MIRA INFORM REPORT

Report Date :

13.09.2011

IDENTIFICATION DETAILS

Name :	MORVEL LABORATORIES PRIVATE LIMITED
Registered Office :	25, Jawahar Nagar Society, Visnagar, District Mehsana – 382 010, Gujarat
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	16.05.1983
Com. Reg. No.:	04-6187
Capital Investment / Paid-up Capital :	Rs.1.300 Millions
CIN No.: [Company Identification No.]	U24231GJ1983PTC006187
TAN No.: [Tax Deduction & Collection Account No.]	AHMM03523C
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer and Exporter of Pharmaceuticals.
No. of Employees :	50 Approximately

RATING & COMMENTS

MIRA’s Rating :

B (30)

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

Maximum Credit Limit :	USD 14000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track. Profitability of the company appears to be low. However, trade relations are reported as fair. Business is active. Payments are reported to be slow but correct. The company can be considered for small to mediocre 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 – April 1, 2010

Country Name	Previous Rating (31.12.2009)	Current Rating (01.04.2010)
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. Rikinbhai B Patel
Designation :	Director
Contact No.:	91-9825025541
Date :	27.08.2011

LOCATIONS

Registered Office :	25, Jawahar Nagar Society, Visnagar, District Mehsana – 382 010, Gujarat, India
Mobile No.:	91-9825025541 (Mr. Rikin)
E-Mail :	info@morvellab.com morvellab@sify.com
Website :	http://www.morvellab.com
Area :	400 sq. ft.
Location :	Owned
Factory / Marketing Office :	251 G.I.D.C. Estate, Near Modera Cross Road, Opposite Sremandar Temple, Mehsana - 384 002, Gujarat, India
Tel. No.:	91-2762-255041 / 255042
Fax No.:	91-2762-240145

DIRECTORS

As on 25.09.2010

Name :	Mr. Rikinbhai B Patel
Designation :	Director
Address :	25, Jawahar Nagar Society, Opposite Dagla Road Visnagar, Gujarat, India
Date of Birth/Age :	30 Years
Qualification :	Engineering
Date of Appointment :	08.09.2004
DIN No.:	01066258

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	U24231GJ1983PTC006187	Morver Laboratories Private Limited	Director	08-09-04	08-09-04	Active	NO

Name :	Mrs. Minaxiben K. Patel
Designation :	Director
Address :	Bharatnagar Society, Visnagar, India
Date of Birth/Age :	29 Years
Qualification :	B. Ed.
Date of Appointment :	16.07.2003
DIN No.:	02370944

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	U24231GJ1983PTC006187	Morver Laboratories Private Limited	Director	16-07-03	16-07-03	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 25.09.2010

Names of Shareholders	No. of Shares
Patel Shardaben	1690
Patel Ramilaben	200
Patel Baldevbhai	210
Patel Jayantibhai	500
Patel Meenaben	600
Patel Lataben	10
Patel Jushumatiben	100
Patel Kamalbhai	10
Patel BharatKumar	10
Patel Darshit	210
Patel Hasmukhbhai	10
Patel Mohanbhai	200
Patel Narayanbhai	200
Patel Gangarambhai	600
Patel Babhaidas	200
Patel Jayantibhai	200
Patei Gordhanbhai	200
Patel Babubhai	200
Patel Gopalbhai	200
Patel Khemabhai	220
Patel Revabhai HUF Patel Narottamdas	200
HUF	200
Patel Prahladbhai	200
Patel Maganbhai	180
Patel Amratbhai	200
Patel Tribhovandas	200
Patel Arvindkumar	200
Patel Dashrathlal	200
Patel Rameshbhai	200
Patel Dhavalkumar	200
Patel Shanibhai	200
Patel Lalitaben	200
Patel Gangaben	200
Patel Sagarbhai	200
Patel Jyosnaben	200
Patel Amratbhai	210
Patel Rikin	2669
Patel Ashish	361
Patel Jayesh	390
Patel Parulben	400
Patel Sureshbhai	200
Patel Rinkuben	20
Total	13000

Equity share breakup (percentage of total equity)

