MIRA INFORM REPORT

Report Date :

09.03.2012

IDENTIFICATION DETAILS

Name :	AVON ORGANICS LIMITED
Registered Office :	Survey No. 18, Yawapur Village, Sadashivpet Mandal, Medak District – 502291, Andhra Pradesh
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	03.08.1993
Com. Reg. No.:	016112
Capital Investment / Paid-up Capital :	Rs.225.000 Millions
CIN No.: [Company Identification No.]	L24110AP1993PLC016112
TAN No.: [Tax Deduction & Collection Account No.]	HYDA01193D HYDA01216F
PAN No.: [Permanent Account No.]	AABCA7422Q
Legal Form :	A Public Limited Liability Company. The Company's Shares are Listed on the Stock Exchanges.
Line of Business :	Manufacturer and Exporter of Diketene and its Derivatives for Pharmaceuticals, Agro Chem, Dyestuff and Pigment Industries.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

B (33)

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

Maximum Credit Limit :	USD 3000000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track. There appears some accumulated losses recorded by the company. However, trade relations are reported as fair. Business is active. Payments are reported to be slow but correct. The company can be considered for business dealings with some caution.

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 :	Survey No. 18, Yawapur Village, Sadashivpet Mandal, Medak District – 502 291, Andhra Pradesh, India
Tel. No.:	91-8455-252290
Fax No.:	91-8455-251536
E-Mail :	avon@avonorganicltd.com cs_1@avonorganicsltd.com rmnayak306@hotmail.com
Website :	www.avonorganicsltd.com
Corporate Office 1:	6-3-865, 4th Floor, Madhupala Towers, Opposite: Greenland Apartments, Ameerpet – 500016, Hyderabad, India
Tel. No.:	91-40-23414432/ 23405042/ 23411918/ 30906500/ 01
Fax No.:	91-40-23404438
E-Mail :	cs_1@avonorganicsltd.com sales@avonorganicsltd.com
Corporate Office 2	H. Wing, 4^th Floor, Tex Centre, off Sakivihar Road, Chandivali, Andheri (East), Mumbai – 400072, Maharashtra, India
Tel. No.:	91-22-40756789
Fax No.:	91-22-28471234/ 1002
Factory 1 :	Diketene Division: Survey No. 18, Yawapur, Sadasivpet (M), Medak District, Andhra Pradesh, India
Tel. No.:	91-9498-28083/ 28084
Factory 2 :	Bio-Tech Division: Plot No. E-2, Chincholi Industrial Area Solapur, Maharashtra, India
Tel. No.:	91-217- 2357338/ 2357339
Fax No.:	91-127- 2357738/ 2357339

DIRECTORS

(AS ON 31.03.2011)

Name :

Mr. Ajit Annu Kamath

Designation :

Chairman and Managing Director

Address :

404, IIa Apartment, sector 4, RDP 7, Charkop, Kandivali (West), Mumbai – 400067, Maharashtra, India

Date of Birth/Age :

12.12.1969

Date of Appointment :

01.08.2009

DIN No.:

