MIRA INFORM REPORT

Report Date :

07.07.2012

IDENTIFICATION DETAILS

Name :	MEGA FINE PHARMA PRIVATE LIMITED
Registered Office :	Sethna Building, 4^th Floor, 55, Maharshi Carve Road, Marine Lines, Mumbai-400002, Maharashtra
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	22.08.1995
Com. Reg. No.:	11-092028
Capital Investment / Paid-up Capital :	Rs.16.209 Millions
CIN No.: [Company Identification No.]	U24239MH1995PTC092028
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Active Pharmaceutical Ingredients (APIs) and Advanced Intermediates.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (47)

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

Maximum Credit Limit :	USD 1300000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is a 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 :	Sethna Building, 4^th Floor, 55, Maharshi Carve Road, Marine Lines, Mumbai-400002, Maharashtra, India
Tel. No.:	91-22-61461111/26302513
Fax No.:	91-22-61461109
E-Mail :	info@megafine.in ranjanamimani@yahoo.com
Nashik Site:	31-35 and 48-51/201 Lakhmapur, Dindori, Nashik-422202, Maharashtra, India
Tel. No.:	91-2557-250121
Fax No.:	91-2557-250586
E-Mail :	admin.nashik@megafine.in
Vapi Site:	911, 3^rd Phase, GIDC, Vapi-396195, Gujarat, India
Tel. No.:	91-260-2400685
Fax No.:	91-260-2424622
E-Mail :	admin.vapi@megafine.in

DIRECTORS

AS ON 30.09.2011

Name :

Mr. Ashok Kirtilal Jhaveri

Designation :

Director

Address :

193/B, Heera Panna, Bhulabhai Desai Road, Haji Ali, Mumbai-400026, Maharashtra, India

Date of Birth/Age :

23.03.1953

Date of Appointment :

22.08.1995

Din No.:

00187516

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	U24239MH1995PTC092028	MEGA FINE PHARMA PRIVATE LIMITED	Director	22-08-95	22-08-95	Active	NO
2	U27104MH1985PTC036940	VAID DIE CASTING PRIVATE LIMITED	Additional director	03-12-11	03-12-11	Active	NO

Name :

Mr. Shailesh Jethmal Sanghvi

Designation :

Director

Address :

801, Jogani Apartments, 29-B, Dongarshi Road, Walkeshwar, Mumbai-400006, Maharashtra, India

Date of Birth/Age :

20.08.1968

Date of Appointment :

22.08.1995

Din No.:

00194775

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	U24239MH1995PTC092028	MEGA FINE PHARMA PRIVATE LIMITED	Director	22-08-95	22-08-95	Active	NO
2	U25209MH1994PTC077596	INDORE COMPOSITE PRIVATE LIMITED	Director	01-04-02	01-04-02	Active	NO
3	U51909MH2006PTC163351	AAR CUBE ENTERPRISE PRIVATE LIMITED	Director	27-07-06	27-07-06	Active	NO
4	U24100MH2009PTC191930	INDORE GEL PRIVATE LIMITED	Director	02-08-10	22-04-09	Active	NO
5	U27104MH1985PTC036940	VAID DIE CASTING PRIVATE LIMITED	Additional director	03-12-11	03-12-11	Active	NO

Name :

Mr. Hasmukh Purshottam Gandhi

Designation :

Director

Address :

Flat No. 82, Tower-A, Kalpataru Residency, Opposite Cine Planet, Sion (East), Mumbai-400022, Maharashtra, India

Date of Birth/Age :

08.08.1951

Date of Appointment :

14.04.2000

Din No.:

00193181

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	U24239MH1995PTC092028	MEGA FINE PHARMA PRIVATE LIMITED	Director	14-04-00	14-04-00	Active	NO
2	U63000MH2011PTC224556	MEGA BUSINESS VENTURES INDIA PRIVATE LIMITED	Director	01-12-11	01-12-11	Active	NO
3	U27104MH1985PTC036940	VAID DIE CASTING PRIVATE LIMITED	Additional director	03-12-11	03-12-11	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 30.09.2011

