MIRA INFORM REPORT

Report Date :

02.03.2012

IDENTIFICATION DETAILS

Name :	RAICHEM LIFE SCIENCES PRIVATE LIMITED (w.e.f. 23.09.2008)
Formerly Known As :	RAICHEM PHARMA PRIVATE LIMITED
Registered Office :	75 Mint Road, 8 Shreeji House, 1^st Floor, Fort, Mumbai – 400001, Maharashtra
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	01.05.2007
Com. Reg. No.:	11-194512
Capital Investment / Paid-up Capital :	Rs.4.100 Millions
CIN No.: [Company Identification No.]	U24231MH2007PTC194512
TAN No.: [Tax Deduction & Collection Account No.]	MUMR25481B
PAN No.: [Permanent Account No.]	AFOPS1311K
Legal Form :	Private Limited Liability Company
Line of Business :	Distributing, Manufacturing and Supplying of Oxaliplatin, Epirubicin, Docetaxel, Paclitaxel, Zolendronic Acid, Gemcitabine.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

B (26)

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

Maximum Credit Limit :	USD 700000
Status :	Moderate
Payment Behaviour :	Slow
Litigation :	Clear
Comments :	Subject is an established company having moderate track. The appears some accumulated losses recorded by the company. However, trade relations are reported as fair. Business is active. Payments are reported to be slow. The company can be considered for business dealings with some cautions.

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 :	75 Mint Road, 8 Shreeji House, 1^st Floor, Fort, Mumbai – 400001, Maharashtra, India
Tel. No.:	91-22-22631763/ 64/ 66
Fax No.:	91-22-22631761
E-Mail :	info@vbshilpa.com info@raichemlifesciences.com ramakant@vbshilpa.com
Website :	http://www.raichemlifesciences.com
Factory :	Plot No S-20 to S-24/A, APIIC Pharma Sez, Polepally Village, Jadcheria (Mandal), Mahaboobnagar - 509301, Andhra Pradesh, India

DIRECTORS

(AS ON 17.08.2011)

Name :

Mr. Vishnukanth Bhutada Chaturbhuj

Designation :

Director

Address :

H. No.7-5-216, Radhe Krupa, Jawahar Nagar, Raichur – 584103, India

Date of Birth/Age :

20.09.1962

Date of Appointment :

01.05.2007

DIN No.:

01243391

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	U65910MH1995PTC090237	SHILPA FINVEST PRIVATE LIMITED	Director	04-07-95	04-07-95	-	Active	NO
2	L85110KA1987PLC008739	SHILPA MEDICARE LIMITED	Managing director	01-09-09	01-09-04	-	Active	NO
3	U24231MH2007PTC194512	RAICHEM LIFE SCIENCES PRIVATE LIMITED	Director	01-05-07	01-05-07	-	Active	NO
4	U24232KA2009PTC049999	RAICHEM MEDICARE PRIVATE LIMITED	Director	01-06-09	01-06-09	-	Active	NO
5	U24232KA2009PTC051596	REVA PHARMACHEM PRIVATE LIMITED	Director	23-11-09	23-11-09	14-03-11	Active	NO
6	U24239AP2004PTC043005	NU THERAPEUTICS PRIVATE LIMITED	Nominee director	30-09-11	07-09-11	-	Active	NO
7	U70102KA2012PTC061957	MILAP REAL ESTATE PRIVATE LIMITED	Director	03-01-12	03-01-12	-	Active	NO

Name :

Mr. Omprakash Innani

Designation :

Director

Address :

77-5-212, Tulsi Sadan, Jawahar Nagar, Raichur – 584103, India

Date of Birth/Age :

15.06.1951

Date of Appointment :

01.05.2007

DIN No.:

01301385

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	L85110KA1987PLC008739	SHILPA MEDICARE LIMITED	Director	23-03-88	23-03-88	-	Active	NO
2	U65993KA1994PTC015661	BHAKARA INVESTMENTS PRIVATE LIMITED	Director	25-08-94	25-08-94	-	Active	NO
3	U02411KA1995PTC017584	SHILPA ORGANICS PRIVATE LIMITED	Director	17-04-95	17-04-95	-	Amalgamated	NO
4	U08519KA1995PTC017583	MANSAROVAR HEALTH CLUB PRIVATE LIMITED	Director	03-03-05	03-03-05	-	Active	NO
5	U24231MH2007PTC194512	RAICHEM LIFE SCIENCES PRIVATE LIMITED	Director	01-05-07	01-05-07	-	Active	NO
6	U17100KA2008PTC045530	SRINIDHI COTTONS PRIVATE LIMITED	Director	07-03-08	07-03-08	-	Active	NO
7	U24232KA2009PTC049999	RAICHEM MEDICARE PRIVATE LIMITED	Director	01-06-09	01-06-09	10-02-12	Active	NO
8	U24232KA2009PTC051596	REVA PHARMACHEM PRIVATE LIMITED	Director	23-11-09	23-11-09	03-03-10	Active	NO

