MIRA INFORM REPORT

Report Date :

18.04.2012

IDENTIFICATION DETAILS

Name :	HARMAN FINOCHEM LIMITED
Registered Office :	107-A, Vinay Bhavya Complex, 159 A CST Road, Kalina Santacruz (East), Mumbai – 400 098, Maharashtra
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	17.03.1983
Com. Reg. No.:	11-29560
Capital Investment / Paid-up Capital :	Rs.47.636 Millions
CIN No.: [Company Identification No.]	U24110MH1983PLC029560
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturing and Sale of Bulk Drugs and Pharmaceuticals
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 4600000
Status :	Satisfactory
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track. 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 :	107-A, Vinay Bhavya Complex, 159 A CST Road, Kalina Santacruz (East), Mumbai – 400098, Maharashtra, India
Tel. No.:	91-22-26528080 / 67330100
Fax No.:	91-22-26528285
E-Mail :	harmanfinochem@vsnl.com Info@harmanfinochem.com
Website :	http://www.harmanfinochem.com

DIRECTORS

As on 30.09.2011

Name :

Mr. Bhupinder Singh Manhas

Designation :

Managing Director

Address :

107-A, Vinaya Bhavya Complex, 159-A, CST Road, Kalina, Santacruz (East), Mumbai – 400 098, Maharashtra, India

Date of Birth/Age :

01.04.1950

Date of Appointment :

17.03.1983

DIN No.:

00121253

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	U24110MH1983PLC029560	HARMAN FINOCHEM LIMITED	Managing director	17/03/1983	17/03/1983	-	Active	NO
2	U24230MH1989PTC132889	WELL WORTH MEDICINES PRIVATE LIMITED	Director	31/10/1996	31/10/1996	-	Active	NO
3	U30005MH1995PTC084585	SANSKAR INFO TV PRIVATE LIMITED	Additional director	8/9/2010	8/9/2010	-	Active	NO

Name :

Ms. Inderjeet Kaur Manhas

Designation :

Director

Address :

107-A, Vinaya Bhavya Complex, 159-A, CST Road, Kalina, Santacruz (East), Mumbai – 400 098, Maharashtra, India

Date of Birth/Age :

23.10.1951

Date of Appointment :

11.02.1997

DIN No.:

00121284

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	U24230MH1989PTC132889	WELL WORTH MEDICINES PRIVATE LIMITED	Director	15/07/1996	15/07/1996	-	Active	NO
2	U24110MH1983PLC029560	HARMAN FINOCHEM LIMITED	Director	11/2/1997	11/2/1997	-	Active	NO
3	U25202MH1984PTC197665	KIRTI MERCHANTILE PRIVATE LIMITED	Director	2/1/2006	2/1/2006	-	Active	NO

Name :

Mr. Harpreet Singh Manhas

Designation :

Director

Address :

107-A, Vinaya Bhavya Complex, 159-A, CST Road, Kalina, Santacruz (East), Mumbai – 400 098, Maharashtra, India

Date of Birth/Age :

02.09.1976

Date of Appointment :

11.02.1997

DIN No.:

00121336

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	U24110MH1983PLC029560	HARMAN FINOCHEM LIMITED	Director	11/2/1997	11/2/1997	-	Active	NO
2	U67120MH1995PTC095124	LAXMI RAMUNA INVESTMENTS PRIVATE LIMITED	Director	1/10/1999	1/10/1999	-	Active	NO
3	U24230MH1989PTC132889	WELL WORTH MEDICINES PRIVATE LIMITED	Director	24/08/2001	24/08/2001	-	Active	NO
4	U25202MH1984PTC197665	KIRTI MERCHANTILE PRIVATE LIMITED	Director	2/1/2006	2/1/2006	-	Active	NO
5	U99999MH1974PTC017240	SUMMERSET GARDENS RESORT PRIVATE LIMITED	Additional director	24/11/2010	24/11/2010	-	Active	NO

Name :

Mr. Gurpreet Singh Bhupinder Singh Manhas

Designation :

Director

Address :

107-A, Vinaya Bhavya Complex, 159-A, CST Road, Kalina, Santacruz (East), Mumbai – 400 098, Maharashtra, India

Date of Birth/Age :

03.12.1979

Date of Appointment :

15.10.2007

DIN No.:

01885368

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	U24110MH1983PLC029560	HARMAN FINOCHEM LIMITED	Director	30/09/2008	15/10/2007	-	Active	NO
2	U99999MH1974PTC017240	SUMMERSET GARDENS RESORT PRIVATE LIMITED	Additional director	24/11/2010	24/11/2010	-	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2011

