MIRA INFORM REPORT

Report Date :

24.02.2012

IDENTIFICATION DETAILS

Name :	SRINI PHARMACEUTICALS LIMITED
Registered Office :	8-2-293/82/F/10 Plot No.10, Type – C, Road No 8, Film Nagar, Hyderabad – 500033, Andhra Pradesh
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	24.02.1995
Com. Reg. No.:	01-019543
Capital Investment / Paid-up Capital :	Rs. 23.581 Millions
CIN No.: [Company Identification No.]	U24231A1995PLC019543
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer of Drugs and Drugs Intermediates.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

B (33)

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

Maximum Credit Limit :	USD 1823000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is a well established company having moderate track. Profitability of the company is under pressure. 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 – 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 :	8-2-293/82/F/10 Plot No.10, Type – C, Road No 8, Film Nagar, Hyderabad – 500033, Andhra Pradesh, India
Tel. No.:	91-40-23541535
Fax No.:	91-40-23541565
E-Mail :	sripro@satyam.net.in sripharma@gmail.com srini_pharma@sify.com
Factory:	Survey No. 247, Choutuppal Village, Choutuppal Mandal, Nalgonda District, Andhra Pradesh, India
Tel. No.:	91-8694-272410

DIRECTORS

As on 26.09.2011

Name :

Mr. Tera. Chennappa Reddy

Designation :

Managing Director

Address :

Plot No.136/A, MLA Colony, Banjara Hills, Hyderabad – 500034, Andhra Pradesh, India

Date of Birth/Age :

10.08.1963

Date of Appointment :

06.10.1997

DIN No.:

00018334

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	U24231AP1995PLC019543	SRINI PHARMACEUTICALS LIMITED	Managing director	01-08-09	06-10-97	Active	NO
2	U24233AP2011PTC077370	VEENA LIFESCIENCES INDIA PRIVATE LIMITED	Director	11-11-11	11-11-11	Active	NO

Name :

Mr. Tera. Kalpana Reddy

Designation :

Director

Address :

Plot No.136/A, MLA Colony, Banjara Hills, Hyderabad – 500034, Andhra Pradesh, India

Date of Birth/Age :

21.12.1968

Date of Appointment :

20.03.1999

DIN No.:

00018342

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	U24231AP1995PLC019543	SRINI PHARMACEUTICALS LIMITED	Whole-time director	01-09-09	20-03-99	Active	NO
2	U24233AP2011PTC077370	VEENA LIFESCIENCES INDIA PRIVATE LIMITED	Director	11-11-11	11-11-11	Active	NO

Name :

Mr. Berhalter James Francis

Designation :

Director (Canadian)

Address :

2163 Mystic Ct, Burlington, Ontario, Canada

Date of Birth/Age :

05.03.1958

Date of Appointment :

30.12.2002

DIN No.:

00198596

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	U24231AP1995PLC019543	SRINI PHARMACEUTICALS LIMITED	Nominee director	30-12-02	30-12-02	Active	NO
2	U73100KA2003PTC032103	APOTEX RESEARCH PRIVATE LIMITED	Director	24-06-04	24-06-04	Active	NO
3	U24231KA2003PTC032104	APOTEX PHARMACHEM INDIA PRIVATE LIMITED	Director	24-06-04	24-06-04	Active	NO

Name :

Padiyath Mohammed Akber Ali

Designation :

Director

Address :

Flat No. 302, Floriana Estates, Koramangala, Bangalore – 560034, Karnataka, India

Date of Birth/Age :

12.03.1960

Date of Appointment :

15.09.2010

DIN No.:

00372132

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	U24231KA2003PTC032104	APOTEX PHARMACHEM INDIA PRIVATE LIMITED	Managing director	11-03-05	11-03-05	Active	NO
2	U24231AP1995PLC019543	SRINI PHARMACEUTICALS LIMITED	Director	15-09-10	15-09-10	Active	NO

Name :

Mr. Rajeshkumar Goel

Designation :

Director

Address :

I-Life, A-104, 7 Devabisaranahalli, Outer Ring Road, Bangalore – 560037, Karnataka, India

Date of Birth/Age :

12.12.1968

Date of Appointment :

15.09.2010

DIN No.:

03263267

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 26.09.2011

Names of Shareholders	No. of Shares
T. Chinnapa Reddy	669545
T. Kalpana Reddy	500000
G. Anupama	2000
G. Ravi	500
P C Venkata Reddy	2000
D. Rathi Devi	2500
Y. Srinivasa Reddy	2500
Apotex Pharmaceuticals Holding Inc, Canada	1179045
TOTAL	2358090

Equity Share Break up (Percentage of Total Equity)

As on 26.09.2011

Category	Percentage
Foreign holdings( Foreign institutional investor(s), Foreign companie(s) Foreign financial institution(s), Non-resident Indian(s) or Overseas Corporate bodies or Others	50.00
Directors or relatives of Directors	49.60
Other top fifty shareholders	0.40
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Drugs and Drugs Intermediates.

