MIRA INFORM REPORT

Report Date :

09.04.2012

IDENTIFICATION DETAILS

Name :	RUSAN PHARMA LIMITED
Registered Office :	Rusan House, 58-D, Government Industrial Estate, Charkop, Kandavli (West), Mumbai – 400 067, Maharashtra
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	15.03.1994
Com. Reg. No.:	11-077069
Capital Investment / Paid-up Capital :	Rs.48.410 Million
CIN No.: [Company Identification No.]	U24230MH1994PLC077069
TAN No.: [Tax Deduction & Collection Account No.]	MUMR14490A
PAN No.: [Permanent Account No.]	AABCR3179H
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer and Exporter of pharmaceutical formulations, bulk drugs and intermediates
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (50)

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Maximum Credit Limit :	USD 2367000
Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is a well established and reputed company having satisfactory track. There appears some losses incurred by the company in the current year 2010-10. However, financial position of the company appears to be good. Trade relations are reported as fair. Business is active. Payments are reported to be usually correct 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 :	Rusan House, 58-D, Government Industrial Estate, Charkop, Kandivli (West), Mumbai – 400 067, Maharashtra, India
Tel. No.:	91-22-28682512 / 28682515/28687035
Fax No.:	91-22-28687035/28682515/42383000
E-Mail :	rusan@bom2vsnl.net.in ashok@rusanpharma.com
Website :	www.rusanpharma.com
Factory :	Located at: Dehradun Kandla, Kutch Ankleshwar

DIRECTORS

As on 30.09.2011

Name :

Mr. Dilipkumar Khandbhai Desai

Designation :

Managing director

Address :

D – 67, Gordhan Baug, Jambli Galli, Borivali (W), Mumbai – 400092, Maharashtra, India

Date of Birth/Age :

06.05.1948

Date of Appointment :

21.04.1998

DIN No.:

00076268

Name :

Mr. Ramesh A. Patel

Designation :

Director

Address :

B/8, Bhavana Building, S. V. Road, Kandivli (West), Mumbai – 400 067

Date of Birth/Age :

05.12.1939

Date of Appointment :

02.05.1995

DIN No.:

00076665

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	U24230MH1994PLC077069	RUSAN PHARMA LIMITED	Director	02-05-95	02-05-95	-	Active	NO
2	U65990MH1994PTC081494	TUSCANY HOLDINGS PRIVATE LIMITED	Director	25-04-01	25-04-01	-	Active	NO
3	U24239MH1998PTC113193	EUROMED INTERNATIONAL PRIVATE LIMITED	Director	14-07-05	14-07-05	-	Active	NO

Name :

Mr. Navin Satyapal Saxena

Designation :

Director

Address :

Sea Castle Co-operative Housing Society, 302, 7 Bunglow Road, Versova, Andheri (West), Mumbai – 400 061

Date of Birth/Age :

01.01.1953

Date of Appointment :

15.03.1994

DIN No.:

00109583

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	U24230MH1994PLC077069	RUSAN PHARMA LIMITED	Director	15-03-94	15-03-94	-	Active	NO
2	U73100MH1994PTC083220	NAVIN SAXENA RESEARCH AND TECHNOLOGY PRIVATE LIMITED	Director	23-11-94	23-11-94	-	Active	NO
3	U24239MH1998PTC113193	EUROMED INTERNATIONAL PRIVATE LIMITED	Director	23-01-98	23-01-98	-	Active	NO
4	U24200MH1999PTC122536	RUSAN HEALTH CARE PRIVATE LIMITED	Director	03-11-99	03-11-99	-	Active	NO
5	U24110MH2011PTC216977	NAVICARE PHARMA PRIVATE LIMITED	Director	03-05-11	03-05-11	-	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2011

Names of Shareholders	No. of Shares
Navin Satyapal Saxena	3640920
Archana Navin Saxena	1199870
Dilip Khandubhai Desai	50
Usha Dilip Desai	50
Pradip Nanalal Shah	50
Shakuntala Ramesh Patel	50
Ramesh Ambalal Patel	50
TOTAL	4841040

Equity Share Break up (Percentage of Total Equity)

As on 30.09.2011

Category	Percentage
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer and Exporter of pharmaceutical formulations, bulk drugs and intermediates

