MIRA INFORM REPORT

Report Date :

06.04.2012

IDENTIFICATION DETAILS

Name :	KUSUM HEALTHCARE PRIVATE LIMITED
Registered Office :	21/4, Bhagat Singh Marg, New Delhi – 110001, Delhi
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	12.03.1997
Com. Reg. No.:	55-085780
Capital Investment / Paid-up Capital :	Rs.79.905 Million
CIN No.: [Company Identification No.]	U65929DL1997PTC085780
TAN No.: [Tax Deduction & Collection Account No.]	DELK0745C
PAN No.: [Permanent Account No.]	AABCK7043B
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Pharmaceuticals Product
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

A (64)

RATING		STATUS	PROPOSED CREDIT LINE
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

Maximum Credit Limit :	USD 4200000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is an established company having fine track. Financial position of the company appears to the sound. Trade relations are reported as fair. Business is active. Payments are reported to be regular and as per commitments. The company can be considered normal for 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

LOCATIONS

Registered Office :	21/4, Bhagat SinghMarg, New Delhi – 110001, Delhi, India
Tel. No.:	91-1123362850 / 23343890 / 23360930
Fax No.:	91-11-23746460/23550714
E-Mail :	Preeti.cs@kusumhealthcare.com
Website :	www.kusumhealthcare.com
Corporate Office :	2E/22, Jhanddewalan Extension, New Delhi – 110055, Delhi, India
Tel. No.:	91-11-23678130/31
Fax No.:	91-11-23550714
Factory :	Plot No. SP 289 (A), RIICO Industrial Area, Chopanki, Bhiwadi, Alwar (Distt), Rajasthan, India
Tel. No.:	91-1493-516560/61
Fax No.:	91-1493-516562
Branch Office:	Located at · Ukraine · Moldova · Kazakhstan · Uzbekistan

DIRECTORS

As on 30.09.2011

Name :

Mr. Badri Prasad Gupta

Designation :

Chairman

Address :

BU-102, Pitam Pura, Delhi-110034, Delhi, India

Date of Birth/Age :

17.10.1938

Date of Appointment :

29.12.2004

DIN No.:

00837192

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	U65929DL1997PTC085780	KUSUM HEALTHCARE PRIVATE LIMITED	Director	4/24/2009	12/29/2004	-	Active	NO

Name :

Mr. Sanjeev Gupta

Designation :

Managing Director

Address :

B-4/117, Safdarjug Enclave, Delhi-110029

Date of Birth/Age :

08.10.1967

Date of Appointment :

12.03.1997

DIN No.:

00837248

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	U65929DL1997PTC085780	KUSUM HEALTHCARE PRIVATE LIMITED	Managing director	4/24/2009	3/12/1997	-	Active	NO

Name :

Mrs. Priyanka Gulati

Designation :

Director

Address :

A-275, IST Floor, Shivalik Malviya Nagar, Delhi-110017, Delhi, India

Date of Birth/Age :

28.10.1986

Date of Appointment :

07.07.2009

Name :

Mrs. Preeti Jindal

Designation :

Director

Address :

60-61, Govind Park, Delhi-110051, Delhi, India

Date of Birth/Age :

11.01.1985

Date of Appointment :

27.09.2011

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2011

Names of Shareholders	No. of Shares
Mr.Sanjeev Gupta	5718120
Mrs. Kusum Rani Gupta	469040
Mrs.Seema Gupta	1000
Mr.Badri Prasad Gupta	1702340
Mrs.Nirupma Gupta	100000
Total	7990500

Equity Share Break up (Percentage of Total Equity)

Category	Percentage
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Pharmaceuticals Product

Products :

Item Code No. (ITC Code)	30002034
Product Description	Ofloxacin
Item Code No. (ITC Code)	30049033
Product Description	Rantidine
Item Code No. (ITC Code)	30049067
Product Description	Nimesulide

PRODUCTION STATUS

(As on 31.03.2011)

