MIRA INFORM REPORT

Report Date :

10.05.2012

IDENTIFICATION DETAILS

Name :	VAMSI LABS LIMITED
Registered Office :	A-14 and 15, MIDC Area, Pune Road Chincholi, Solapur-413255, Maharashtra.
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	09.01.1991
Com. Reg. No.:	11-059750
Capital Investment/ Paid-up Capital:	Rs.28.635 Millions
CIN No.: [Company Identification No.]	U24231MH1991PLC059750
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer and Exporter of API's and Piperidine, Piperidone derivatives in India.
No. of Employees:	Not Available

RATING & COMMENTS

MIRA’s Rating :

B (28)

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

Maximum Credit Limit :	USD 173000
Status :	Moderate
Payment Behaviour :	Slow But correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track. Financial position of the company is improving. 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/Factory :	A-14 and 15, MIDC Area, Pune Road Chincholi, Solapur-413255, Maharashtra, India
Tel. No.:	91-217-2357274 / 75
Mobile No.:	91-9422457791 (Mr. G. Pratap Reddy) 91-9422457790 (Mr. M. Kesava Reddy)
Fax No.:	91-217-2357278
E-Mail :	mkreddy@vamsilabs.com sales@vamsilabs.com kapil@vamsilabs.com nagraj@vamsilabs.com
Website :	www.vamsilabs.com

DIRECTORS

As on 30.09.2011

Name :

Mr. Kesava Reddy Bhujanga Reddy Madana

Designation :

Whole Time Director

Address :

B-149, Plot No.3, Gangadhar Housing Society, Hatgi Road, Solapur-413003, Maharashtra, India

Date of Birth/Age :

01.04.1954

Date of Appointment :

09.01.1991

Din No.:

01916588

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	U24231MH1991PLC059750	VAMSI LABS LIMITED	Whole-time director	1/4/2009	9/1/1991	-	Active	NO
2	U27310PN1993PTC017971	SAROJINI STEEL LIMITED	Director	14/08/1996	14/08/1996	-	Active	NO

Name :

Mr. Pratap Reddy Linga Reddy Gaddam

Designation :

Managing Director

Address :

Plot No.24/2, Hotgi Road, Solapur-413003, Maharashtra, India

Date of Birth/Age :

16.07.1960

Date of Appointment :

09.01.1991

Din No.:

01926026

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	U24231MH1991PLC059750	VAMSI LABS LIMITED	Managing director	1/4/2009	9/1/1991	-	Active	NO
2	U27310PN1993PTC017971	SAROJINI STEEL LIMITED	Director	14/08/1996	14/08/1996	-	Active	NO
3	U01122PN1999PTC014275	GREENFIELD CET PLANT PRIVATE LIMITED	Director	20/07/2002	20/07/2002	-	Active	NO
4	U24232PN2011PTC139429	GPR LIFE SCIENCES PRIVATE LIMITED	Director	5/5/2011	5/5/2011	-	Active	NO

Name :

Mr. Jaganmohan Anakala

Designation :

Whole Time Director

Address :

Plot No.16, 68/69, Deepjyoti Apartment, Hotgi Road, Solapur-413003, Maharashtra, India

Date of Birth/Age :

01.07.1968

Date of Appointment :

30.09.2010

Din No.:

02796369

Name :

Mr. Prasadu Reddy Kotiswamy Devagiri

Designation :

Director

Address :

Raghavendra Apatments, Hotgi Road, Near Sales Tax Office, Solapur-413003, Maharashtra, India

Date of Birth/Age :

01.07.1945

Date of Appointment :

01.03.2004

Din No.:

02796374

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	U24231MH1991PLC059750	VAMSI LABS LIMITED	Director	1/3/2004	1/3/2004	-	Active	NO
2	U27310PN1993PTC017971	SAROJINI STEEL LIMITED	Director	1/3/2004	1/3/2004	-	Active	NO
3	U24232PN2011PTC139429	GPR LIFE SCIENCES PRIVATE LIMITED	Director	5/5/2011	5/5/2011	-	Active	NO

Name :

Ms. Rama Taraka Reddy Tummuru

Designation :

Director

Address :

H. No.8-2-601/B/104, G. P. Residency Road No.10, Banjara Hills, Hyderabad-500034, Andhra Pradesh, India

Date of Birth/Age :

01.07.1948

Date of Appointment :

01.03.2004

Din No.:

02797424

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	U24231MH1991PLC059750	VAMSI LABS LIMITED	Director	1/3/2004	1/3/2004	-	Active	NO
2	U27109AP2007PTC053805	GAVI SIDDESWARA STEELS(INDIA) PRIVATE LIMITED	Director	3/5/2007	3/5/2007	25/03/2011	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2011

