MIRA INFORM REPORT

Report Date :

13.03.2012

IDENTIFICATION DETAILS

Name :	ENAL DRUGS PRIVATE LIMITED

Registered Office :	Plot No. 136, Phase-1, Kalyan Nagar, Hyderabad – 500038, Andhra Pradesh

Country :	India

Financials (as on) :	31.03.2011

Date of Incorporation :	27.06.1990

Com. Reg. No.:	01-011422

Capital Investment / Paid-up Capital :	Rs.9.827 Millions

CIN No.: [Company Identification No.]	U24230AP1990PTC011422

TAN No.: [Tax Deduction & Collection Account No.]	HYDE00420A

PAN No.: [Permanent Account No.]	AAACE4424F

Legal Form :	Private Limited Liability Company

Line of Business :	Manufacturer of Pharma Chemicals.

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 240000

Status :	Satisfactory

Payment Behaviour :	Usually correct

Litigation :	Clear

Comments :	Subject is an 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

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

LOCATIONS

Registered Office :	Plot No. 136, Phase-1, Kalyan Nagar, Hyderabad – 500038, Andhra Pradesh, India
Tel. No.:	91-40-44753636/ 23193623/ 23193624/625
Fax No.:	91-40-23096953
E-Mail :	accounts@enaldrugs.com enaldrugs@satyam.net.in mktg@enaldrugs.com purchase@enaldrugs.com
Website :	www.enaldrugs.com

Factory :	D-33,34,35, Phase-I, IDA, Jeedimetla, Hyderabad – 500055, Andhra Pradesh, India

DIRECTORS

As on 28.09.2011

Name :

Mr. Suresh Babu Sunkaraneni

Designation :

Managing Director

Address :

Plot No. 136, Phase-1, Kalyan Nagar, Hyderabad – 500038, Andhra Pradesh, India

Date of Birth/Age :

02.10.1960

Date of Appointment :

27.06.1990

DIN No.:

00127565

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	U24230AP1990PTC011422	ENAL DRUGS PRIVATE LIMITED	Managing director	27/06/1990	27/06/1990	-	Active	NO
2	U23201AP1991PTC012561	GODAVARI LUBRICANTS PRIVATE LIMITED	Director	1/12/2007	1/12/2007	3/06/2008	Active	NO
3	U24232AP2011PTC076566	ENAL PHARMACHEM PRIVATE LIMITED	Director	16/09/2011	16/09/2011	-	Active	NO

Name :

Uma Sunkaraneni

Designation :

Director

Address :

Plot No. 136, Phase-1, Kalyan Nagar, Hyderabad – 500038, Andhra Pradesh, India

Date of Birth/Age :

11.07.1966

Date of Appointment :

07.11.1994

DIN No.:

00390992

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	U24230AP1990PTC011422	ENAL DRUGS PRIVATE LIMITED	Director	7/11/1994	7/11/1994	-	Active	NO
2	U23201AP1991PTC012561	GODAVARI LUBRICANTS PRIVATE LIMITED	Director	1/12/2007	1/12/2007	3/06/2008	Active	NO
3	U24232AP2011PTC076566	ENAL PHARMACHEM PRIVATE LIMITED	Director	16/09/2011	16/09/2011	-	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 28.09.2011

Names of Shareholders		No. of Shares
S. Suresh Babu		536864
S. Uma		405002
Shruti		30000
S. Sudhakar		4000
A. Surender Reddy		6800
Total		982666

Equity Share Break up (Percentage of Total Equity)

As on 28.09.2011

Category	Percentage
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer of Pharma Chemicals.

Products :	Omeprazole, Lansoprazole, Intermediates

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

· State Bank of Mysore, Manjula Apartments, JNTU Road, KPHB Colony, Kukatpally, Hyderabad – 500072, Andhra Pradesh, India

· State Bank of Mysore, RASMECCC, 1st Floor, 2-1-340/16, Sai Tara Towers, Nallakunta Chowrasta, Hyderabad – 500044, Andhra Pradesh, India

· HDFC Bank

Facilities :

Secured Loan	As on 31.03.2011 (Rs. in Millions)	As on 31.03.2010 (Rs. in Millions)
Secured OD (Secured by way of hypothecation of plant and machinery, Stock and Debtors)	35.537	40.763
Term Loan with SBM (Secured by way of hypothecation of plant and machinery, Stock and Debtors)	15.716	9.336
Reliance Capital – Eicher	0.099	0.465
Reliance Capital – Eicher 2	0.922	0.000
Reliance Capital – Tata Ace	0.288	0.000
HDFC - Innova	0.696	1.000
HDFC – Aveo	0.396	0.549
HDFC – I 20	0.443	0.000
HDFC Venu	0.570	0.790
HDFC – Swift Dzire	0.357	0.000
SIDBI	3.152	0.000
Total	58.176	52.903

Unsecured Loan	As on 31.03.2011 (Rs. in Millions)	As on 31.03.2010 (Rs. in Millions)
ABN Amro Loan	0.000	0.240
Bajaj Finance Limited	2.500	0.709
HDFC Business Loan	2.000	0.000
Kotak Mahindra Bank Limited	1.865	0.000
Total	6.365	0.949


Banking Relations :	--

Auditors :
Name :	K Vishwanath and Company Chartered Accountants
Address :	6-3-11/4/D, Somajiguda, Rajbhavan Road, Hyderabad – 500082, Andhra Pradesh, India
PAN.:	AAGFK5188B