Particulars	Unit	Installed Capacity	Actual Production
1 Ointment
Alu./Lami Tubes	Nos	5.520	0.880
Shampoo Bottles	Nos	5.520	0.304
Sachets	Nos	6.900	0.720
2 Tablets
Packing Blister / Strip	Nos	300.000	1.770
Powder / Tablet Sachets	Nos	0.690	0.984

GENERAL INFORMATION

Customers :

Manufacturer Company

No. of Employees :

Not Available

Bankers :

Not Available

Facilities :

Secured Loan	As on 31.03.2011	As on 31.03.2010
Rupee term loans secured
Rupee term loans financial institution secured	10.799	21.605
Total	10.799	21.605
Working capital loans secured
Working capital loans bank secured	50.157	21.486
Total	50.157	21.486
Total	60.956	43.081
Secured Loan	As on 31.03.2011	As on 31.03.2010
Loans Directors unsecured	37.574	40.532
Total	37.574	40.532

Banking Relations :	--
Financial Institute:	Rajasthan Financial Corporation, RIICO Chowk, Bhiwadi, Dist. Alwar, Bhiwadi- 301019, Rajasthan, India
Auditors :
Name :	ASPN and company Chartered Accountant
Address :	3927/28, Padam Singh Road, Karol Bagh, New Delhi-110005, Delhi, India

CAPITAL STRUCTURE

As on 30.09.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
10,000,000	Equity Shares	Rs.10/- each	Rs.100.000 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
7,990,500	Equity Shares	Rs.10/- each	Rs.79.905 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		79.905	79.905	79.905
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		980.014	568.878	402.813
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		1059.919	648.783	482.718
LOAN FUNDS
1] Secured Loans		60.956	43.081	58.995
2] Unsecured Loans		37.574	40.532	74.243
TOTAL BORROWING		98.530	83.613	133.238
DEFERRED TAX LIABILITIES		7.734	7.735	9.711
TOTAL		1166.183	740.131	625.667
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		247.128	216.835	204.513
Capital work-in-progress		0.000	0.000	0.667
INVESTMENT		1.983	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	38.264	52.860	49.486
	Sundry Debtors	855.343	558.344	472.534
	Cash & Bank Balances	3.587	9.470	9.351
	Other Current Assets	133.888	4.682	2.378
	Loans & Advances	13.859	73.425	19.920
Total Current Assets		1044.941	698.781	553.669
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	8.688	7.159	14.141
	Other Current Liabilities	63.761	91.651	103.555
	Provisions	55.427	76.689	15.507
Total Current Liabilities		127.876	175.499	133.203
Net Current Assets		917.065	523.282	420.466
MISCELLANEOUS EXPENSES		0.007	0.014	0.021
TOTAL		1166.183	740.131	625.667

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	Net Revenue		1199.543	806.363	813.775
	Profit/(Loss) before tax and Prior Period Items		424.736	193.675	373.518
Less	Prior Period Items		0.024	2.143	0.000
	PROFIT BEFORE TAX		424.712	191.532	373.518
Less	TAX		13.576	21.252	14.004
	PROFIT AFTER TAX		411.136	170.280	359.514
Less	APPROPRIATIONS
		Dividend Paid	0.000	1.877	0.000
		Provision for Dividend	0.000	1.998	0.000
		Tax on Dividend	0.000	0.340	0.000
	BALANCE CARRIED TO THE B/S		411.136	166.065	359.514
	EARNINGS IN FOREIGN CURRENCY		1189.640	855.976	806.646
	IMPORTS
		Raw Materials	NA	4.657	0.000
		Stores & Spares	NA	7.588	6.558
		Capital Goods	NA	2.930	6.558
	TOTAL IMPORTS		NA	15.175	13.116
	Earnings Per Share (Rs.)		51.45	NA	NA

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
Return on Total Assets (PBT/Total Assets}	(%)	0.40	0.27	0.67
Return on Investment (ROI) (PBT/Networth)	(%)	0.40	0.29	0.77
Debt Equity Ratio (Total Liability/Networth)	(%)	0.12	0.27	0.27
Current Ratio (Current Asset/Current Liability)	(%)	8.17	3.98	4.15

