PTC043834
Name of the company	SHARMA PHARMACEUTICAL PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	444, GIDC, Waghodia, Vadodara - 391760 Gujarat, India
Type of charge	Book Debts Movable Property Others
Particular of charge holder	Bank of Baroda
Nature of description of the instrument creating or modifying the charge	Supplemental Composite Agreement Hypothecation of Goods, Book Debts, Movable Machinery and Vehicles.
Date of instrument Creating the charge	22/01/2009
Amount secured by the charge	Rs.16.728 Millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest Term Loan : - BPLR i.e. @ 12.50 % at present with monthly rest subject to change from time to time. CC (Stock cum BD) : - 0.50% below BPLR i.e. 12.00% pa at present with monthly rest subject to change from time to time. Guarantee : - as per bank's rules/guidelines Terms of Repayment Term Loan :- Total 84 monthly installments. Each EMI of Rs.0.089 Millions and last installment of Rs.0.089 Millions First installment stars from 10/06/2005. CC limit and Guarantee shall be subject to yearly review. Margin Term Loan:- 25%. CC :- 30% on stock and Book Debts Guarantee : - 25% (Cash/FDR) Extent and Operation of the charge First and exclusive charge on company's assets as mentioned in Col. No. 14 of this form in favour of Bank. Others Nature of Facility Amt. (in Rs. In Millions) Term Loan 3.128 Cash Credit 10.000 Bank Guarantee 1.100 L/C. 2.500 ============================== Total 16.728
Short particulars of the property charged	All the stocks, Movable machinery, Book debts and vehicles etc. where ever situated including factory and in transit.
Particulars of the present modification	under this modification the entire limit has been changed and stand to Rs.16.728 Millions.

FIXED ASSETS:

Ø Building

Ø Computer

Ø Land and Land Development

Ø Furniture and Fixtures

Ø Office Equipment

Ø Electrical Installation

Ø Plant and Machinery

Ø Innova Car

Ø Machine Tools

Ø Mobile A/C

Ø Air Condition

Ø Capital Work in Progress

Check List by Info Agents	Available in Report (Yes / No)
1) Year of Establishment	Yes
2) Locality of the firm	Yes
3) Constitutions of the firm	Yes
4) Premises details	Yes
5) Type of Business	Yes
6) Line of Business	Yes
7) Promoter's background	--
8) No. of employees	Yes
9) Name of person contacted	Yes
10) Designation of contact person	Yes
11) Turnover of firm for last three years	Yes
12) Profitability for last three years	Yes
13) Reasons for variation <> 20%	--
14) Estimation for coming financial year	Yes
15) Capital in the business	Yes
16) Details of sister concerns	Yes
17) Major suppliers	No
18) Major customers	No
19) Payments terms	Yes
20) Export / Import details (if applicable)	Yes
21) Market information	--
22) Litigations that the firm / promoter involved in	--
23) Banking Details	Yes
24) Banking facility details	Yes
25) Conduct of the banking account	--
26) Buyer visit details	--
27) Financials, if provided	Yes
28) Incorporation details, if applicable	--
29) Last accounts filed at ROC	--
30) Major Shareholders, if available	--

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.49.07
UK Pound	1	Rs.78.78
Euro	1	Rs.67.75

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
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	YES
--LISTED	YES/NO	No
--OTHER MERIT FACTORS	YES/NO	Yes
TOTAL		45

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.