MIRA INFORM REPORT

Report Date :

16.01.2012

IDENTIFICATION DETAILS

Name :	MADVIK RESEARCH LABS PRIVATE LIMITED
Registered Office :	H.No.2-2-18/18/3/3, G-2, Rajagriha, Ahobil Mutt Road, D.D. Colony, Hyderabad – 500 013, Andhra Pradesh
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	16.01.2006
Com. Reg. No.:	01-048783
Capital Investment / Paid-up Capital :	Rs.22.578 Millions
CIN No.: [Company Identification No.]	U24239AP2006PTC048783
IEC No.:	0908015496
TAN No.: [Tax Deduction & Collection Account No.]	HYDM09438C
PAN No.: [Permanent Account No.]	AAECM5685J
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturers, Exporters, Importers and Suppliers of Herbal Extracts, Edible Food Colors, Spray Dried Powders, Aloe Vera Powders, Pharmaceutical Drug Intermediates, Cosmetic Butters, etc.
No. of Employees :	Approximately 48 (In Office – 8, In Factory - 40)

RATING & COMMENTS

MIRA’s Rating :

B (29)

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

Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track. Profitability of the company appears to be low. However, trade relations are reported as fair. Business is active. Payments are reported to be slow but correct. The company can be considered for small 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/ Corporate Office :	H.No.2-2-18/18/3/3, G-2, Rajagriha, Ahobil Mutt Road, D.D. Colony, Hyderabad – 500 013, Andhra Pradesh, India
Tel. No.:	91-40-27403278/ 27400088/ 32996330
Mobile No.:	91-9885302278 (Dr. Vikram Pillarisetty)
Fax No.:	91-40-27403278
E-Mail :	contact@madvikgroup.com vikram@papins.com vikram@madvikgroup.com info@papins.com
Website :	www.papins.com
Location :	Owned
Factory 1 :	Sy.No.171 and 172, Chinnakaparthi Village, Chityala Mandal, Nalgonda District, Andhra Pradesh, India
Factory 2 :	Plot No.4/A, IDA Phase III, Cherlapally, Hyderabad – 500 051, Andhra Pradesh, India
Tel. No.:	91-40-32996330
Fax No.:	91-40-27403278

DIRECTORS

As on 29.09.2011

Name :

Dr. Pillarisetty Vikram

Designation :

Managing Director

Address :

15/62, Brindavan, Nellore District – 524 001, Andhra Pradesh, India

Date of Birth/Age :

15.05.1975

Qualification :

MS

Date of Appointment :

16.01.2006

DIN No.:

02428370

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	U24239AP2006PTC048783	Madvik Research Labs Private Limited	Managing director	16-01-06	16-01-06	-	Active	NO
2	U24297AP2010PTC069102	Madvik Corporation Private Limited	Managing director	26-08-10	23-06-10	-	Active	NO
3	U74999AP2011PTC072281	Madvik Impex Private Limited	Director	18-01-11	18-01-11	-	Active	NO

Name :

Dr. Pillarisetty Madan Mohan Rao

Designation :

Director

Address :

15/62, Brindavan, Nellore District – 524 001, Andhra Pradesh, India

Date of Birth/Age :

17.03.1948

Qualification :

MS

Date of Appointment :

16.01.2006

DIN No.:

02428348

Name :

Mr. Govinda Raju Diwakar

Designation :

Director

Address :

H No.2-2-1144/14/3, Ramalayam Post Office Road, New Nallankunta, Hyderabad – 500 044, Andhra Pradesh, India

Date of Birth/Age :

29.05.1970

Qualification :

BE

Date of Appointment :

02.04.2009

DIN No.:

02719358

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	U24239AP2006PTC048783	Madvik Research Labs Private Limited	Director	02-04-09	02-04-09	-	Active	NO
2	U24297AP2010PTC069102	Madvik Corporation Private Limited	Director	23-06-10	23-06-10	22-10-10	Active	NO
3	U15400AP2011PTC075557	Rochee Organic Foods Private Limited	Director	15-08-11	15-08-11	-	Active	NO
4	U45209AP2011PTC072057	Dhathri Nirman India Private Limited	Director	05-12-11	05-12-11	-	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 29.09.2011

Names of Shareholders	No. of Shares
P. Vikram	45000
P. Madan Mohan Rao	5000
A. Gowri Shankar Ganesh	300000
V.V. Bhavanarayana	300000
Ch. Nagesh	644500
G. Giribabu	320000
P. Gangadhar	353000
B. Raghunadh	290250
Total	2257750

As on 24.10.2011

Names of Allottees	No. of Shares
P. Vikram	13630
Total	13630

As on 29.09.2011

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

BUSINESS DETAILS

Line of Business :	Manufacturers, Exporters, Importers and Suppliers of Herbal Extracts, Edible Food Colors, Spray Dried Powders, Aloe Vera Powders, Pharmaceutical Drug Intermediates, Cosmetic Butters, etc.
Products :	v Spray Dried Fruit Powder v Spray Dried Vegetable Powder v Aloe Vera Products v Nutraceuticals v Herbal Extracts v Drug Inermediates v Natural Colors and Butter and Oils v Herbal Extracts v Edible Food Colors v Spray Dried Powders v Aloe Vera Powders v Pharmaceutical Drug Intermediates v Cosmetic Butters, etc.

