MIRA INFORM REPORT

Report Date :

13.10.2011

IDENTIFICATION DETAILS

Name :	HARIKA DRUGS PRIVATE LIMITED
Registered Office :	36/A, Vengal Rao Nagar, S. R. Nagar, Hyderabad – 500 038, Andhra Pradesh
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	19.10.1989
Com. Reg. No.:	01-10584
Capital Investment / Paid-up Capital :	Rs.1.790 Millions
CIN No.: [Company Identification No.]	U24230AP1989PTC010584
TAN No.: [Tax Deduction & Collection Account No.]	HYDH00713G / HYDH00714A
PAN No.: [Permanent Account No.]	AAACH4986P
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Bulk Drugs
No. of Employees :	23 [Approximately]

RATING & COMMENTS

MIRA’s Rating :

B (29)

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

Maximum Credit Limit :	USD 136000
Status :	Moderate
Payment Behaviour :	Slow
Litigation :	Clear
Comments :	Subject is an established company having moderate track. There appears some accumulated losses recorded by the company. However, trade relations are reported as fair. Business is active. Payments are reported to be slow. The company can be considered for business dealings with some cautions.

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 – June 30, 2010

Country Name	Previous Rating (01.04.2010)	Current Rating (30.06.2010)
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 :	36/A, Vengal Rao Nagar, S. R. Nagar, Hyderabad – 500 038, Andhra Pradesh, India
Tel. No.:	91-40-23814863 / 23700915
Fax No.:	91-40-23700731
E-Mail :	harikadrugs@yahoo.co.in Chary_pedaprolu@yahoo.co.in Hyd1_amarbabu@sancharnet.in bnandcompany@yahoo.com
Area :	3000 sq. fts.
Location :	Owned
Factory :	Gummadidala, Medak District, Andhra Pradesh, India
Tel. No.:	91-8458-275369
Area :	3 Acres
Location :	Owned

DIRECTORS

As on 29.09.2010

Name :

Mr. Amarmath Uppalapati

Designation :

Managing Director

Address :

H.No.36/A, Vengal Rao Nagar, Hyderabad – 500038, Andhra Pradesh, India

Date of Birth/Age :

17.04.1963

Qualification :

B. Pharma

Date of Appointment :

24.12.1992

Din :

00658160

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	U24230AP1989PTC010584	HARIKA DRUGS PRIVATE LIMITED	Managing director	24/12/1992	24/12/1992	-	Active	NO
2	U24110AP1981PLC003322	VENKATARAMA CHEMICALS LIMITED	Director	28/08/1995	28/08/1995	-	Active	NO
3	U24232AP2008PTC059563	VERDANT LIFE SCIENCES PRIVATE LIMITED	Managing director	7/1/2011	9/6/2008	-	Active	NO
4	U40108AP2008PTC061762	RUSTAL ENERGY PRIVATE LIMITED	Director	10/11/2008	10/11/2008	5/10/2011	Active	NO
5	U24232AP2010PTC068111	ORGASYNTH LABS PRIVATE LIMITED	Director	26/04/2010	26/04/2010	-	Active	NO

Name :

Mr. Suryanarayana Murthy Vuppalapati

Designation :

Whole-time Director

Address :

H.No.36/A, Vengal Rao Nagar, Hyderabad – 500038, Andhra Pradesh, India

Date of Birth/Age :

23.03.1936

Qualification :

MSC

Date of Appointment :

28.08.1995

Din :

00658276

Other Directorship :

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	U24110AP1981PLC003322	VENKATARAMA CHEMICALS LIMITED	Managing director	15/12/1981	15/12/1981	Active	NO
2	U24230AP1989PTC010584	HARIKA DRUGS PRIVATE LIMITED	Whole-time director	28/08/1995	28/08/1995	Active	NO
3	U24232AP2008PTC059563	VERDANT LIFE SCIENCES PRIVATE LIMITED	Director	9/6/2008	9/6/2008	Active	NO
4	U40108AP2008PTC061762	RUSTAL ENERGY PRIVATE LIMITED	Director	10/11/2008	10/11/2008	Active	NO

Name :

Mr. Adusumilli Venkata Ramakrishnarao

Designation :

Director

Address :

Plot No.9, Tahirville Yosufguda Check Post, Hyderabad – 500045, Andhra Pradesh, India

Date of Birth/Age :

02.08.1961

Date of Appointment :

28.08.1995

Din :

00810166

Other Directorship :