LOCAL AGENCY FURTHER INFORMATION

MANAGEMENT REVIEW: 2010-11

INTERNAL CONTROL SYSTEM AND ITS ADEQUACY

The Company has a comprehensive internal control system that includes well-defined policies and appropriate monitoring procedures. Compliance, with integrity, is a core value of the Company. The Company’s funds/ monies are effectively regulated by Approval Authorization policy. The Internal Audit Program conducted by an external agency covers all key areas on periodic basis to assess and ensure conformity to applicable Laws, Accounting Standards, Company Policies and protection of the Company’s assets and interests. The Management and the Board reviews the findings and recommendations of internal auditors as well as auditors appointed by Members and also reviews the action plan to address the areas of improvement and thereby strengthen the system continuously.

PERFORMANCE AND OPERATIONS

Last year they have seen that the organization had supplied vide variety of pharmaceutical products to CIS (Common wealth of Independent State) Countries like Ukraine, Kazakhstan, Uzbekistan, Tajikistan, Moldova and ASEAN countries (Philippines and Vietnam) and had successfully incorporated many new drugs. As has been the norm of the company, export constituted 100% of total turnover and export to the market comprising Ukraine, Uzbekistan, Kazakhstan and Moldova.

During the period, the Company has achieved a sales turnover of about Rs. 1190.000 Million as compared to 806.000 Million approx during the last year. Company Profit after tax is 411.136 Million as compared to the last year profit 170.280 Millions. The reserves of the Company have increased from Rs. 568.878 Million to Rs. 980.014 Million the management expects the growth in the coming years.

PRODUCTS

The Company got approval for many new drugs and formulations during the year in various countries. Some of them were:

Ukraine

1. Ziomycin Tablets – Antibiotic

2. Fusys Gel – Antifungal Agent

3. Neurodar Tablets - Neurotonic

4. Eszol Tablets – Antifungal Agent

5. Oxapin Tablets – Anti-epileptic Agent

Kazakhastan

1. Lefno Tablets 10mg and 20mg – Immunosuppressant Agent

2. Ambroxol Tablets – Expectorants and Mucolytic Agent

3. Tigeron Tablets 500mg and 750mg – Antibiotic agent

Moldova

1. Alendra Tablets - Osteoporosis and bone disease treatment

2. Ozerlyk Tablets 400 mg – Antibiotic

3. Lefno Tablets - Rheumatoid arthritis treatment

4. Pyrantel Tablets- Anthelmintic agent

5. L-Cet Tablets 5 mg – Antiallergic

Vietnam

1. Sampine Tablets 2.5mg and 5mg – Antihypertensive Agent

Uzbekistan

1. Dermazole Tablets – Antifungal Agent

2. Dermazole Shampoo – Antifungal Agent

3. Dermazole Cream – Antifungal Agent

4. Alphaphorcal Capsule – Vitamin D and its analogue

5. Phorcal Capsule – Vitamin D and its analogue

6. Gripgo Tablets – Analgesic and Antipyretic Agent

7. Fanigan Tablets – Analgesic and Antipyretic Agent

8. Fanigan Fast Gel – Analgesic

9. Polymic Tablets – Antibacterial agents

10. L-cet Tablets – Antiallergic Agent

Tajikistan

1. Ambroxol Tablets – Expectorants and Mucolytic Agent

2. Articure Tablets – Herbal Product

3. Dermazole Tablets – Antifungal Agent

4. Dermazole Shampoo – Antifungal Agent

5. Dermazole Cream – Antifungal Agent

6. Fanigan Tablets – Analgesic and Antipyretic Agent

7. Fusys Tablets – Antifungal Agent

8. Fusys Infusion – Antifungal Agent

9. Fusys Tablets (Dispersible Tablets) – Antifungal Agent

10. Gripgo Tablets – Analgesic

11. Orgyl Tablets – Antibacterial Agent

12. Polymic Tablets – Antibacterial agents

Philippines

1. Mezacar Tablets – Antiepileptic Agent

2. Mezacar SR Tablets – Antiepileptic Agent

REGULATORY APPROVALS

The Manufacturing facilities are monitored and approved by various regulatory authorities across the globe. The manufacturing plant continues to be approved by WHO-GMP.

