MIRA INFORM REPORT

Report Date :

04.01.2012

IDENTIFICATION DETAILS

Name :	MALLADI DRUGS AND PHARMACEUTICALS LIMITED
Registered Office :	No. 9, GST Road, St. Thomas Mount, Chennai- 600016, Tamilnadu
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	21.08.1980
Com. Reg. No.:	18-008382
Capital Investment / Paid-up Capital :	Rs.141.060 Millions
CIN No.: [Company Identification No.]	U24230TN1980PLC008382
TAN No.: [Tax Deduction & Collection Account No.]	CHEM00349G
PAN No.: [Permanent Account No.]	AAACM5031A
Legal Form :	A Closely Held Public Limited Liability Company.
Line of Business :	Manufacturers and Distributors of Pharmaceuticals.
No. of Employees :	550 (100 in Office and 450 in Factory) Approximately

RATING & COMMENTS

MIRA’s Rating :

Ba (49)

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

Maximum Credit Limit :	USD 4990000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is well established company having satisfactory track. 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.

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 :	No. 9, GST Road, St. Thomas Mount, Chennai- 600016, Tamilnadu, India.
Tel. No.:	91-44-39876900
Fax No.:	91-44-39876914
E-Mail :	marketing@malladiinc.com materials@malladiinc.com prashant@malladiinc.com sita@malladiinc.com vvr@malladiinc.com info@malladi.co.in
Website :	http://www.malladi.com http://www.malladiinc.com http://www.malladi.co.in
Location :	Owned
Factory :	v Plot No. 67, Sipcot Industiral Complex, Ranipet – 632403, Vellore District , India v Plot Nos. 7 B & 7C, Sipcot Industiral Complex, Ranipet – 632403, Vellore District, India v Plot No. 6A, 7A, Sipcot Industiral Complex, Ranipet – 632403, Vellore District, India v Plot Nos. 49, 50, 55 & 56, IDA Gajulamandyam, Attur P. O., Renigunta, Tirupati – 517520, India v Tantech Agro Chemicals Limited, Sipcot Industrial Complex, Ranipet – 632403, Vellore District, India Rest are: Tirupati and Guddalore
Branch Office :	Located at : v 14, Raghavan Reddy Colony, Ashok Nagar, Chennai - 600 083, Tamilnadu, India Tel No. : 91-44-24892056 v 137 B, Old Mahabalipuram Road, Chennai - 600 096, Tamilnadu, India Tel. No. : 91-44-24960761 / 24960629 / 24960633 v 14, Dr. Natesan Salai, Ashok Nagar, Chennai - 600 083, Tamilnadu Tel No. : 91-44-24890185

DIRECTORS

As on 30.09.2011

Name :

Mr. Prashant Malladi

Designation :

Managing Director

Address :

No.31, Navarathna Gardens, Ekkatuthangal, Chennai – 600097, Tamilnadu, India.

Date of Birth/Age :

20.05.1959

Qualification :

B. Com, (ICWA)

Date of Appointment :

03.09.1998

Previous Employment :

Consultant in Saka Marketing Services Private Limited

DIN :

00133341

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	U24117TN1989PLC017845	MALLADI SPECIALITIES LIMITED	Director	20/09/1990	20/09/1990	Active	NO
2	U74999TN1979PTC007807	SAKA MARKETING SERVICES PRIVATE LIMITED	Director	7/12/1990	7/12/1990	Active	NO
3	U24230TN1980PLC008382	MALLADI DRUGS AND PHARMACEUTICALS LIMITED	Managing director	3/9/2011	3/9/1998	Active	NO
4	L24121TN1989PLC018170	TANTECH AGRO CHEMICALS LIMITED	Director	14/05/2004	14/05/2004	Active	NO

Name :

Mrs. Shreya Sistla

Designation :

Whole Time Director

Address :

No.41, Navarathna Gardens, Ekkatuthangal, Chennai – 600 097, Tamilnadu

Date of Birth/Age :

15.10.1962

Qualification :

B.Tech.