Names of Shareholders	No. of Shares
Ashok Kirtilal Jhaveri	428551
Rupal Ashok Jhaveri	55882
Kunal Ashok Jhaveri	55882
Hasmukh Purshottam Gandhi	324247
Meeta Hasmukh Gandhi	54014
Arun Purshottam Gandhi	54022
Dharmesh Purshottam Gandhi	54010
Prafulchandra Gamanlal Soni	54022
Shailesh Jethmal Sanghvi	327520
Meena Shailesh Sanghvi	65470
Neena Mukesh Sanghvi	65478
Kamala Jethmal Sanghvi	81847
Total	1620945

AS ON 30.09.2011

Equity Share Breakup	Percentage of Holding
Category
Directors or relatives of directors	96.67
Other top fifty shareholders	3.33
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Active Pharmaceutical Ingredients (APIs) and Advanced Intermediates.

GENERAL INFORMATION

Bankers :

· State Bank of India, Backbay Reclamation Branch, Raheja Chamber, Nariman Point, Mumbai-400021, Maharashtra, India

· State Bank of India, Mid Corporate Loan Administration Unit, Varsova, Andheri (West), Mumbai-400053, Maharashtra, India

· State Bank of India, Churchgate Branch, The International Maharshi Karve Road, Churchgate, Mumbai-400020, Maharashtra, India

Facilities :

Secured Loan	As on 31.03.2011 [Rs. in Millions]	As on 31.03.2010 [Rs. in Millions]
Cash credit State Bank of India	14.770	37.687
Packing credit a/c State Bank of India	111.790	46.492
Term loan State Bank of India	116.234	80.075
Bank overdraft from State Bank of India (Nashik) [Secured first charge against assets of Nashik and Vapi including land, factory building, plant and machinery and floating charge on all other assets of both the unit and directors personal guarantee.]	2.807	7.977
Cash credit State Bank of India [Secured by first charge against assets of Nashik and Vapi unit including land, factory building, plant and machinery and floating charge on all other assets of both the unit and directors personal guarantee.]	3.926	3.008
Vaishav Co-operative Credit Society	0.074	0.000
Total	249.601	175.239
Unsecured Loan
From Shareholders and Directors	57.400	66.739
From Others	2.600	3.261
Total	60.000	70.000

Banking Relations :	--
Auditors :
Name :	Jain Ambavat and Associates Chartered Accountants
Address :	302, Niranjan, 99, Marine Drive, Mumbai-400002, Maharashtra, India
Tel. No.:	91-22-43473635/40/22817463/22820549
Pan No.:	AAAFJ1780E

CAPITAL STRUCTURE

AS ON 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
2000000	Equity Shares	Rs.10/- each	Rs.20.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1620945	Equity Shares	Rs.10/- each	Rs.16.209 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		16.209	16.209	16.209
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		326.832	281.958	263.640
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		343.041	298.167	279.849
LOAN FUNDS
1] Secured Loans		249.601	175.239	225.564
2] Unsecured Loans		60.000	70.000	67.371
TOTAL BORROWING		309.601	245.239	292.935
DEFERRED TAX LIABILITIES		1.521	5.284	14.298
TOTAL		654.163	548.690	587.082
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		316.433	293.324	316.868
Capital work-in-progress		6.698	27.920	0.000
INVESTMENT		1.216	1.217	1.217
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	162.442	133.110	81.625
	Sundry Debtors	242.365	124.022	184.212
	Cash & Bank Balances	12.791	11.796	23.577
	Other Current Assets	85.826	75.044	60.783
	Loans & Advances	0.000	0.000	0.000
Total Current Assets		503.424	343.972	350.197
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	153.642	97.384
	Other Current Liabilities	1.571	20.579	81.642
	Provisions	18.395	0.000
Total Current Liabilities		173.608	117.963	81.642
Net Current Assets		329.816	226.009	268.555
MISCELLANEOUS EXPENSES		0.000	0.220	0.442
TOTAL		654.163	548.690	587.082