Name :

Mr. Rajkumar Somani

Designation :

Director

Address :

No.902, 9^th Floor, Natasha Manor – A, Chandavarkar road, Borivali West, Mumbai – 400092, Maharashtra, India

Date of Birth/Age :

19.02.1967

Date of Appointment :

15.12.2008

Email :

somani@raichemlifesciences.com

DIN No.:

02242317

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	U51900MH2008PTC187257	NIKMAN'S LIFESCIENCES PRIVATE LIMITED	Director	03-10-08	03-10-08	-	Active	YES
2	U24231MH2007PTC194512	RAICHEM LIFE SCIENCES PRIVATE LIMITED	Director	15-12-08	15-12-08	-	Active	NO
3	U24239AP2004PTC043005	NU THERAPEUTICS PRIVATE LIMITED	Director	11-01-10	11-01-10	07-09-11	Active	NO

Name :

Mr. Rajender Sunki Reddy

Designation :

Nominee Director

Address :

Yergera Road, Anusha Nagar, H. No.4-4-402/117, Raichur – 584101, India

Date of Birth/Age :

06.05.1964

Date of Appointment :

19.03.2011

Nominee Company :

Shilpa Medicare Limited

DIN No.:

02284057

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	L85110KA1987PLC008739	SHILPA MEDICARE LIMITED	Director	19-09-08	30-06-08	Active	NO
2	U24231MH2007PTC194512	RAICHEM LIFE SCIENCES PRIVATE LIMITED	Nominee director	19-03-11	19-03-11	Active	NO
3	U24232KA2009PTC049999	RAICHEM MEDICARE PRIVATE LIMITED	Nominee director	19-03-11	19-03-11	Active	NO
4	U24239AP2004PTC043005	NU THERAPEUTICS PRIVATE LIMITED	Nominee director	30-09-11	30-09-11	Active	NO
5	U01403AP2011PTC077535	BRASS AGRO FARMS PRIVATE LIMITED	Director	21-11-11	21-11-11	Active	NO

KEY EXECUTIVES

Name :	Mr. Virendra Dubey
Designation :	Group Product Manager
Email :	vkdubey@raichemlifesciences.com
Name :	Mr. Joseph Vincent
Designation :	Export Manager
Email :	exports@raichemlifesciences.com

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

(AS ON 17.08.2011)

Names of Shareholders	No. of Shares
Omprakash Innani	1
Vishnukanth Bhutada Chaturbhuj	1
Shilpa Medicare Limited, India	409998
Total	410000

(AS ON 30.09.2011)

Equity Shares Break – up

Category	Percentage
Bodies corporate	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Distributing, Manufacturing and Supplying of Oxaliplatin, Epirubicin, Docetaxel, Paclitaxel, Zolendronic Acid, Gemcitabine.

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

· Standard Chartered Bank

Raheja Towers, 26/27, M G Road, Bangalore – 560001, Karnataka, India

Facilities :

Unsecured Loans	31.03.2011	31.03.2010
	(Rs. In Millions)
Rupee Term Loans Unsecured	92.166	45.397
Total	92.166	45.397

Banking Relations :	--
Auditors :
Name :	Bohara Bhandari Bung and Associates Chartered Accountants
Address :	11-1-137, First Floor, Amar Complex, M G Road, Raichur – 584101, India
Tel. No.:	AABFB4880G
Holding Company :	· Shilpa Medicare Limited, India CIN No.: L85110KA1987PLC008739

CAPITAL STRUCTURE

(AS ON 17.08.2011)

Authorised Capital :