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	U65993AP1992PTC013802	RAM KUMAR FINANCE PRIVATE LIMITED	Director	5/2/1992	5/2/1992	Active	NO
2	U65992AP1992PTC013799	RAMKUMAR CHITS PRIVATE LIMITED	Managing director	5/2/1992	5/2/1992	Active	NO
3	U24230AP1989PTC010584	HARIKA DRUGS PRIVATE LIMITED	Director	28/08/1995	28/08/1995	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 29.09.2010

Names of Shareholders	No. of Shares
Venkatarma Chemicals Limited
V S N Murthy	300
Amarmath Uppalapati	300
Suryanarayana Murthy Vuppalapati	430
Adusumilli Venkata Ramakrishnarao	240
N Satyanarayana	80
V Sita Maha Lakshmi	200
U Vijaya	80
A Madhuri	80
N Lakshmi	80
Total	1790
Equity Share Breakup (As on 29.09.2010)	Percentage of Holding
Category
Bodies corporate	16.76
Directors or relatives of Directors	83.24
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer of Bulk Drugs
Products :	Phengramic Maleache Promithezinc Hydrochloride Miprqmin Hydroclorine - Promithzinc Phengramic Maleache Promithezinc Hydrochloride Miprqmin Hydroclorine - Promithzinc Bulk Drugs

PRODUCTION STATUS AS ON 31.03.2010

	Unit	31.03.2010
Licensed Capacity	Tonnes	65
Installed Capacity	Tonnes	65
Actual Production	Tonnes	64.601

GENERAL INFORMATION

No. of Employees :

23 [Approximately]

Bankers :

State Bank of India, Balkampet Branch, 7-1-421, Swastik Plaza, S. R. Nagar, Hyderabad – 500038, Andhra Pradesh, India

Facilities :

Secured Loans :	31.03.2010 Rs. in Millions	31.03.2009 Rs. in Millions
Car Loan	0.444	0.685
SBI Term Loan	9.164	14.158
SBI CC Account	20.877	20.346
Total	30.485	35.189

Unsecured Loans :	31.03.2010 Rs. in Millions	31.03.2009 Rs. in Millions
Verdant	7.192	9.500
VCL Loan	36.550	37.850
LIC Loan	18.928	17.365
Total	62.670	64.715

Banking Relations :	--
Auditors :
Name :	B N and Company Chartered Accountants
Address :	8-2-120/112/A/14 Road, No. 9, Jubilee Hills, Hyderabad – 500034, Andhra Pradesh, India
Tel. No.:	91-40-23706974
PAN :	ACEPB3084D

CAPITAL STRUCTURE

As on 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
5000	Equity Shares	Rs.1000/- each	Rs.5.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1790	Equity Shares	Rs.1000/- each	Rs.1.790 millions

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		1.790	1.790	1.790
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		32.993	32.993	32.993
4] (Accumulated Losses)		[0.720]	[9.485]	[18.861]
NETWORTH		34.063	25.298	15.922
LOAN FUNDS
1] Secured Loans		30.485	35.189	93.705
2] Unsecured Loans		62.670	64.715	0.000
TOTAL BORROWING		93.155	99.904	93.705
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		127.218	125.202	109.627
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		62.253	64.551	66.898
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	28.942	29.840	24.912
	Sundry Debtors	46.467	23.816	17.241
	Cash & Bank Balances	0.051	0.016	0.002
	Other Current Assets	22.378	18.748	10.633
	Loans & Advances	0.886	0.742	4.895
Total Current Assets		98.724	73.162	57.683
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	29.654	10.653	11.078
	Current Liabilities	4.105	1.858	3.876
	Provisions	0.000	0.000	0.000
Total Current Liabilities		33.759	12.511	14.954
Net Current Assets		64.965	60.651	42.729
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		127.218	125.202	109.627

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	136.727	93.891	70.391
		Other Income	8.535	13.276	9.799
		TOTAL (A)	145.262	107.167	80.190
Less	EXPENSES
		Manufacturing, Administrative, Repairs and Selling Expenses	113.724	84.504	84.608
		Stock Variation	4.402	[3.715]	[6.911]
		TOTAL (B)	118.126	80.789	77.697
	PROFIT/LOSS BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		27.136	26.378	2.493
Less	FINANCIAL EXPENSES (D)		13.775	12.525	13.365
	PROFIT/LOSS BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		13.361	13.853	[10.872]
Less/ Add	DEPRECIATION/ AMORTISATION (F)		4.595	3.317	3.689
	PROFIT / LOSS BEFORE TAX (E-F) (G)		8.766	10.536	[14.561]
Less	TAX (H)		0.000	1.161	0.000
	PROFIT / LOSS AFTER TAX (G-H) (I)		8.766	9.375	[14.561]
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		[9.485]	[18.860]	[4.299]
	BALANCE CARRIED TO THE B/S		[0.719]	[9.485]	[18.860]
	EARNINGS IN FOREIGN CURRENCY		65.295	51.738	15.878
	Earnings Per Share (Rs.)		4897.21	5237.43	-

