MIRA INFORM REPORT

Report Date :

11.11.2011

IDENTIFICATION DETAILS

Name :	PASCHIM CHEMICALS PRIVATE LIMITED
Registered Office :	142 AB, Kandivali Industrial Estate, Kandivali (West), Mumbai-400067, Maharashtra
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	03.11.1988
Com. Reg. No.:	11-49483
Capital Investment / Paid-up Capital :	Rs.14.082 Millions
CIN No.: [Company Identification No.]	U24110MH1988PTC049483
TAN No.: [Tax Deduction & Collection Account No.]	MUMP16196F
PAN No.: [Permanent Account No.]	AAACP2270J
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturing and Sale Drugs Intermediates, Allopathic Pharmaceuticals Preparations, Conversion Charges of Chemicals.
No. of Employees :	150 [Approximately]

RATING & COMMENTS

MIRA’s Rating :

Ba (50)

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

Maximum Credit Limit :	USD 480000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is a part of IPCA group, listed pharmaceutical company having fine track. Directors are reported to be experienced and respectable businessmen. 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 – 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 Office :	142 AB, Kandivali Industrial Estate, Kandivali (West), Mumbai-400067, Maharashtra, India
Tel. No. :	91-22-28688566 / 28682270 / 71 / 66474747
Fax No. :	91-22-28686954
Email :	mary@ipca.co.in
Factory:	G-6, MIDC, Waluj, Aurangabad, Maharashtra, India
Tel No.:	91-240-2554598
Fax No.:	91-240-2564426

DIRECTORS

As on 17.06.2011

Name :

Mr. Jeevanlal Basantilal Nagori

Designation :

Director

Address :

1004-D Wing, Panchsheel Heights, Mahavir Nagar, Dahanukarwadi, Mumbai – 400 067, Maharashtra, India

Date of Birth :

10.08.1960

Date of Appointment :`

19.03.1999

Din No.:

00017939

Other Directorship:

S. No.	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
1	U24120MH1982PTC026894	ELLORA ORGANIC INDUSTRIES PRIVATE LIMITED	Director	26-04-96	26-04-96	30-03-08	Active	NO
2	U24110MH1988PTC049483	PASCHIM CHEMICALS PRIVATE LIMITED	Director	19-03-99	19-03-99	-	Active	NO
3	U24211MH1988PTC045776	EXON LABORATORIES PRIVATE LIMITED	Director	31-01-02	31-01-02	-	Active	NO
4	U74140GJ2005PTC045721	JLN CORPORATE SERVICES PRIVATE LIMITED	Director	18-03-05	18-03-05	-	Active	NO
5	L99999GJ1992PLC018156	TONIRA PHARMA LIMITED	Director	31-07-09	31-10-08	-	Active	NO

Name :

Mr. Vivek Kumar Shrivastava

Designation :

Director

Address :

Flat No. 803, Tower No. 2, Challenger Tower, Thakur Village, Kandivli (Easst), Mumbai – 400 101, Maharashtra, India

Date of Birth :

16.05.1965

Date of Appointment :

04.03.2002

Din No.:

00810382

Name :

Mr. Rajesh Umraomal Jain

Designation :

Additional Director

Address :

701 Meri Gold-D Valley of Flowers, Thakur Village, Behind Gokul Concord, Kandivali (East), Mumbai-400101, Maharashtra, India

Date of Birth :

01.07.1964

Date of Appointment :

22.05.2011

Din No.:

02199966

Other Directorship:

S. No.	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
1	U24120MH1982PTC026894	ELLORA ORGANIC INDUSTRIES PRIVATE LIMITED	Additional director	14-01-08	14-01-08	-	Active	NO
2	U85100MH2007PTC170959	IPCA TRADITIONAL REMEDIES PRIVATE LIMITED	Additional director	02-03-09	02-03-09	30-04-09	Active	NO
3	U51909WB2004PTC100423	SHREYA TIE UP PRIVATE LIMITED	Director	15-08-09	15-08-09	-	Amalgamated	NO
4	U28129MH1985PTC035974	NIPRA PACKAGING PRIVATE LIMITED	Director	24-01-11	24-01-11	-	Active	NO
5	U24110MH1988PTC049483	PASCHIM CHEMICALS PRIVATE LIMITED	Additional director	22-05-11	22-05-11	-	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 17.06.2011