GENERAL INFORMATION

No. of Employees :

Approximately 48 (In Office – 8, In Factory - 40)

Bankers :

v State Bank of India, Overseas Branch, Hyderabad, Andhra Pradesh, India

v State Bank of Hyderabad, Branch Hapsikuda, Hyderabad Andhra Pradesh, India

v State Bank of Hyderabad, Lalaguda Branch, Haseena Mansion, Opposite National Institute of Nutrition, Tarnaka, Secunderabad – 500 017, Andhra Pradesh, India

Facilities :

Secured Loans	31.03.2011 Rs. In Millions	31.03.2010 Rs. In Millions
Cash Credit from State Bank of Hyderabad	48.100	14.433
Total	48.100	14.433

Unsecured Loans	31.03.2011 Rs. In Millions	31.03.2010 Rs. In Millions
From Others	1.469	0.500
Total	1.469	0.500

Banking Relations :	--
Auditors :
Name :	Ram Babu and Company Chartered Accountants
Address :	6-3-1090/1/A, Pancom Chambers, Rajbhavan Road, Somajiguda, Hyderabad – 500 082, Andhra Pradesh, India
Income-tax PAN of auditor or auditor's firm :	AACFR1603G

CAPITAL STRUCTURE

After 29.09.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
2500000	Equity Shares	Rs.10/- each	Rs.25.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
2271380	Equity Shares	Rs.10/- each	Rs.22.714 Millions

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
2500000	Equity Shares	Rs.10/- each	Rs.25.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
2257750	Equity Shares	Rs.10/- each	Rs.22.578 Millions

(Out of the above 290250 Equity Shares of Rs.10/- each were 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		22.578	19.275	0.100
2] Share Application Money		1.363	4.031	3.631
3] Reserves & Surplus		33.961	1.953	0.287
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		57.902	25.259	4.018
LOAN FUNDS
1] Secured Loans		48.100	14.433	4.772
2] Unsecured Loans		1.469	0.500	0.606
TOTAL BORROWING		49.569	14.933	5.378
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		107.471	40.192	9.396
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		35.156	1.155	0.761
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.000	0.000	0.000
DEFERRED TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	35.822	17.836	9.452
	Sundry Debtors	28.413	19.667	32.780
	Cash & Bank Balances	0.171	0.124	0.130
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	14.706	6.751	0.295
Total Current Assets		79.112	44.378	42.657
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	4.571	4.061	33.925
	Other Current Liabilities	0.052	0.367	0.000
	Provisions	2.174	0.974	0.218
Total Current Liabilities		6.797	5.402	34.143
Net Current Assets		72.315	38.976	8.514
MISCELLANEOUS EXPENSES		0.000	0.061	0.121
TOTAL		107.471	40.192	9.396

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	249.647	95.704	40.799
		Other Income	0.081	0.000	0.000
		TOTAL (A)	249.728	95.704	40.799
Less	EXPENSES
		Cost of Goods Sold	231.741	83.476	37.073
		Personnel Cost	5.829	4.112	1.201
		Administrative & Selling Expenses	3.169	3.134	1.128
		R and D Expenditure	0.000	1.631	0.608
		Preliminary Expenses Written off	0.061	0.061	0.061
		TOTAL (B)	240.800	92.414	40.071
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		8.928	3.290	0.728
Less	FINANCING COST (D)		5.294	0.751	0.217
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		3.634	2.539	0.511
Less/ Add	DEPRECIATION/ AMORTISATION (F)		0.148	0.099	0.066
	PROFIT BEFORE TAX (E-F) (G)		3.486	2.440	0.445
Less	TAX (H)		1.200	0.774	0.219
	PROFIT AFTER TAX (G-H) (I)		2.286	1.666	0.226
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		1.953	0.287	0.061
	BALANCE CARRIED TO THE B/S		4.239	1.953	0.287
	Earnings Per Share (Rs.)		1.01	0.86	22.60

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	0.92	1.74	0.55
Net Profit Margin (PBT/Sales)	(%)	1.40	2.55	1.09
Return on Total Assets (PBT/Total Assets}	(%)	3.05	5.36	1.02
Return on Investment (ROI) (PBT/Networth)		0.06	0.10	0.11
Debt Equity Ratio (Total Liability/Networth)		0.97	0.81	9.84
Current Ratio (Current Asset/Current Liability)		11.64	8.22	1.25

LOCAL AGENCY FURTHER INFORMATION

Note:

The registered office of the company has been shifted from 102, Supreme Residency, 2-2-1144/3/2, Nallakunta, Hyderabad – 500 044, Andhra Pradesh to the present address w.e.f. 31.07.2009.

