MIRA INFORM REPORT

Report Date :

18.05.2012

IDENTIFICATION DETAILS

Name :	DANOPHARM CHEMICALS PRIVATE LIMITED
Registered Office :	Unit No.117, Ravi Kiran, 1^st Floor, Near Monginis, Off New Link Road, Andheri (West), Mumbai – 400 053, Maharashtra
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	15.01.2009
Com. Reg. No.:	11-189592
Capital Investment / Paid-up Capital :	Rs.9.200 Millions
CIN No.: [Company Identification No.]	U24100MH2009PTC189592
TAN No.: [Tax Deduction & Collection Account No.]	MUMD16811E
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Bulk Drugs and Intermediate.
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 180000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track. Profitability of the company appears to be low. 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 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 :	Unit No.117, Ravi Kiran, 1^st Floor, Near Monginis, Off New Link Road, Andheri (West), Mumbai – 400 053, Maharashtra, India
Tel. No.:	91-22-26736628/ 29/ 40109747
Fax No.:	91-22-26736668
E-Mail :	info@danopharm.com danopharm@vsnl.com
Website :	http://www.danopharm.com
Corporate Office :	G-01, Tiffany, Hiranandani Estate, Ghodbandar Road, Thane (West), Thane – 400607, Maharashtra, India
Tel. No.:	91-22-40570602/ 603/ 605/ 40570600
Fax No.:	91-22-40570609
E-Mail :	info@danopharm.com
Factory :	C-1/7131, GIDC, Ankleshwar, District Bharuch – 393002, Gujarat, India
Tel. No.:	91-2646-223542/ 329742
Fax No.:	91-2646-251879

DIRECTORS

(AS ON 31.05.2011)

Name :	Mr. Bimlesh Badalchandra Das
Designation :	Director
Address :	Flat No.502, Skydeck CHS., Off New Link Road, Andheri (west), Mumbai – 400053, Maharashtra, India
Date of Birth/Age :	01.11.1971
Date of Appointment :	15.01.2009
DIN No.:	01246697
Name :	Mr. Jayant Badalchandra Das
Designation :	Director
Address :	G-105 and 106, Palm Project, D-Mart, Link Road, Malad (West), Mumbai – 400064, Maharashtra, India
Date of Birth/Age :	26.06.1956
Date of Appointment :	15.01.2009
DIN No.:	02352513
Name :	Mr. Kamlesh Badal Das
Designation :	Director
Address :	G-1107, Palm Project, D-Mart, Link Road, Malad (West), Mumbai – 400064, Maharashtra, India
Date of Birth/Age :	16.05.1964
Date of Appointment :	15.01.2009
DIN No.:	02352515
Name :	Mr. Satish Prabhakar Nachane
Designation :	Additional Director
Address :	301, Krishna Niwas, Gawand Path, Naupada, Thane – 400602, Maharashtra, India
Date of Birth/Age :	08.04.1946
Date of Appointment :	03.09.2009
DIN No.:	00005520
Name :	Mr. Mehul Satish Nachane
Designation :	Additional Director
Address :	301, Krishna Niwas, Gawand Path, Naupada, Thane – 400602, Maharashtra, India
Date of Birth/Age :	16.07.1981
Date of Appointment :	03.09.2009
DIN No.:	01669975
Name :	Mr. Sabu Daniel
Designation :	Director
Address :	205-B, Sadhana – I, Dhuri Complex, Om Nagar, Vasai Road (West), Thane – 401202, Maharashtra, India
Date of Birth/Age :	03.01.1960
Date of Appointment :	16.03.2010
DIN No.:	01984280
Name :	Mr. Kashinath Badal Das
Designation :	Director
Address :	102, Sai Trishul, Raviraj Oberoi Complex, Off New Link Road, Andheri (West), Mumbai – 400053, Maharashtra, India
Date of Birth/Age :	28.09.1962
Date of Appointment :	15.01.2009
DIN No.:	02428770
Name :	Mr. Ramesh Eknath Jadhav
Designation :	Director
Address :	Lake View Society, II Floor, Near Santoshi Mata Mandir, Kalyan (West), Thane – 421301, Maharashtra, India
Date of Birth/Age :	05.11.1970
Date of Appointment :	16.03.2010
DIN No.:	01984279

