MIRA INFORM REPORT

Report Date :

16.03.2012

IDENTIFICATION DETAILS

Name :	GEA PHARMA SYSTEMS (INDIA) PRIVATE LIMITED (w.e.f. 07.07.2009)
Formerly Known As :	ACO-ENGINEERING (INDIA) PRIVATE LIMITED
Registered Office :	Block No.8, Phase B, Village Dumad, Savil Road, Vadodara – 391 740, Gujarat
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	12.04.2007
Com. Reg. No.:	04-050513
Capital Investment / Paid-up Capital :	Rs.47.079 Millions
CIN No.: [Company Identification No.]	U29249GJ2007FTC050513
TAN No.: [Tax Deduction & Collection Account No.]	BRDA02606C
PAN No.: [Permanent Account No.]	AAGCA2753F
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturing of Industrial Equipments.
No. of Employees :	Information declined by the management

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 771000
Status :	Moderate
Payment Behaviour :	Slow
Litigation :	Clear
Comments :	Subject is an established company having moderate track. Profitability of the company is under pressure. 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. 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.

INFORMATION DECLINED BY

Name :	Mr. Ninad Raja
Designation :	Finance Manager
Contact No.:	91-265-3074202
Date :	15.03.2012

LOCATIONS

Registered Office :	Block No.8, Phase B, Village Dumad, Savil Road, Vadodara – 391 740, Gujarat, India
Tel. No.:	91-265-3074272/ 3074202/ 3074203 / 3074206
Fax No.:	91-265-3074255
E-Mail :	pharma-india@geagroup.com ninad.raje@geagroup.com
Website :	http://www.gea-pharma.in

DIRECTORS

As on 30.09.2011

Name :	Mr. Kashyap Upadhyay
Designation :	Director
Address :	H-57, Adarsh Duplex, ITI Crossing, Gorwa, Vadodara – 390 016, Gujarat, India
Date of Birth/Age :	20.06.1966
Date of Appointment :	20.09.2007
DIN No.:	01472012
Name :	Mr. Raman Manmohan Madhok
Designation :	Director
Address :	1-D, Villa Alto – Monte, Main Street, Nagali Hills Colony, Donapaula, Goa – 403 004, India
Date of Birth/Age :	02.02.1945
Date of Appointment :	28.12.2009
DIN No.:	01798377
Name :	Mr. Ronald Anthony Youngs
Designation :	Director
Address :	Scarlet Oakes, Ridgway, Pyrford, Working, UK
Date of Birth/Age :	08.02.1952
Date of Appointment :	28.12.2009
DIN No.:	02886912
Name :	Mr. Anthony Edgar Butler
Designation :	Director
Address :	19, Ridgeway Road, Sahibury, UK
Date of Birth/Age :	08.05.1953
Date of Appointment :	28.12.2009
DIN No.:	02886882

KEY EXECUTIVES

Name :	Mr. Ninad Raja
Designation :	Finance Manager

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2011

Names of Shareholders	No. of Shares
Ninad Sharad Raje	1
GEA Process Engineering (India) Private Limited, India	4707944
Total	4707945

As on 30.09.2011

Equity Share Breakup	Percentage of Holding
Category
Bodies corporate	99.99
Other top fifty shareholders	0.01
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturing of Industrial Equipments.

PRODUCTION STATUS (AS ON 31.03.2011)

Installed Capacity

The information pertaining to Installed Capacity is not relevant as the items produced by the Company are of a highly dissimilar nature.

