MIRA INFORM REPORT

Report Date :

31.08.2012

IDENTIFICATION DETAILS

Name :	VANI PHARMA LABS LIMITED (w.e.f. 05.11.2007)
Formerly Known As :	VANI CHEMICALS AND INTERMEDIATES LIMITED (w.e.f. 01.07.1998) VANI CHEMICALS AND INTERMEDIATES PRIVATE LIMITED
Registered Office :	II Floor, D. No.8-2-269/S/4, Sagar Society, Road No.2, Banjara Hills, Hyderabad – 500 034, Andhra Pradesh
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	15.06.1976
Com. Reg. No.:	01-002040
Capital Investment / Paid-up Capital :	Rs. 26.457 Millions
CIN No.: [Company Identification No.]	U24110AP1976PLC002040
TAN No.: [Tax Deduction & Collection Account No.]	HYDV00149C
PAN No.: [Permanent Account No.]	AAACV1555C
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer of Bulk Drugs and other Drug Intermediates.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

B (28)

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

Maximum Credit Limit :	USD 379000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track. The company has incurred a loss in the current financial year 2010-11. However, 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 – June 30, 2012

Country Name	Previous Rating (31.03.2012)	Current Rating (30.06.2012)
India	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

INDIAN ECONOMIC OVERVIEW

India is developing into an open-market economy, yet traces of its past autarkic policies remain. Economic liberalization, including industrial deregulation, privatization of state-owned enterprises, and reduced controls on foreign trade and investment, began in the early 1990s and has served to accelerate the country's growth, which has averaged more than 7% per year since 1997. India's diverse economy encompasses traditional village farming, modern agriculture, handicrafts, a wide range of modern industries, and a multitude of services. Slightly more than half of the work force is in agriculture, but services are the major source of economic growth, accounting for more than half of India's output, with only one-third of its labor force. India has capitalized on its large educated English-speaking population to become a major exporter of information technology services and software workers. In 2010, the Indian economy rebounded robustly from the global financial crisis - in large part because of strong domestic demand - and growth exceeded 8% year-on-year in real terms. However, India's economic growth in 2011 slowed because of persistently high inflation and interest rates and little progress on economic reforms. High international crude prices have exacerbated the government's fuel subsidy expenditures contributing to a higher fiscal deficit, and a worsening current account deficit. Little economic reform took place in 2011 largely due to corruption scandals that have slowed legislative work. India's medium-term growth outlook is positive due to a young population and corresponding low dependency ratio, healthy savings and investment rates, and increasing integration into the global economy. India has many long-term challenges that it has not yet fully addressed, including widespread poverty, inadequate physical and social infrastructure, limited non-agricultural employment opportunities, scarce access to quality basic and higher education, and accommodating rural-to-urban migration.

Source : CIA

RBI DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2012.

LOCATIONS

Registered Office :	II Floor, D. No.8-2-269/S/4, Sagar Society, Road No.2, Banjara Hills, Hyderabad – 500 034, Andhra Pradesh, India
Tel. No.:	91-40-23551436/ 23551437
Fax No.:	91-40-40275538
E-Mail :	finance@vanigroup.com vani@vanigroup.com
Website :	http://vanigroup.com
Factory 1 :	Plot Nos.11 and 12, Industrial Development Area, Jeedimetla, Hyderabad – 500 055, Andhra Pradesh, India
Tel. No.:	91-40-23096262
Fax No.:	91-40-23095034
E-Mail :	vcil@vanigroup.com
Factory 2 :	B (4), Kolhar Industrial Area, Kolhar, Bidar – 585 403, Karnataka, India

DIRECTORS

AS ON 29.09.2011

Name :

Mr. Chakradhar Mallampati

Designation :

Managing Director

Address :

Plot No.889, D. No.8-2-293/82/A/889, Road No.45, Jubilee Hills, Hyderabad – 500 034, Andhra Pradesh, India

Date of Birth/Age :

04.09.1974

Qualification :

B.E.

