MIRA INFORM REPORT

Report Date :

02.01.2012

IDENTIFICATION DETAILS

Name :	NARANG MEDICAL LIMITED
Registered Office :	Narang Tower, 46, Community Centre, Naraina Phase – I, New Delhi – 110028
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	24.02.2004
Com. Reg. No.:	55-124816
Capital Investment / Paid-up Capital :	Rs.2.500 Millions
CIN No.: [Company Identification No.]	U33119DL2004PLC124816
IEC No.:	0504001132
TAN No.: [Tax Deduction & Collection Account No.]	DELN05770C
PAN No.: [Permanent Account No.]	AABCN8921H
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer and Exporter of Medical Equipments, Hospital Furniture, Orthopedic Implants and Instruments.
No. of Employees :	40 [Approximately]

RATING & COMMENTS

MIRA’s Rating :

Ba (51)

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

Maximum Credit Limit :	USD 200000
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/Factory :	Narang Tower, 46, Community Centre, Naraina Phase – I, New Delhi – 110028, India
Tel. No.:	91-11-45554000 (100 Lines Each) / 25892020 / 30585070/ 41495070 (12 Lines)
Fax No.:	91-11-45554001 / 25892026 / 41495076 / 30585080
E-Mail :	net@narang.com anily2k@rediffmail.com
Website :	http://www.narang.com http://www.ortho.com

DIRECTORS

As on 23.09.2011

Name :

Mr. Parveen Narang

Designation :

Director

Address :

House No. 7, Road No. 83, West Punjabi Bagh, New Delhi-110026, India

Date of Birth/Age :

13.06.1968

Date of Appointment :

24.02.2004

Din No.:

00043565

Other Directorship:

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	U33119DL2004PLC124816	NARANG MEDICAL LIMITED	Whole-time director	01-06-11	24-02-06	Active	NO

Name :

Mr. Vivek Narang

Designation :

Director

Address :

House No. 7, Road No. 83, West Punjabi Bagh, New Delhi-110026, India

Date of Birth/Age :

05.09.1971

Date of Appointment :

24.02.2004

Din No.:

00043592

Other Directorship:

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	U33119DL2004PLC124816	NARANG MEDICAL LIMITED	Whole-time director	01-06-11	24-02-06	Active	NO

Name :

Mr. Naveen Chowdhry

Designation :

Director

Address :

M-185, Vikas Puri, New Delhi-110018, India

Date of Birth/Age :

04.04.1972

Date of Appointment :

01.04.2008

Din No.:

02148192

Other Directorship:

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	U33119DL2004PLC124816	NARANG MEDICAL LIMITED	Director	01-04-08	01-04-08	Active	NO
2	U52100DL2009PTC196241	INOX DECOR PRIVATE LIMITED	Director	20-11-09	20-11-09	Active	NO

Name :

Mr. Urmil Narang

Designation :

Director

Address :

House No. 7, Road No. 83, West Punjabi Bagh, New Delhi-110026, India

Date of Birth/Age :

02.10.1943

Date of Appointment :

24.02.2004

Din No.:

00043703

Name :

Mr. Gurudeep Singh

Designation :

Director

Address :

K-52, Kirti Nagar, New Delhi-110015, India

Date of Birth/Age :

06.10.1968

Date of Appointment :

01.04.2008

Din No.:

02149895

Name :

Nainy Saluja

Designation :

Director

Address :

C 2B/60A, Janak Puri, New Delhi-110058, India

Date of Birth/Age :

13.04.1961

Date of Appointment :

01.04.2008

Din No.:

02148160

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 23.09.2011

Names of Shareholders	No. of Shares
Parveen Narang	100000
Vivek Narang	100000
Urmil Narang	12500
Sonia Narang	12500
Vir Raj Narang	12000
Monica Narang	12500
Veenu Arora	500
Total	250000

As on 23.09.2011

Equity Share Breakup	Percentage of Holding
Category
Directors or relatives of directors	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer and Exporter of Medical Equipments, Hospital Furniture, Orthopedic Implants and Instruments.