As on 25.09.2010

Category	Percentage
Directors or relatives of directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer and Exporter of Pharmaceuticals.
Products :	Veterinary Injections Products (1) Veterinary Antibiotics Injections · Gentamicin Injections · Oxytetracycline Injections · Neomycin Injections · Enrofloxacin Injections · Ceftriaxone Injections · Cefoperazone Sodium and Sulbactum Sodium Injections · Amoxycillin and Cloxacillin Injections · Ampicillin and Cloxacillin Injections · Trimethoprim and Sulphamethoxazole Injections (2) Veterinary Analgesics Injection · Dicyclomine Hydrochloride Injections · Meloxicam Injections · Phenyl Butazone and Sodium Salicylate Injections · Analgin Injection (3) Veterinary Anaesthetics Injections · Lignocaine Hydrochloride and Adrenaline Bitrate Injection · Triflupromazine Hydrochloride Injections (4) Veterinary Vitamin Injections · Vitamin A Injections · Vitamin AD3E Injections · Crude liver extract with vitamin B-Complex Injections · Vitamin B-Complex Injections · Vitamin B1B6B12 Injections (5) Veterinary Minerals Injections · Chole Calciferol and Cynocobalamine Injections · Sodium Acid Phosphate Injections (6) Veterinary Injections · Dexamethasone Sodium Phosphate Injections · Pheniramine Maleate Injections · Methyl Ergometrine Maleate  Injections · Hydroxy Progesterone Caproate Injections · Frusemide Injections · Atropine Sulphate Injections · Ivermectin Injections · Levamisole Injections (7) Veterinary Feed Supplements · Tri basic Calcium and Vit D 3 + Vit B.12 · Oral Formulation Of Vitamins And Minerals Human Products · Sterile Sulbactam and Cefoperazone Injections · Clavulanate Potassium and Amoxycillin Injections · Sterile Ceftazidime Injections · Sterile Cefotaxime Injections · Sterile Ceftriaxone Injections · Sterile Ceftriaxone and Sterile Sulbactam Injections · Sterile Ceftriaxone and Sterile Tazobactam Injections · Ampicillin and Cloxacillin Injections · Amikacin Sulphate Injections · Gentamicin Sulphate Injections · Dexamethasone Phosphate Injections · Nandrolone Decanoate Injections · 2-Pyridine Aldoxime Methiodide Injections · Ondansetron Injections · α β Arteether Injections.
Exports :
Products	Pharmaceuticals
Countries :	· Saudi Arabia · Germany · Sri Lanka
Terms :
Selling :	L/C, Cash and Credit
Purchasing :	L/C, Cash and Credit

PRODUCTION STATUS As on 31.03.2010

Particulars	Licensed Capacity	Installed Capacity	Actual Production
Generic Products And Veterinary Products	NA	13500000 Vials	3598470 Vials

GENERAL INFORMATION

Customers :

· Wholesalers

· Retailers

No. of Employees :

50 Approximately

Bankers :

· Bank of Baroda, Mehsana Highway Branch, Gujarat

· Mehsana Nagrik Sahakari Co-Operative Bank Limited

· The Visnagar Nagrik Sahakari Bank Limited, Visnagar

· Mehsana Urban Co-Operative Bank Limited

· Sarvoday Nagrik Sahakari Bank Limited

· Dena Bank, Mehsana

· Dena Bank, Mumbai

· Sarvoday Commercial Co-Operative Bank Limited

· The Mehsana Dist. Cent. Co-Operative Bank Limited

Facilities :

Unsecured Loans	As on 31.03.2010 Rs. in millions	As on 31.03.2009 Rs. in millions
From Directors - Non Interest Bearing	1.036	1.187
From Share Holders	8.204	7.422
Total	9.240	8.609

Banking Relations :	--
Financial Institutions :	Gujarat State Financial Corporation Jaldarshan Building, Ashram Road, Navrangpura, Ahmedabad – 380 009, Gujarat, India
Auditors :
Name :	Babulal Patel and Company Chartered Accountant
Address :	A 10/11, 2^nd Floor, Ajanta Commercial Centre, Near Income Tax Office, Ashram Road, Ahmedabad – 380 014, Gujarat, India
Tel. No. :	91-79-27540268 / 27640806 (R)