FUTURE PROSPECTS and OUTLOOK

The year ahead holds a new promise as the Company plans to strengthen its efforts to launch new global products and provide high quality scientific support - all these with a core focus on patient comes first approach. Key economic indicators, overall confidence in economy and increase in government expenditure on health are expected to have positive impact on healthcare industry. The growing network of the company is providing us strong client base for the future expansion to capture more markets and increase Company’s market share and also to enter new markets.

Corporate identity number of the company	U65929DL1997PTC085780
Name of the company	KUSUM HEALTHCARE PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	21/4, Bhagat Singh Marg, New Delhi – 110001, Delhi India
This form is for	Modification of charge
Charge identification number of the modified	10005241
Type of charge	Immovable Property Movable Property
Particular of charge holder	Rajasthan Financial Corporation, RIICO Chowk, Bhiwadi, Distt Alwar, Bhiwadi- 301019, Rajasthan, India E-Mail: rfc@tantranmail.com
Nature of description of the instrument creating or modifying the charge	A loan agreement created on 20.05.2009 to secure a loan of Rs. 12.800 Million · deposit of original title document of land and building, · hypothecation of all plant and machinery and movable property situated at SP-, RIICO industrial Area, Chopanki, Distt. Alwar, Rajasthan · assignment of all book-debts, outstanding monies, receivable claims, bill, contracts, engagements, securities, investments rights and assets.
Date of instrument Creating the charge	20.05.2009
Amount secured by the charge	Rs.12.800 millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest: Rate of Interest is the prevailing rate i.e.% p.a. Interest to be compounded quarterly- December, March, June, September. Terms of repayment Repayment period-repayable in 13 quarterly installments of Rs.1.228 Millions each. First installment due on first day of the quarter i.e. December, March, June, September. Margin Extent and operation of the charge Extent of Charge- · deposit of original title documents of land and building, · hypothecation of all plant and machinery and movable property situated at SP-, RIICO industrial Area, Chopanki, Distt. Alwar, Rajasthan · assignment of all book-debts, outstanding monies, receivable claims, bill, contracts, engagements, securities, investments rights and assets. Others
Short particulars of the property charged	· Land and building situated at SP-289, RIICO industrial Area, Chopanki, Distt. Alwar, Rajasthan, · All Pant and machinery and movable property situated at SP-,289, RIICO industrial Area, Chopanki, Distt. Alwar, Rajasthan. · All book-debts, outstanding monies, receivable claims, bills, contracts, engagements, securities, investments rights and assets belonging to the company
Date of latest modification prior to the present modification	18.05.2006
Particulars of the present modification	Loan Agreement dated 18.05.2006 entered with rajasthan financial Corp. to secure a loan of Rs.50.000 Million on the security of · Immovable Property with all Land and building situated at SP-, RIICO industrial Area, Chopanki, Distt. Alwar, Rajasthan · All Pant and machinery and movable property situated at SP-,289, RIICO industrial Area, Chopanki, Distt. Alwar, Rajasthan. Thus, same charge extends to the presents loan agreements of Rs. 10.000 Million Rs. 2.800 Million entered with RFC on 20.05.2009.

FIXED ASSETS

· Computer

· Car

· Plant and Machinery

· Furniture and Fixtures

· Books

· Dies and Tools

· Intangible Assets

· Land and Building

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. 51.04
UK Pound	1	Rs. 81.08
Euro	1	Rs. 67.39

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	7
PAID-UP CAPITAL	1~10	7
OPERATING SCALE	1~10	7
FINANCIAL CONDITION		-
--BUSINESS SCALE	1~10	7
--PROFITABILIRY	1~10	8
--LIQUIDITY	1~10	7
--LEVERAGE	1~10	7
--RESERVES	1~10	7
--CREDIT LINES	1~10	7
--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		64

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.