MIRA INFORM REPORT

Report Date :

17.10.2011

IDENTIFICATION DETAILS

Name :	SPANKER BIOTECH LIMITED

Registered Office :	Makhnu Majra Bhud, Vardman Road, Tehsil Nalagarh District Solan-173205, Himachal Pradesh

Country :	India

Financials (as on) :	31.03.2010

Date of Incorporation :	02.02.2006

Com. Reg. No.:	06-029629

Capital Investment / Paid-up Capital :	Rs.9.100 Millions

CIN No.: [Company Identification No.]	U24230HP2006PLC029629

Legal Form :	A Closely Held Public Limited Liability Company

Line of Business :	Manufacturer of Medicines.

No. of Employees :	110 (In Office 35, In Factory 75) [Approximately]

RATING & COMMENTS

MIRA’s Rating :

B (29)

RATING

STATUS

PROPOSED CREDIT LINE

26-40

Capability to overcome financial difficulties seems comparatively below average.

Small

Maximum Credit Limit :	USD 93000

Status :	Moderate

Payment Behaviour :	Slow but correct

Litigation :	Clear

Comments :	Subject is an established company having moderate track. The company has been successful in wiping off the accumulated losses of the previous year. Trade relations are reported as fair. Business is active. Payments are reported to be slow but correct. 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 – April 1, 2010

Country Name

Previous Rating

(31.12.2009)

Current Rating

(01.04.2010)

India

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. Munish Salwan
Designation :	Director
Contact No.:	91-9876933036
Date :	08.10.2011

LOCATIONS

Registered Office/ Factory :	Makhnu Majra Bhud, Vardman Road, Tehsil Nalagarh District Solan-173205, Himachal Pradesh, India
Tel. No.:	91-161-2550421
Mobile No.:	91-9876933036 [Mr. Munish Salwan]
Fax No.:	91-161-2550339
E-Mail :	spankerboitech@gmail.com
Area :	Owned

DIRECTORS

As on 30.08.2010

Name :

Mr. Munish Salwan

Designation :

Director

Address :

186 A, Agar Nagar, Ludhiana-142026, Punjab, India

Date of Appointment :

02.02.2006

Din No.:

01800718

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	U24232PB1994PTC014446	PIFER PHARMACEUTICALS PRIVATE LIMITED	Director	18-04-94	18-04-94	Active	NO
2	U24230HP2006PLC029629	SPANKER BIOTECH LIMITED	Director	02-02-06	02-02-06	Active	NO

Name :

Mr. Mithun Salwan

Designation :

Director

Address :

186 A, Agar Nagar, Ludhiana-142026, Punjab, India

Date of Appointment :

02.02.2006

Din No.:

01849815

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	U24232PB1994PTC014446	PIFER PHARMACEUTICALS PRIVATE LIMITED	Director	30-11-03	30-11-03	Active	NO
2	U24230HP2006PLC029629	SPANKER BIOTECH LIMITED	Director	02-02-06	02-02-06	Active	NO

Name :

Mr. Amarjit Rai Salwan

Designation :

Director

Address :

186 A, Agar Nagar, Ludhiana-142026, Punjab, India

Date of Appointment :

02.02.2006

Din No.:

01800880

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	U24232PB1994PTC014446	PIFER PHARMACEUTICALS PRIVATE LIMITED	Director	12-09-05	12-09-05	10-08-09	Active	NO
2	U24230HP2006PLC029629	SPANKER BIOTECH LIMITED	Director	02-02-06	02-02-06	-	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.08.2010

Names of Shareholders		No. of Shares
Shivani Salwan		42000
Munish Salwan		276750
Amarjit Rai Salwan		240000
Smita Salwan		42000
Pifer Pharmaceutical Private Limited, India		19000
Mithun Salwan		276750
MS Bhavana Walia		13500

Total		910000

As on 30.08.2010

Equity Share Breakup		Percentage of Holding
Category
Bodies corporate		2.09
Directors or relatives of directors		97.91
Total		100.00

BUSINESS DETAILS

Line of Business :	Manufacturer of Medicines.