Date of Appointment :

02.12.1998

DIN :

00133354

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	U24117TN1989PLC017845	MALLADI SPECIALITIES LIMITED	Director	14/09/1991	14/09/1991	Active	NO
2	U24230TN1980PLC008382	MALLADI DRUGS AND PHARMACEUTICALS LIMITED	Whole-time director	1/10/2010	2/12/1998	Active	NO
3	U74999TN1979PTC007807	SAKA MARKETING SERVICES PRIVATE LIMITED	Director	26/12/1998	26/12/1998	Active	NO
4	L24121TN1989PLC018170	TANTECH AGRO CHEMICALS LIMITED	Director	14/05/2004	14/05/2004	Active	NO

Name :

Mr. Gopalakrishnan Narayanaswamy Venganellor

Designation :

Whole Time Director

Address :

B – 2, Aditiyaa Malaviya Nagar, Thiruvanmiyur, Chennai – 600041, Tamilnadu, India

Date of Birth/Age :

05.08.1952

Qualification :

B.E., (Chemicals)

Date of Appointment :

02.12.1998

DIN :

00198785

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	U24117TN1989PLC017845	MALLADI SPECIALITIES LIMITED	Director	7/9/2006	29/09/1995	28/06/2010	Active	NO
2	U24230TN1980PLC008382	MALLADI DRUGS AND PHARMACEUTICALS LIMITED	Whole-time director	12/5/2011	2/12/1998	-	Active	NO
3	U74999TN1979PTC007807	SAKA MARKETING SERVICES PRIVATE LIMITED	Director	26/12/1998	26/12/1998	-	Active	NO
4	L24121TN1989PLC018170	TANTECH AGRO CHEMICALS LIMITED	Director	14/05/2004	14/05/2004	-	Active	NO

Name :

Mr. Aaditiyaa Manickavelu Thevandavakkam

Designation :

Director

Address :

Flat No. 2, Block B 3, Plaza “Serene Acres”, Thorapakkam Chrompet Road, Okkiam Thorapakkam, Chennai – 600097, Tamilnadu, India.

Date of Birth/Age :

04.03.1960

Qualification :

B.Com., A.C.A., A.I.C.W.A.,

Date of Appointment :

11.03.1998

DIN :

00122605

Name :

Mr. Dilip Keshavlal Patel

Designation :

Director

Address :

D-70, 5^th Floor, Bina Apartments, Sir M. V. Road, Andheri [East], Mumbai – 400069, Maharashtra, India

Qualification :

B.E.,(Chemicals)

Date of Birth/Age :

20.10.1947

Date of Appointment :

17.06.2003

DIN :

00013150

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	U24230TN1980PLC008382	MALLADI DRUGS AND PHARMACEUTICALS LIMITED	Director	17/06/2003	17/06/2003	Active	NO
2	L17120MH1987PLC042598	EUROTEX INDUSTRIES AND EXPORTS LIMITED	Director	29/07/2003	29/07/2003	Active	NO
3	U25209MH1973PTC016846	POLYSET PLASTICS PRIVATE LIMITED	Director	29/07/2005	29/07/2005	Active	NO
4	L24230AP1987PLC008016	GODAVARI DRUGS LIMITED	Director	27/09/2006	27/09/2006	Active	NO
5	U40201GJ2000PLC037850	CELESTIAL BIOLOGICALS LIMITED	Director	29/09/2008	7/12/2007	Active	NO
6	L74999MH1995PLC085878	Solar Industries India Limited	Director	24/09/2008	18/06/2008	Active	NO
7	U28910MH1981PLC024161	MINEX METALLURGICAL COMPANY LIMITED	Director	1/8/2008	1/8/2008	Active	NO
8	U45201MH2006PLC165973	RELCON INFRAPROJECTS LIMITED	Director	30/09/2010	27/08/2010	Active	NO
9	L26100MH1998PLC117437	SEZAL GLASS LIMITED	Director	12/8/2011	12/8/2011	Active	NO

Name :

Mr. Sunil Vasant Diwakar

Designation :

Nominee Director

Address :

C – 002, Shreeji Valle, Almcide Road, Opp. Nitin Casting, Punch Pakhadi, Thane West, Mumbai – 400602, Maharashtra, India.