Date of Appointment :

22.12.1998

DIN No.:

00138454

Other Directorship :

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Company/ LLP Status	Defaulting status
1	U24110AP1976PLC002040	VANI PHARMA LABS LIMITED	Managing director	30/09/2010	22/12/1998	Active	NO
2	U85110KA1984PTC006406	VANI ORGANICS PRIVATE LIMITED	Managing director	20/05/2005	20/05/2005	Active	NO

Name :

Mr. Kutumba Rao Siripurapu

Designation :

Whole Time Director

Address :

H. No.8-3-658/7, 4^th Floor, Neni's Nest, Jayaprakashnagar, Yellareddyguda, Hyderabad – 500 073, Andhra Pradesh, India

Date of Birth/Age :

20.08.1932

Qualification :

M. Sc. (Tech.), M.I.I.Ch.E., F.I.E.

Date of Appointment :

15.06.1976

DIN No.:

00163230

Other Directorship :

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Company/ LLP Status	Defaulting status
1	U24110AP1976PLC002040	VANI PHARMA LABS LIMITED	Whole-time director	30/09/2010	15/06/1976	Active	NO
2	U85110KA1984PTC006406	VANI ORGANICS PRIVATE LIMITED	Director	05/10/1984	05/10/1984	Active	NO

Name :

Mr. Ravi Kumar Medampudi

Designation :

Whole Time Director

Address :

H.No.7-1-212/A/70, Plot No.85, Shivbagh Colony, Ameerpet, Hyderabad – 500 016, Andhra Pradesh, India

Date of Birth/Age :

10.07.1959

Qualification :

B.Sc.

Date of Appointment :

09.03.2011

DIN No.:

01850211

Other Directorship :

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Company/ LLP Status	Defaulting status
1	U24239AP1999PLC031113	UNIQUE BIOTECH LIMITED	Director	20/12/2004	20/12/2004	Active	NO
2	U24110AP1976PLC002040	VANI PHARMA LABS LIMITED	Whole-time director	29/09/2011	09/03/2011	Active	NO

Name :

Dr. Ramachandran Pyapli Seshachar

Designation :

Director

Address :

Plot No.93, O.U. Teachers Colony, Sainikpuri, Secunderabad – 500 094, Andhra Pradesh, India

Date of Birth/Age :

15.07.1932

Qualification :

M. Sc., (Tech.), Ph.D., M.I.I.Ch.E.

Date of Appointment :

29.09.1994

DIN No.:

01298319

Other Directorship :

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Company/ LLP Status	Defaulting status
1	U85110KA1984PTC006406	VANI ORGANICS PRIVATE LIMITED	Director	29/09/1994	29/09/1994	Active	NO
2	U24110AP1976PLC002040	VANI PHARMA LABS LIMITED	Director	29/09/1994	29/09/1994	Active	NO

Name :

Mrs. Anuradha Mallampati

Designation :

Director

Address :

Plot No.899, D. No.8-2-293/82/A/889. Road No.45, Jubilee Hills, Hyderabad – 500 034, Andhra Pradesh, India

Date of Birth/Age :

03.04.1956

Qualification :

M.A.

Date of Appointment :

27.10.2005

DIN No.:

00174777

Other Directorship :

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Company/ LLP Status	Defaulting status
1	U85110KA1984PTC006406	VANI ORGANICS PRIVATE LIMITED	Director	05/04/2004	05/04/2004	Active	NO
2	U24110AP1976PLC002040	VANI PHARMA LABS LIMITED	Director	27/10/2005	27/10/2005	Active	NO

Name :

Mrs. Lakshmi Kranthi Mallampati

Designation :

Whole Time Director

Address :

Plot No.899, D. No.8-2-293/82/A/889, Road No.45, Jubilee Hills, Hyderabad – 500 034, Andhra Pradesh, India

Date of Birth/Age :

14.08.1983

Qualification :

B.Tech

Date of Appointment :

21.02.2008

DIN No.:

00878298

Other Directorship :

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Company/ LLP Status	Defaulting status
1	U24222KA1985PTC006759	CAUVERY LABELS PRIVATE LIMITED	Director	01/06/2005	01/06/2005	Active	NO
2	U24110AP1976PLC002040	VANI PHARMA LABS LIMITED	Whole-time director	29/09/2011	21/02/2008	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 29.09.2011