Names of Shareholders	No. of Shares
Mexin Medicements Private Limited, India	7623
IPCA Laboratories Limited, India	63690
Kaygee Investment Private Limited, India	35098
Exon Laboratories Private Limited, India	4500
Makers Laboratories Limited, India	25000
Ellora Organics Industries Private Limited, India	4000
Usha Premchand Godha	900
Ajitabh Bachchan	2
Nirmal G Jain	2
Total	140815

As on 17.06.2011

Equity Share Breakup	Percentage of Holding
Category
Bodies corporate	99.36
Other top fifty shareholders	0.64
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturing and Sale Drugs Intermediates, Allopathic Pharmaceuticals Preparations, Conversion Charges of Chemicals.

Products :

Product Description	Item Code No. (ITC No.)
BCFI	2942-00
DSA and Lasamide	29225090

PRODUCTION STATUS (AS ON 31.03.2011)

Particulars	Unit	Installed Capacity	Actual Production
Drug Intermediates	Tones	180.00	304.34

Note:

1. Installed capacity being of a technical nature is not verified by the auditors.

2. The company has manufactured 44.45 MT on job work basis during the year.

3. Production includes 248.006 MT manufactured by third party on job work basis.

GENERAL INFORMATION

No. of Employees :

150 [Approximately]

Bankers :

• Axis Bank Limited, Royal Accord IV, Lokhandwala Complex, Andheri (West), Mumbai-400053, Maharashtra, India
• Axis Bank Limited, Trishul, 3^rd Floor, Opposite Samartheshwar Temple, Law Garden Ellisbridge, Ahmedabad-380006, Gujarat, India
• Canara Bank, Warden House, Sir P.M. Road, Fort, Mumbai, Maharashtra, India
• Axis Bank Limited, Credit Management Centre, Unit-6, Corporate Park, Sion, Trombay Road, Chembur, Mumbai-400071, Maharashtra, India

Facilities :

Secured Loan	As on 31.03.2011 [Rs. in Millions]	As on 31.03.2010 [Rs. in Millions]
From Axis Bank Limited
Rupee Loan	27.837	23.113
Foreign Currency Term Loan	0.000	40.315
Total	27.837	63.428
Unsecured Loan
From Corporate Body	37.710	0.000
Total	37.710	0.000

Banking Relations :	--
Auditors :
Name :	G R Mantri and Associates Chartered Accountants
Address :	F – 106, Son Marg, Opposite Bajaj Hall, S V Road, Malad (West), Mumbai – 400 064, Maharashtra, India
Tel. No.:	91-22-22663342
Fax No.:	91-22-22660267
E-Mail :	jainbl@hotmail.com
Pan No.:	AADPM9263A
Associates:	IPCA Laboratories Limited
Entities Where Control Exists	Kaygee Investment Private Limited

CAPITAL STRUCTURE

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
400000	Equity Shares	Rs.100/- each	Rs.40.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
140815	Equity Shares	Rs.100/- each	Rs.14.082 Millions

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		14.082	14.082	14.082
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		107.242	80.714	59.381
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		121.324	94.796	73.463
LOAN FUNDS
1] Secured Loans		27.837	63.428	90.505
2] Unsecured Loans		37.710	0.000	0.000
TOTAL BORROWING		65.547	63.428	90.505
DEFERRED TAX LIABILITIES		12.309	11.900	11.881
TOTAL		199.180	170.124	175.849
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		77.487	65.470	61.765
Capital work-in-progress		0.237	0.000	0.220
INVESTMENT		95.846	95.846	95.846
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	43.327	32.907	9.427
	Sundry Debtors	1.160	1.598	17.074
	Cash & Bank Balances	2.610	5.015	1.867
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	46.412	24.795	43.368
Total Current Assets		93.509	64.315	71.736
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	23.621	27.253	4.978
	Other Current Liabilities	43.978	27.694	48.438
	Provisions	0.300	0.560	0.302
Total Current Liabilities		67.899	55.507	53.718
Net Current Assets		25.610	8.808	18.018
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		199.180	170.124	175.849