REVIEW OF OPERATIONS:

It is the Fifth Year of Companies Operations. They have started their business aiming to Manufacture and export various Herbal extracts, Nutraceuticals, Spice oils and Oleoresins, Cosmetic products and Confectionery Butters.

In the Fifth year the company has achieved a Turnover of Rs.249.647 millions. The Company continues to show its performance in coming years.

FORM 8:

Corporate identity number of the company

U24239AP2006PTC048783

Name of the company

MADVIK RESEARCH LABS PRIVATE LIMITED

Address of the registered office or of the principal place of business in India of the company

H.No.2-2-18/18/3/3, G-2, Rajagriha, Ahobil Mutt Road, D.D. Colony, Hyderabad – 500 013, Andhra Pradesh, India

E-Mail: vikram@madvikgroup.com

This form is for

Modification of charge

Charge identification number of the modified

10133097

Type of charge

Immovable Property

Book Debts (not being pledge)

Movable Property

Particular of charge holder

State Bank of Hyderabad, Lalaguda Branch, Haseena Mansion, Opposite National Institute of Nutrition, Tarnaka, Secunderabad – 500 017, Andhra Pradesh, India

E-Mail: lallaguda@sbhyd.co.in

Nature of description of the instrument creating or modifying the charge

1. Form C.1-A

2. Form C.2-A

3. Form C.5

Date of instrument Creating the charge

05.01.2011

Amount secured by the charge

Rs.78.100 millions

Brief particulars of the principal terms an conditions and extent and operation of the charge

Rate of Interest:

1% above the regular WC limit i.e. at 6.00% above Base Rate i.e. at present 16.50% p.a. (floating) with monthly rests as applicable as per CRA rating of SB 6

Terms of Repayment:

Repayable on Demand

Margin:

Finished Goods 25%

Receivables (90 days) 50%

Letter of Credit 25%

Extent and Operation of the charge:

The charge shall operates as first charge on all the current and fixed assets of the company for the due repayment of loan facilities together with interest, penal charges etc if any.

Short particulars of the property charged

Primary Security:

Extension of Hypothecation of entire current assets of the company including stocks of raw materials, SIP, finished goods, goods in transit and book debts and other current assets of the company both present and future.

Collateral Security:

Hypothecation of entire movable fixed assets of the company including lab / office equipments, furniture, fixtures, computer systems and accessories, vehicles, etc., both present and future

All piece and parcel of Zerioyathi Dry Land bearing Patta No.906 admeasuring Ac.4.00 Cents or 19360 Sq yards or 16,187.47 Sq Mts covered by S.No.319/1 part at Sontyam Village and Panchayat, Anandapuram Mandal, Visakhapatnam District.

Particulars of the present modification

Revised limits of Rs.78.100 millions is under follows:

	Limits (Rs. in millions)
CC (Hypothecation)	48.100
CC (Hypothecation) Adhoc	10.000
LC	20.000
Total	78.100

This form is for	Creation of charge
Corporate identity number of the company	U24239AP2006PTC048783
Name of the company	MADVIK RESEARCH LABS PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	G-2, Raja Gruha, 2-2-18/18/3/3, C-32/8, Ahobil Mutt Road, D.D. Colony, Hyderabad – 500 013, Andhra Pradesh, India
Type of charge	Book Debts Movable Property Others
Particular of charge holder	State Bank of Hyderabad, SMECCC - Secunderabad, First Floor, R.P. Road Branch Secunderabad, Secunderabad – 500 003, Andhra Pradesh, India Email : Sbhsec@eth.net
Nature of description of the instrument creating or modifying the charge	Sanction letter dated 27^th October, 2008 Agreement of Loan for Overall Limit Agreement of Hypothecation of Goods and Assets Deed of Guarantee for Overall Limit Letter regarding the grant of individual limits within overall limit
Date of instrument Creating the charge	29.10.2008
Amount secured by the charge	Rs.5.000 Millions.
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest : 1.75% over SBH PLR (floating) subject to change as per RBI directives from time to time Terms of Repayment : Repayable on demand Margin : Stocks 25% Book Debts (Covered period 90 days) 50% Extent and Operation of the charge : Cash Credit (Hypothecation) of Rs.5.000 Millions is secured by 1^st charge on current assets of the Company.

FIXED ASSETS:

v Land

v Lab Equipments

v Computers

v Furniture

v Office Equipment

v Vehicle

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.51.43
UK Pound	1	Rs.79.10
Euro	1	Rs.66.17

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	4
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	YES
--AFFILIATION	YES/NO	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		29

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.