MIRA INFORM REPORT

Report Date :

24.05.2012

IDENTIFICATION DETAILS

Name :	PRACHI PHARMACEUTICALS PRIVATE LIMITED
Registered Office :	8, Princess Street, E. R. Road, Near J. J. Hospital Signal, Mumbai – 400 003, Maharashtra
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	13.07.1987
Com. Reg. No.:	11-044050
Capital Investment / Paid-up Capital :	Rs. 20.000 Millions
CIN No.: [Company Identification No.]	U24230MH1987PTC044050
IEC No.:	0388115980
TAN No.: [Tax Deduction & Collection Account No.]	MUMP19918D
PAN No.: [Permanent Account No.]	AAACP7440A
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer and Exporter of bulkdrug Intermediates, Pharmaceutical Drug Intermediates, Steroid and Pure drug Intermediates.
No. of Employees :	50 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (27)

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

Maximum Credit Limit :	USD 100000
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 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 PARTED BY

Name :	Mr. Pankaj Shah
Designation :	Director
Contact No.:	91-9323420671
Date :	23.05.2012

LOCATIONS

Registered Office :	8, Princess Street, E. R. Road, Near J. J. Hospital Signal, Mumbai – 400 003, Maharashtra, India
Tel. No.:	91-22-24132411
Mobile No.:	91-9323420671 (Mr. Pankaj Shah)
Fax No.:	91-22-23778597 / 24130877
E-Mail :	prachiint@bom.7.vsnl.net.in
Website :	http://www.prachipharma.com
Area :	Owned
Location :	250 Sq. Ft.
Corporate Office :	11/1, Rakhangi Mahal, Acharya Donde Marg, Opposite Wadia Children Hospital, Parel, Mumbai, Maharashtra- 400 012, INDIA
Tel. No.:	91-22-24165274
Fax No.:	91-22-24130877
E-Mail :	prachiint@bom7.vsnl.net.in prachint@vsnl.com
Area :	Owned
Location :	300 Sq. Ft.
Factory :	E-108, MIDC, Tarapur, Boisar – 401 502, District Thane, Maharashtra, India
Tel No. :	91-252-270920
Area :	Owned
Location :	1 acre

DIRECTORS

AS ON 30.09.2011

Name :	Mr. Pankaj Talakshi Shah
Designation :	Director
Address :	B / 201, Sorento Co-operative Housing Society, Shanti Park, Ghatkopar [East], Mumbai – 400077, Maharashtra, India
Date of Birth/Age :	16.06.1956
Qualification :	Bsc., B. Tech (Pharmaceutical)
Date of Appointment :	13.07.1987
DIN No.:	01089539
Name :	Mr. Chintan Pankaj Shah
Designation :	Director
Address :	B / 201, Sorento Co-operative Housing Society, Shanti Park, Ghatkopar [East], Mumbai – 400077, Maharashtra, India
Date of Appointment :	10.03.2008
DIN No.:	02053745

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 30.09.2011

Names of Shareholders	No. of Shares
Pankaj Talakshi Shah	999996
Malti Pankaj Shah	919996
Chintan Pankaj Shah	50000
Shali Pankaj Shah	30000
Savitaben C Shah	2
Harsh Developers, Chattisgarh	1
Rajendra Shah	1
Padamshi S Shah	1
National Book Depot, Mumbai	1
Hirachand S Shah	1
Maldip Chemicals Private Limited, Mumbai	1
Total	2000000

AS ON 30.09.2011

Equity Shares Break Up	Percentage
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer and Exporter of bulkdrug Intermediates, Pharmaceutical Drug Intermediates, Steroid and Pure drug Intermediates.
Exports :
Products :	Bulk Drug Intermediates
Countries :	· UAE · Germany · Spain · Australia · UK · China · USA · France
Imports :
Products :	Raw Material
Countries :	· Chile · Japan · Indonesia · Turkey
Terms :
Selling :	Cash and Credit
Purchasing :	Cash and Credit

GENERAL INFORMATION

Suppliers :

· Kantilal Maniklal and Company

Customers :

Wholesalers and End Users

· Hetero Drugs Limited

No. of Employees :

50 (Approximately)

Bankers :

Bombay Mercantile Co-operative Bank Limited, E R Road Branch, Mumbai – 400003, Maharashtra, India

Facilities :