Names of Shareholders	No. of Shares
D. Prasadu Reddy	71650
G. Buchamma	50000
G. Giridhhar Reddy	15530
G. Linga Reddy	63350
G. Padma Reddy	60300
G. Prathap Reddy	563332
G. Sudhakar Reddy	10250
J. Chandra Reddy	28070
Kallam Krihna Reddy	12700
K.Jolji Reddy	22350
Madhusudan Reddy	15630
M. Bhujanga Reddy	26950
M. K Reddy	682928
Rajaram Srigopal chandak	172500

As on 30.09.2011

Equity Shares Break – up

Category	Percentage
Directors or relatives of directors	86.37
Others	13.63
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer and Exporter of API's and Piperidine, Piperidone derivatives in India.
Products :	· Products under Development · API intermediates · Active pharmaceutical ingredients (APIs)

PRODUCTION STATUS (As on : 31.03.2011)

Particulars	Unit	Licensed Capacity	Utilizes Capacity
Salbutamol Sulphate	MT/ KGS	24	17
Salmeterol Xinafoate	KGS	600	23.790
Formeterol Fumarate	KGS	600	8.457
Cyproheptadine	MT/ KGS	24	9.177
Domperidone and Malate	MT/ KGS	24	10583
Haloperidol	MT/ KGS	24	1287
Loperamide	MT/ KGS	6	1555

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

State Bank of India, Industrial Finance Branch, The Arcade, World Trade Centre, Cuffe Parade, Coloba, Mumbai-400005, Maharashtra, India.

Facilities :

Rs. In Millions

SECURED LOAN	31.03.2011	31.03.2010
Term Loan of Rs. 20.000 millions with State Bank of India, IFB, Mumbai		11.129
WCD Loan of Rs.55.000 millions with State Bank of India, IFB, Mumbai		51.254
FIT Loan of Rs. 5.300 millions with State Bank of India, IFB, Mumbai		2.959
Cash Credit with State Bank of India, IFB, Mumbai		39.920
Total	104.514	105.262
UNSECURED LOAN	31.03.2011	31.03.2010
Deposits from Others (Repayable for more than one year)		2.563
Ford Car loan from HDFC Bank Limited		0.394
Corolla Car Loan from HDFC Bank Limited		0.373
Vehicle Loans from Sunderam Finance Limited		0.217
Vehicle Loans from ICICI Bank Limited		0.000
Sales – tax Deferral Under 1993 Scheme (Total Sanction Rs. 13.488 millions)		12.760
and additional Sanction Rs.25.400 millions from DIC under PSI Expansion 1993 Sch.		25.170
Total	2.263	41.477

Banking Relations :	--
Auditors :
Name :	Ashok Madgundi and Company Chartered Accountant
Address :	210/ A /1, Sakhar Peth, Solapur, Maharashtra, India
Tel. No.:	91-217-2620403 / 2626540
Pan No. :	ABRPM6697F

CAPITAL STRUCTURE

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
3750000	Equity Shares	Rs. 10/- each	Rs.37.500 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
2863500	Equity Share	Rs.10/- each	Rs.28.635 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		28.635	28.635	28.635
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		14.675	10.773	6.127
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		43.310	39.408	34.762
LOAN FUNDS
1] Secured Loans		104.514	105.262	106.600
2] Unsecured Loans		2.263	41.477	40.091
TOTAL BORROWING		106.777	146.739	146.691
DEFERRED TAX LIABILITIES		5.436	5.607	6.137
TOTAL		155.523	191.754	187.590
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		86.911	71.520	74.481
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.642	0.641	0.669
DEFERREX TAX ASSETS			0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	59.812	57.515	55.900
	Sundry Debtors	36.073	55.848	44.083
	Cash & Bank Balances	1.453	0.782	0.530
	Other Current Assets	99.470	0.000	0.000
	Loans & Advances	23.940	117.443	118.371
Total Current Assets		220.748	231.588	218.884
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditor		109.085	105.934
	Other Current Liabilities	151.748	4.731	5.196
	Provisions	1.030	0.913	0.782
Total Current Liabilities		152.778	114.729	111.912
Net Current Assets		67.970	116.859	106.972
MISCELLANEOUS EXPENSES		0.000	2.734	5.468
TOTAL		155.523	191.754	187.590

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	231.832	190.484	174.254
		Other Income	1.931	0.288	0.812
		TOTAL (A)	233.763	190.772	175.066
Less	EXPENSES
		Cost of Materials	133.209	104.177	100.134
		Manufacturing Expenses	34.131	24.611	16.429
		Employees Remuneration	16.366	12.568	12.233
		Administrative Expenses	23.497	23.042	20.979
		TOTAL (B)	207.203	164.398	149.775
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		26.560	26.374	25.291
Less	FINANCIAL EXPENSES (D)		15.247	15.262	12.377
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		11.313	11.112	12.914
Less/ Add	DEPRECIATION/ AMORTISATION (F)		6.601	6.052	5.964
	PROFIT BEFORE TAX (E-F) (G)		4.712	5.060	6.950
Less	TAX (H)		0.752	0.267	0.468
	PROFIT AFTER TAX (G-H) (I)		3.960	4.793	6.482
	EARNINGS IN FOREIGN CURRENCY		50.161	37.126	33.488
	Earnings Per Share (Rs.)		1.38	NA	NA