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

(AS ON 31.05.2011)

Names of Shareholders	No. of Shares
Bimlesh Badalchandra Das	11500
Jayant Badalchandra Das	11500
Kamlesh Badal Das	11500
Kashinath Badal Das	11500
Synergy United Pharmachem Private Limited, India	46000
Total	92000

(AS ON 21.06.2011)

Names of Allottee	No. of Shares Allotted
Synergy United Pharmachem Private Limited, India	37400
Bimlesh Badalchandra Das	7650
Jayant Badalchandra Das	7650
Kamlesh Badal Das	7650
Kashinath Badal Das	7650
Total	68000

(AS ON 30.09.2011)

Equity Shares Break – up

Category	Percentage
Bodies corporate	50.00
Directors or relatives of directors	50.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Bulk Drugs and Intermediate.

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

· State Bank of India

Eastern Express Highway, Gala No.9 and 10, Sun Magnetic, Near LIC Off, Louis Wadi Service Road, Thane – 400604, Maharashtra, India

· Union Bank of India

· HDFC Bank

Facilities :

Secured Loans	31.03.2011	31.03.2010
	(Rs. In Millions)
Fixed Loans
Bank Cash Credit – UBI	56.543	30.920
Bank – Lap – HDFC	2.479	3.054
Other Loans
From Schedule Banks HDFC Car Loan	0.690	1.179
Total	59.712	35.153
Unsecured Loans	31.03.2011	31.03.2010
	(Rs. In Millions)
From Director/ Shareholders	15.585	7.793
From Others	0.848	0.848
Total	16.433	8.641

Banking Relations :	--
Auditors :
Name :	P. N. Hathi and Company Chartered Accountant
Address :	B/64, Ground Floor, Kiran Industrial Estate, M G Road, Goregaon (West), Mumbai – 400062, Maharashtra, India
Tel No.:	91-22-28785158/ 28785935
Mobile No.:	91-9821472950
Fax No.:	91-22-28785158
Email :	pnhathi@pnhathico.com
PAN No.:	AABPH3863R

CAPITAL STRUCTURE

(AS ON 31.05.2011)

Authorised Capital :

No. of Shares	Type	Value	Amount
200000	Equity Shares	Rs.100/- each	Rs.20.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
160000	Equity Shares	Rs.100/- each	Rs.16.000 Millions

(AS ON 31.03.2011)

Authorised Capital :

No. of Shares	Type	Value	Amount
100000	Equity Shares	Rs.100/- each	Rs.10.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
92000	Equity Shares	Rs.100/- each	Rs.9.200 Millions

NOTE:

(Out of above 76,000 equity shares were issued for consideration other than cash)

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		9.200	9.200	0.100
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		34.991	32.997	0.000
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		44.191	42.197	0.100
LOAN FUNDS
1] Secured Loans		59.712	35.153	0.000
2] Unsecured Loans		16.433	8.641	0.000
TOTAL BORROWING		76.145	43.794	0.000
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		120.336	85.991	0.100
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		45.228	41.184	0.000
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		6.592	4.714	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	43.309	35.420	0.000
	Sundry Debtors	99.566	47.640	0.000
	Cash & Bank Balances	0.341	0.302	0.101
	Other Current Assets	2.274	1.498	0.000
	Loans & Advances	11.987	7.410	0.000
Total Current Assets		157.477	92.270	0.101
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditor	84.262	48.089	0.054
	Other Current Liabilities	3.999	1.776	0.000
	Provisions	0.739	2.352	0.000
Total Current Liabilities		88.991	52.217	0.054
Net Current Assets		68.486	40.053	0.047
MISCELLANEOUS EXPENSES		0.030	0.040	0.053
TOTAL		120.336	85.991	0.100