Products :

v Laryngoscope Sets and Spares v Hospital Holloware v Disposable and Surgical Medical Products v Orthopedic Implants and Instruments v Hospital/Medical Furniture v Anaesthesia Equipments and Products v Autoclave and Sterilizers v Suction Machines and Units v Diagnostic Equipments and Products v Height and Weight Scales v Infant Care/Baby Care Equipments v General Surgical Instruments v Dental Instruments v Surgical Medical and Rubber Goods v Cold Chain Equipments v Emergency Medical Products and Supplies v Surgical Instruments v Rehabilitation Products and Aids v Natural Cosmetic and Beauty Products v Microscopes v Laboratory Glassware v Misc. Surgical Medical Products v Laboratory Equipments

GENERAL INFORMATION

No. of Employees :

40 [Approximately]

Bankers :

v ABN Amro Bank

v Bank of India

v Axis Bank, Rajori Garden, New Delhi, India

v HDFC Bank Limited

v Standard Chartered Bank

v State Bank of India

v SCB Bank

v Punjab National Banks

Facilities :

Secured Loan	As on 31.03.2011 [Rs. in Millions]	As on 31.03.2010 [Rs. in Millions]
HDFC Bank Limited, Loan A/C [Against hypothecation of car Wagonr]	0.104	0.174
Total	0.104	0.174

Banking Relations :	--
Auditors :
Name :	Anil Gupta and Associates Chartered Accountants
Address :	819 Vishal Tower, District Centre, Janak Puri, New Delhi – 110058, India
Tel. No.:	91-11-25618216/ 25516828/ 25501960
E-Mail :	anily2k2@rediffmail.com
Pan No.:	AAIPG8663K
20% or more of the holdings of following concern have been held by directors of the company and/or their relatives:	Narang Enterprises

CAPITAL STRUCTURE

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
250000	Equity Shares	Rs.10/- each	Rs.2.500 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
250000	Equity Shares	Rs.10/- each	Rs.2.500 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		2.500	2.500	2.500
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		49.451	38.304	25.923
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		51.951	40.804	28.423
LOAN FUNDS
1] Secured Loans		0.104	0.174	19.451
2] Unsecured Loans		0.328	0.315	0.300
TOTAL BORROWING		0.432	0.489	19.751
DEFERRED TAX LIABILITIES		0.265	0.220	0.123
TOTAL		52.648	41.513	48.297
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		9.315	8.748	7.184
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		6.657	0.004	0.004
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	13.504	17.294	14.331
	Sundry Debtors	16.334	29.050	33.888
	Cash & Bank Balances	22.973	37.046	6.829
	Other Current Assets	9.495	3.749	3.455
	Loans & Advances	3.613	12.752	7.339
Total Current Assets		65.919	99.891	65.842
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors and Other Current Liabilities	29.243	67.130	21.431
	Provisions	0.000	0.000	3.302
Total Current Liabilities		29.243	67.130	24.733
Net Current Assets		36.676	32.761	41.109
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		52.648	41.513	48.297

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	237.838	230.020	229.844
		Other Income	10.357	10.076	9.200
		TOTAL	248.195	240.096	239.044
Less	EXPENSES
		Cost of Goods Sold	164.319	160.280	160.963
		Magazine Printing Expenses	1.099	0.268	0.000
		Directors Remunerations	3.900	3.600	3.600
		Rent of Office and Godown	3.430	4.547	3.208
		Travelling Expenses	3.119	4.348	5.666
		Freight Paid (Outward) and C and F Charges	19.127	15.999	16.680
		Other Expenditure	34.455	31.244	30.430
		TOTAL	229.449	220.286	220.547
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION		18.746	19.810	18.497
Less/ Add	DEPRECIATION/ AMORTISATION		1.019	0.852	0.766
	PROFIT BEFORE TAX		17.727	18.958	17.731
Less	TAX		6.585	6.577	6.437
	PROFIT AFTER TAX		11.142	12.381	11.294
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	218.778	211.172	210.189
	IMPORTS
		Raw Materials	20.171	21.685	13.170
	Earnings Per Share (Rs.)		44.57	49.52	45.18

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	4.49	5.16	4.72
Net Profit Margin (PBT/Sales)	(%)	7.45	8.24	7.71
Return on Total Assets (PBT/Total Assets}	(%)	23.56	17.45	24.28
Return on Investment (ROI) (PBT/Networth)		0.34	0.46	0.62
Debt Equity Ratio (Total Liability/Networth)		0.57	1.65	1.57
Current Ratio (Current Asset/Current Liability)		2.25	1.49	2.66

LOCAL AGENCY FURTHER INFORMATION

FIXED ASSETS:

v Air Conditioner

v Battery

v Car Honda City

v Cellular Phone

v Computer

v UPS

v Coffee Machine

v Computer Software

v Electronic Scale

v Fax Machine

v Furniture

v Generator

v Laptop

v Laser Marking Machine

v Money Counting Machine

v Printer TEC-B-SX-ST

v Television

v Water Cooler

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.53.27
UK Pound	1	Rs.82.10
Euro	1	Rs.68.90

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	6
--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		51

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.