MIRA INFORM REPORT

Report Date :

28.02.2012

IDENTIFICATION DETAILS

Name :	S KANT HEALTHCARE LIMITED
Registered Office :	A/3, Shivsagar Estate, North Wing, Dr. Annie Besant Road, Mumbai – 400018, Maharashtra
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	18.09.1996
Com. Reg. No.:	11-098246
Capital Investment / Paid-up Capital :	Rs.9.800 Millions
CIN No.: [Company Identification No.]	U24230MH1996PLC098246
TAN No.: [Tax Deduction & Collection Account No.]	MUMS20758D
PAN No.: [Permanent Account No.]	AAECS5406P
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer and Exporters of the health care products and industrial equipment.
No. of Employees :	Not Divulged

RATING & COMMENTS

MIRA’s Rating :

Ba (45)

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

Maximum Credit Limit :	USD 101000
Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track. Financial position of the company is improving. 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.

INFORMATION DECLINED BY

Management Non- Cooperative

LOCATIONS

Registered Office :	A/3, Shivsagar Estate, North Wing, Dr. Annie Besant Road, Mumbai – 400018, Maharashtra, India
Tel. No.:	91-22-66227575
Fax No.:	91-22-66227500
E-Mail :	samir@sk1932.com bharat@skageexports.com samir@skageexports.com
Website :	skanthealthcareltd4387_ww.indiabizclub.com
Factory :	Plot no. 1802-1805, GIDC, Phase – 3, Vashi, Valsad – 396195, Gujarat, India
Tel. No.:	91-260-2422516/ 2422517
Fax No.:	91-260-2430527

DIRECTORS

As on 30.09.2011

Name :	Mr. Bharat Nemchand Shah
Designation :	Director
Address :	Flat No.15, Bhartiya, Bhawan, 72, Netaji, Subhash Road, Marine Drive, Mumbai 400020, Maharashtra, India
Date of Birth/Age :	06.09.1946
Date of Appointment :	28.04.2004
DIN No.:	00083354
Name :	Mr. Samir Jayantilal Shah
Designation :	Director
Address :	Flat No.3B, Suvas Apt., 68/F, Nepeansea Road, Mumbai-400006, Maharashtra, India
Date of Birth/Age :	22.10.1966
Date of Appointment :	28.04.2004
DIN No.:	00157396
Name :	Mr. Lalit Popatlal Shah
Designation :	Director
Address :	B-2/2, Amalfi,27 B, L. D. Ruparel Marg, Malabar Hill, Mumbai, 400006, Maharashtra, India
Date of Birth/Age :	02.10.1936
Date of Appointment :	18.09.1996
DIN No.:	00396345
Name :	Mr. Mahesh Kantilal Shah
Designation :	Director
Address :	37, Mahavir Building, B.G. Kher Marg, Malabar Hill, Mumbai- 400006, Maharashtra, India
Date of Birth/Age :	03.06.1949
Date of Appointment :	01.04.2001
DIN No.:	00506695
Name :	Mr., Ritesh Bipin Shah
Designation :	Director
Address :	1801, DevDarshan, 50, B.G. Kher Marg, Malabar Hill, Mumbai – 400006, Maharashtra, India
Date of Birth/Age :	01.01.1981
Date of Appointment :	01.10.2007
DIN No.:	02496729

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2011

Names of Shareholders	No. of Shares
Mr. Jayantilal P. Shah Jointly. Mrs. Mrudula J. Shah Jointly. Samit J. Shah	1300
Mr. Samir J. Shah Jointly. Mrs. Jasmine S. Shah	1400
Mr. Bharat N. Shah Jointly. Mrs. Surekha B. Shah	1100
Mr. Mahesh K. Shah Jointly. Mrs. Panna M. Shah Jointly. Mr. Rohan M. Shah	100
Mrs. Jasmine S. Shah Jointly. Mr. Samir J. Shah	200
Mrs. Panna M. Shah Jointly. Mr. Mahesh K. Shah Jointly. Mr. Rohan M. Shah	100
Mr. Harshit Bharat Shah	2170
Mrs. Mrudula J. Shah Jointly. Mr. Samir J. Shah	1430
Mrs. Surekha B.Shah Jointly. Mr. Harshit B.Shah	2000
TOTAL	9800

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 Exporters of the health care products and industrial equipment.

