MIRA INFORM REPORT

Report Date :

12.11.2011

IDENTIFICATION DETAILS

Name :	AAR ESS REMEDIES PRIVATE LIMITED
Registered Office :	WZ -13E, Vashisht Park, Gali No.4, West Sagarpur, New Delhi – 110046
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	25.11.2003
Com. Reg. No.:	55-123227
Capital Investment / Paid-up Capital :	Rs.1.000 Million
CIN No.: [Company Identification No.]	U24239DL2003PTC123227
Legal Form :	Private Limited Liability Company
Line of Business :	Distributors and Suppliers of Herb Remedies, ,Medicines, etc.
No. of Employees :	18 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (28)

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

Maximum Credit Limit :	USD 10000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track. Trade relations are reported as fair. Business is active. Payments are reported to be slow but correct. The company can be considered for small 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. Nishant
Designation :	Accountant
Contact No.:	91-11-28520451
Date :	04.11.2011

LOCATIONS

Registered Office/ Factory :	WZ -13E, Vashisht Park, Gali No.4, West Sagarpur, New Delhi – 110046, India
Tel. No.:	91-11-28520451
Fax No.:	Not Available
E-Mail :	arplindia@rediffmail.com
Location :	Rented

DIRECTORS

As on 28.06.2011

Name :

Mr. Rakesh Mohan Sharma

Designation :

Director

Address :

460 A/1B, Mahavir Block, Bholanath Nagar, New Delhi – 110032, India

Date of Birth/Age :

05.01.1970

Date of Appointment :

25.11.2003

DIN No.:

00268147

Name :

Mr. Sandeep Kumar Sharma

Designation :

Director

Address :

D-2/64, G. F., Janak Puri, New Delhi – 110058, India

Date of Birth/Age :

08.10.1971

Date of Appointment :

25.11.2003

DIN No.:

00268216

Other Directorship :

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
U24239DL2003PTC123227	Aar Ess Remedies Private Limited	Director	25/11/2003	25/11/2003	-	Active	NO
U72300DL2008PTC172480	Shiniwa Softsolutions Private Limited	Director	1/07/2009	1/07/2009	-	Active	YES

KEY EXECUTIVES

Name :	Mr. Nishant
Designation :	Accountant

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 28.06.2011

Names of Shareholders	No. of Shares
Sandeep Kumar Sharma	100000
Rakesh Mohan Sharma	100000
Total	200000

Equity Share Break up (Percentage of Total Equity)

As on 28.06.2011

Category	Percentage
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Distributors and Suppliers of Herb Remedies, ,Medicines, etc.
Imports :
Products :	· Medicines
Countries :	· Delhi
Terms :
Selling :	Cash
Purchasing :	Cash

GENERAL INFORMATION

Customers :

· Wholesalers

No. of Employees :

18 (Approximately)

Bankers :

· Allahabad Bank, B -3, Ashoka Niketan, Anand Vihar, Delhi – 110092, India

· ICICI Bank

· City Bank

Facilities :

Secured Loan	As on 31.03.2010 (Rs. in Millions)	As on 31.03.2009 (Rs. in Millions)
From Allahabad Bank	1.140	1.981
Balance overdraft with Allahabad Bank in Cash Credit A/c	3.327	2.470
City Bank Car Loan	0.000	0.053
ICICI Bank Car Loan	0.156	0.208
Total	4.623	4.712
Secured Loan	As on 31.03.2010 (Rs. in Millions)	As on 31.03.2009 (Rs. in Millions)
From Directors	3.376	3.536
From Others	0.374	0.374
Total	3.750	3.910

Banking Relations :	--
Auditors :
Name :	D. L. Duggal and Company Chartered Accountants
Address :	204, Express Arcade, H-10, Netaji Subhash Place, Pitam Pura, Delhi – 110034, India
Tel. No.:	91-11-42470936
Mobile No.:	91-9811109325/ 9873300370
PAN.:	AACFD8455A

CAPITAL STRUCTURE

After 28.06.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
200000	Equity Shares	Rs.10/- each	Rs.2.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
200000	Equity Shares	Rs.10/- each	Rs.2.000 Millions

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
100000	Equity Shares	Rs.10/- each	Rs.1.000 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
100000	Equity Shares	Rs.10/- each	Rs.1.000 Million

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		1.000	1.000	1.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		1.731	0.654	0.053
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		2.731	1.654	1.053
LOAN FUNDS
1] Secured Loans		4.623	4.712	5.247
2] Unsecured Loans		3.750	3.910	2.060
TOTAL BORROWING		8.373	8.622	7.307
DEFERRED TAX LIABILITIES		0.010	0.018	0.000
TOTAL		11.114	10.294	8.360
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		6.343	6.469	6.458
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.033
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	3.086	2.618	1.949
	Sundry Debtors	4.861	2.392	3.913
	Cash & Bank Balances	0.090	0.890	0.058
	Other Current Assets	0.207	0.250	0.000
	Loans & Advances	0.204	0.080	0.345
Total Current Assets		8.448	6.230	6.265
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	1.217	1.072	3.163
	Other Current Liabilities	2.132	1.155	0.138
	Provisions	0.328	0.178	1.097
Total Current Liabilities		3.677	2.405	4.398
Net Current Assets		4.771	3.825	1.867
MISCELLANEOUS EXPENSES		0.000	0.000	0.002
TOTAL		11.114	10.294	8.360