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	6.03	8.75	[18.16]
Net Profit Margin (PBT/Sales)	(%)	6.41	11.22	[20.68]
Return on Total Assets (PBT/Total Assets}	(%)	5.44	7.65	[11.68]
Return on Investment (ROI) (PBT/Networth)		0.26	0.42	[0.91]
Debt Equity Ratio (Total Liability/Networth)		3.72	4.44	6.82
Current Ratio (Current Asset/Current Liability)		2.92	5.77	3.86

LOCAL AGENCY FURTHER INFORMATION

Review of the Performance :

The sales turnover for the year ended 31.03.2010 is Rs.136.727 millions as against Rs.93.891 millions in the previous year.

The cash profit of the company before depreciation for the year is Rs.13.361 millions as against a cash profit of Rs.13.853 millions during the previous year

Developmental Activities :

Even though there was an increase of raw materials and import raw materials, there was an increase of sales turnover of Rs.42.800 millions they are in a position to increase the sales turnover up to Rs.230.000 millions as against 136.700 millions for the year 2010.

Bankers Charges Report as per Registry

Corporate identity number of the company	U24230AP1989PTC010584
Name of the company	HARIKA DRUGS PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	36/A,Vengalarao Nagar, S.R.Nagar, Hyderabad – 500038, Andhra Pradesh, India Emial : chary_pedaprolu@yahoo.co.in
This form is for	Modification of charge
Charge identification (ID) number of the charge to be modified	80008296
Type of charge	Book Debts Movable Property Immovable Property Floating Charge
Particular of charge holder	State Bank of India, Balkampet Branch, 7-1-421, Swastik Plaza, S. R. Nagar, Hyderabad – 500038, Andhra Pradesh, India Email : sa.03607@sbi.co.in
Nature of instrument creating charge	As per the supplemental agreement of loan cum hypothecation and guarantee agreement
Date of instrument Creating the charge	07.01.2011
Amount secured by the charge	Rs.95.400 millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest – Working Capital 6% above base rate with a minimum of 13.60% Term Loan 1.5% above base rate with a 14% Open Term Loan- 6% above base rate + turnover premium of 0.5% S.L.C- 7% above base rate I.E. 15% Terms of Repayment – Term Loan – 25.000 millions Open Term Loan – 20.000 Millions Margin – Raw Material : Imported - 25% Semi- Finished Goods - 25% Finished Goods - 25% Domestic Receivables - 40% ( Up to 90 Days) Letters of Credit - 25% Bank Guarantees - 25%
Short particulars of the property or asset(s) charged (including complete address and location of the property)	Equitable mortgage of 4.25 acres of land at s.no.165/a,165/aa and e of Jinn Ram Mandal, Medak District with factory building thereon belonging to the unit
Date of instrument modifying the charge	27.07.2006
Particulars of the present modification	1. Enhancement of Cash Credit Limits from Rs.20.000 Millions To Rs. 40.000 Millions. 2. Granting of New SLC For Rs. 9.000 Millions 3. Enhancement of Letter of Credit Facilities from Rs.12.500 Millions to Rs. 20.000 Millions. 4. Enhancement of Term Loan to Rs.25.400 Millions. Therefore the existing charge is enhanced from Rs.58.500 millions to Rs.95.400 millions.

FORM 8:

Name of the company	HARIKA DRUGS PRIVATE LIMITED
Presented By	Managing Director
1) Date and description of instrument creating the change	07.11.1997 agreement for the grant of small industrial advance
2) Amount secured by the charge/amount owing on the securities of charge	Rs. 1.500 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	Receivables and bill in the course of collections
4) Gist of the terms and conditions and extent and operation of the charge.	Interest @ 2.75 % over SBI advance rate with a minimum of 17.75 %
5) Name and Address and description of the person entitled to the charge.	State Bank of India, Balkampet Branch
6) Date and brief description of instrument modifying the charge	--
7) Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification.	--

FIXED ASSETS:

• Land
• Building
• Plant and Machinery
• Borewell
• Furniture and Fixtures
• Office Equipment
• Electrical Installations
• Motor Car
• Computer
• P.T. Plant
• Xerox
• Air Condition Machine
• Lab Equipment
• Fire Equipment

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.49.24
UK Pound	1	Rs.76.80
Euro	1	Rs.67.17

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
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	YES
--AFFILIATION	YES/NO	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		29

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.