Products :

Product Description	ITC No.
Valacyclovir Hydrochloride Monohydrate	2942 0090
Ramipril	2942 0090
Omeprazole	2940 0090

PRODUCTION STATUS

As on 31.03.2011

Particulars	Unit	Installed Capacity	Actual Production
Bulk Drugs	MTPA / Kgs	266	64433

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

· State Bank of Hyderabad, C & I Division, Gunfoundry Branch, Gunfoundry, Hyderabad, Andhra Pradesh, India

Facilities :

Secured Loan	As on 31.03.2011 (Rs. in Millions)	As on 31.03.2010 (Rs. in Millions)
A) Medium Term Loan
1) State Bank of Hyderabad – I	10.002	23.333
2) State Bank of Hyderabad – II	62.258	29.922
B) Working Capital Loan
State Bank of Hyderabad	67.442	27.035
Total	139.702	80.290
Unsecured Loan	As on 31.03.2011 (Rs. in Millions)	As on 31.03.2010 (Rs. in Millions)
Interest Free Sales Tax Loan	2.747	3.164
Total	2.747	3.164

Banking Relations :	--
Auditors :
Name :	M. V. Narayana Reddy and Company Chartered Accountant
Address :	504, Vijayashree Apartments, Opposite Kamma Sangham, Ameerpet, Hyderabad – 500 073, Andhra Pradesh, India
PAN.:	AADFM4830F
Associates :	Apotex Pharmachem Inc., Apotex Pharmachem India Private Limited Cipro Pharmaceuticals

CAPITAL STRUCTURE

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
27,00,000	Equity Shares	Rs.10/- each	Rs.27.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
23,58,090	Equity Shares	Rs.10/- each	Rs.23.581 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		23.581	23.581	23.581
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		432.082	488.413	509.193
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		455.663	511.994	532.774
LOAN FUNDS
1] Secured Loans		139.702	80.290	47.869
2] Unsecured Loans		2.747	3.164	3.004
TOTAL BORROWING		142.449	83.454	50.873
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		598.112	595.448	583.647
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		431.574	316.456	358.493
Capital work-in-progress		0.000	58.176	0.000
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		43.830	16.369	10.650
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	226.348	117.223	130.151
	Sundry Debtors	66.523	99.902	95.785
	Cash & Bank Balances	8.506	6.561	15.630
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	104.471	84.040	77.051
Total Current Assets		405.848	307.726	318.617
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	283.052	103.279	104.413
	Other Current Liabilities	0.088	0.000	0.000
	Provisions	0.000	0.000	0.000
Total Current Liabilities		283.140	103.279	104.113
Net Current Assets		122.708	204.447	214.504
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		598.112	595.448	583.647

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	562.727	596.320	768.840
		Other Income	5.612	2.801	24.231
		TOTAL (A)	568.339	599.121	793.071
Less	EXPENSES
		Raw Material Consumed	406.495	340.847	441.603
		Manufacturing Expenses	96.366	100.302	128.837
		Payments and Benefits to Employees	60.766	47.252	48.948
		Administrative & Selling Expenses	63.416	52.101	60.157
		Decrease / Increase in Stocks	(59.309)	0.455	(16.951)
		TOTAL (B)	567.734	540.957	662.594
Less	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		0.605	58.164	130.477
Less	FINANCIAL EXPENSES (D)		10.719	6.675	12.466
	PROFIT/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		(10.114)	51.489	118.011
Less/ Add	DEPRECIATION/ AMORTISATION (F)		73.677	66.677	81.331
	PROFIT/ (LOSS) BEFORE TAX (E-F) (G)		(83.791)	(15.188)	36.680
Less	TAX (H)		(27.461)	5.593	14.087
	PROFIT/ (LOSS) AFTER TAX (G-H) (I)		(56.330)	(20.781)	22.593
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		386.412	407.193	384.600
	BALANCE CARRIED TO THE B/S		330.082	386.412	407.193
	EXPORT VALUE		412.531	564.140	738.056
	IMPORTS
		Raw Materials	136.682	121.618	209.038
		Stores & Spares	2.707	6.039	24.891
		Capital Goods	0.093	0.517	0.356
	TOTAL IMPORTS		139.482	128.174	234.285
	Earnings / (Loss) Per Share (Rs.)		(23.89)	(8.81)	9.58