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	944.116	655.504	701.342
		Other Income	7.831	12.629	NA
		TOTAL (A)	951.947	668.133	NA
Less	EXPENSES
		Purchases	536.103	387.608
		Manufacturing Expenses	147.921	101.126
		Salary	62.486	45.654
		Directors Remuneration	7.920	7.020	NA
		Auditors Remuneration	1.233	1.029
		Other Expenses	62.621	51.947
		Donation	1.812	0.101
		Increase or Decrease in Stock	(29.331)	(51.485)
		TOTAL (B)	790.765	543.000	NA
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		161.182	125.133	128.118
Less	FINANCIAL EXPENSES (D)		33.840	25.172	29.959
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		127.342	99.961	98.159
Less/ Add	DEPRECIATION/ AMORTISATION (F)		67.835	71.172	71.672
	PROFIT BEFORE TAX (E-F) (G)		59.507	28.789	26.487
Less	TAX (H)		14.632	10.472	8.730
	PROFIT AFTER TAX (G-H) (I)		44.875	18.317	17.757
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		263.043	244.726	NA
	BALANCE CARRIED TO THE B/S		307.918	263.043	NA
	EARNINGS IN FOREIGN CURRENCY
		Export Sales	787.403	575.239	NA
		Commission Received	0.451	4.950	NA
	TOTAL EARNINGS		787.854	580.189	NA
	Earnings Per Share (Rs.)		27.68	43.51	10.95

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	4.71	2.74	NA
Net Profit Margin (PBT/Sales)	(%)	6.30	4.39	3.77
Return on Total Assets (PBT/Total Assets}	(%)	7.25	4.52	3.97
Return on Investment (ROI) (PBT/Networth)		0.17	0.10	0.09
Debt Equity Ratio (Total Liability/Networth)		1.41	1.22	1.34
Current Ratio (Current Asset/Current Liability)		2.90	2.92	4.29

LOCAL AGENCY FURTHER INFORMATION

Check List by Info Agents	Available in Report (Yes / No)
1) Year of Establishment	Yes
2) Locality of the firm	Yes
3) Constitutions of the firm	Yes
4) Premises details	No
5) Type of Business	Yes
6) Line of Business	Yes
7) Promoter’s background	Yes
8) No. of employees	No
9) Name of person contacted	No
10) Designation of contact person	No
11) Turnover of firm for last three years	Yes
12) Profitability for last three years	Yes
13) Reasons for variation <> 20%	--
14) Estimation for coming financial year	No
15) Capital in the business	Yes
16) Details of sister concerns	No
17) Major suppliers	No
18) Major customers	No
19) Payments terms	No
20) Export / Import details (if applicable)	No
21) Market information	--
22) Litigations that the firm / promoter involved in	--
23) Banking Details	Yes
24) Banking facility details	Yes
25) Conduct of the banking account	--
26) Buyer visit details	--
27) Financials, if provided	Yes
28) Incorporation details, if applicable	Yes
29) Last accounts filed at ROC	Yes
30) Major Shareholders, if available	Yes

FINANCIAL RESULTS:

During the year the company has made a profit of Rs.59.507 Millions (before tax) as against a profit of Rs.28.789 Millions (before tax) in the previous year.