00032799

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	U67190MH1994PTC078769	ANHITA FINANCIAL SERVICES (BOMBAY) PRIVATE LIMITED	Director	06-06-94	06-06-94	26-03-06	Active	NO
2	U65993MH1997PTC107197	ARCH INVESTMENT PRIVATE LIMITED	Director	10-04-97	10-04-97	-	Active	NO
3	U24233MH2000PTC126987	ARCH HERBALS PRIVATE LIMITED	Director	05-06-00	05-06-00	-	Active	NO
4	U51900MH2000PTC127806	ARCH IMPEX PRIVATE LIMITED	Director	19-07-00	19-07-00	-	Active	NO
5	U15499MH2000PTC129255	ARCH PHYTOCHEMICALS PRIVATE LIMITED	Director	19-10-00	19-10-00	-	Active	NO
6	U24231MH2000PLC129882	ARCH PHARMACHEM LIMITED	Director	29-07-03	29-07-03	-	Active	NO
7	U24231MH1993PLC150891	ARCH PHARMALABS LIMITED	Managing director	01-11-08	01-11-03	-	Active	NO
8	U21000MH1996PTC103102	AVANT CAPITAL SERVICES PRIVATE LIMITED	Director	15-06-05	15-06-05	-	Active	NO
9	U45200AP2006PTC051039	MARM REALTY PRIVATE LIMITED	Director	01-09-06	01-09-06	-	Active	NO
10	U55204MH2007PTC166795	ACCENTURE HOSPITALITY PRIVATE LIMITED	Director	06-01-07	06-01-07	-	Strike off	NO
11	U24239AP2003PLC042232	ARCH LIFE SCIENCES LIMITED	Director	02-04-07	02-04-07	-	Active	NO
12	U65190MH2007PTC171972	A M R INVESTMENTS PRIVATE LIMITED	Director	25-06-07	25-06-07	-	Active	NO
13	U24100MH2000PLC125507	NIPRO TUBE GLASS LIMITED	Director	31-07-07	31-07-07	-	Active	NO
14	U24110AP1993PLC015533	ARCH FINECHEMICALS LIMITED	Director	29-09-07	22-08-07	-	Active	NO
15	U45200MH2007PLC175780	ARCH INFRA VENTURES LIMITED	Director	07-11-07	07-11-07	-	Active	NO
16	U24230MH2004PTC147388	BENZOCHEM LIFESCIENCES PRIVATE LIMITED	Director	10-07-08	10-07-08	12-03-10	Active	NO
17	U24233MH2008PTC186600	ARISTO HERBOFARM PRIVATE LIMITED	Director	09-09-08	09-09-08	05-03-09	Active	NO
18	U24233MH2008PTC186599	AIM HERBOFARM PRIVATE LIMITED	Director	09-09-08	09-09-08	05-03-09	Active	NO
19	L24110AP1993PLC016112	AVON ORGANICS LIMITED	Managing director	01-08-09	31-01-09	-	Active	NO
20	U24239MH2011PLC213956	AMRA REMEDIES LIMITED	Director	23-02-11	23-02-11	-	Active	NO
21	U01403MH2011PTC218636	ARCH AGROCHEMICALS PRIVATE LIMITED	Director	14-06-11	14-06-11	-	Active	NO
22	U24100MH2011PLC223168	AMRA RENAL CARE LIMITED	Director	17-10-11	17-10-11	-	Active	NO

Name :

Mr. Manoj Tejraj Jain

Designation :

Director

Address :

Flat No.4-A, Shefali, Mahim Makrand, Co-operative Housing Society Limited, 114, S.V.S. Marg, Mahim, Mumbai – 400016, Maharashtra, India

Date of Birth/Age :

20.03.1970

Date of Appointment :

01.08.2009

DIN No.:

00034727

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	U67190MH1994PTC078769	ANHITA FINANCIAL SERVICES (BOMBAY) PRIVATE LIMITED	Director	06-06-94	06-06-94	26-03-06	Active	NO
2	U65993MH1997PTC107197	ARCH INVESTMENT PRIVATE LIMITED	Director	10-04-97	10-04-97	-	Active	NO
3	U24233MH2000PTC126987	ARCH HERBALS PRIVATE LIMITED	Director	05-06-00	05-06-00	-	Active	NO
4	U51900MH2000PTC127806	ARCH IMPEX PRIVATE LIMITED	Director	19-07-00	19-07-00	-	Active	NO
5	U15499MH2000PTC129255	ARCH PHYTOCHEMICALS PRIVATE LIMITED	Director	19-10-00	19-10-00	-	Active	NO
6	U24231MH2000PLC129882	ARCH PHARMACHEM LIMITED	Director	29-07-03	29-07-03	-	Active	NO
7	U24231MH1993PLC150891	ARCH PHARMALABS LIMITED	Whole-time director	01-11-08	01-11-03	-	Active	NO
8	U21000MH1996PTC103102	AVANT CAPITAL SERVICES PRIVATE LIMITED	Director	15-06-05	15-06-05	-	Active	NO
9	U55204MH2007PTC166795	ACCENTURE HOSPITALITY PRIVATE LIMITED	Director	06-01-07	06-01-07	-	Strike off	NO
10	U24239AP2003PLC042232	ARCH LIFE SCIENCES LIMITED	Director	02-04-07	02-04-07	-	Active	NO
11	U65190MH2007PTC171972	A M R INVESTMENTS PRIVATE LIMITED	Director	25-06-07	25-06-07	-	Active	NO
12	U24100MH2000PLC125507	NIPRO TUBE GLASS LIMITED	Managing director	28-06-10	31-07-07	01-10-11	Active	NO
13	U24110AP1993PLC015533	ARCH FINECHEMICALS LIMITED	Director	29-09-07	22-08-07	-	Active	NO
14	U45200MH2007PLC175780	ARCH INFRA VENTURES LIMITED	Director	07-11-07	07-11-07	-	Active	NO
15	U24230MH2004PTC147388	BENZOCHEM LIFESCIENCES PRIVATE LIMITED	Director	10-07-08	10-07-08	12-03-10	Active	NO
16	U24233MH2008PTC186600	ARISTO HERBOFARM PRIVATE LIMITED	Director	09-09-08	09-09-08	05-03-09	Active	NO
17	U24233MH2008PTC186599	AIM HERBOFARM PRIVATE LIMITED	Director	09-09-08	09-09-08	05-03-09	Active	NO
18	L24110AP1993PLC016112	AVON ORGANICS LIMITED	Director	29-09-09	31-01-09	-	Active	NO
19	U24239MH2011PLC213956	AMRA REMEDIES LIMITED	Director	23-02-11	23-02-11	-	Active	NO
20	U01403MH2011PTC218636	ARCH AGROCHEMICALS PRIVATE LIMITED	Director	14-06-11	14-06-11	-	Active	NO
21	U24100MH2011PLC223168	AMRA RENAL CARE LIMITED	Director	17-10-11	17-10-11	-	Active	NO