PRODUCTION STATUS

As on 31.03.2011

Particulars	Unit	Licensed Capacity
Kandla
Tablets (Coated and Uncoated)	Million	1080.000
Capsules	Million	465.000
Dry Syrup/ Bottle (3shifts)	Million	7.000
Injection – Ampoules and Vials	Million	30.000
Cream (Tube)	Million	5.000
Spansules Pallets	Million	40.000
Sachet	Million	24.000
Dehradun
Tablets (Coated and Uncoated)	Million	2700.000
Capsules	Million	400.000
Dry Syrup/ Bottle (3shifts)	Million	--
Injection – Ampoules and Vials	Million	30.000
Cream (Tube)	Million	0.010
Spansules Pallets	Million	5.000
Sachet	Million	12.000

Particulars	Unit	Installed Capacity
Kandla
Tablets (Coated and Uncoated)	Million	1080.000
Capsules	Million	372.000
Dry Syrup/ Bottle (3shifts)	Million	7.500
Injection – Ampoules and Vials	Million	25.500
Cream (Tube)	Million	5.000
Spansules Pallets	Million	40.000
Sachet	Million	24.000
Dehradun
Tablets (Coated and Uncoated)	Million	1600.000
Capsules	Million	60.000
Dry Syrup/ Bottle (3shifts)	Million	--
Injection – Ampoules and Vials	Million	30.000
Cream (Tube)	Million	0.010
Spansules Pallets	Million	5.000
Sachet	Million	12.000

Particulars	Unit	Actual Production
Tablets/ Caps	Nos. in Lacs	6407.20
Dry Syrup/ Injectable	Bottle	47.37
Creams	Nos. in Lacs	1.07
Pateches	Nos. in Lacs	0.17
Bulk Drugs	Kg	1170.62
Sachet	Nos. in Lacs	152.74

GENERAL INFORMATION

No. of Employees :	Not Available
Bankers :	· Canara Bank, Overseas Branch, Nariman Point, Mumbai – 400 021 · Indian Bank · State Bank of India, Overseas Branch, World Trade Centre, Cuffe Parade, Mumbai – 400005, Maharashtra, India · State Bank of Indore · Swami Narayan Bank

Banking Relations :	--
Auditors :
Name :	P. P. Shah and Associates Chartered Accountants
Address :	5B-1, Fairy Manor, 13, Rustom Sidhwa Marg (Gunbow Street), Fort, Mumbai – 400 001, Maharashtra, India
Tel. No.:	91-22-22673482 / 83
Fax No.:	91-22-22673321
E-Mail :	paresh@bom3.vsnl.net.in
PAN.:	AAIPS4292G
Related Parties :	Tuscany Holding Private Limited Navin Saxena Res and Technology Private Limited
Associates :	Russan Healthcare Private Limited Pharmacare FZE

CAPITAL STRUCTURE

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
5000000	Equity Shares	Rs.10/- each	Rs.50.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
4841040	Equity Shares	Rs.10/- each	Rs.48.410 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		48.410	48.410	48.410
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		543.324	605.442	516.406
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		591.734	653.852	564.816
LOAN FUNDS
1] Secured Loans		372.383	389.062	401.389
2] Unsecured Loans		0.000	0.000	5.000
TOTAL BORROWING		372.383	389.062	406.389
DEFERRED TAX LIABILITIES		14.391	11.158	12.700
TOTAL		978.508	1054.072	983.905
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		447.525	481.658	372.849
Capital work-in-progress		48.724	21.937	117.828
INVESTMENT		15.695	15.616	13.947
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	238.100	208.790	198.870
	Sundry Debtors	270.666	408.067	363.796
	Cash & Bank Balances	55.019	80.669	56.671
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	63.380	70.971	107.408
Total Current Assets		627.165	768.497	726.745
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	132.120	163.705	153.301
	Other Current Liabilities	21.767	60.995	74.554
	Provisions	6.714	8.936	19.609
Total Current Liabilities		160.601	233.636	247.464
Net Current Assets		466.564	535.861	479.281
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		978.508	1054.072	983.905