Date of Birth/Age :

22.05.1963

Qualification :

M. Tech

Date of Appointment :

27.12.2004

DIN :

00089266

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	U24230TN1980PLC008382	MALLADI DRUGS AND PHARMACEUTICALS LIMITED	Nominee director	27/12/2004	27/12/2004	-	Active	NO
2	U32301TN1994PLC028160	PRASAD CORPORATION LIMITED	Nominee director	15/10/2005	15/10/2005	-	Active	NO
3	U63090MH1997PLC108197	CONTINENTAL WAREHOUSING CORPORATION (NHAVA SEVA) LIMITED	Nominee director	1/12/2010	15/05/2006	11/4/2011	Active	NO
4	L99999DN1982PLC000128	JBF INDUSTRIES LIMITED	Director	27/07/2007	17/07/2006	-	Active	NO
5	U32305MH2000PTC124260	EBS WORLDWIDE SERVICES PRIVATE LIMITED	Nominee director	20/07/2006	20/07/2006	11/9/2009	Active	NO
6	L17226WB1946PLC013554	EASTERN SILK INDUSTRIES LIMITED	Nominee director	20/07/2006	20/07/2006	4/3/2011	Active	NO
7	U24230MH1971PLC015134	BHARAT SERUMS AND VACCINES LIMITED	Director	25/09/2009	7/8/2006	30/03/2010	Active	NO
8	U34102PN1989PLC014807	RSB TRANSMISSIONS (INDIA) LIMITED	Nominee director	26/09/2007	9/7/2007	-	Active	NO
9	U34300PN1992PLC021849	INTERNATIONAL AUTO LIMITED	Nominee director	26/09/2007	9/7/2007	-	Amalgamated	NO
10	U24231MH1993PLC150891	ARCH PHARMALABS LIMITED	Nominee director	28/01/2008	28/01/2008	9/12/2010	Active	NO
11	U85110KA1961PLC001433	BHARAT FRITZ WERNER LIMITED	Additional director	27/09/2008	28/07/2008	-	Active	NO
12	U27310JH2006PLC012663	ELECTROSTEEL STEELS LIMITED	Nominee director	31/08/2009	31/08/2009	-	Active	NO
13	L55101DL2007PLC157518	ASIAN HOTELS (WEST) LIMITED	Director	18/09/2010	10/8/2010	-	Active	NO
14	U63090MH2009PLC219843	JICS LOGISTIC LIMITED	Director	24/08/2011	18/07/2011	-	Active	NO

Name :

Mr. Albert Hansen

Designation :

Nominee Director

Address :

1729, Port Sheffield, New Port Beach, CA- 92660, USA

Date of Birth/Age :

03.10.1954

Qualification :

Graduate

Date of Appointment :

24.06.2005

DIN :

02564215

Name :

Mr. Lawrance Mohan Roy

Designation :

Alternate Director

Address :

No. 14, Opposite Rohini Manor, SG Palaya, C V Raman Nagar, Bangalore – 560093, Karnataka, India

Date of Birth/Age :

26.04.1969

Qualification :

B.E., M.B.A.

Date of Appointment :

12.06.2008

DIN :

02215814

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	U24230TN1980PLC008382	MALLADI DRUGS AND PHARMACEUTICALS LIMITED	Alternate director	30/06/2008	12/6/2008	-	Active	NO
2	U85110KA1961PLC001433	BHARAT FRITZ WERNER LIMITED	Alternate director	26/07/2010	28/07/2008	10/8/2010	Active	NO
3	U27310JH2006PLC012663	ELECTROSTEEL STEELS LIMITED	Alternate director	31/08/2009	31/08/2009	-	Active	NO

Name :

Ms. Vandana Rajadhyaksha

Designation :

Nominee Director

Address :

No.301, 3^rd Floor, Lakshmi Gopal, Hatishkar Marg, Prabhadevi, Mumbai – 400025, Maharashtra, India

Date of Birth/Age :

09.10.1971

Qualification :

B.E., M.B.A.

Date of Appointment :

18.06.2010

DIN :

00164120

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	U92100MH2000PLC127832	CAFE NETWORK LIMITED	Director	29/06/2001	29/06/2001	27/06/2008	Active	YES
2	U57909DL2000PTC103931	WEBQUITY E-MARKETING PRIVATE LIMITED	Director	14/03/2002	14/03/2002	-	Strike off	NO
3	U24231MH1993PLC150891	ARCH PHARMALABS LIMITED	Nominee director	19/07/2007	19/07/2007	-	Active	NO
4	U34102DL1989PLC034982	SAINIK MINING AND ALLIED SERVICES LIMITED	Nominee director	5/6/2009	5/6/2009	-	Active	NO
5	U24230TN1980PLC008382	MALLADI DRUGS AND PHARMACEUTICALS LIMITED	Nominee director	30/09/2010	18/06/2010	-	Active	NO