Name :

Mr. Sudhir Prabhakar Ghate

Designation :

Non- Executive Independent Director

Address :

Needam Behind S d M Law Collage, M G Road, Dakshina, Mangalore – 575003, India

Date of Birth/Age :

12.11.1957

Date of Appointment :

01.08.2009

DIN No.:

00035949

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	U74300KA1994PTC015706	MAGNUM INTERGRAFIKS PRIVATE LIMITED	Managing director	01-10-98	01-06-94	Active	NO
2	U72900KA1999PTC025156	MANGALORE INFOTECH SOLUTIONS PRIVATE LIMITED	Director	06-05-99	06-05-99	Active	NO
3	U85110KL1985PLC004204	TRICHUR HEART HOSPITAL LIMITED	Director	29-03-01	29-03-01	Active	NO
4	U60210KA1983PLC005247	VRL LOGISTICS LIMITED	Director	15-06-05	15-06-05	Active	NO
5	L24110AP1993PLC016112	AVON ORGANICS LIMITED	Director	29-09-09	01-08-09	Active	NO
6	U91990KA1940PLC001135	KANARA CHAMBER OF COMMERCE AND INDUSTRY	Director	28-07-11	28-07-11	Active	NO

Name :

Mr. Ashit Kishorkumar Shah

Designation :

Non- Executive Independent Director

Address :

11, Varsha, 17 Vallabh Baug Cross Lane, Extension, Ghatkopar East, Mumbai – 400077, Maharashtra, India

Date of Birth/Age :

15.05.1969

Date of Appointment :

01.08.2009

DIN No.:

00023944

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	U85110MH2000PTC130055	SHAH ADVISORY SERVICES PRIVATE LIMITED	Director	16-02-02	16-02-02	01-04-09	Active	NO
2	L24110AP1993PLC016112	AVON ORGANICS LIMITED	Director	29-09-09	01-08-09	-	Active	NO
3	U67190MH1996PTC098770	PEARS FINANCIAL SERVICES PRIVATE LIMITED	Director	14-08-09	14-08-09	-	Active	NO

Name :

Mr. Upkar Singh Kohli

Designation :

Additional Director

Address :

J-170 Rajouri Garden, New Delhi – 110027, India

Date of Birth/Age :

18.08.1947

Date of Appointment :

22.01.2011

Email :

upkarkohli@yahoo.com

DIN No.:

