MIRA INFORM REPORT

Report Date :

26.11.2011

IDENTIFICATION DETAILS

Name :	ISCON SURGICALS LIMITED
Registered Office :	22/4, Heavy Industrial Area, Jodhpur-342001, Rajasthan
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	03.05.1991
Com. Reg. No.:	17-005963
Capital Investment/ Paid-up Capital:	Rs. 38.520 Millions
CIN No.: [Company Identification No.]	U24232RJ1991PLC005963
TAN No.: [Tax Deduction & Collection Account No.]	JDHI00975C / JDHI01166E
PAN No.: [Permanent Account No.]	AAACI3030K
Legal Form :	A Closely Held Public Limited Liability Company.
Line of Business :	Manufacturer and Exporter of all kinds of Surgical Instruments.
No. of Employees:	250 (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 330000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an old company with moderate track. Financials of the company appears to be improving. Trade relations are fair. Business is active. Payments of the company are reported as slow but correct. Company can be considered good for business dealing with slight caution.

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. Sandeep Bhandari
Designation :	General Manager
Contact No.:	91-9314711222
Date :	24.11.2011

LOCATIONS

Registered Office/Factory 1 :	22/4, Heavy Industrial Area, Jodhpur - 342 001, Rajasthan, India
Tel. No.:	91-291-2635164 / 2635165 / 2635168 / 2741193 / 3208085/ 3208081
	91-9314711222 (Mr. Sandeep Bhandari)
Fax No.:	91-291-2741193 / 2740560
E-Mail :	sandeep@pricon.co.in accounts@pticon.co.in rgbalia31@rediffmail.com
Website :	http://www.isconsurgicals.com
Area :	3000 Sq. ft.
Location :	Owned
Factory 2 :	B-70, Marudhara Industrial Area, 2^nd Phase Basni, Jodhpur – 342 003, Rajasthan, India
Tel. No.:	91-291- 3208085/ 81/82/ 2740558
Fax No.:	91-291-2741193/ 2740560
Area :	8000 Sq. meter
Location :	Leased
Branch Offices :	· 1596, Bhagirath Palace, 2^nd Floor, Deewan Hall Street, Delhi - 110 006, India Area : 250 Sq. meters Location : Owned · 21/202, Thakur House, K. V. Rajguru Road, Girgaum, Mumbai - 400 004, Maharashtra, India Area : 250 Sq. meters Location : Owned

DIRECTORS

As on 29.09.2011

Name :	Mr. Narendra Kumar Jain
Designation :	Whole Time Director
Address :	9/10, Mahaveer Nagar, Residency Road, Jodhpur – 342003, Rajasthan, India
Date of Birth/Age :	10.07.1956
Qualification :	Mechanical Engineer
Date of Appointment :	16.12.2002
DIN NO:	00388278
Name :	Mr. Mahendra Prakash Jain
Designation :	Whole Time Director
Address :	620, 11^th Pal Road, Sardarpura, Jodhpur– 342 003, Rajasthan, India
Date of Birth/Age :	23.05.1961
Qualification :	B. Com
Date of Appointment :	16.12.2002
DIN NO:	00388334
Name :	Mr. Braham Deo Bhati
Designation :	Director
Address :	410-B, Bhagat Singh Marg, Out Side Nagorigate, Jodhpur-342006, Rajasthan, India
Date of Birth/Age :	05.01.1953
Qualification :	Mechanical Engineer
Date of Appointment :	15.11.2002
DIN NO:	00344434
Name :	Mr. Manohar Lal Jain
Designation :	Whole Time Director
Address :	620, 11^th Pal Road, Sardarpura, Jodhpur– 342 003, Rajasthan, India
Date of Birth/Age :	55 Years
Qualification :	Mechanical Engineer
Date of Appointment :	30.09.2005
DIN NO:	00388394
Name :	Mr. Vinod Bhandari
Designation :	Director
Address :	ASHIWARD’ Bhagat Ki Kothi, New Pali Road, Jodhpur – 342001, Gujarat, India
Date of Appointment :	15.07.2010
DIN NO:	02974519