KEY EXECUTIVES

Name :	Mr. R Krishnan
Designation :	Secretary
Date of Appointment :	25.06.2010
PAN :	AAOPK4452E

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As On 30.09.2011

Names of Shareholders	No. of Shares
Mrs. M. Prabhavathi	92179
Mr. M. Prashant	249402
Mr. M. Prashant	57088
Mrs. S. Shreya	65253
Mrs. S. Shreya	60420
Mrs. S. Shreya	103
Mrs. M Parvathi	42772
Mrs. M Parvathi	178984
Mrs. M Parvathi	31874
Malladi Project Management Centre Private Limited, India	3327552
Malladi Project Management Centre Private Limited, India	353
Malladi Project Management Centre Private Limited, India	1766000
Saka Marketing Services Private Limited, India	3003199
TIIC Limited, India	770000
Mr. M. S. Pawan	154
Mr. V. N. Gopalakrishnan	38500
Mr. V. N. Gopalakrishnan	14630
M. Parvathi and M. Prashant	279961
MDPL Employee Welfare Trust	774620
Sara Fund Trustee Company Limited, India	2074413
Leverage India Fund C/o Land FS	3687845
IVC Employee Welfare Trust	80000
India Advantage Fund	4985936
LOF Mauritius – LLC, Mauritius	3319060
Dynamic India Fund – I [Trustee – ICICI Bank Limited]	3273839
Beena Mukesh Chotai	37876
Total	28212013

As on 30.09.2011

Equity Share Break Up 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	12.00
Venture Capital	50.00
Bodies corporate	28.00
Directors or relatives of Directors	4.00
Other top fifty shareholders	3.00
Public Financial Companies	3.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturers and Distributors of Pharmaceuticals.

Products :

Product Description	ITC Code No
Pseudo Ephedrine Chloride	2939.41
Ephedrine Hydrochloride	2939.41
Phenyl Ephrine	3041

PRODUCTION STATUS [As on 31.03.2010]

Particulars	Unit	Licensed Capacity	Installed Capacity	Actual Production
Bulk Drugs	MT	985	985	414.03
Fine Chemicals	MT	1424	1424	42.94

GENERAL INFORMATION

No. of Employees :

550 (100 in Office and 450 in Factory) Approximately

Bankers :

v Corporation Bank

v     Axis Bank Limited

v Union Bank of India, Industrial Finance Branch, Riaz Garden, 12/13, Kodambakkam High Road, Nungambakkam, Chennai – 600034, Tamilnadu, India

v State Bank of India

v State Bank of Travancore, Commercial Branch, 556, Anna Salai, Teynampet, Chennai – 600018, Tamilnadu, India

v State Bank of Hyderabad

v Export Import Bank of India

Facilities:

Secured Loans	31.03.2011 Rs.in millions	31.03.2010 Rs in Millions
From Banks
Rupee Term Loan	245.154	340.893
Foreign Currecny loan	259.187	175.078
Working Capital loan	338.108	365.632
Interest Accrued and Due	1.658	2.667
TOTAL	844.107	884.270
Unsecured Loans	31.03.2011 Rs.in millions	31.03.2010 Rs in Millions
Rupee term loan	27.100	28.684
Public Deposits	0.000	0.000
Deferred Sales Tax loan	31.435	32.829
Other debt	9.150	1.885
TOTAL	67.685	63.398

Banking Relations :	Good
Financial Institution :	India Equipment Leasiny Limited, 21, Patullos Road, Madras – 600002, Tamilnadu, India
Auditors :
Name :	Price Water House Chartered Accountants
Address :	32, Khader Nawazkhan Road, Nungambakkam, Chennai – 600006, Tamilnadu, India
PAN :	AAEFP5579P
Subsidiaries :	v Malladi Inc. USA76, National Road, Edison, NJ 08818 v Tantech Agro Chemicals Limited CIN : L24121TN1989PLC018170 v Novus Fine Chemicals LLC USA v Malladi Project Management Centre Private Limited v Saka Marketing Service Private Limited v Sreeprabha Franchise – Association of Persons [SPF] v Marine and Agro Products Private Limited v Malladi Specialties Limited [MSL] – formerly known as Lactochem India Limited [LCL]