Products :	· Pharmaceutical Tablets · Pharmaceutical Supplements · Pharmaceutical Syrups and Ointments · Tablet / Capsules · Antibiotics · Oral Liquids · Dry Syrups · Ointment / Gel

Terms :
Selling :	Credit

Purchasing :	Credit

GENERAL INFORMATION

Suppliers :

ABS Mercantiles Private Limited, Baddi
Akhil Health Care Private Limited
Arvind Laboratories Private Limited, Ahmedabad
Ashu Engg and Sales Corporation
Doshi Pharma, Baddi
Ganpati Vanijya
K.K. Nandi and Company
Maa Prabha Pharma
Riya Packers Private Limited
Rototech, New Delhi
Tirupati Packaging, Baddi
Vansh Trader, Ludhiana

Customers :

Allied Traders Pharmaceuticals, Sopore
B.S. Medicose, Moga
Medopharm, Indore
True Care Pharmaceuticals, Vadodara
RPG Life Sciences Limited, Ankleshar
Jeet Medical General Store, Daman
Medley Pharmaceuticals Limited, Daman

No. of Employees :

110 (In Office 35, In Factory 75) [Approximately]

Bankers :

State Bank of Patiala, Small Enterprises Credit Cell, Bharat Nagar Chownk, First Floor, Ludhiana-141002, Punjab, India

Facilities :

Secured Loan	As on 31.03.2010 [Rs. in Millions]	As on 31.03.2009 [Rs. in Millions]
HDFC Loan Account A/C No. 15627387	0.714	0.000
HDFC Loan Account A/C No. 15746796	0.919	0.000
Tata Motors Finance	0.077	0.000
State Bank of Patiala A/C No. 65011575746	12.375	0.983
State Bank of Patiala MTL New	0.724	13.294
State Bank of Patiala MTL Old	10.704	8.374
Tata Motors	0.000	0.154
Total	25.513	22.805

Unsecured Loan
Munish Salwan	4.185	4.095
Mithun Salwan	3.254	5.330
Pifer Pharmaceuticals Private Limited	2.607	2.607
Ramesh Rani, Ludhiana	0.150	0.150
Total	10.196	12.182


Financial Institution:	Himachal Pradesh State Industrial Corporation Limited, Deputy Director of Industries, Single Window Clearing Agency, Baddi-173205, Himachal Pradesh, India

Banking Relations :	--

Auditors :
Name :	Sat Pal Sharma and Company Chartered Accountants
Address :	44 GF SIS Nagar, Ludhiana-141001, Punjab, India
Tel. No.:	91-161-5012742

CAPITAL STRUCTURE

As on 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
910000	Equity Shares	Rs.10/- each	Rs.9.100 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
910000	Equity Shares	Rs.10/- each	Rs.9.100 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		9.100	9.100	9.100
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		14.379	6.457	2.356
4] (Accumulated Losses)		0.000	(0.463)	(3.800)
NETWORTH		23.479	15.094	7.656
LOAN FUNDS
1] Secured Loans		25.513	22.805	20.115
2] Unsecured Loans		10.196	12.182	11.690
TOTAL BORROWING		35.709	34.987	31.805
DEFERRED TAX LIABILITIES		0.000	0.000	0.000

TOTAL		59.188	50.081	39.461

APPLICATION OF FUNDS

FIXED ASSETS [Net Block]		38.297	35.569	33.443
Capital work-in-progress		0.000	0.000	0.000

INVESTMENT		0.391	0.906	0.632
DEFERREX TAX ASSETS		0.000	0.000	0.000

CURRENT ASSETS, LOANS & ADVANCES
	Inventories	3.519	4.941	5.751
	Sundry Debtors	26.767	21.097	1.489
	Cash & Bank Balances	4.788	3.700	1.607
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	3.933	1.178	3.151
Total Current Assets		39.007	30.916	11.998
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	17.591	17.867	6.743
	Other Current Liabilities	0.592	0.583	1.266
	Provisions	1.796	0.495	0.420
Total Current Liabilities		19.979	18.945	8.429
Net Current Assets		19.028	11.971	3.569

MISCELLANEOUS EXPENSES		1.472	1.635	1.817

TOTAL		59.188	50.081	39.461

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	75.191	54.144	5.326
		Other Income	0.479	0.101	0.124
		TOTAL (A)	75.670	54.245	5.450