PROFIT & LOSS ACCOUNT7

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	599.156	782.817	671.817
		Other Income	23.440	16.237	13.251
		TOTAL (A)	622.596	799.054	685.068
Less	EXPENSES
		Material and Manufacturing Cost	348.092	374.231	308.205
		Personnel Cost	76.744	72.592	54.820
		Operating and Administrative Expenses	84.732	78.525	82.099
		Selling and Distribution Expenses	75.172	84.929	91.914
		TOTAL (B)	584.740	610.277	537.038
Less	PROFIT/(LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		(37.856)	188.777	148.030
Less	FINANCIAL EXPENSES (D)		44.255	26.920	29.231
	PROFIT/(LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		(6.399)	161.855	118.799
Less/ Add	DEPRECIATION/ AMORTISATION (F)		62.868	57.511	38.960
	PROFIT/(LOSS) BEFORE TAX (E-F) (G)		(56.469)	104.346	79.839
Less	TAX (H)		3.184	1.214	7.920
	PROFIT/(LOSS) AFTER TAX (G-H) (I)		(59.653)	105.559	71.919
Less	Prior Period Items		2.465	2.363	(0.855)
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		524.001	445.284	393.946
Less	APPROPRIATIONS
		Transfer to General Reserve	--	10.319	7.277
		Dividend	--	12.103	12.103
		Tax on Dividend	--	2.057	2.056
	BALANCE CARRIED TO THE B/S		461.883	524.002	445.284
	IMPORTS
		Raw Materials	56.725	42.951	54.854
		Capital Goods	18.823	11.660	42.144
	TOTAL IMPORTS		75.548	54.611	96.998
	Earnings Per Share (Rs.)
	Basic		12.32	21.80	14.86
	Diluted		12.83	21.32	15.03

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	(9.58)	13.21	10.49
Net Profit Margin (PBT/Sales)	(%)	(9.42)	13.33	11.88
Return on Total Assets (PBT/Total Assets}	(%)	(5.25)	8.35	7.26
Return on Investment (ROI) (PBT/Networth)		(0.10)	0.16	0.14
Debt Equity Ratio (Total Liability/Networth)		0.90	0.95	1.16
Current Ratio (Current Asset/Current Liability)		3.91	3.29	2.94

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	No
5) Type of Business	Yes
6) Line of Business•	Yes
7) Promoter’s background	Yes
8) No. of employees	No
9) Name of person contacted	No
10) Designation of contact person	No
11) Turnover of firm for last three years	Yes
12) Profitability for last three years	Yes
13) Reasons for variation <> 20%	--
14) Estimation for coming financial year	No
15) Capital in the business	Yes
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	--
23) Banking Details	Yes
24) Banking facility details	Yes
25) Conduct of the banking account	--
26) Buyer visit details	--
27) Financials, if provided	Yes
28) Incorporation details, if applicable	Yes
29) Last accounts filed at ROC	Yes
30) Major Shareholders, if available	Yes

Turnover

During the year the company has achieved an overall gross turnover of Rs.608.404 millions from sales, which includes export sales of Rs.512.692 millions and local sales Rs.95.711 millions as compared to previous year gross turnover of Rs.792.178 millions that includes export sales of Rs.611.225 and local sales of Rs.180.953 Millions.

FORM 8

Corporate identity number of the company	U24230MH1994PLC077069
Name of the company	RUSAN PHARMA LIMITED
Address of the registered office or of the principal place of business in India of the company	Rusan House, 58-D, Government Industrial Estate, Charkop, Kandivli (West), Mumbai – 400 067, Maharashtra, India Email: rusan@bom2.vsnl.net.in
This form is for	Modification of charge
Charge identification (ID) number of the charge to be modified	80018311
Type of charge	Immovable Property
Particular of charge holder	State Bank of India, Overseas Branch, World Trade Centre, Cuffe Parade, Mumbai – 400005, Maharashtra, India Email: manish.kamal@sbi.co.in
Nature of instrument creating charge	Memorandum of Deposit for Creation of Further Charge (Form C.10)
Date of instrument Creating the charge	04.11.2010
Amount secured by the charge	Rs.452.200 Millions
Short particulars of the property or asset(s) charged (including complete address and location of the property)	Land bearing Khasra No.122 ML, Admn. 8 Bighas or 6,019.92 Sq. Meters, in Mouza Central Hope Town, Pargana Pachwa, Doon, Dist. Dehradun (Land is 500 meters away from the main Chakarata Road).
Date of instrument modifying the charge	04.11.2010
Particulars of the present modification	Equitable mortgage created on 06.08.2007 on immovable properties of the Company as described in Column 15(i) above, extended to secure the enhanced credit facilities of Rs.452.200 millions.

Fixed Assets

· Land

· Factory Building

· Plant and Machinery

· Office Equipments

· Equipments and Tools for R and D

· Dies

· Air condition

· Electric Installation

· Furniture and Fixture

· Computer

· Vehicles

· Guest House Equipments

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.51.05
UK Pound	1	Rs.81.09
Euro	1	Rs.67.39

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	4
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	5
--RESERVES	1~10	6
--CREDIT LINES	1~10	6
--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		50

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.