No. of Shares	Type	Value	Amount
500000	Equity Share	Rs.10/- each	Rs.5.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
410000	Equity Share	Rs.10/- each	Rs.4.100 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		4.100	4.100	0.100
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		24.000	24.000	0.000
4] (Accumulated Losses)		(10.912)	(4.985)	0.000
NETWORTH		17.188	23.115	0.100
LOAN FUNDS
1] Secured Loans		0.000	0.000	0.000
2] Unsecured Loans		92.166	45.397	5.362
TOTAL BORROWING		92.166	45.397	5.362
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		109.354	68.512	5.462
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		37.032	36.335	0.000
Capital work-in-progress		58.703	2.066	3.699
INVESTMENT		0.005	17.504	0.005
DEFERREX TAX ASSETS		5.427	2.212	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	2.776	4.479	0.615
	Sundry Debtors	5.750	5.652	0.000
	Cash & Bank Balances	2.039	0.590	0.214
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	1.368	1.560	0.991
Total Current Assets		11.933	12.281	1.820
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditor	3.639	1.899	0.057
	Other Current Liabilities	0.344	0.093	0.004
	Provisions	0.043	0.454	0.000
Total Current Liabilities		4.026	2.446	0.061
Net Current Assets		7.907	9.835	1.759
MISCELLANEOUS EXPENSES		0.280	0.560	0.000
TOTAL		109.354	68.512	5.462

PROFIT & LOSS ACCOUNT

	PARTICULARS	31.03.2011	31.03.2010
	Gross Income/ Income from Operations	16.441	9.912
	PROFIT BEFORE TAX	(9.143)	(7.196)
Less	TAX	3.216	2.212
	PROFIT AFTER TAX	(5.927)	(4.985)
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD	(4.985)	0.000
	BALANCE CARRIED TO THE B/S	(10.912)	(4.985)
	Earnings Per Share (Rs.)	(14.46)	(12.16)

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
Return on Total Assets (PBT/Total Assets}	(%)	(18.67)	(14.80)	NA
Return on Investment (ROI) (PBT/Networth)		(0.53)	(0.31)	NA
Debt Equity Ratio (Total Liability/Networth)		5.60	2.07	54.23
Current Ratio (Current Asset/Current Liability)		2.96	5.02	29.84

LOCAL AGENCY FURTHER INFORMATION

NOTE:

The Registered office of the company has been shifted from 10/80, Rajendra Gunj, Raichur - 584102, Karnataka, India, to the present address w.e.f. 20.07.2009.

FINANCIALS

The Company has successfully launched the Oncology Division with 13 Oncology products and has made its presence felt in the market. The Company has bagged orders from prestigious institutions and hospitals. The Oncologist across the country have started recognizing the Company’s products and started prescribing their products.

They have set up a Pan India Operation with a good distribution network and are hopeful to have a break even in the domestic operation by end of the ensuing year.

FUTURE PLAN:

They plan to launch at least 5 new products during the year and to launch yet another Oncology Formulation Division by the end of the year with a basket of 10 more products.

As reported in the last year, to take advantage of synergies and cost reduction etc., Company decided to have its own manufacturing facilities and it started construction of new plant on 36,750 Sq. Mtrs. of land taken in SEZ Pharma, Jadcherla, Near Mehaboobnagar from Andhra Pradesh Industrial Infrastructure Corporation Limited.

The Company has made good progress in implementation of the project.

FUTURE OUTLOOK:

Growth of the Indian Pharmaceutical Industry has continued during the year of reporting which commenced about one decade ago. The growth of the formulation market is expected to grow by 15% per annum. Taking this into consideration and promising future growth prospects, Company decided to enter the Formulation business, mainly catering for contract manufacturing.

FORM 8:

Corporate identity number of the company	U24231MH2007PTC194512
Name of the company	RAICHEM LIFE SCIENCES PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	75, Mint Road, 8 Shreeji House,1st Floor, Fort, Mumbai – 400001, Maharashtra, India info@vbshilpa.com
This form is for	Creation of charge
Type of charge	Movable property (not being pledge)
Particular of charge holder	Standard Chartered Bank Raheja Towers, 26/27, M G Road, Bangalore – 560001, Karnataka, India shekar.subramanyarajeurs@sc.com
Nature of description of the instrument creating or modifying the charge	Unattested Hypothecation Agreement Dated 18th March, 2011 Sanction Letter
Date of instrument Creating the charge	18.03.2011
Amount secured by the charge	Rs.250.000 Millions
Brief particulars of the principal terms and conditions and extent and operation of the charge	Rate of Interest Base Rate plus Margin. Terms of Repayment Maximum up to 1 year. Margin As per the Sanction Letter Extent and Operation of the charge First Charge on moveable fixed assets of the Company
Short particulars of the property charged	All present and future moveable fixed assets of the Company.

FIXED ASSETS:

· Land

· Air Conditioner

· Computer

· Furniture and Fixture

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.49.15
UK Pound	1	Rs.78.25
Euro	1	Rs.65.57

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILIRY	1~10	2
--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	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		26

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.