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	204.854	58.636	0.000
		Other Income	3.372	20.690	0.000
		TOTAL	208.226	79.326	0.000
Less	EXPENSES
		TOTAL	200.457	70.093	0.003
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION		7.769	9.233	(0.003)
Less/ Add	DEPRECIATION/ AMORTISATION		5.035	1.784	0.000
	PROFIT BEFORE TAX		2.734	7.449	(0.003)
Less	TAX		0.740	2.352	0.000
	PROFIT AFTER TAX		1.994	5.097	(0.003)
	EARNINGS IN FOREIGN CURRENCY		6.876	0.000	0.000
	IMPORTS
		Raw Materials	149.956	40.657	0.000
	TOTAL IMPORTS		149.956	40.657	0.000
	Earnings Per Share (Rs.)		21.67	55.40	--

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	0.96	6.43	0.00
Net Profit Margin (PBT/Sales)	(%)	1.33	12.70	0.00
Return on Total Assets (PBT/Total Assets}	(%)	1.35	5.58	(2.97)
Return on Investment (ROI) (PBT/Networth)		0.06	0.18	(0.03)
Debt Equity Ratio (Total Liability/Networth)		3.74	2.28	0.54
Current Ratio (Current Asset/Current Liability)		1.77	1.77	1.87

LOCAL AGENCY FURTHER INFORMATION

Check list by info Agents	Available in Report (Yes/ No)
Year of Establishment	Yes
Locality of the Firm	Yes
Constitution of the Firm	Yes
Premises details	No
Type of Business	Yes
Line of Business	Yes
Promoter’s 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 in the business	Yes
Details of sister concerns	No
Major Suppliers	No
Major Customers	No
Payments Terms	No
Export/ Imports Details (If applicable)	No
Market Information	-----
Litigations that the firm/ Promoters Involved in	-----
Banking details	Yes
Banking Facility Details	Yes
Conduct of the Banking Account	-----
Buyer visit details	-----
Financials, if provided	Yes
Incorporation details is applicable	Yes
Last Accounts filed at ROC	Yes
Major Shareholders, if available	Yes

ECONOMY AND INDUSTRY OVERVIEW

The Indian Economy recorded a growth of around 8.5 % as compared to 7.2 % in the earlier year. Further, it is expected that the growth for 2011-12 to be in the range of 8.75% to 9.25% in 2011-12. Inflation has been a cause of worry and to control the same, RBI has taken measures, inter-alia, by increasing the repo and reverse repo rates at intervals during the year. This has resulted increase in lending rates of Banks.

The demographic change will lead to increase in Exports of pharmaceuticals, medical and Health care services. Over 20% of world’s generics are produced in India. Drugs worth nearly $ 70 billion are likely to go off patent in the United States offering India a chance to manufacture a considerable share of the products to exploit the generic industry.

By 2020, the pharmaceutical market is anticipated to more than double to $ 1.3 trillion with the E7, Brazil, China, India, Indonesia, Mexico, Russia and Turkey – accounting around for one fifth of global pharmaceutical sales.

The rupee started appreciating against the dollar by the end of the financial year giving some relief to the importers, who depend on pharma raw materials for their operations.

REVIEW OF OPERATIONS

The Company achieved net sales including jobwork processing charges of Rs 207.206 Millions compared to previous year sales including jobwork processing charges of Rs 78.956 Millions, resulting in an increase by 162% over the previous year. The profit before tax and Amortisation – stood at Rs.5.284 Millions as compared to Rs 7.449 Millions in the previous year, a decrease by 29.06% over the previous year. The Company is engaged in selection of new local/ overseas vendors, product development, R & D, market assessment, demand forecast and determining pricing trends for new range of products.

With latest R and D technology, the Company standardized manufacturing Bulk Drugs and active Pharma ingredients such as Ofloxacin, Nimesulide, Metronidazole, Metronidazole Benzoate and Tinidazole.

The company has re-oriented its production pattern and switched on to the manufacture of more sophisticated and specialized active pharma intermediates having high export potential. The Company is striking a balance between Exports and Local markets in order to achieve optimum productivity and profitability. Despite global crisis and uncertainty in payments, the company exported CIF finished goods and FOB finished materials valuing Rs 6.827 Millions and Rs 6.786 Millions respectively.

FINANCE

During the financial year 2010 -2011, the revalued portion of the Plant and Machinery has been amortised over a period of 10 years, the first year being the financial year 2010-2011 and the amount of amortization for the current year being Rs 2.550 Millions.