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income
		Other Income
		TOTAL (A)	258.851	199.285	145.509
Less	EXPENSES
		Office Expenses
		Administrative Expenses	214.467	159.702	103.213
		Advertising Expenses
		TOTAL (B)	214.467	159.702	103.213
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		44.384	39.583	42.296
Less	FINANCIAL EXPENSES (D)		6.694	7.747	7.649
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		37.690	31.836	34.647
Less/ Add	DEPRECIATION/ AMORTISATION (F)		5.153	4.784	4.474
	PROFIT BEFORE TAX (E-F) (G)		32.537	27.052	30.173
Less	TAX (H)		6.009	5.719	6.192
	PROFIT AFTER TAX (G-H) (I)		26.528	21.333	23.981
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		10.714	9.381	8.928
Less	APPROPRIATIONS
		Transfer to General Reserve	30.000	20.000	23.528
	BALANCE CARRIED TO THE B/S		7.242	10.714	9.381
	IMPORTS
		Raw Materials	34.252	27.006	13.419
		Plant and Machinery	1.334	0.000	0.328
	TOTAL IMPORTS		35.586	27.006	13.747
	Earnings Per Share (Rs.)		188.39	151.50	170.30

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	10.25	10.70	16.48
Return on Total Assets (PBT/Total Assets}	(%)	19.03	20.84	22.60
Return on Investment (ROI) (PBT/Networth)		0.27	0.29	0.41
Debt Equity Ratio (Total Liability/Networth)		1.10	1.25	1.96
Current Ratio (Current Asset/Current Liability)		1.38	1.16	1.34

LOCAL AGENCY FURTHER INFORMATION

OPERATIONS:

The Sales and other income from operations of the company for the year were Rs.258.851 Millions as compared to Rs.199.285 Millions for the previous year.

The operations have resulted in a profit after tax of Rs.26.528 Millions as compared to Rs.21.333 Millions in the previous year.

BANKERS CHARGES REPORT AS PER REGISTRY

This form is for	Modification of charge
Charge identification number of the modified	80052981
Corporate identity number of the company	U24110MH1988PTC049483
Name of the company	PASCHIM CHEMICALS PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	142 AB, Kandivali Industrial Estate, Kandivali (West), Mumbai-400067, Maharashtra, India
Type of charge	Book Debts Movable Property (not being pledge)
Particular of charge holder	Axis Bank Limited, Credit Management Centre, Unit-6, Corporate Park, Sion, Trombay Road, Chembur, Mumbai-400071, Maharashtra, India
Email	aslam.merchant@axisbank.com
Nature of description of the instrument creating or modifying the charge	Link Document for Earmarking of Limit and Interchangeability dated 17^th January, 2011.
Date of instrument Creating the charge	17.01.2011
Amount secured by the charge	Rs.40.000 Millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest As per the Sanction Letter. Terms of Repayment As per the Sanction Letter. Margin As per Bank Guidelines Extent and Operation of the charge Exclusive First Charge by way of hypothecation charge of Stock and Book Debts, both present and future. Extension of charge on moveable Fixed Assets of the company, both present and future. Pledge of shares of IPCA Laboratories Limited for 150% of the exposure.
Short particulars of the property charged	Exclusive First charge by way of Hypothecation charge of Stock and Book Debts, both present and Future. Extension of charge on moveable Fixed Assets of the company, both present and future. Pledge of shares of Ipca Laboratories Limited for 150% of the exposure.
Particulars of the present modification	By present modification dated 17.01.2011, the charge by way of Excl. 1st hypothecation charge of Stock and Book debts, both present and future and extn of charge on moveable fixed assets of the Company, both present and future has been extended for reconversion of FCTL of Rs.40.000 Millions to Rupee term loan with present outstanding of Rs.32.500 Millions and availment of the same in Indian Rupee as sanctioned by the bank, the security remains unchanged.

FIXED ASSETS:

• Leasehold Land
• Factory Building
• Plant and Machinery
• Effluent Treatment Plant
• Furniture and Fixtures
• Vehicles

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.49.78
UK Pound	1	Rs.80.10
Euro	1	Rs.68.82

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	6
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	5
--RESERVES	1~10	6
--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	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		50

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.