Names of Shareholders	No. of Shares
Siriplurapur Kutumba Rao	13925
Mallampati Anuradha	5285
Gadde Uma Devi	8250
Yelavarthi Mallikarjun Rao	12950
Yatinder Kumar Agarwal	4240
Dharmender Kumar Agarwal	4240
Siripurapu Lakshmi Phani	2525
Bindu Madhavi Sabiha	17000
Pamulapati Aparna	17000
Pyapli Seshachar Ramchandran	120
Mallampati Chakradhar	117230
Gannamani Madhuri	5872
Siripurapu Sandeep Krishna	1500
Siripurapou Sarada Sruthi	1500
Gadee Kalyan	215
Polavarapur Kartika	215
Tatineni Eswara Chandra Rao	105
Devanhaktuni Valli Devi	215
Yelavarthi Visalakshi	230
Madala Venateswara Rao	150
Mahesh Kumar	280
Adusumilli Satyavathi	85
Alapti Ranga Rao	215
Peravali Laxmi Sankari	15
Polavarapur Suresh	215
Baby Sofia	735
Vani Organics (Private) Limited, India	31835
Medempudi Naga Praveen	12488
Mallampati Lakshmi Kranti	5850
Yalavarthi Prakash	75
Medampudi Ravi Kumar	5
Total	264565

AS ON 29.09.2011

Equity Share Breakup	Percentage of Holding
Category
Bodies corporate	12.03
Directors or relatives of directors	79.35
Other top fifty shareholders	8.62
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Bulk Drugs and other Drug Intermediates.

Products :

Product Description	ITC Code
Analgin	29331970
Phenazone Antipirine	29331100
Drug Intermediates	29331990

PRODUCTION STATUS (AS ON 31.03.2011)

(As certified by the Management)

a. Licensed capacity: Not Applicable

b. Installed capacity: 1620 MT/ per annum comprising Analgin 300 MT, other Bulk drugs and APls or Drug Intermediates 1320 MT.

Particulars	Unit	Actual Production
Bulk Drugs	M.T.	497.863
Drug Intermediates	M.T.	10.258

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

v Axis Bank Limited, I Floor, G. Pullareddy Building, No.6-3-879-B, Greenlands, Begumpet Road, Hyderabad – 500 016, Andhra Pradesh, India

v ICICI Bank Limited

v Barclays Bank Limited

v State Bank of India, Madame Cama Road, Mumbai – 400 021, Maharashtra, India

v Bank of Maharashtra, Bank Street, Hyderabad, Andhra Pradesh, India

Facilities :

Secured Loans	31.03.2011 Rs. In Millions	31.03.2010 Rs. In Millions
From Axis Bank Limited
Cash Credit	45.019	44.872
Term Loan	9.858	17.282
From Financial Institutions
Vehicle Loan from Sundaram Finance Limited	0.000	0.107
Vehicle Loan from Kotak Mahindra Bank Limited	0.453	0.663
Total	55.330	62.924

Unsecured Loans	31.03.2011 Rs. In Millions	31.03.2010 Rs. In Millions
From Directors	3.000	3.000
Total	3.000	3.000

Banking Relations :	--
Financial Institutions :	Sundaram Finance Limited
Auditors :
Name :	C K S Associates Chartered Accountants
Address :	87, Nagarjuna, Road No.3, Gagan Mahal Colony, Domalaguda, Hyderabad – 500 029, Andhra Pradesh, India
Income-tax PAN of auditor or auditor's firm :	AABFC2043A
Enterprises on which Key Management personnel exercise significant influence :	v Vani Organics Private Limited v Cauvery Labels Private Limited

CAPITAL STRUCTURE

AS ON 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
440000	Equity Shares	Rs. 100/- each	Rs. 44.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
264565	Equity Share	Rs. 100/- each	Rs. 26.457 Millions

Of the above:

a) 211652 Equity Shares were issued as fully paid Bonus Shares by capitalisation of Reserves

b) 800 Equity Shares issued for consideration other than cash.