KEY EXECUTIVES

Name :	Mr. Sandeep Bhandari
Designation :	General Manager

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

(AS ON 29.09.2011)

Names of Shareholders	No. of Shares
Mahendra Prakash Jain	535500
Sohan Lal Jain	205225
Narendra Kumar Jain	279875
Urmila Jain	216125
Chandra Jain	154600
Sheela Jain	295600
Tatia Cap Tubes India Private Limited, India	287500
N R Foundation	110500
S V Foundation	88000
Manohar Lal Jain HUF	100025
Sohan Lal Jain HUF	552375
Nikhil Jain	99100
Nidhi Jain	95000
Shruti Jain	109500
Nitin Jain	57000
Rishabh Jain	33000
Vishrut Jain	15500
Warner Multimedia Limited , India	5000
Poonam Invest and Financial Con. Limited, India	5000
Manohar Lal Jain	344850
Narendra Kumar Jain HUF	105625
Nanda Jain	134600
Nivini Enterprises Private Limited	22500
Total	3852000

Equity Share Break up (Percentage of Total Equity)

(AS ON 29.09.2011)

Category	Percentage
Bodies corporate	8.30
Directors or relatives of directors	67.86
Other top fifty shareholders	23.84
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer and Exporter of all kinds of Surgical Instruments.

Products :

Product Description	Item Code
Disposable syringes needles, I V sets and Allied Items	9018

• Disposable Medical Devices
• Reusable Medical Devices
• Ophthalmic Cannulae
• Micro Surgical Instrument
• Micro Surgical Blades
• Miscellaneous Instruments
• Veterinary Needles
• Suture Needles
• OEM Supplies

Exports :

Products :

Surgical Instruments

Countries :

Worldwide

Terms :

Selling :

L/C, Cash and Credit

Purchasing :

L/C, Cash and Credit

PRODUCTION STATUS 31.03.2011

Particulars	Unit	Installed Capacity
Syringes	Pcs	180 min pcs.
Needles	Pcs	300 min pcs.

Actual Production (As on 31.03.2011)

Particular	Unit	Production
Disposable needles	NOS	12882000
I.V. sets	NOS	1984730
Disposable syringes	NOS	96179966
Ophthalmic canulae	NOS	20935738

GENERAL INFORMATION

Suppliers :

Reliance Industries

Customers :

Wholesalers, Retailers and End Users

• Unilab Technology

No. of Employees :

250 (Approximately)

Bankers :

State Bank of India, Commercial Branch, Shastri Nagar, Jodhpur-342003, Rajasthan, India

Facilities :

Cash Credit: Rs. 50.000 Millions

Secured Loans	31.03.2011 Rs. in Millions	31.03.2010 Rs. in Millions
(From State Bank of India, Jodhpur)
Cash Credit (Secured by hypothecation of stock, receivables and other movable assets and collaterally secured by plant and machinery and personally guaranteed by Two Directors and a relative)	63.270	71.152
Term Loan from State Bank of India Equitable mortgage of Factory Land and Building, Moveable Machineries and other Moveable Assets, Book Debts and other assets and Personal Guarantee of Two directors and a relative	28.918	22.292
Vehicle Loan (HDFC/ICICI) (secured by hypothecation of vehicle)	0.445	0.915
Total	92.633	94.359
Unsecured Loans	31.03.2011 Rs. in Millions	31.03.2010 Rs. in Millions
Deferred sale tax	16.327	13.589
From Body Corporate	0.445	0.432
From director and relatives	23.079	22.458
From others	6.640	7.452
From Kotak Mahindra Bank	2.818	0.481
Total	49.309	44.412

Banking Relations :	--
Auditors :
Name :	Rajneesh Singhvi Chartered Accountant
Address :	36A, Suraj Nagar (East), Civil Lines, Jaipur – 302006, Rajasthan, India
Tel. No.:	91-141-2222833 / 2220062
Fax No.:	91-141-2220918
E-Mail :	swmh@datainfosys.net
PAN NO:	ACZPS7285A
Memberships :	PLEXIL
Associates/Subsidiaries :	Jain Metal Components Private Limited Nivini Enterprises Private Limited