Particulars	Production
Bulk Milk Cooler (BMC)	5
Fluid Bed Dryer (FBD)	380
Pharma Connect (PMA)	160
Vibro Fluidizer (VF)	0
Ducting	31
Material Handling	33
Others	94
	703

GENERAL INFORMATION

No. of Employees :

Information declined by the management

Bankers :

Not Available

Facilities :

Unsecured Loans	31.03.2011 Rs. In Millions	31.03.2010 Rs. In Millions
From Banks	91.140	40.105
From Holding Company	43.999	43.999
Interest Accrued on Loan from Holding Company	9.679	4.343
Total	144.818	88.447

Banking Relations :	--
Auditors :
Name :	Deloitte Haskins and Sells Chartered Accountants
Address :	31, Nutan Bharat Society, Alkapuri, Vadodara – 390 007, Gujarat, India
Income-tax PAN of auditor or auditor's firm :	AADFD2337G
Holding Company :	GEA Process Engineering (India) Private Limited, India (from 02.07.2009) CIN No.: U74999MH1992PTC065230
Ultimate Holding Company :	GEA Group AG
Associate Companies :	v GEA Courtoy NV v GEA Ecoflex India Private Limited v GEA Niro-GEA Process Engg A/S v GEA Pharma Systems Limited v GEA Pharma Systems NV v GEA Process Engg (NPS) Limited v GEA Tuchenhagen GmbH v WestfaliaSurge Deutschland GmbH v WestfaliaSurge Japy SAS v GEA Pharma Systems AG v GEA IT-Services GmbH

CAPITAL STRUCTURE

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
5110000	Equity Shares	Rs.10/- each	Rs.51.100 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
4707945	Equity Shares	Rs.10/- each	Rs.47.079 Millions

(Out of above, 4147650 Shares are issued for consideration other than cash)

[All the Equity Shares are held by GEA Process Engineering (India) Private Limited, the Holding Company and its nominee GEA Group AG is the Ultimate Holding Company)]

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2011	31.03.2010	30.06.2009
SHAREHOLDERS FUNDS
1] Share Capital		47.079	47.079	5.603
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		232.268	232.268	0.000
4] (Accumulated Losses)		(86.668)	(36.334)	(33.012)
NETWORTH		192.679	243.013	(27.409)
LOAN FUNDS
1] Secured Loans		0.000	0.000	0.000
2] Unsecured Loans		144.818	88.447	8.494
TOTAL BORROWING		144.818	88.447	8.494
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		337.497	331.460	(18.915)
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		305.578	265.471	0.119
Capital work-in-progress		0.446	21.946	0.000
INVESTMENT		0.000	0.000	0.000
DEFERRED TAX ASSETS		14.651	14.651	14.446
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	95.370	63.075	19.675
	Sundry Debtors	53.568	31.211	0.000
	Cash & Bank Balances	8.793	16.040	2.986
	Other Current Assets	55.943	0.000	0.000
	Loans & Advances	22.863	20.270	7.842
Total Current Assets		236.537	130.596	30.503
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	115.048	53.501	17.320
	Other Current Liabilities	84.877	34.593	35.267
	Provisions	19.924	13.377	11.798
Total Current Liabilities		219.849	101.471	64.385
Net Current Assets		16.688	29.125	(33.882)
MISCELLANEOUS EXPENSES		0.134	0.267	0.402
TOTAL		327.497	331.460	(18.915)

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	30.06.2009
	SALES
		Income from Sales and Services	266.755	60.688	18.950
		Other Income	4.934	1.383	0.189
		TOTAL (A)	271.689	62.071	19.139
Less	EXPENSES
		Increase /Decrease is Inventories	28.206	(24.380)	(7.132)
		Cost of Material and Other Manufacturing Expenses	143.056	44.635	20.243
		Employee Cost	52.716	21.933	14.560
		Administrative Expenses	66.006	15.814	15.328
		Selling and Distribution Expenses	6.210	0.292	1.092
		Preliminary Expenses Written Off	0.134	0.134	0.134
		TOTAL (B)	296.328	58.428	44.225
Less	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		(24.639)	3.643	(25.086)
Less	INTEREST & FINANCIAL EXPENSES (D)		12.647	6.891	0.037
	PROFIT/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		(37.286)	(3.248)	(25.123)
Less/ Add	DEPRECIATION/ AMORTISATION (F)		13.048	0.279	0.007
	PROFIT/ (LOSS) BEFORE TAX (E-F) (G)		(50.334)	(3.527)	(25.130)
Less	TAX (H)		0.000	(0.205)	(14.375)
	PROFIT/ (LOSS) AFTER TAX (G-H) (I)		(50.334)	(3.322)	(10.755)
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		(36.334)	(33.012)	(22.257)
	BALANCE CARRIED TO THE B/S		(86.668)	(36.334)	(33.012)
	EARNINGS IN FOREIGN CURRENCY
		Export Sales	96.404	46.809	8.025
		Sales Commission	4.250	1.140	0.000
		Income from Dire Services	1.829	0.000	0.000
	TOTAL EARNINGS		102.483	47.949	8.025
	IMPORTS
		Raw Materials	65.578	10.145	4.977
		Capital Goods	3.343	0.103	0.000
	TOTAL IMPORTS		68.921	10.248	4.977
	Earnings/ (Loss) Per Share (Rs.)		(10.69)	(7.69)	(19.20)