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		26.457	26.457	26.457
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		68.265	67.638	66.842
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		94.722	94.095	93.299
LOAN FUNDS
1] Secured Loans		55.330	62.924	72.588
2] Unsecured Loans		3.000	3.000	3.640
TOTAL BORROWING		58.330	65.924	76.228
DEFERRED TAX LIABILITIES		9.047	10.905	11.299
TOTAL		162.099	170.924	180.826
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		102.994	106.397	103.784
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.690	0.690	0.690
DEFERRED TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	54.815	37.388	44.003
	Sundry Debtors	57.778	50.258	73.031
	Cash & Bank Balances	2.355	3.314	1.466
	Other Current Assets	2.551	2.057	1.834
	Loans & Advances	17.089	12.595	15.563
Total Current Assets		134.588	105.612	135.897
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	71.427	36.166	57.051
	Other Current Liabilities	2.756	1.817	1.133
	Provisions	1.990	3.792	1.361
Total Current Liabilities		76.173	41.775	59.545
Net Current Assets		58.415	63.837	76.352
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		162.099	170.924	180.826

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	304.004	320.774	364.218
		Other Income	30.147	23.205	24.828
		TOTAL (A)	334.151	343.979	389.046
Less	EXPENSES
		Raw Material Consumed	225.419	197.295	250.021
		Payments and benefits to employees	40.449	37.056	36.521
		Manufacturing, Selling and Administrative Expenses	70.002	77.616	74.463
		Loss on Sale of Assets	0.000	0.738	0.045
		Adjustment for stocks	(19.208)	4.545	4.990
		TOTAL (B)	316.662	317.250	366.040
Less	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		17.489	26.729	23.006
Less	FINANCIAL EXPENSES (D)		7.378	9.164	9.899
	PROFIT/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		10.111	17.565	13.107
Less/ Add	DEPRECIATION/ AMORTISATION (F)		11.560	11.622	12.123
	PROFIT/ (LOSS) BEFORE TAX (E-F) (G)		(1.449)	5.943	0.984
Less	TAX (H)		0.000	3.000	0.600
	PROFIT/ (LOSS) AFTER TAX (G-H) (I)		(1.449)	2.943	0.384
Add	Deferred Tax Liability withdrawn		1.858	0.394	0.250
Less	Provision for Fringe Benefits Tax		0.000	0.000	0.183
Less	Income Tax paid for Earlier Years		0.000	0.783	0.000
Add/ Less	Adjustments for Earlier Years		0.218	0.210	0.102
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		2.859	4.563	4.214
Less	APPROPRIATIONS
		Interim Dividend Paid	0.000	1.323	0.000
		Dividend Tax Paid	0.000	0.225	0.000
		Transfer to General Reserve	0.000	2.500	0.000
	BALANCE CARRIED TO THE B/S		3.486	2.859	4.563
	EARNINGS IN FOREIGN CURRENCY		82.940	94.150	136.300
	IMPORTS
		Raw Materials	62.376	48.038	63.557
	TOTAL IMPORTS		62.376	48.038	63.557
	Earnings/ (Loss) Per Share (Rs.)		(5.48)	11.12	1.45

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	(0.43)	0.86	0.10
Net Profit Margin (PBT/Sales)	(%)	(0.48)	1.85	0.27
Return on Total Assets (PBT/Total Assets}	(%)	(0.61)	2.80	0.41
Return on Investment (ROI) (PBT/Networth)		(0.02)	0.06	0.01
Debt Equity Ratio (Total Liability/Networth)		1.42	1.14	1.46
Current Ratio (Current Asset/Current Liability)		1.77	2.53	2.28

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	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	Yes
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 involved in	--
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
31]	Date of Birth of Proprietor/Partner/Director, if available	Yes
32]	PAN of Proprietor/Partner/Director, if available	No
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	No

Note:

The registered office of the company has been shifted from 1-306 and 307, Divyashakti Complex, 7-1-58, Ameerpet, Hyderabad – 500 016, Andhra Pradesh to the present address w.e.f. 29.04.2009.

HISTORY:

The Company was incorporated as a private limited company on June 15, 1976. It was converted into a limited company on July 01, 1998 by virtue of Section 43 A(IA) of the Companies Act, 1956. The Company commenced commercial operations with effect from May 1977, its plant located at Jeedimetla Industrial Area, Hyderabad, manufacturing Bulk Drugs. The Company has acquired the business undertaking of Vijayalakshmi Drugs and Chemicals, a partnership firm engaged in manufacture of bulk drugs situated at Jeedimetla. Presently, the company is engaged in production of Bulk Drugs and other Drug Intermediates.