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	18.110	10.693	12.234
		Other Income
		TOTAL (A)	18.110	10.693	12.234
Less	EXPENSES
		Office Expenses	16.588	9.705	11.622
		Administrative Expenses
		Advertising Expenses
		TOTAL (B)	16.588	9.705	11.622
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		1.522	0.988	0.612
Less/ Add	DEPRECIATION/ AMORTISATION (D)		0.126	0.158	0.394
	PROFIT BEFORE TAX (C-D) (E)		1.396	0.830	0.218
Less	TAX (F)		0.319
	PROFIT AFTER TAX (E-F) (G)		1.077	0.600	0.054
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		0.000	0.000	0.000
	BALANCE CARRIED TO THE B/S		1.077	0.600	0.053
	Earnings Per Share (Rs.)		1.07	6.00	0.53

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	5.95	5.61	0.44
Return on Total Assets (PBT/Total Assets}	(%)	9.44	6.53	1.71
Return on Investment (ROI) (PBT/Networth)		0.51	0.50	0.20
Debt Equity Ratio (Total Liability/Networth)		4.41	6.67	11.12
Current Ratio (Current Asset/Current Liability)		2.30	2.59	1.42

LOCAL AGENCY FURTHER INFORMATION

PERFORMANCE AND FUTURE PROSPECTS

The Sales during the year were quite satisfactory but less than as expected. The directors are expecting a remarkable growth in sales in coming year of operation. As far as profitability is concern the company has also booked a good growth in such a competitive market situation.

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%	No
14) Estimation for coming financial year	No
15) Capital in the business	Yes
16) Details of sister concerns	Yes
17) Major suppliers	Yes
18) Major customers	Yes
19) Payments terms	Yes
20) Export / Import details (if applicable)	Yes
21) Market information	--
22) Litigations that the firm / promoter	--
23) Banking Details	Yes
24) Banking facility details	Yes
25) Conduct of the banking account	--
26) Buyer visit details	--
27) Financials, if provided	No
28) Incorporation details, if applicable	--
29) Last accounts filed at ROC	--
30) Major Shareholders, if available	--

FORM 8

Corporate identity number of the company	U24239DL2003PTC123227
Name of the company	AAR ESS REMEDIES PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	WZ -13E, Vashisht Park, Gali No.4, West Sagarpur, New Delhi – 110046, India Email Id : arplindia@rediffmail.com
This form is for	Modification of charge
Charge identification (ID) number of the charge to be modified	10049374
Type of charge	Immovable property Book debts Movable property (not being pledge) Floating charge
Particular of charge holder	Allahabad Bank, B -3, Ashoka Niketan, Anand Vihar, Delhi – 110092, India Email Id : br.del_avihar@allahabadbank.in
Nature of instrument creating charge	Supplementary Letter of Mortgagor confirming deposit of title deeds through constructive delivery Supplementary General Letter of Hypothecation
Date of instrument Creating the charge	27.06.2011
Amount secured by the charge	Rs.8.086 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest BR+4% FOR CC LIMIT BR+6% FOR TERM LOAN-I BR+6% FOR TERM LOAN-II (BR BEING 10%) Terms of repayment CC Limit on Demand Term Loans as per Schedule Margin 25% on Stock 30% on Receivables upto 90 Days Extent and operation of the charge 100% First Charge Others Nil
Short particulars of the property or asset(s) charged (including complete address and location of the property)	Property No. 28, Block – C, Sector – 65, Noida, Distt. Gautam Budh Nagar, Uttar Pradesh All tangible, movable, plant, machinery, fixed assets, furniture, computers, vehicles lying on the premises of the company All stock of finished goods both present and future All present and future book debts, outstandings, monies, receivables, claims, bills contracts, engagements and securities
Date of instrument modifying the charge	30.07.2010
Particulars of the present modification	CC Limit has been enhanced from Rs.3.500 Millions to Rs.7.000 Millions Term Loan-I balance outstanding Rs.0.800 Millions Term Loan-II balance outstanding Rs.0.286 Millions Total existing Limits enhanced from Rs.5.211 Millions to Rs.8.086 Millions

FIXED ASSETS

· Land

· Furniture and Fixtures

· Building

· Computer

· Bike/Car

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.50.28
UK Pound	1	Rs.80.08
Euro	1	Rs.68.45

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	4
--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	NO
--AFFILIATION	YES/NO	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		28

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.