02528045

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	U74900DL2007PLC167329	UV ASSET RECONSTRUCTION COMPANY LIMITED	Director	22-08-09	07-02-09	Active	NO
2	L31101MH1984PLC032773	BIRLA POWER SOLUTIONS LIMITED	Director	30-09-10	28-07-09	Active	NO
3	L27105MP1984PLC002521	STI INDIA LIMITED	Nominee director	26-05-10	26-05-10	Active	NO
4	U01110MH1980PLC022710	C AND M FARMING LIMITED	Nominee director	09-07-10	09-07-10	Active	YES
5	U74999MH2008PLC187077	BIRLA SURYA LIMITED	Director	31-03-11	06-08-10	Active	NO
6	L17110MH1941PLC003429	BIRLA COTSYN (INDIA) LIMITED	Director	20-09-10	10-08-10	Active	NO
7	U65923MH2009PTC198198	UNION KBC TRUSTEE COMPANY PRIVATE LIMITED	Director	25-05-11	03-09-10	Active	NO
8	L85100MH2008PLC184689	BIRLA PACIFIC MEDSPA LIMITED	Director	13-10-11	23-11-10	Active	NO
9	L24110AP1993PLC016112	AVON ORGANICS LIMITED	Director	29-07-11	22-01-11	Active	NO
10	L65990MH1985PLC037697	WEIZMANN FOREX LIMITED	Director	04-03-11	04-03-11	Active	NO
11	L31101MH2007PLC168823	KARMA ENERGY LIMITED	Additional director	09-11-11	09-11-11	Active	NO

KEY EXECUTIVES

Name :	Mrs. Vidya Sagar Soma
Designation :	Company Secretary
Address :	B – 401, Amsri Residencym shyam Karan Road, Ameerpet, Hyderabad – 500016, Andhra Pradesh, India
Date of Birth/Age :	02.02.1957
Date of Appointment :	10.04.2008
PAN No.:	ACCPS0112K

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

(AS ON 31.12.2011)

Category	No. of Shares	Percentage of Holding
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Bodies Corporate	14,309,100	63.60
Sub Total	14,309,100	63.60
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	14,309,100	63.60
(B) Public Shareholding
(1) Institutions
Financial Institutions / Banks	157,600	0.70
Sub Total	157,600	0.70
(2) Non-Institutions
Bodies Corporate	968,666	4.31
Individuals
Individual shareholders holding nominal share capital up to Rs.0.100 Million	3,113,926	13.84
Individual shareholders holding nominal share capital in excess of Rs.0.100 Million	3,558,644	15.82
Any Others (Specify)	392,064	1.74
Non Resident Indians	326,846	1.45
Clearing Members	65,218	0.29
Sub Total	8,033,300	35.70
Total Public shareholding (B)	8,190,900	36.40
Total (A)+(B)	22,500,000	100.00
(C) Shares held by Custodians and against which Depository Receipts have been issued	-	-
(1) Promoter and Promoter Group	-	-
(2) Public	-	-
Sub Total	-	-
Total (A)+(B)+(C)	22,500,000	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer and Exporter of Diketene and its Derivatives for Pharmaceuticals, Agro Chem, Dyestuff and Pigment Industries.

Products :

Item Code No. (ITC Code)	291590
Product Description	Mono Methyl Aceto Acetamide

Item Code No. (ITC Code)	29241002
Product Description	Aceto Acetanilide (AAA)

Item Code No. (ITC Code)	30039089
Product Description	Ephedrine HCL

PRODUCTION STATUS (AS ON 31.03.2011)

Particulars	Unit	Licensed Capacity	Installed Capacity	Actual Production
Intermediates and APIs	TPA	--	2300	452.80

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

· Indian Overseas Bank

Arjun Towers, 1^st Floor, 25421662, Gokhale Road, Naupada, Thane – 400602, Maharashtra, India

· State Bank of India

Industrial Finance Branch, Raj Bhavan Road, Somajiguda, Hyderabad - 500082, Andhra Pradesh, India

· Axis Bank Limited

Fort Branch, Universal Insurance Building, Fort, Mumbai - 400023, Maharashtra, India

· Punjab National Bank

Road No. 1, Banjara Hills, Hyderabad - 500034, Andhra Pradesh, India

· ING Vysya Bank Limited

1-7-1, T. S. R. Complex, Sardar Patel Road, Secunderabad – 500003, Andhra Pradesh, India

Ø Canara Bank

Ø Karur Vysya Bank

Facilities :

Secured Loans	31.03.2011	31.03.2010
	(Rs. In Millions)
Rupee Terms Loans Banks Secured	674.023	590.506
Working Capital Loans Banks Secured	478.359	471.542
Loan Taken for Vehicles Secured	0.183	0.867
Total	1152.565	1062.915
Unsecured Loans	31.03.2011	31.03.2010
	(Rs. In Millions)
Deferred Sales Tax Loan Unsecured	154.858	160.253
Other Debts Unsecured	194.856	186.101
Total	349.714	346.354