CAPITAL STRUCTURE

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
4000000	Equity Shares	Rs.10/- each	Rs.40.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
3852000	Equity Share	Rs.10/- each	Rs. 38.520 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		38.520	38.520	37.980
2] Share Application Money		6.480	0.000	5.500
3] Reserves & Surplus		37.145	32.124	23.565
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		82.145	70.644	67.045
LOAN FUNDS
1] Secured Loans		92.633	94.359	81.781
2] Unsecured Loans		49.309	44.412	44.323
TOTAL BORROWING		141.942	138.771	126.104
DEFERRED TAX LIABILITIES		7.843	7.843	8.177
TOTAL		231.930	217.258	201.326
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		94.008	85.525	82.497
Capital work-in-progress		0.593	0.000	0.000
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	65.363	58.773	61.869
	Sundry Debtors	84.318	93.856	75.373
	Cash & Bank Balances	6.641	6.075	6.365
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	22.822	17.976	15.094
Total Current Assets		179.144	176.680	158.701
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditor	39.479	42.352	36.563
	Other Current Liabilities	0.909	1.278	1.518
	Provisions	1.494	1.407	1.904
Total Current Liabilities		41.882	45.037	39.985
Net Current Assets		137.262	131.643	118.716
MISCELLANEOUS EXPENSES		0.067	0.090	0.113
TOTAL		231.930	217.258	201.326

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	236.397	205.805	210.792
		Other Income	2.083	1.120	1.615
		TOTAL (A)	238.480	206.925	212.407
Less	EXPENSES
		Material Consumed	151.464	123.600	144.862
		Manufacturing and administrative expenses	66.591	52.793	45.259
		Increase/ (Decrease) in stock	(8.681)	4.735	(6.718)
		TOTAL (B)	209.374	181.128	183.403
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		29.106	25.797	29.004
Less	FINANCIAL EXPENSES (D)		14.117	13.650	16.770
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		14.989	12.147	12.234
Less/ Add	DEPRECIATION/ AMORTISATION (F)		8.768	7.684	7.383
	PROFIT BEFORE TAX (E-F) (G)		6.221	4.463	4.851
Less	TAX (H)		1.200	0.765	1.474
	PROFIT AFTER TAX (G-H) (I)		5.021	3.698	3.377
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		21.055	18.357	14.980
Less	APPROPRIATIONS
		Transfer to General Reserve	0.000	1.000	0.000
	BALANCE CARRIED TO THE B/S		26.076	21.055	18.357
	TOTAL EARNINGS		36.539	25.101	25.858
	IMPORTS
		Raw Materials	32.851	26.583	26.394
		Stores & Spares	3.02	1.348	2.091
		Capital Goods	6.226	8.386	0.622
	TOTAL IMPORTS		42.097	36.317	29.107
	Earnings Per Share (Rs.)		1.30	0.96	0.89

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	2.10	1.78	1.58
Net Profit Margin (PBT/Sales)	(%)	2.63	2.16	2.30
Return on Total Assets (PBT/Total Assets}	(%)	2.27	1.70	2.01
Return on Investment (ROI) (PBT/Networth)		0.07	0.06	0.07
Debt Equity Ratio (Total Liability/Networth)		2.23	2.60	4.24
Current Ratio (Current Asset/Current Liability)		4.27	3.92	3.96

LOCAL AGENCY FURTHER INFORMATION

Check List:

Check List by info Agents	Available in Report (Yes/ No)
1) Year of Establishment	Yes
2)Locality of the Firm	Yes
3)Constitution 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 two years	Yes
12)Profitability for last three years	No
13)Reason for variation <> 20%	----------------
14)Estimated for coming financial year	No
15)Capital in the Business	No
16)Details of Sister Concern	-----------------
17)Major Suppliers	Yes
18)Major Customer	Yes
19)Payment Terms	Yes
20)Export/ Import Details (if Applicable)	Yes
21)Market Information	------------------
22)Litigation that the Firm / Promoter	------------------
23)Banking Details	Yes
24)Banking facility details	Yes
25)Conduct of the Banking	-------------------
26)Buyer visit details	-------------------
27)Financials, if provided	Yes
28)Incorporation details, if applicable	-------------------
29)Last account filed at ROC	-------------------
30)Major Shareholders, if applicable	-------------------

OPERATION:

The company attained a sales turnover of Rs. 245.000 Millions against a turnover of Rs. 213.300 Millions in the financial year 2010-11. the performance was lackluster due to high volatility in commodity market. The net profit after tax is Rs. 5.021 Millions as compared to Rs. 3.699 Millions of previous year. During the year, company has started steel scrap business by passing a special resolution in an extra ordinary general meeting held on 27^th October, 2010. the activity during the year was insignificant.