Products :

Item Description	Item Code No
Tablets and Liquid	30041006

PRODUCTION STATUS

As on 31.03.2011

Particulars	Item	Unit	Installed Capacity	Actual Production
Pharmaceuticals	Tablets	Nos.	960000000	451729445
	Sachet	Nos.	6751000	--
Formulations	Capsules	Nos.	600000000	6642622
	Cream	Nos.	15000000	1843959
	Liquid	Ltrs.	48000000	675229
	Injection	Nos.	10500000	--
Bulk Drugs	Isox Plant	M.T	600000	--
	Antibiotic Plant	M.T	8400000	--
	Chemicals	Kgs	600000	313582

GENERAL INFORMATION

Suppliers :

· Advacne Microdevices Private Limited

· Anjana Desai

· Anand Metal Mart

· Chetak Machinery Store

· Harish Art

· Hariyana Fright Carriers

· Om Pipe Traders

· R. K. Lokuge

· R J Industries

· Manish Construction

· The Professional Courier

· United Marketing

· Shree Furniture

· Sam Services

· Shree Om Electric Works

Customers :

· Aero Pharma Private Limited

· Cedilla Pharmaceutical Limited

· J.N.B Pharma Private Limited

· S K Age Exports

· Swati Associates

· Zest Pharma

· Unimed International Limited

· Unicure Remedies Private Limited

· Aura Trading

· Johnson and Johnson Limited

· Pfizer Limited

No. of Employees :

Not Divulged

Bankers :

· Union Bank of India, Princess Street Branch, Devkaran Mansion, Shamaldas Gandhi Marg, Princess Street, Mumbai – 400002, Maharashtra, India

· HDFC Bank Limited

Facilities :

Secured Loan	As on 31.03.2011 (Rs. in Millions)	As on 31.03.2010 (Rs. in Millions)
From Bank
Union Bank of India
Cash Credit (Secured against stock and Debtors)	15.420	9.548
Packing Credit Loan (Secured against stocks)	38.781	0.000
Bill Discounting (Bill Purchase) (Secured against sundry debtors)	0.487	0.174
Term Loan (in foreign currency) (Secured against equitable mortgage of units/ Gala at factory and plant and machinery) Due for repayment within one year Rs.2.143 millions previous year Rs.2.143 millions)	4.759	6.757
Term loan Secured against equitable mortgage of units/ Gala at factory and plant and machinery) Due for repayment within one year Rs.2.143 millions previous year Rs.2.143 millions)	3.799	5.959
Current Accounts (Secured against fixed deposit with bank)	55.996	40.240
HDFC Bank Limited (Secured against fixed deposit with bank)	27.761	0.103
Total	147.003	62.781
Unsecured Loan	As on 31.03.2011 (Rs. in Millions)	As on 31.03.2010 (Rs. in Millions)
From Directors	54.997	60.072
From Companies	42.801	40.528
Total	97.798	100.600

Banking Relations :	--
Auditors :
Name :	S.I. Mogul Associates Chartered Accountant
Address :	73-B, Mittal Court, Nariman Point, Mumbai – 400021, Maharashtra, India
Tel. No.:	91-22-22842159/22842093
Fax No.:	91-22-22822743
E-Mail :	sima@simogul.in
PAN.:	AAMFS7435P

CAPITAL STRUCTURE

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
10000	Equity Shares	Rs.1000/- each	Rs.10.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
9800	Equity Shares	Rs.1000/- each	Rs.9.800 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		9.800	9.800	9.800
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		15.524	5.672	0.000
4] (Accumulated Losses)		0.000	0.000	(6.016)
NETWORTH		25.324	15.472	3.784
LOAN FUNDS
1] Secured Loans		147.003	62.781	82.379
2] Unsecured Loans		97.498	100.600	68.998
TOTAL BORROWING		244.501	163.381	151.377
DEFERRED TAX LIABILITIES		2.420	1.276	1.829
TOTAL		272.245	180.129	156.990
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		157.297	150.034	132.515
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.000	0.000	0.225
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	104.813	44.373	46.120
	Sundry Debtors	53.554	29.224	14.986
	Cash & Bank Balances	90.040	54.063	49.057
	Other Current Assets	60.300	54.460	0.848
	Loans & Advances	147.619	52.732	58.897
Total Current Assets		456.326	234.852	169.908
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	203.600	93.071	54.233
	Other Current Liabilities	129.718	104.904	86.758
	Provisions	8.060	6.790	4.682
Total Current Liabilities		341.378	204.765	145.673
Net Current Assets		114.948	30.087	24.235
MISCELLANEOUS EXPENSES		0.000	0.008	0.015
TOTAL		272.245	180.129	156.990