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	30.06.2009
PAT / Total Income	(%)	(18.53)	(5.35)	(56.19)
Net Profit Margin (PBT/Sales)	(%)	(18.87)	(5.81)	(132.61)
Return on Total Assets (PBT/Total Assets}	(%)	(9.28)	(0.89)	(82.07)
Return on Investment (ROI) (PBT/Networth)		(0.26)	(0.01)	0.92
Debt Equity Ratio (Total Liability/Networth)		1.89	0.78	(2.66)
Current Ratio (Current Asset/Current Liability)		1.08	1.29	0.47

LOCAL AGENCY FURTHER INFORMATION

Details of Sundry Creditors:

Particulars	31.03.2011 (Rs. in millions)	31.03.2010 (Rs. in millions)	30.06.2009 (Rs. in millions)
Sundry Creditors
- Micro Enterprises and Small Enterprises	0.000	0.000	0.000
- Others	115.048	53.501	17.320
Total	115.048	53.501	17.320

Note:

Registered office of the company has been shifted from Block No.8, Village Dumad, Savali Road, Vadodara – 391 740, Gujarat, India to the present address w.e.f. 22.07.2009.

OPERATIONS:

The gross sales and other income for the financial year were Rs.243.480 millions as against Rs.86.450 millions for the previous financial year registering an increase of 2.82 times. The Loss before depreciation and tax stood at Rs.50.200 millions and the Net Loss stood at Rs.50.330 millions against Rs.3.240 millions and Rs.3.320 millions respectively for the previous financial year.

The Directors foresee improvement in performance of the company in view growth of pharmaceutical product market. IMS Health estimates the global pharmaceutical market in 2011 at over US$ 880 billion. This is expected to grow 5-7%. Emerging markets, which accounted for US$ 84 billion in 2008, are estimated to reach U5$ 155-185 billion in 2013, with a CAGR of 13-15% (IMS Health and Morgan Stanley estimates). The Indian pharmaceutical market also continued to register a healthy growth of 20% for the 12 months ended July 2010, above four times the global growth rate about five percent. The Indian pharmaceutical market reached Rs.444770.000 millions in size, with a value-wise growth rate of 20.4 percent over the previous year’s corresponding period on a Moving Annual Total (MAT) basis for the 12 months ended July 2010, according to data from IMS Health India. India’s Socio-economic factors such as rising incomes, increasing affordability of quality health care, steady increase in health insurance penetration and a continued rise in chronic diseases is expected to drive the growth of the pharmaceutical market in India. IMS forecast suggest that the Indian pharmaceutical market will continue to register double-digit growth and has high potential to double its size in five years

Coupled with supply of machinery to pharma industry, the company is also planning to make a foray in dairy and chemical Industry.

FIXED ASSETS:

v Factory Building

v Plant and Machinery

v Air Conditioners

v Computer and Peripherals

v Electrical Fittings

v Furniture and Fixture

v Office Equipments

v Other Equipments

v Software and Licenses

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.50.22
UK Pound	1	Rs.78.64
Euro	1	Rs.65.54

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
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	2
--CREDIT LINES	1~10	3
--MARGINS	-5~5	-
DEMERIT POINTS
--BANK CHARGES	YES/NO	NO
--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	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.