Less	EXPENSES
		Cost of Goods Sold	58.709	40.625	4.262
		Fee and Taxes	0.107	0.176	0.150
		House Rent Allowance	0.359	0.000	0.000
		Provident Fund	0.107	0.087	0.380
		Repairs	0.158	0.000	0.000
		Salary	0.496	0.149	0.149
		Testing Expenses	0.157	0.210	0.043
		Other Expenses	4.246	2.622	0.433
		TOTAL (B)	64.339	43.869	5.417

Less	PROFIT / LOSS BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		11.331	10.376	0.033

Less	FINANCIAL EXPENSES (D)		2.947	2.939	1.476

	PROFIT / LOSS BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		8.384	7.437	(1.443)

Less/ Add	DEPRECIATION/ AMORTISATION (F)		3.896	4.100	2.357

	PROFIT / LOSS BEFORE TAX (E-F) (G)		4.488	3.337	(3.800)

Less	TAX (H)		0.000	0.000	0.000

	PROFIT / LOSS AFTER TAX (G-H) (I)		4.488	3.337	(3.800)

	Earnings / Loss Per Share (Rs.)		4.93	3.67	(4.17)

Particulars

31.03.2011

Sales Turnover [Approximately]

83.000

The above information has been parted by Mr. Munish Salwan.

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	5.93	6.15	(39.72)

Net Profit Margin (PBT/Sales)	(%)	5.97	6.16	(71.35)

Return on Total Assets (PBT/Total Assets}	(%)	5.80	5.02	(8.36)

Return on Investment (ROI) (PBT/Networth)		0.19	0.22	(0.50)

Debt Equity Ratio (Total Liability/Networth)		2.37	3.57	5.25

Current Ratio (Current Asset/Current Liability)		1.95	1.63	1.42

LOCAL AGENCY FURTHER INFORMATION

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	No
13) Reasons for variation <> 20%	No
14) Estimation for coming financial year	No
15) Capital in the business	No
16) Details of sister concerns	No
17) Major suppliers	No
18) Major customers	No
19) Payments terms	Yes
20) Export / Import details (if applicable)	No
21) Market information	--
22) Litigations that the firm / promoter involved in	--
23) Banking Details	Yes
24) Banking facility details	No
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	--

Bankers Charges Report as per Registry

This form is for	Modification of charge
Charge identification number of the modified	10028893
Corporate identity number of the company	U24230HP2006PLC029629
Name of the company	SPANKER BIOTECH LIMITED
Address of the registered office or of the principal place of business in India of the company	Makhnu Majra Bhud, Vardman Road, Tehsil Nalagarh District Solan-173205, Himachal Pradesh, India
Type of charge	Immovable Property Movable Property
Particular of charge holder	State Bank of Patiala, Small Enterprises Credit Cell, Bharat Nagar Chownk, First Floor, Ludhiana-141002, Punjab, India
Email	rajesh_kumarpcs@yahoo.com
Nature of description of the instrument creating or modifying the charge	Agreement of Loan cum Hypothecation
Date of instrument Creating the charge	30.08.2011
Amount secured by the charge	Rs.49.063 Millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest 5.75% above base rate 10.50% P.A i.e. 16.25% Terms of Repayment On demand Margin 25% Extent and Operation of the charge 100%
Short particulars of the property charged	Factory Land and Building measuring 1956.76 sq.mt at village Makhanu Majra Bhud Road, Near Badi, District Solan Hypothecation of Stock of raw material, semi finished, finished goods relating to mfg of medicines, book debts and current assets.
Date of latest modification prior to the present modification	23.07.2009
Particulars of the present modification	CC (Hypothecation) Limit enhanced to Rs 21.000 millions , Term Loan Rs 16.543 millions , Term Loan 1.520 Millions , LC Rs 5.000 millions and Bank Guarantee Rs 5.000 Millions

FIXED ASSETS:

· Air Compressor

· Building

· Camera

· Car

· Electric Fittings

· Fan

· Fire Extinguisher

· Furniture and Fixtures

· Laboratory Equipments

· Land

· Motor Cycles

· Plant and Machinery

· Tools and Dies

· Water Cooler

· Weighing Scale

· Telephone

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.49.07
UK Pound	1	Rs.77.42
Euro	1	Rs.67.72

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	4
--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		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.

MIRA INFORM REPORT

3.519

26.767

4.788

0.000

3.933

39.007

17.591

0.592

1.796

19.979

19.028

5.93

5.97

5.80

0.19

2.37

1.95

Unit