CAPITAL STRUCTURE

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
1000000	Equity Shares	Rs.10/- each	Rs.10.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
982666	Equity Shares	Rs.10/- each	Rs.9.827 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		9.827	9.827	9.827
2] Share Application Money		10.300	0.000	0.000
3] Reserves & Surplus		41.159	30.456	20.880
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		61.286	40.283	30.707
LOAN FUNDS
1] Secured Loans		58.176	52.903	32.984
2] Unsecured Loans		6.365	0.949	1.867
TOTAL BORROWING		64.541	53.852	34.851
DEFERRED TAX LIABILITIES		0.619	0.519	0.000

TOTAL		126.446	94.654	65.558

APPLICATION OF FUNDS

FIXED ASSETS [Net Block]		61.749	42.093	40.204
Capital work-in-progress		0.000	0.000	0.000

INVESTMENT		0.050	0.050	0.050
DEFERREX TAX ASSETS		0.000	0.000	0.603

CURRENT ASSETS, LOANS & ADVANCES
	Inventories	42.286	20.938	21.276
	Sundry Debtors	106.327	89.923	43.333
	Cash & Bank Balances	0.093	0.087	2.753
	Other Current Assets	2.710	11.977	0.000
	Loans & Advances	32.100	19.996	9.161
Total Current Assets		183.516	142.921	76.523
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	84.057	57.191	36.014
	Other Current Liabilities	10.221	13.170	4.977
	Provisions	24.591	20.049	10.831
Total Current Liabilities		118.869	90.410	51.822
Net Current Assets		64.647	52.511	24.701

MISCELLANEOUS EXPENSES		0.000	0.000	0.000

TOTAL		126.446	94.654	65.558

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	307.343	272.294	136.765
		Other Income	5.147	1.497	0.103
		Foreign Exchange Variation	0.287	0.078	0.408
		TOTAL (A)	312.777	273.869	137.276

Less	EXPENSES
		Increase/ (Decrease) Stock	(18.079)	4.107	(6.185)
		Raw Material Consumed	200.471	150.422	79.461
		Factory Expenses	49.018	39.513	25.713
		Selling and Administrative Expenses	55.529	56.589	37.985
		Deferred Tax Asset/ Liability	0.000	0.000	(0.176)
		TOTAL (B)	286.939	250.631	136.798

Less	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		25.838	23.238	0.478

Less	FINANCIAL EXPENSES (D)		0.000	0.000	0.000

	PROFIT/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		25.838	23.238	0.478

Less/ Add	DEPRECIATION/ AMORTISATION (F)		9.036	6.539	6.150

	PROFIT/ (LOSS) BEFORE TAX (E-F) (G)		16.802	16.699	(5.672)

Less	TAX (H)		6.099	7.123	NA

	PROFIT/ (LOSS) AFTER TAX (G-H) (I)		10.703	9.576	NA

	Earnings/ (Loss) Per Share (Rs.)		10.89	15.85	(5.77)

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	3.42	3.50	NA

Net Profit Margin (PBT/Sales)	(%)	5.47	6.13	4.15

Return on Total Assets (PBT/Total Assets}	(%)	6.85	9.02	4.86

Return on Investment (ROI) (PBT/Networth)		0.27	0.41	0.18

Debt Equity Ratio (Total Liability/Networth)		2.99	3.58	2.82

Current Ratio (Current Asset/Current Liability)		1.54	1.58	1.48

LOCAL AGENCY FURTHER INFORMATION

Bankers Charges Report as per Registry

Corporate identity number of the company	U24230AP1990PTC011422
Name of the company	ENAL DRUGS PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	Plot No 136, Phase-1kalyan Nagar, Hyderabad – 500038, Andhra Pradesh, India Email : accounts@enaldrugs.com
This form is for	Creation of charge
Type of charge	Book Debts Movable Property
Particular of charge holder	State Bank of Mysore, RASMECCC, 1st Floor, 2-1-340/16, Sai Tara Towers, Nallakunta Chowrasta, Hyderabad – 500044, Andhra Pradesh, India Email: rasmeccchyd@sbm.co.in
Nature of instrument creating charge	Letter of Arrangement Supplemental Agreement of loan cum Hypothecation Deed of Guarantee
Date of instrument Creating the charge	02.11.2010
Amount secured by the charge	Rs.10.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest 14% pa payment with monthly rests. Terms of Repayment 60 monthly installments of Rs.0.167 million each commencing from December 2010 and the last installment on December 2015. Margin Finished Goods : 22% Extent and Operation of the charge First charge on current assets and fixed assets both present and future of the Company.
Short particulars of the property or asset(s) charged (including complete address and location of the property)	Equitable mortgage of Plot No.33, Phase-1, IDA, Jeedimetla (vii). Equitable mortgage of 4-165/7 on Plot No-78 at Old Alwal Municipality, Malkajgiri, RR District Equitable mortgage of Plot No.34 and D-35 on Sy.No.284/2, Phase -1, IDA Jeedimetla, Quthubullapur (Mandal), RR District

FIXED ASSETS

Land
Building
Plant and Machinery
Furniture and Fixture
Office Equipment
Computers
Lab Equipment
Electrical Equipment
Factory Equipment
Vehicle
Air Conditioner

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.49.94
UK Pound	1	Rs.78.25
Euro	1	Rs.65.40

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	5
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	6
--CREDIT LINES	1~10	5
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	YES
--AFFILIATION	YES/NO	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.

MIRA INFORM REPORT

42.286

106.327

0.093

2.710

32.100

183.516

84.057

10.221

24.591

118.869

64.647

3.42

5.47

6.85

0.27

2.99

1.54

Unit