CAPITAL STRUCTURE

As on 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
15000	Equity Shares	Rs.100/- each	Rs.1.500 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
13000	Equity Shares	Rs.100/- each	Rs.1.300 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		1.300	1.300	1.300
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		2.095	1.958	1.300
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		3.395	3.258	2.600
LOAN FUNDS
1] Secured Loans		0.000	0.000	0.345
2] Unsecured Loans		9.240	8.609	7.498
TOTAL BORROWING		9.240	8.609	7.843
DEFERRED TAX LIABILITIES		0.122	0.152	0.184
TOTAL		12.757	12.019	10.627
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		5.170	5.701	5.809
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		1.101	1.101	1.101
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	4.547	5.831	5.084
	Sundry Debtors	11.875	16.206	8.054
	Cash & Bank Balances	2.554	1.814	2.281
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	2.024	1.226	1.216
Total Current Assets		21.000	25.077	16.635
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	11.816	17.551	11.157
	Other Current Liabilities	2.057	1.751	1.506
	Provisions	0.641	0.558	0.255
Total Current Liabilities		14.514	19.860	12.918
Net Current Assets		6.486	5.217	3.717
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		12.757	12.019	10.627

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Sales	39.651	36.086	22.876
		Other Income	0.024	0.015	0.080
		TOTAL (A)	39.675	36.101	22.956
Less	EXPENSES
		Manufacturing Expenses	31.165	25.036	14.510
		Purchase of goods traded in	0.212	0.890	0.355
		Employees remuneration and benefits	2.322	2.037	1.886
		General, Administrative Expenses	0.930	1.616	0.884
		Selling and Distribution Expenses	3.431	4.119	3.268
		Increase / Decrease in Stock	(0.154)	(0.239)	0.321
		TOTAL (B)	37.906	33.459	21.224
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		1.769	2.642	1.732
Less	INTEREST AND FINANCIAL CHARGES (D)		0.815	0.687	0.665
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		0.954	1.955	1.067
Less/ Add	DEPRECIATION/ AMORTISATION (F)		0.719	0.825	0.906
	PROFIT BEFORE TAX (E-F) (G)		0.235	1.130	0.161
Less	TAX (H)		0.097	0.472	0.114
	PROFIT AFTER TAX (G-H) (I)		0.138	0.658	0.047
	Earnings Per Share (Rs.)		10.59	50.59	3.63

Particulars	31.03.2011
Sales Turnover (Approximately)	45.000

The above information has been parted by Mr. Rikinbhai

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	0.35	1.82	0.20
Net Profit Margin (PBT/Sales)	(%)	0.59	3.13	0.70
Return on Total Assets (PBT/Total Assets}	(%)	0.90	3.67	0.72
Return on Investment (ROI) (PBT/Networth)		0.07	0.35	0.06
Debt Equity Ratio (Total Liability/Networth)		7.00	8.74	7.99
Current Ratio (Current Asset/Current Liability)		1.45	1.26	1.29

LOCAL AGENCY FURTHER INFORMATION

TRADE REFERENCE

· Nector Lifescience

· Arvind Pharma

FORM NO. 8

Name of the company	MORVEL LABORATORIES PRIVATE LIMITED
Presented By	Bipinbhai H patel
1) Date and description of instrument creating the change	Deed of Hypothecation dated 2^nd day of April, 1990 and made between M/s. Morvel Laboratories Private Limited (therein and hereinafter called “the company”) of the part and the Visnagar Nagrik Sahakari Bank Limited (therein and hereinafter called VNSB) of the other part.
2) Amount secured by the charge/amount owing on the securities of charge	Rs.0.800 million
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	All stock of Raw Materials, consumables, spares, work-in-progress, Finished goods etc.
4) Gist of the terms and conditions and extent and operation of the charge.	· The securities described in Col. 3 hereinabove are given as security for Cash Credit Hypothecation limit of Rs.0.800 million plus interest charges expenses payable by the company to the VNSB. · The company will maintain a margin of 50%. · The company will pay interest @ 15 ½% p.a.
5) Name and Address and description of the person entitled to the charge.	The Visnagar Nagrik Sahakari Bank Limited, Visnagar
6) Date and brief description of instrument modifying the charge	Not Available
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.	Not Available

CONTINGENT LIABILITIES

Particulars	As on 31.03.2010 Rs. in millions
Guarantee issued by banks	0.199

FIXED ASSETS

· Leasehold Land

· Building

· Plant and Machinery

· Electric Installation

· Laboratory Equipment

· Office Equipment

· Furniture and Fixtures

· Vehicles

· Computer

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.46.97
UK Pound	1	Rs.74.22
Euro	1	Rs.63.66

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	4
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	2
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	NO
--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		30

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.