OPERATIONS:

The turnover for the year 2010-2011 was Rs.326.550 Millions as against Rs.339.250 Millions in the previous year. The decrease in the turnover and profit is mainly on account of decrease in yield of finished products against normal norms. This decreased yield rate is mainly owing to the use of an intermediate imported from China. To reduce the effluent cost, the Company has imported an intermediate instead of manufacturing the same by the Company from basic raw materials. The yield and quality of the finished products not matched to the findings at Lab level resulting in loss of material and other utilities. Now the Company reverted to manufacture the intermediate in house from basic raw materials. The exports during the year also reduced on account of price issues. The Company has made Rs.82.940 Millions exports in the year as against Rs.94.300 Millions in the previous year. Thus the company has incurred a net loss of Rs.1.450 Millions compared to Rs.5.940 Millions profit before tax in the last year.

PROSPECTS:

The Directors hope for better results in the current financial year as the National Pharmaceutical Pricing Authority has increased the selling price of Analgin by 10% and the Company has successfully increased the price of Propyphenazone by 20%. The prospects for Propypenazone product are very bright. The Company is successfully competing with the Chinese exporters in increasing the market for Propyphenazone product and captured a major customer from Indonesia. In the financial year 2011-2012 so far 28 M.T. Propyphenazone exported to Indonesia in addition to the regular exports. The Company is proposing to expand the manufacturing capacity for Propyphenazone to meet the increased demand.

Contingent Liabilities not provided for in respect of:

Particulars	31.03.2011 (Rs. in millions)
(a) Bank Guarantee	2.000
(b) Letters of Credit	12.350
(c) In respect of Income-Tax matters	2.480

BANKERS CHARGES REPORT AS PER REGISTRY

Corporate identity number of the company	U24110A1976PLC002040
Name of the company	VANI PHARMA LABS LIMITED
Address of the registered office or of the principal place of business in India of the company	II Floor, D. No.8-2-269/S/4, Sagar Society, Road No.2, Banjara Hills, Hyderabad – 500 034, Andhra Pradesh, India E-Mail: finance@vanigroup.com
This form is for	Modification of charge
Charge identification number of the modified	10046969
Type of charge	Immovable Property Book Debts Movable Property (not being pledge)
Particular of charge holder	Axis Bank Limited, I Floor, G. Pullareddy Building, No.6-3-879-B, Greenlands, Begumpet Road, Hyderabad – 500 016, Andhra Pradesh, India E-Mail: g.kanakadurga@axisbank.com
Nature of description of the instrument creating or modifying the charge	1.SME Advances Packing credit in Foreign Currency 2. Link document for earmarking of Limit and interchangeability PCFC/PSCFC limit of Rs.25.000 millions is sanctioned as sublimit under Cash Credit facility. There is no change in the total limits of Rs.75.000 millions
Date of instrument Creating the charge	30.03.2012
Amount secured by the charge	Rs. 75.000 millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest: A. On Cash credit: Base rate + 4.5% i.e., 14.50% at present B. On export packing credit: Base rate + 2.0% i.e., 12.00% at present C. On Foreign Bill discounted Bakers card rate Terms of Repayment: 1. Cash credit: Repayment on demand 2. Export packing credit: 15 days or expiry of export order whichever is earlier. 3. Foreign Bill discounted: Tenor maximum 180 days from the date of shipment Margin: 1. Cash credit: Drawing power Book debts (cover period 90 days) and stocks 25% 2. Export packing credit: 20% of FOB value of confirmed export order. 3. Letters of credit: 10% cash margin 4. Bank Guarantee: 10% cash margin 5. Loan Equivalent Risk on FW contracts: 10% Extent and Operation of the charge: 1. Cash credit (Hypothecation): Rs.45.000 millions Sub limit Export packing credit: (Rs.25.000 millions) Sub limit Foreign Bills discounting: (Rs.25.000 millions) 2. Letters of credit: Rs.25.000 millions 3. Bank Guarantee: Rs.5.000 millions 4. Sub limit of LC LER on FW contracts: (Rs.1.000 million) Others: Interest free unsecured loans of Rs.2.000 millions in addition to the existing Rs.3.000 millions shall be infused and maintained.
Short particulars of the property charged	Land, buildings and industrial structures situated on land in an extent of 9,687.60 Sq. Yards at Plot Nos.11 and 12, Sy. Nos.264 and 265, Phase-I, IDA-Jeedimetla, R.R. District. Land admeasuring 1000 Sq. yards situated at plot no. 431, Sy. No.108/EE, Thondapally Village, Shamshabad Mandal R.R. District. Extension of equitable mortgage of Land admeasuring 1666.66 sq. yards, situated at Plot No.430, sy. No.108/EE, Thondapally Village, Shamshabad Mandal R.R. District standing in the name of Sri. M. Chakradhar Corporate Guarantee of Vani Organics Private Limited Personal guarantee of the following: 1. Sri. M. Chakradhar 2. Sri. S. Kutumba Rao Extension of equitable mortgage of Land admeasuring 627 sq. yards, situated at MCH No.8-2-293/82/A/889/1, Sy. No. 403/1 (120 New), Jubilee Hills Co-operative Housing standing in the name of Sri. M. Chakradhar Extension of equitable mortgage of Land admeasuring 627 sq. yards, situated at MCH No.8-2-293/82/A/889/1, Sy. No. 403/1 (120 New), Jubilee Hills Co-operative Housing standing in the name of Sri. M. Chakradhar Primary: First charge on the entire current assets, present and future, of the Company. Collateral: Extension of first charge on the fixed assets (movable and immovable), present and future (except assets purchased out of hire purchase finance)
Date of latest modification prior to the present modification	16.12.2011
Particulars of the present modification	PCFC/PSCFC limit of Rs.25.000 millions is sanctioned as sublimit under Cash Credit facility. There is no change in the total limits of Rs.75.000 millions.