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	1.69	2.51	3.70
Net Profit Margin (PBT/Sales)	(%)	2.03	2.66	3.99
Return on Total Assets (PBT/Total Assets}	(%)	1.53	1.66	2.37
Return on Investment (ROI) (PBT/Networth)		0.11	0.13	0.19
Debt Equity Ratio (Total Liability/Networth)		5.99	6.63	7.44
Current Ratio (Current Asset/Current Liability)		1.44	2.02	1.96

LOCAL AGENCY FURTHER INFORMATION

Check List by Info Agents	Available in Report [Yes/No]
Year of Establishment	Yes
Locality of the Firm	Yes
Construction of the firm	Yes
Premises details	No
Type of Business	Yes
Line of Business	Yes
Promoters background	Yes
No. of Employees	No
Name of Person Contacted	No
Designation of contact person	No
Turnover of firm for last three years	Yes
Profitability for last three years	Yes
Reasons for variation <> 20%	-
Estimation for coming financial year	No
Capital the business	Yes
Details of sister concerns
Major Suppliers	No
Major Customers	No
Payment Terms	No
Export / Import Details [If Applicable]	No
Market Information	-
Litigations that the firm / promoter involved in	-
Banking Details	Yes
Banking Facility Details	Yes
Conduct of the banking account	-
Buyer visit details	-
Financials, if provided	Yes
Incorporation details, if applicable	Yes
Last accounts filed at ROC	Yes
Major Shareholders, if applicable	Yes

COMPANY PERFORMANCE:

The net Sale of the Company are increased from Rs.190.484 Millions to Rs.231.800 Millions approximately increase of 24% which shows remarkable performance in such competitive scenario. After meeting all the expenses your company posted a Cash Profit and Net Profit at Rs.11.313 Millions and Rs.4.712 Millions respectively. Decrease in Net Profit is due to charge of higher depreciation on newly installed machines.

However the Directors pose a sincere confidence in performing well in the years to come.

Bankers Charges Report as per Registry

Corporate identity number of the company	U24231MH1991PLC059750
Name of the company	VAMSI LABS LIMITED
Address of the registered office or of the principal place of business in India of the company	A-14 and 15, MIDC Area, Chincholi, Solapur-413255, Maharashtra, India
Type of charge	· Book debts · Movable property (not being pledge)
Particular of charge holder	State Bank of India, Industrial Finance Branch, The Arcade, World Trade Centre, Cuffe Parade, Coloba, Mumbai-400005, Maharashtra, India. Eamil:kamalax_saraf@hotmail.com
Nature of instrument creating charge	Agreement of hypothecation of goods and assets
Date of instrument Creating the charge	05.07.2008
Amount secured by the charge	Rs.116.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of interest As per the sanction terms and condition of state Bank Of India. Terms of repayment As per the sanction terms and condition of state Bank Of India. Margin As per the sanction terms and condition of state Bank Of India Extent and operation of the charge As per the sanction terms and condition of state Bank Of India
Short particulars of the property or asset(s) charged (including complete address and location of the property)	A first charge by way of hypothecation of the borrowers entire goods, movables and Other assets present and future including documents of title to goods and other Assets, such as book-debts outstanding moneys, receivables, including receivables by Way of cash assistance and/or cash incentives under the cash incentive scheme or any Other scheme, claims, including claims by way of refund of customs/excise duties under The duty drawback credit scheme, or any other scheme

FIXED ASSETS

· Land

· Land Development

· Agricultural Land

· Building

· Plant and Machinery

· Electrical Equipments

· Office Furniture and Fixtures

· Vehicles

AS PER WEBSITE DETAILS:

BRIEF OF THE COMPANY:

Subject an ISO 9002 company is one of the major manufacturers of Active Pharmaceutical Ingredients (API's) in India. The factory is located in the industrial area of Solapur in the state of Maharashtra. The Company was initially started to produce Paracetamol, a universally used Anti-Pyretic and Analgesic. Later as a part of forward integration the company has diversified in to Ant i- Asthmatic / (Respiratory), Anti-Migraine and Anti Fungal range Subject, has become a popular name for API's in India.

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.5346
UK Pound	1	Rs.86.27
Euro	1	Rs.69.40

INFORMATION DETAILS

Report Prepared by :

BYI

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILIRY	1~10	3
--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	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		28

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.