The total outstanding cash credit facility at the year end is Rs 56.543 Millions. The Company adopted some cost control measures to reduce the operating overheads which include installation of Rotary Vacuum Dryer, Effluent treatment equipments, strengthening of process controls in manufacturing and materials procurement, reduction in freight cost and focus on energy conservation measures.

FORM 8:

This form is for	Modification of charge
Charge identification number of the modified	10302455
Corporate identity number of the company	U24100MH2009PTC189592
Name of the company	DANOPHARM CHEMICALS PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	Unit No 117, Ravi Kiran, 1st Floor, Near Monginis, Off New Link Road, Andheri (West), Mumbai – 400053, Maharashtra, India info@danopharm.com
Type of charge	Immovable Property
Particular of charge holder	State Bank of India Eastern Express Highway, Gala No 9 and10, Sun Magnetic, Near LIC Off, Louis Wadi Service Road, Thane - 400604, Maharashtra, India sbi.14177@sbi.co.in
Nature of description of the instrument creating or modifying the charge	Memorandum for recording extension of mortgage of deposit of title deeds covering enhanced limit and/or creation of equitable mortgage on additional properties for existing limits and enhanced limits and additional facility.
Date of instrument Creating the charge	03/01/2012
Amount secured by the charge	Rs.208.154 Millions
Brief particulars of the principal terms and conditions and extent and operation of the charge	Rate of Interest WC Int at the rate of 7.25% Margin above the BR which is pre 10% pa (w.e.f. 13.08.11) Pre eff rate being 17.25% pa EPC Upto 270days 1.75% above BR which is pre 10% (w.e.f. 13.08.11) pre eff rate being 11.75% Terms of Repayment Repayable on Demand. Margin RM Domestic - 25%, Imported - 25%, SIP - 33.33%, FG - 33.33%, Receivables (Cover 90 days) - 40%, LC - 10%. Extent and Operation of the charge Security to cover principal amount together with interest, costs, charges and expenses etc. Others Demand Cash Credit (Enhanced from Rs.55.000 Millions) - Rs.100.000 Millions, EPC* (Enhanced from Rs.10.000 Millions) - (Rs.20.000 Millions), Term Loan (O/s) - Rs.6.154 Millions, LC (Enhnaced from Rs.55.000 Millions) - Rs.100.000 Millions, Buyers Credit# - (Rs. 100.000 Millions), Forward Contract - Rs.2.000 Millions, Total Limits - Rs. 208.154 Millions . *EPC limits falls within overall limit of DCC with full interchangeability. #Buyer's Credit limit is within LC limit. All other terms and conditions as per sanctioned letter and loan agreement.
Short particulars of the property charged	Shed No. C1-7131, 7132 and 7133, GIDC, Ankleshwar, Dist. Bharuch, Gujarat 393002 (Adm area 212.00 sq mtrs) Plot Boundaries - C1-7131 Towards North - C1-7102, Towards East - C1-7130, Towards South - 16 Meters rd, Towards West - C1-7132. C1-7132 Towards North - C1-7101, Towards East - C1-7131, Towards South - 16 Meters rd, Towards West - C1-7133. C1-7133 Towards North - C1-7100, Towards East - C1-7132, Towards South - 16 Meters rd, Towards West - 20 Meters rd.
Date of latest modification prior to the present modification	03/01/2012
Particulars of the present modification	The Borrowers by way of equitable mortgage by deposit of title deeds of Immovable properties at Shed No. C1-7131, 7132 and 7133, GIDC, Ankleshwar, Dist. Bharuch, Gujarat has provided further security to secure the Loan Facility of Rs.123.050 Millions now increased to Rs.208.154 Millions

FIXED ASSETS:

· Air conditioner

· Car

· Electric Installations

· Computer

· Building

· Lab Equipment

· Furniture and Fixture

· Land

· Office Equipments

· Plant and Machinery

· 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.54.39
UK Pound	1	Rs.86.56
Euro	1	Rs.69.30

INFORMATION DETAILS

Report Prepared by :

NIT

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	3
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	4
--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.