CAPITAL STRUCTURE

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
30,000,000	Equity Shares	Rs. 5/- each	Rs 150.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
28,212,013	Equity Shares	Rs.5/- each	Rs.141.060 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		141.060	141.060	141.060
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		1108.280	1033.712	962.346
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		1249.340	1174.772	1103.406
LOAN FUNDS
1] Secured Loans		844.107	884.270	919.595
2] Unsecured Loans		67.685	63.398	47.527
TOTAL BORROWING		911.792	947.668	967.122
DEFERRED TAX LIABILITIES		112.379	123.394	137.124
TOTAL		2273.511	2245.834	2207.652
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		753.706	794.235	812.630
Capital work-in-progress		2.128	13.097	7.233
INVESTMENT		671.272	671.272	510.995
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	551.122	518.887	454.215
	Sundry Debtors	661.181	411.762	488.243
	Cash & Bank Balances	62.647	42.325	103.963
	Other Current Assets	64.594	94.358	81.137
	Loans & Advances	312.756	297.781	327.997
Total Current Assets		1652.300	1365.113	1455.555
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	726.337	468.540	422.698
	Current Liabilities	76.200	112.396	140.178
	Provisions	3.358	16.947	15.885
Total Current Liabilities		805.895	597.883	578.761
Net Current Assets		846.405	767.230	876.794
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		2273.511	2245.834	2207.652

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	1900.510	1839.022	1603.281
		Other Income	58.816	80.059	94.141
		TOTAL (A)	1959.326	1919.081	1697.422
Less	EXPENSES
		Consumption materials changes inventories	1089.933	957.295	888.288
		Manufacturing service costs	225.310	227.423	206.681
		Contract cost	27.971	21.427	0.000
		Employee related expenses	160.355	158.300	160.242
		Administrative selling other expenses	155.132	163.562	138.692
		Research development expenditure	66.093	57.359	46.313
		TOTAL (B)	1724.794	1585.366	1440.216
	PROFIT/[LOSS] BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		234.532	333.715	257.206
Less	FINANCIAL EXPENSES (D)		120.773	125.716	130.840
	PROFIT/[LOSS] BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		113.759	207.999	126.366
Less/ Add	DEPRECIATION/ AMORTISATION (F)		76.206	79.712	62.694
	Exceptional income expense, net		0.000	[37.151]	0.000
	PROFIT / [LOSS] BEFORE TAX (E-F) (G)		37.553	91.136	63.672
Less	TAX (H)		[17.015]	19.770	26.203
	PROFIT / [LOSS] AFTER TAX (G-H) (I)		54.568	71.366	37.469
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		54.217	[17.149]	[54.618]
	BALANCE CARRIED TO THE B/S		108.785	54.217	[17.149]
	EARNINGS IN FOREIGN CURRENCY
		FOB Value of Export	NA	1187.867	1002.734
	TOTAL EARNINGS		NA	1187.867	1002.734
	IMPORTS
		Raw Materials	-	256.257	223.459
		Capital Goods	-	16.084	29.105
	TOTAL IMPORTS		NA	272.341	252.564
	Earnings/[Loss] Per Share (Rs.)		1.93	2.53	1.44

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	2.78	3.72	2.21
Net Profit Margin (PBT/Sales)	(%)	1.97	4.95	3.97
Return on Total Assets (PBT/Total Assets}	(%)	1.56	4.22	2.81
Return on Investment (ROI) (PBT/Networth)		0.03	0.08	0.06
Debt Equity Ratio (Total Liability/Networth)		1.37	1.31	1.40
Current Ratio (Current Asset/Current Liability)		2.05	2.28	2.51

LOCAL AGENCY FURTHER INFORMATION

Note : Registered office address of the company has been shifted from 52, Jawaharlal Nehru Salai, Ekkattuthangal, Chennai - 600 097, Attuthangal, Chennai - 600 097, Tamil Nadu, India to the present address w.e.f. 09.10.2008

Financial Performance :

The company has registered an overall growth of around 3.5% in sales over the previous year. The exports were around 60% and the company is exploring further avenues for improving the same.

Working of Subsidiaries :

v Novus Fine Chemicals, LLC (Novus)

v Novus, the wholly owned subsidiary for FY 2011 reported a loss of $ 1038177.

v Tantech Agro Chemicals Limited (TACL )

v TACL reported for FY 2011 a net loss of Rs.13.09 Mill.