Banking Relations :	--
Auditors :
Name :	Mukesh Mehta and Associates Chartered Accountants
Address :	3/4A, Hammersmith Industrial Premises,Narayan Pathare Marg, Off Sitladevi Temple Road, Mahim (West), Mumbai – 400016, Maharashtra, India
PAN No.:	AALPM7276R
Holding Company :	· Arch Pharmalabs Limited U24231MH1993PLC150891
Subsidiary Company :	· Regal Pharma Pte. Limited

CAPITAL STRUCTURE

(AS ON 29.07.2011)

Authorised Capital :

No. of Shares	Type	Value	Amount
25000000	Equity Shares	Rs.10/- each	Rs.250.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
22500000	Equity Shares	Rs.10/- each	Rs.225.000 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		225.000	225.000	225.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		434.851	434.851	254.123
4] (Accumulated Losses)		(45.665)	(118.032)	0.000
NETWORTH		614.186	541.819	479.123
LOAN FUNDS
1] Secured Loans		1152.565	1062.915	800.611
2] Unsecured Loans		349.714	346.354	341.084
TOTAL BORROWING		1502.279	1409.269	1141.695
DEFERRED TAX LIABILITIES		14.065	14.064	14.064
TOTAL		2130.530	1965.152	1634.882
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		1100.885	568.998	491.707
Capital work-in-progress		0.000	298.056	175.497
INVESTMENT		0.003	0.019	0.519
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	493.258	616.812	562.369
	Sundry Debtors	633.894	609.613	440.194
	Cash & Bank Balances	24.936	122.400	23.937
	Other Current Assets	34.266	16.410	81.294
	Loans & Advances	212.682	205.432	98.921
Total Current Assets		1399.036	1570.667	1206.715
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditor	316.561	442.677	239.155
	Other Current Liabilities	6.183	3.174	0.051
	Provisions	46.650	26.737	0.350
Total Current Liabilities		369.394	472.588	239.556
Net Current Assets		1029.642	1098.079	967.159
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		2130.530	1965.152	1634.882

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	1621.207	1504.549	1222.843
		Other Income	2.484	2.935	3.147
		TOTAL (A)	1623.691	1507.484	1225.990
Less	EXPENSES
		Consumption Materials Changed Inventories	1031.239	941.450
		Manufacturing Service Costs	159.784	153.442
		Employee Related Expenses	101.955	93.747	1014.796
		Administrative, Selling and Other Expenses	36.150	54.312
		TOTAL (B)	1329.128	1242.951	1014.796
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		294.563	264.533	211.194
Less	FINANCIAL EXPENSES (D)		134.794	116.940	99.466
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		159.769	147.593	111.728
Less/ Add	DEPRECIATION/ AMORTISATION (F)		61.164	58.510	55.200
	PROFIT BEFORE TAX (E-F) (G)		98.605	89.083	56.528
Less	TAX (H)		3.737	0.063	0.700
	PROFIT AFTER TAX (G-H) (I)		94.868	89.020	55.828
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		NA	(180.729)	(236.557)
Less	APPROPRIATIONS
		Proposed Dividend	NA	22.500	--
		Dividend Distributed Tax	NA	3.824	--
	BALANCE CARRIED TO THE B/S		NA	(118.033)	(180.729)
	EARNINGS IN FOREIGN CURRENCY		422.365	508.130	225.746
	IMPORTS
		Raw Materials	155.308	168.918	62.167
	TOTAL IMPORTS		155.308	168.918	62.167
	Earnings Per Share (Rs.)		4.38	3.96	2.48

QUARTERLY RESULTS

PARTICULARS	30.06.2011	30.09.2011	31.12.2011
Type	1^st Quarter	2^nd Quarter	3^rd Quarter
Net Sales	392.540	409.530	432.740
Total Expenditure	293.120	311.830	318.690
PBIDT (Excl OI)	99.420	97.700	114.050
Other Income	0.390	0.650	0.070
Operating Profit	99.810	98.350	114.120
Interest	47.310	49.270	51.000
Exceptional Items	0.000	0.000	0.000
PBDT	52.500	49.080	63.120
Depreciation	25.560	28.600	27.300
Profit Before Tax	26.940	20.480	35.820
Tax	0.000	0.000	0.000
Provisions and contingencies	0.000	0.000	0.000
Profit After Tax	26.940	20.480	35.820
Extraordinary Items	0.000	0.000	0.000
Prior Period Expenses	0.000	0.000	0.000
Other Adjustments	0.000	0.000	0.000
Net Profit	26.940	20.480	35.820