Names of Shareholders	No. of Shares
Bhupinder Singh Manhas	1935690
Bhupinder Singh Manhas (HUF)	118800
Harpreet Singh Manhas	390195
Gurpreet Singh Manhas	699855
Inderjeet Kaur Manhas	900000
Shyamsunder Shenoy	30
Unnikrishnan Parakkat	30
Wellworth Medicines Private Limited, India	690000
Kirti Mercantile Private Limited, India	29000
Total	4763600

Equity Share Break up (Percentage of Total Equity)

Category	Percentage
Directors or relatives of Directors	84.91
Other top fifty shareholders	15.09
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturing and Sale of Bulk Drugs and Pharmaceuticals

PRODUCTION STATUS 31.03.2011

Particulars	Unit	Installed Capacity
Riboflavin Phosphate Sodium	MT	24
Dexamethasone Phosphate Sodium	KG	120
Betamethasone Phosphate Sodium	KG	120
Betamethasone Valerate	KG	120
Metformine Hydrochloride B.P.	MT	240
Riboflavine (Vitamine B2)	MT	5
Phenobarbitone	MT	60
Phenobarbitone Sodium	MT	20
Allopurinol	MT	240
Dimethylamine	MT	1000

Particulars	Actual Production
Allopurinol	262132.02
Carisoprodol	10389.5
Divalproex Sodium	24553.32
Fenofibrate	2841.275
Glycopyrrolate	57.338
Ketamine Hydrochloride	185.08
Metformin Hydrochloride	2598492.86
Methadone Hydrochloride	316.4
Methyl Phenobarbital	412.792
Methylphenidate hydrochloride	53.685
Meprobamate	6159.13
Oxybutinin Hydrochloride	204.75
Oxiconazole Nitrate	47.5
Phenobarbitone	62954.845
Phenytain sodium usp	25256.1
Phenobarbitone Sodium I.P.	1247.555
Phenytoin Base EP/USP	46000
Riboflavine Phosphate Sodium-	15591.3
Valporic Acid	180.25

GENERAL INFORMATION

Customers :

Not Available

No. of Employees :

Not Available

Bankers :

Allahabad Bank, Industrial Finance Branch, Mumbai Samachar Marg, Fort, Mumbai – 400 023, Maharashtra, India

(Rs. In Millions)

Facilities :

Secured Loan	As on 31.03.2011	As on 31.03.2010
Working capital loans banks secured	44.799	51.047
Loans taken for vehicles secured	8.087
Total	52.886	51.047
Secured Loan	As on 31.03.2011	As on 31.03.2010
Deferred sales tax loan unsecured	0.291	0..375
Total	0.291	0.375

Banking Relations :	--
Auditors :
Name :	K U Kothari and Company Chartered Accountants
Address :	A-1/205, Laram Centre, S V Road, Andheri (West), Mumbai – 400 058, Maharashtra, India
PAN.:	AADFK0855C
Subsidiaries :	Well Worth Medicines Private limited CIN No.: U24230MH1989PTC132889

CAPITAL STRUCTURE

As on 30.09.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
5,000,000	Equity Shares	Rs.10/- each	Rs.50.000 Millions

Issued, Subscribed & Paid-up Capital:

No. of Shares	Type	Value	Amount
4,763,600	Equity Shares	Rs.10/- each	Rs.47.636 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		47.636	47.636	47.636
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		1106.401	864.337	608.369
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		1154.037	911.973	656.005
LOAN FUNDS
1] Secured Loans		52.886	51.047	02.442
2] Unsecured Loans		0.291	0.375	3.075
TOTAL BORROWING		53.177	51.422	5.517
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		1207.214	963.395	661.522
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		687.128	579.390	310.870
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		100.292	18.286	18.917
DEFERREX TAX ASSETS		9.029	5.363	4.007
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	92.638	37.310	38.467
	Sundry Debtors	267.814	209.811	178.611
	Cash & Bank Balances	39.896	125.782	73.401
	Other current assets	0.000	0.000	143.760
	Loans & Advances	689.301	508.616	297.675
Total Current Assets		1089.649	881.519	731.914
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	119.307	99.051	100.448
	Other Current Liabilities	21.242	10.908	31.974
	Provisions	538.335	411.204	271.764
Total Current Liabilities		678.884	521.163	404.186
Net Current Assets		410.765	360.356	327.728
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		1207.214	963.395	661.522