Bankers Charges Report as per Registry

Corporate identity number of the company	U24232RJ1991PLC005963
Name of the company	ISCON SURGICALS LIMITED
Address of the registered office or of the principal place of business in India of the company	22/4, Heavy Industrial Area, Jodhpur - 342001, Rajasthan, India Email: rgbalia31@rediffmail.com
This form is for	Modification of charge
Charge identification number of the modified	10040183
Type of charge	Immovable property Book debts Movable property (not being pledge) others: Hypothecation of stocks
Particular of charge holder	State Bank of India, Commercial Branch, Shastri Nagar, Jodhpur-342003, Rajasthan, India Email: gopalan.prakash@sbi.co.in
Nature of instrument creating charge	1. Supplemental Agreement of Hypothecation of Goods and Assets 2. Memorandum of deposit of title deeds
Date of instrument Creating the charge	29.09.2009
Amount secured by the charge	Rs. 145.200 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of interest Cash credit : Interest at State Bank Advance Rate (SBAR = 11.75%) Present effective rate 11.75% EPC/FBP/FBD : Interest at 4.50% below SBAR, (SBAR = 11.75%) Existing -Term Loan Interest at 0.75% below Terms of repayment 1. Cash Credit of Rs. 70.000 Millions Repayable on Demand. 2. New Term Loan of Rs. 0.240 Million Repayment to start from 01/04/2010. The repayment will be Rs. 0.267 Million per month for the first 36 installment, next 47 installment will be of Rs. 0.300 Million per month each, and last installment will be of Rs. 0.288 Million Margin 1. For Cash Credit Hypothecation of RM/ SIP/FG:-25% 2. For Cash Credit Hypothecation of Book Debts and Receivable :-40% 3. For new term loan :- 26% of new plant and machinery. 4. For Bank Guarantee :- 15% Extent and operation of the charge The Charge will extent to all movable property, present and future, such as stock in trade, Book Debts, and Immovable Properties of the company.
Particulars of the property charged	First charge on current assets of the company including stock in trade. First charge Fixed assets of the company including EM of company's land and building at 22/4, Hia, Basni Jodhpur First charge over entire plant and Machinery of the company.
Date of last modification prior to the present modification	21.12.2006
Particulars of the present modification	1. Cash Credit limits raised from 67.500 Millions to 70.000 Millions secured by Hypothecation of Stock/Book Debts and Mortgage of Land and Buildings 2. Term Loan has been reduced from 50.000 Millions to 47.700 Millions secured by Hypothecation of Plant and Machinery and other immovable assets. 3. Non fund based limit increased from 22.500 Millions to 27.500 millions secured by Hypothecation of Stock/Book Debts and mortgage of Land and Buildings.

Contingent Liabilities:

Particular	31.03.2011	31.03.2010	31.03.2009
Guarantees / letter of credit / bills discounted by banks on behalf of the company	0.509	15.698	2.968
Custom duty liability on imported machinery under EPCG scheme.	0.000	1.918	1.918
Total	0.509	17.616	4.886

Fixed Assets

· Leasehold Land

· Factory Building

· Plant and Machinery

· Electric Equipment

· Computers

· Testing Equipments

· Office Equipments

· Furniture and Fixture

· Vehicles

· Dies and Tools

TRADE REFERENCES:

• Unilab Technology
• Reliance Industries

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.52.16
UK Pound	1	Rs.80.64
Euro	1	Rs.69.42

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILIRY	1~10	2
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	3
--CREDIT LINES	1~10	3
--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		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.