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	494.631	313.603	318.366
		Other Income	10.387	11.635	10.416
		TOTAL (A)	505.018	325.238	328.782
Less	EXPENSES
		Manufacturing Expenses	369.597	245.488	257.523
		Cost of Goods Sold	38.759	0.706	6.360
		Administrative , Advertising Expenses and other expenses	49.525	28.266	27.461
		Prior Period Items	0.020	2.652	0.084
		TOTAL (B)	457.901	277.112	291.428
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		47.117	48.126	37.354
Less	INTEREST EXPENSES (D)		13.530	15.575	14.297
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		33.587	32.551	23.057
Less/ Add	DEPRECIATION/ AMORTISATION (F)		18.704	19.390	16.353
	PROFIT BEFORE TAX (E-F) (G)		14.883	13.161	6.704
Less	TAX (H)		5.544	1.447	0.332
	PROFIT AFTER TAX (G-H) (I)		9.339	11.714	6.373
Add	Excess Provision for Income Tax of earlier year		0.514	(0.027)	0.016
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		5.672	(6.016)	(12.405)
	BALANCE CARRIED TO THE B/S		15.525	5.671	(6.016)
	Earnings Per Share (Rs.)		952.94	1195.380	650.28

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	1.85	3.60	1.94
Net Profit Margin (PBT/Sales)	(%)	3.01	4.20	2.11
Return on Total Assets (PBT/Total Assets}	(%)	2.41	3.42	2.22
Return on Investment (ROI) (PBT/Networth)		0.59	0.85	1.77
Debt Equity Ratio (Total Liability/Networth)		23.13	23.79	78.50
Current Ratio (Current Asset/Current Liability)		1.34	1.15	1.17

LOCAL AGENCY FURTHER INFORMATIO

Details of Sundry Creditors

Particular	31.03.2011	31.03.2010	31.03.2009
	Rs in Millions
Sundry Creditors	203.600	93.071	54.233

Overview and Operation

The turnover of the company has increased from Rs.313.603 millions to Rs.494.631 millions and thus the profit of the company before taxation and after providing deprecation, for the financial year is Rs.14.883 millions against Rs.13.162 millions of the last year. The management is expecting better result and growth in the next year.

FORM 8

Corporate identity number of the company	U24230MH1996PLC098246
Name of the company	S KANT HEALTHCARE LIMITED
Address of the registered office or of the principal place of business in India of the company	A/3, Shivsagar Estate, North Wing, Dr. Annie Besant Road, Mumbai – 400018, Maharashtra, India
Charge identification (ID) number of the charge to be modified	90145433
Type of charge	Others
Particular of charge holder	Union Bank of India, Princess Street Branch, Devkaran Mansion, Shamaldas Gandhi Marg, Princess Street, Mumbai – 400002, Maharashtra, India Email: cbsprincessstreet@unionbankofindia.com
Nature of instrument creating charge	Letter of hypothecation of bills
Date of instrument Creating the charge	03.12.2008
Amount secured by the charge	Rs.12.500 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest: Interest 10.25% under L/C, and 10.50% under Contract Terms of Repayment: On Demand Margin As per sanction terms Extent and operation of the charge: To secure the FDBP/FUDBP (DP/DA 90 days) limit of Rs.12.500 millions granted by the bank to the company
Short particulars of the property or asset(s) charged (including complete address and location of the property)	Purchase from or negotiate a bill or bills of exchange drawn or accepted or endorsed against goods and merchandised or shipping or other documents and or hold such or any other bill or bills of exchange and or exchange and or documents for collocation on the borrowers account under lien to the bank.
Date of instrument modifying the charge	03.12.2008
Particulars of the present modification	A new limit by way of FDBP/FUDBP limit of Rs.12.500 millions has been granted by the bank to the company within the cash credit (Hypothecation) limit of Rs.22.500 millions

FIXED ASSETS

· Leasehold Land

· Building

· Plant and Machinery

· Air Conditioner

· Boiler

· Electrical Installation

· Fire Equipment

· Laboratory Equipment

· Material Handling Equipment

· Office Equipment

· Productive Machinery

· Tools and Appliances

· Computer

· R D Plant

· Telephone Intercom System

· Furniture and Fixture

· Vehicles

· Computer Software

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.49.05
UK Pound	1	Rs.77.78
Euro	1	Rs.65.89

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	5
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--CREDIT LINES	1~10	5
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	YES
--AFFILIATION	YES/NO	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		45

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.