BANKERS CHARGES REPORT AS PER REGISTRY

This form is for	Modification of charge
Charge identification number of the modified	10007239
Corporate identity number of the company	U24239MH1995PTC092028
Name of the company	MEGA FINE PHARMA PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	Sethna Building, 4^th Floor, 55, Maharshi Carve Road, Marine Lines, Mumbai-400002, Maharashtra, India
Type of charge	Book Debts Movable Property [not being pledge] Floating Charge
Particular of charge holder	State Bank of India, Backbay Reclamation Branch, Raheja Chamber, Nariman Point, Mumbai-400021, Maharashtra, India
Email	s.rane@sbi.co.in
Nature of description of the instrument creating or modifying the charge	1) Supplemental Agreement of Hypothecation of Goods and Assets for Increase in the Overall Limit 2) Letter Reg. Grant of Individual Limits within the Overall Limit both pertaining to a single charge.
Date of instrument Creating the charge	29.05.2010
Amount secured by the charge	Rs.380.400 Millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest On working capital: 1.5% above SBAR i.e. 13.25% p.a. On Term Loan (new): 1.5% above SBAR i.e. 13.25% p.a. Terms of Repayment Working Capital - on demand Term Loan (new) of Ra.135.000 Millions - January 2011 to March,2011 - 3 installments of Rs.1.666 Millions each April,2011 - March,2012 - 12 installments of Rs.1.666 Millions each April,2012 - March,2013 - 12 installments of Rs.2.500 Millions each April,2013 - March,2014 - 12 installments of Rs.3.750 Millions each April,2014 - March,2015 - 12 installments of Rs.2.916 Millions each Margin As prescribed by the Bank from time to time. Presently - On R/Ms (domestic/imported), stock in process, finished goods 25%, book-debts/receivables (cover period 90 days) 40%, EPC 10% Extent and Operation of the charge First charge
Short particulars of the property charged	All present & future goods, book-debts, machineries
Particulars of the present modification	Additional credit facilities of Rs.159.900 Millions granted. Hence, amount of charge increased from Rs.220.500 Millions to Rs.380.400 Millions [EPC (SBI Export Gold Card/PCFC) Rs.90.000 Millions, DCC (within EPC) Rs.40.000 Millions, EBP (within EPC) Rs.50.000 Millions, T/L-1 (o/s) Rs.49.900 Millions, T/L-II (o/s) Rs.24.400 Millions, T/L-III (o/s) Rs.9.400 Millions, T/L (new)-IV Rs.135.000 Millions, L/C Rs.40.000 Millions, B/G Rs.10.000 Millions, Off B/S Exp (PFE) Rs.21.700 Millions]

FIXED ASSETS:

· Air Conditioner

· Computer

· Electrification

· Erection and Insul

· Factory Building

· Fire Fighting Equipments

· Furniture and Fixtures

· Laboratory Equipments

· Land

· Motor Car

· Plant and Machinery

· Type Writer

· Staff Safety Equipments

· Vehicles

WEBSITE DETAILS:

PROFILE:

Subject, established in 1995, is a privately owned and professionally managed enterprise with its corporate office in Mumbai, India and two multipurpose manufacturing sites at Vapi and Nashik in India, both successfully inspected by US-FDA. With its decades of experience in the Pharmaceutical Industry, Subject not only manufactures its own Active Pharmaceutical Ingredients (APIs) and Advanced Intermediates but also Contract manufactures for Innovators and several Global Pharma companies.

Their focus is on niche products with a presence in more than 40 countries. Their partners are essentially innovators and generic drug companies across the globe for whom they develop a range of new niche products in select therapeutic categories like CNS (Central Nervous System), Anthelmintic and Urinary Incontinence. They supply a wide range of high quality generic and custom manufactured APIs in volumes that range from a few grams to tons.

Subject has a special expertise in Polymorphs and Chiral products. Subject is also one of the largest manufacturers of Pyrantel Pamoate besides being a leading manufacturer of Piperazine derivatives.

Both the plants are successfully US-FDA inspected as well as certified by WHO GMP, ISO 9001:2008, 14001:2004 and OHSAS 18001:2007 and have been audited by several Innovators and leading Generic companies from time to time.

A perfect blend of Human talent, R and D Labs, Pilot Plant and cGMP manufacturing facilities backed by their Quality Assurance, Regulatory Affairs and Intellectual Property cell gives Subject an edge.

Their regulatory team is well trained and experienced to comply with US-FDA, EDQM, Japanese PMDA and other regulatory authority requirements. The company has over 40 regulatory filings for its APIs to its credit with an impressive pipeline.

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.55.42
UK Pound	1	Rs.86.04
Euro	1	Rs.68.60

INFORMATION DETAILS

Report Prepared by :

TPT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	6
--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	NO
--AFFILIATION	YES/NO	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		47

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.