Bankers Charges Report as per Registry

Corporate identity number of the company	U24230TN1980PLC008382
Name of the company	MALLADI DRUGS AND PHARMACEUTICALS LIMITED
Address of the registered office or of the principal place of business in India of the company	9, G S T Road, St. Thomas Mount, Chennai – 600016, Tamil Nadu, India
This form is for	Creation of charge
Type of charge	Book Debts Movable Property Floating Charge
Particular of charge holder	State Bank of Travancore, Commercial Branch, 556, Anna Salai, Teynampet, Chennai – 600018, Tamilnadu, India Email : ifbchennai@sbt.co.in
Nature of instrument creating charge	Letter regarding grant of individual limit within overall WC limits – C and I-12 Agreement of Hypothecation of goods and assets – C and I-2 Agreement of loan for overall WC limits – C and I-1 Adhoc credit facilities
Date of instrument Creating the charge	07.12.2011
Amount secured by the charge	Rs.100.000 millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest – Adhoc EPC/FBD - 2.5% above base rate ie., 13% EPC - 2% above SBTBR - 12.5% CC - 6.75% above SBTBR - 17.25% FDBP/FBEP - NA Terms of Repayment - As per the Agreement Margin - Adhoc EPC/PCFC - 10% Extent and Operation of the charge - First charge on all Current Asset on pari passu with WC Consortium Bankers Collateral security by Second charge on Fixed Assets with other WC Consortium Bankers Continuation of First charge on Fixed Assets and Second Charge on WC for TL Bankers Others - Adhoc EPC – Rs.100.000 millions
Short particulars of the property or asset(s) charged (including complete address and location of the property)	Hypothecation of RM, WIP, FG, Stores and Spares, Book Debts and other Current Assets lying at the following locations. Plot No.67, 7B,7C at Sipcot Industrial Estate, Ranipet Plot No.49,50,55 and 56, IDA, Gajulamandyam, Renigunta R&D Centre, Koothambakkam, Tiruvellore District Stocks at Godown at No.9, GST Road, Chennai Land and Buildings, Plant and Machinery located at Ranipet and Renigunta Land and Equipments at R&D Center, Koothambakkam Lands admeasuring 15.132 Acres at Vanapadi Village, Ranipet

This form is for	Modification of charge
Charge identification number of the modified	10094257
Corporate identity number of the company	U24230TN1980PLC008382
Name of the company	MALLADI DRUGS AND PHARMACEUTICALS LIMITED
Address of the registered office or of the principal place of business in India of the company	No. 9, GST Road, ST. Thomas Mount, Chennai- 600016, Tamilnadu, India.
Type of charge	Book Debts Movable Property Others
Particular of charge holder	State Bank of India- Commercial Branch, 232, NSC Bose Road, Chennai- 600001, Tamilnadu, India.
Nature of description of the instrument creating or modifying the charge	a) Supplemental Agreement of loan for increase in the overall limit b) Supplemental Agreement of Hypothecation of Goods and Assets for Increase in the overall limit
Date of instrument Creating the charge	25.04.2009
Amount secured by the charge	Rs. 295.900 Millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest: As stipulated by Bank from time to time. Terms of Repayment: As stipulated by Bank from time to time. Margin: As stipulated by Bank from time to time. Extent and Operation of the charge: As per Agreements.
Short particulars of the property charged	Hypothecation of Raw Materials, Stock in Process, Finished Goods, Stores and Spares, Receivables and other Current Assets on Pari Passu basis with other consortium members. Second charge over the Fixed Assets of the company on Pari Passu basis with over WC consortium Banks as collateral which are located at Ranipet, Vanapadi, Poonamallee and Renigunta. Extension of charge over Current Assets of the company on Pari Passu basis with other Banks in the consortium.
Date of latest modification prior to the present modification	17.02.2009
Particulars of the present modification	By the present modification the overall credit limits gas been enhanced from Rs. 270.900 Millions to Rs. 295.900 Millions. All other terms and conditions original charge and subsequent modifications remain unaltered.

FIXED ASSETS:- 

v Goodwill

v Land and Land Development

v Leasehold Land

v Building

v Plant and Machinery

v Furniture and Fixture

v Office Equipments

v Vehicles

v Technical Know-how

v Product Development

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.53.22
UK Pound	1	Rs.82.86
Euro	1	Rs.69.12

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
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	5
--LEVERAGE	1~10	5
--RESERVES	1~10	6
--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	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		49

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.