FIXED ASSETS:

v Land

v Building

v Plant and Machinery

v Pollution Control Plant

v Electrical Installations

v Laboratory Equipment

v Office Equipment

v Computers

v Furniture and Fixtures

v Vehicles

WEBSITE DETAILS:

PROFILE:

Subject (Previously known as Vani Chemicals and Intermediates Limited) was incorporated in 1976 by experienced technocrats who are the pioneers of bulk drug industry in Hyderabad. The Company is engaged in the manufacture of quality Active Pharmaceutical Ingredients (APIs) and bulk drugs.

Commencing with the manufacture of basic analgesic drug of Analgin and its intermediates, the group has substantially expanded and diversified into a variety of Agro, Industrial, Pharmaceutical Intermediates, and fine and specialty chemicals.

Its plant is located in 2 acres of land in Phase I of Jeedimetla Industrial Development Area, Hyderabad, India. The company is certified for total quality management system with ISO 9001:2008. The company is known for its quality products as per the international standards and exporting its products to nearly 20 countries in the world. The Company is a partner in Research and Development activities with reputed Pharma Companies for development and stabilization of molecules.

Brief profile of the promoter

Subject (Previously known as Vani Chemicals and Intermediates Limited) was incorporated as a Private Limited Company on June 15, 1976 by Mr. S. Kutumba Rao and Late M.V. Subba Rao.

Mr. Kutumba Rao is a Postgraduate in Chemical Technology. Before promoting Vani Chemicals in 1976, he worked as Deputy Director of Industries with Andhra Pradesh Industries Department. Presently he is the Chairman of the group. Mr. M.V. Subba Rao, Co-founder is a postgraduate in Mathematics from the Regional Engineering College, Warangal. He served the company as Executive Director and Managing Director between 1981 and 2005. During his tenure as Executive Director he played a strategic role in completing the ISO 9002 , ISO 14001 and transforming the company into one of the qualitative bulk drug exporting units of Hyderabad. Mr. M. Chakradhar was appointed as Managing Director in September 2005. Prior to assuming his current position, he held the post of Executive Director and Director (Administration and Exports). He is a graduate Engineer in Computer Sciences and he worked for WFI, USA. before joining the Company as Director. Mr. M. Ravi Kumar, Director (Operations) with more than 30 years of experience in the Chemical Industry is looking after the manufacturing operations of the Company.

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. 55.65
UK Pound	1	Rs. 88.10
Euro	1	Rs. 69.84

INFORMATION DETAILS

Report Prepared by :

BVA

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILIRY	1~10	3
--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	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		28

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

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.