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	1367.745	1314.344	1075.815
		Other Income	42.671	7.989	49.447
		TOTAL (A)	1410.416	1322.333	1125.262
Less	EXPENSES
		Consumption material changes inventories	636.931	592.963
		Manufacturing service cost	190.170	171.420
		Administrative Selling other Expenses	138.153	95.841
		TOTAL (B)	965.254	860.224	832.302
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		445.162	462.109	292.960
Less	FINANCIAL EXPENSES (D)		8.190	7.052	5.854
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		436.972	455.057	287.106
Less/ Add	DEPRECIATION/ AMORTISATION (F)		64.824	53.890	45.626
	PROFIT BEFORE TAX (E-F) (G)		372.148	401.167	241.480
Less	TAX (I)		121.780	136.866	83.459
	PROFIT AFTER TAX (G-I) (J)		250.368	264.301	158.021
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		835.627	579.658	429.996
Less	APPROPRIATIONS
		Dividend	8.304	7.145	7.145
		Tax on Dividend		1.187	1.214
	BALANCE CARRIED TO THE B/S		1077.691	835.627	579.658
	EARNINGS IN FOREIGN CURRENCY		858.537	793.090	694.169
	IMPORTS
		Raw Materials	392.228	354.038	241.076
		Capital Goods	NA	6.513	12.722
	TOTAL IMPORTS		NA	360.551	253.798
	Earnings Per Share (Rs.)		52.55	55.48	33.17

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	1.77	1.99	14.04
Net Profit Margin (PBT/Sales)	(%)	27.20	30.52	22.44
Return on Total Assets (PBT/Total Assets}	(%)	34.15	45.50	32.99
Return on Investment (ROI) (PBT/Networth)		0.32	0.43	0.36
Debt Equity Ratio (Total Liability/Networth)		0.58	0.057	0.61
Current Ratio (Current Asset/Current Liability)		1.60	1.69	1.81

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	No
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	No
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

BUSINESS

During the year the company has rendered the effected sales to the tune of Rs.1367.745 Millions as against the previous year figure of Rs.1314.344 Millions. The company has earned profit before taxation worth Rs.372.148 Millions as against the previous year profit Rs.401.167 Millions.

Corporate identity number of the company	L24110MH1983PLC029560
Name of the company	HARMAN FINOCHEM LIMITED
Address of the registered office or of the principal place of business in India of the company	107-A, Vinay Bhavya Complex, 159 A CST Road, Kalina Santacruz (East), Mumbai – 400 098, Maharashtra, India
This form is for	Modification of charge
Charge identification (ID) number of the charge to be modified	90239691
Type of charge	Immovable property
Particular of charge holder	Allahabad Bank, Industrial Finance Branch, Mumbai Samachar Marg, Fort, Mumbai – 400 023, Maharashtra, India
Nature of instrument creating charge	Supplemental Letter of Mortgagor Confirming Deposit of Title Deeds
Date of instrument Creating the charge	10.08.2007
Amount secured by the charge	Rs.90.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest CC & PC - PLR plus 3% p.a. shall be charged FBN/FB, ILC/ FLC and Bank Guarantee - As per the Bank's circularized Instructions Terms of Repayment Repayment on Demand Margin CASH CREDIT - 25% on Stocks (fully paid for) & 30% on Book Debts not older than 90 days. FBN/FBP - Nil ILC/FLC -10% Bank Guarantee -10% Extent and Operation of the charge Exclusive first charge by way of Equitable Mortgage on immovable properties Others Limits enhanced from Rs.50.000 Millions to Rs.90.000
Short particulars of the property or asset(s) charged (including complete address and location of the property)	Equitable Mortgage on Company’s immovable properties bearing Plot No. E-9 situated at Chikalthana Industrial Area, Village Mhanadpur, Taluka and Sub Dist. and Dist. Aurangabad admeasuring 8306 Sq. Mtrs.
Date of instrument modifying the charge	04.03.2005
Particulars of the present modification	By present Modification, Equitable Mortgage on Company’s immovable properties situated at Chikalthana Industrial Area, Village Mhanadpur, Dist. Aurangabad has now increased from Rs.50.000 Millions to 90.000 Millions, to secure credit facilities detailed as under Facilities Amount CC/PC Rs.20.000 Millions) FBN/FBP (Rs.10.000 Millions ) ILC/FLC Rs.70.000 Millions Bk Guarantee (Rs.10.000 Millions) ------------------ Total Rs.90.000 Millions

FIXED ASSETS

· Land

· Factory Building

· Flat and Staff Quarters

· Office Equipment

· Plant and Machinery

· Electrical Fitting

· Furniture and Fitting

· Motor Car, Bus and Cycle

· Computers

· Office Premises

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.51.62
UK Pound	1	Rs.81.93
Euro	1	Rs.67.65

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	6
--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	NO
--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.