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	(9.91)	(3.47)	2.85
Net Profit Margin (PBT/Sales)	(%)	(14.89)	(2.55)	2.94
Return on Total Assets (PBT/Total Assets}	(%)	(10.01)	(2.43)	5.42
Return on Investment (ROI) (PBT/Networth)		(0.18)	(0.03)	0.07
Debt Equity Ratio (Total Liability/Networth)		0.93	0.36	0.29
Current Ratio (Current Asset/Current Liability)		1.43	2.98	3.06

LOCAL AGENCY FURTHER INFORMATION

REVIEW OF OPERATION

During the year the company has recorded its income of Rs.568.339 millions as against the previous year income of Rs.599.121 millions. The company has registered a loss of Rs.83.792 millions against the net loss of Rs.15.187 millions in the previous year. The major reason for the din in the turnover during the year is on account of decreased orders resulting to the under-utilization of the Producation capacities which has resulted into loss

CONTINGENT LIABILITIES

Rs. in millions

Particulars	31.03.2011	31.03.2010
a) Bank Guarantee	1.308	0.256

b) Claims against the company not acknowledge as debts: No provision has been made against the income tax demand for the assessments year 2004-05 amounting to Rs.10.720 millions (previous year Rs.12.780 millions) as the same have been contested by the company in an appeal field before the commissioner ob income tax (appeals)

No provision has been made against the order of the transfer pricing officers for the assessments year 2007-08 amounting to Rs.83.407 millions in the same have been contested by the company at the dispute resolutions panel. The company is reasonably certain of winning the cases.

FORM 8

Corporate identity number of the company	U24231AP1995PLC019543
Name of the company	SRINI PHARMACEUTICALS LIMITED
Address of the registered office or of the principal place of business in India of the company	8-2-293/82/f/10 Plot No.10, Type – C, Road No 8, Film Nagar, Hyderabad – 500033, Andhra Pradesh, India Email: srinipharma@gmail.com
This form is for	Modification of charge
Charge identification (ID) number of the charge to be modified	90136094
Type of charge	Immovable Property Book Debts Movable Property
Particular of charge holder	State Bank of Hyderabad, C and I Division, Gunfoundry Branch, Gunfoundry, Hyderabad, Andhra Pradesh, India Email: naveen.uppalwar@gmail.com
Nature of instrument creating charge	1.Sanction Letter of Credit Facilities 2. Agreement of Loan for increase in the Overall Limit. 3. Agreement of Hypothecation of goods and Assets for increase in Overall Limit. 4. Deed of Guarantee for increase in overall limit. 5.Letter regarding the grant of Individual Limits within the overall Limit 6.Memorandum of Deposit of Title Deeds
Date of instrument Creating the charge	29.09.2011
Amount secured by the charge	Rs.389.100 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest: 1.Rate of interest on Cash Credit : 4.5% above Base Rate, Presently 15.00% p.a. (Floating) 2.Rate of interest for Short Term Corporate Loan : 5.00% above the Base Rate, Presently 15.5% p.a. (Floating) Terms of Repayment: Repayable in 18 Quarterly installments of Rs.3.335 millions each Commencing w.e.f from Mar 2012. Margin: Margin on WC : Raw Materials 25%, Stock - in - Process 25%, Finished Goods 25%, Receivables 20% Extent and operation of the charge: Primary Security: As per sanction Letter. Collateral Security: 1. Equitable mortgage of House property bearing no. 8-2-293/80/f/10-, Plot No.10, Situated at film Nagar, Jubileee Hills standing in the name of Mr. T. C. Reddy, Managing Director of the company. 2. Equitable mortgage of Agricultural Land admesuring 3.16 Acres in Sy. No 246 and having 553 at Choutupal village and Mandal, Nalgonda District , registered in the person name of Mr. T. C. Reddy and is leased to company
Short particulars of the property or asset(s) charged (including complete address and location of the property)	Equitable mortgage of House property bearing no. 8-2-293/80/f/10-, Plot No.10, Situated at Filmnagar, Jubileee Hills standing in the name of Mr. T. C. Reddy, Managing Director of the company. Equitable mortgage of Agricultural Land admesuring 3.16 Acres in Sy. No 246 and having 553 at Choutupal village and Mandal, Nalgonda District , registered in the person name of Mr. T. C. Reddy and is leased
Date of instrument modifying the charge	29.04.2009
Particulars of the present modification	Short Term Corporate Loan of Rs.60.000 millions for ongoing Capex and shoring up of Net Working Capital.

FIXED ASSETS

• Land
• Factory Building
• Non Factory Building
• Plant and Machinery
• E.T.P
• Electrical Installation
• Lab Equipment
• Office Equipment
• Data Processing Equipment
• Furniture and Fixture
• Vehicles

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.49.24
UK Pound	1	Rs.77.18
Euro	1	Rs.65.29

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--PROFITABILIRY	1~10	2
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	4
--RESERVES	1~10	4
--CREDIT LINES	1~10	3
--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		33

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.