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	5.84	17.54	4.55
Net Profit Margin (PBT/Sales)	(%)	6.08	5.92	4.62
Return on Total Assets (PBT/Total Assets}	(%)	3.94	4.16	8.09
Return on Investment (ROI) (PBT/Networth)		0.16	0.16	0.12
Debt Equity Ratio (Total Liability/Networth)		3.05	3.47	2.88
Current Ratio (Current Asset/Current Liability)		3.79	3.32	5.04

LOCAL AGENCY FURTHER INFORMATION

PERFORMANCE REVIEW
 
During the year, the Company has achieved Net Sales and Operational income of Rs.1621.207 Millions as against Rs.1504.549 Millions in the previous year, registering an increase in sales by 7.75%. During the year, the Company has achieved a Net profit before Tax of Rs.98.605 Millions as against Rs. 89.020 Millions during the corresponding period in the previous year, resulting in consistent rise in profits for the 3rd consecutive financial year.
 
The total sales of the Company includes export sales of Rs.422.365 Millions during the year as against Rs. 508.130 Millions in the previous year and account for approximately 26.05% of the total sales in the current year as against 33.77% in the previous corresponding period.

MANAGEMENT`S DISCUSSION AND ANALYSIS REPORT
 
GLOBAL PHARMACEUTICAL MARKET
 
The global pharmaceutical Industry is in a state of transition. As per the IMS Health forecast, divergent growth rates are expected for developed and emerging markets in the year 2011. The emerging markets are forecasted to grow at a 15-17% in 2011, to US$170-180 billion. Many of these markets are benefiting from greater government spending on healthcare and broader public and private healthcare funding, which is driving greater demand and access to medicines.
 
The five major European markets (Germany, France, Italy, Spain, and U.K.) collectively will grow at a 1-3% pace, as will Canada. As per the forecast, U.S. will remain the single largest pharmaceutical market, with 35% growth expected next year.
 
In 2011, products with sales of more than $30 billion are expected to face the prospect of generic competition in the major developed markets. The full impact of patients shifting to lower-cost generic alternatives for these products, as well as other brands in their therapy classes, mostly will be felt in 2012, due to the timing and expected competitive intensity among generic entrants.
 
 
INDIAN PHARMACEUTICAL MARKET
 
India as a country, offers certain competitive advantages over countries like China and East European Countries. It has skilled and English speaking human power, a strong manufacturing base with a track record of producing quality products, rich biodiversity and a structured legal and regulatory system. India has over 175 US-FDA approved manufacturing facilities and is estimated to grow 30% annually. India is the only country to have largest US-FDA approved plants outside USA, which makes India an outsourcing hub for manufacturing services by multinationals and global pharmaceutical companies.
 
Overall regulatory environment in India has seen changes and a lot more is expected with the changing global business climate. One of the drivers behind this potential growth expectation is that India`s pharmaceutical industry has a favorable macro environment to grow in. The Indian economy has rebounded from the global economic downturn, with real gross domestic product (GDP) growth reaching 10.4% in 2010 (IMF World Economic Outlook April, 2011).
 
The Indian Domestic Pharma industry is witnessing trends such as acquisition activity, increased sales and marketing investment by domestic players, deeper penetration into the rural markets, and growth in insurance coverage and innovation in healthcare delivery. Taken together, these trends are leading to increased affordability of services to patients and access to quality medical care. These trends, along with the favorable macro environment will propel the industry to the next level of growth.
 
The report highlights that presently around 67% of India`s population or 742 million people live in rural areas, but rural markets contribute to only 17% of the overall Pharma market`s sales. Further, this low penetration represents a huge opportunity for the pharmaceutical companies to expand in the rural markets, which are expected to be the growth drivers for the domestic Pharma industry in the coming years.

FINANCE
 
OPERATIONAL AND FINANCIAL PERFORMANCE
 
*Sales: During the year, Net Sales and Operational Income stood at Rs.1621.207 Millions as against Rs. 1504.549 Millions in the previous year, registering an increase in sales by 7.75%.
 
*Net Profit: During the year the Company has achieved a Net profit of Rs.98.605 Millions as against Rs. 89.020 Millions, during the corresponding period in the previous year
 
*Net-worth: The net-worth of the Company increased to Rs.614.187 Millions from Rs.541.819 Millions during the previous year. The increase has been primarily on account of profits earned by the company during the year.
 
*Net Working Capital: The Net Current Assets of the Company decreased from Rs.1098.079 Millions in the previous year to Rs.1029.642 Millions.
 
*Fixed Assets: During the year, the Company has incurred capital expenditure amounting to Rs.294.996 Millions. The amount has primarily been used in up-gradation and modernization of the manufacturing facilities including set-up of ETP facility at Solapur.
 
 
INTERNAL CONTROL SYSTEMS
 
The Company has adequate internal control systems commensurate with the size and the nature of business of the Company.
 
The internal control system is constantly assessed and strengthened with tighter control procedures. The Internal Control Systems ensure efficiency of operations, compliance with internal policies and applicable laws and regulations, protection of resources and assets, and accurate reporting of financial transactions.
 
The audit committee periodically reviews the adequacy and efficacy of the said internal control systems. All the issues relating to internal control systems are resolved by the audit committee.
 
 

CONTINGENT LIABILITIES NOT PROVIDED FOR:

Particulars	31.03.2011	31.03.2010	31.03.2009
	(Rs. In Millions)
Estimated Amount of Unexecuted Capital Contracts	0.000	50.240	13.536
Letters of Credit	11.896	2.415	14.274
Bank Guarantee	3.000	5.100	5.100
Others	2.938	2.938	2.938

 
 
FORM 8:
 

Corporate identity number of the company	L24110AP1993PLC016112
Name of the company	AVON ORGANICS LTD
Address of the registered office or of the principal place of business in India of the company	Survey No.18, Yawapur Village, Sadasivpet Mandal Medak District Rict, - 502 291, Andhra Pradesh, India cs_1@avonorganicsltd.com
This form is for	Modification of charge
Charge identification number of the modified	10266950
Type of charge	Immovable property Book Debts Movable Property Others: All the current assets of the Company
Particular of charge holder	State Bank of India Industrial Finance Branch, Raj Bhavan Road, Somajiguda, Hyderabad – 500082, Andhra Pradesh, India sa.04106@sbi.co.in
Nature of description of the instrument creating or modifying the charge	Declaration cum deed of confirmation for extension of mortgage dated 01/07/2011
Date of instrument Creating the charge	01/07/2011
Amount secured by the charge	Rs.200.000 Millions
Brief particulars of the principal terms and conditions and extent and operation of the charge	Rate of Interest Cash Credit-5.00% above BR; present effective rate-12.50% EPC: Administered pricing for EPC/FBD Standby Line of Credit- 1% above Cash Credit Terms of Repayment Repayment on demand Margin Cash Credit: Raw Material: Domestic-25%; Imported-25% SIP: 25%; FG-25%; Receivables-25%; (Cover Period)-Domestic-120 days; Export-150 days Letter of credit-10% Bank Guarantees-10% Extent and Operation of the charge Pari passu first charge on current assets of the Company, present and future. Pari passu second charge on all the fixed assets of the Company, present and future, lying at all the locations of the Company with other Working Capital Bankers of the Company.
Short particulars of the property charged	Pari passu first charge on current assets of the Company, present and future including goods, movables and other assets, book debts, outstanding moneys, receivables. Pari passu second charge on the present and future fixed assets of the Company, located at the various locations of the Company.
Date of latest modification prior to the present modification	15/09/2010
Particulars of the present modification	Creation of mortgage on the immovable properties of the Company located at Survey No.18, Yawapur Village, Sadasivpet, Medak, Andhra Pradesh and Plot No. E-2, Chincholi Industrial Area, Solapur, Maharashtra for the amount of Rs.360.000 Millions out of the total amount of Rs. 424.000 Millions

FIXED ASSETS:

Ø Land and Site Development

Ø Buildings

Ø Non-Factory

Ø Factory

Ø Plant and Machinery

Ø Electrical Installation

Ø Furniture

Ø Office Equipment

Ø Computers

Ø Vehicles

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.50.03
UK Pound	1	Rs.79.32
Euro	1	Rs.66.02

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	4
--LEVERAGE	1~10	3
--RESERVES	1~10	3
--CREDIT LINES	1~10	3
--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	YES
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		33

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.