Secured Loan	Rs. In Millions 31.03.2011	Rs. In Millions 31.03.2010
CASH CREDIT A/C
Bombay Mercantile Co-op Bank a/c no. OD/HP -16015 (Secured against Hypothecation of inventories, Book Debts, Mortgage of Immovable and Movable Properties Of the Company and Guaranteed by Directors)	34.941	36.759
CAR LOAN
Kotak Mahindra Primus Limited	0.000	0.013
Total	34.941	36.772
Unsecured Loan	Rs. In Millions 31.03.2011	Rs. In Millions 31.03.2010
Loan From Directors and Relatives
Pankaj T. Shah	0.370	0.145
Rajendra P. Shah	1.165	1.165
Padamshi S. Shah	0.133	0.133
Chintan P. Shah	0.414	0.039
Shaili P. Shah	0.160	0.040
Malti P Shah	0.030	0.030
National Book Depot	1.302	1.302
Maldip Chemicals Private Limited	4.390	2.775
Loan from Others
Hirachand S. Shah	0.031	0.106
Pankaj Trading and company	0.175	0.000
Savitaben C. Shah	5.135	5.068
Total	13.305	10.803

Banking Relations :	--
Auditors :
Name :	P. J. Raichura and Company Chartered Accountants
Address :	71/72 Ashok Chambers, 4^th Floor, Devji Ratanshi Marg, Masjid Bunder – East, Mumbai – 400009, Maharashtra, India
Tel. No.:	91-22-56314819
Fax No.:	91-22-23717069
Pan No.:	AABPR3296C

CAPITAL STRUCTURE

AS ON 30.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
2025350	Equity Shares	Rs.10/- each	Rs. 20.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
2025350	Equity Shares	Rs.10/- each	Rs. 20.000 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		20.000	20.000	12.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		5.799	4.647	3.449
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		25.799	24.647	15.449
LOAN FUNDS
1] Secured Loans		34.941	36.772	35.559
2] Unsecured Loans		13.305	10.803	19.505
TOTAL BORROWING		48.246	47.575	55.064
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		74.045	72.222	70.513
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		37.890	38.057	21.619
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		1.280	1.280	1.280
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	28.625	32.316	33.462
	Sundry Debtors	23.589	24.909	16.271
	Cash & Bank Balances	11.950	10.861	7.800
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	2.891	4.064	7.486
Total Current Assets		67.055	72.150	65.019
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	27.168	0.000	0.000
	Other Current Liabilities	0.000	33.696	13.658
	Provisions	5.012	5.569	3.747
Total Current Liabilities		32.180	39.265	17.405
Net Current Assets		34.875	32.885	47.614
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		74.045	72.222	70.513

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010
	SALES
		Income	78.007	82.363
		Other Income	0.000	0.000
		TOTAL (A)	78.007	82.363
Less	EXPENSES
		Office Expenses	67.964	71.995
		Administrative Expenses
		Advertising Expenses
		TOTAL (B)	67.964	71.995
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		10.043	10.368
Less	FINANCIAL EXPENSES (D)		6.228	7.188
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		3.815	3.180
Less/ Add	DEPRECIATION/ AMORTISATION (F)		2.383	1.735
	PROFIT BEFORE TAX (E-F) (G)		1.432	1.445
Less	TAX (H)		0.280	0.248
	PROFIT AFTER TAX (G-H) (I)		1.152	1.197
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		3.512	2.315
	BALANCE CARRIED TO THE B/S		4.664	3.152
	Earnings Per Share (Rs.)		0.57	--

Particulars	31.03.2012
Sales Turnover (Approximately)	110.000

Expected Sales (2012-2013) : Rs. 200.000 Millions

The above information has been parted by Mr. Pankaj Shah.

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	1.48	1.45	NA
Net Profit Margin (PBT/Sales)	(%)	1.84	1.75	NA
Return on Total Assets (PBT/Total Assets}	(%)	1.36	1.31	NA
Return on Investment (ROI) (PBT/Networth)		0.06	0.06	NA
Debt Equity Ratio (Total Liability/Networth)		3.12	3.52	4.69
Current Ratio (Current Asset/Current Liability)		2.08	1.83	3.73

LOCAL AGENCY FURTHER INFORMATION

Check List by Info Agents	Available in Report (Yes / No)
1. Year of Establishment	Yes
2. Locality of the firm	Yes
3. Constructions of the firm	Yes
4. Premises details	Yes
5. Type of Business	Yes
6. Line of Business	Yes
7. Promoter’s background	Yes
8. No. of Employees	Yes
9. Name of person contacted	Yes
10. Designation of contact person	Yes
11. Turnover of firm for last two years	Yes
12. Profitability for last two years	Yes
13. Reasons for variation <> 20%	--------
14. Estimation for coming financial year	Yes
15. Capital in the business	Yes
16. Details of sister concerns	No
17. Major suppliers	Yes
18. Major customers	Yes
19. Payments terms	Yes
20. Export / Import details	Yes
21. Market information	------
22. Litigations that the firm / promoter involved	------
23. Banking Details	Yes
24. Banking facility details	Yes
25. Conduct of the banking account	------
26. Buyer visit details	------
27. Financials, if provided	Yes
28. Incorporation details, if applicable	Yes
29. Last accounts filed at ROC	Yes
30. Major Shareholders, if available	Yes

SUNDRY CREDITORS DETAILS

(Rs. In Millions)

Particulars	31.03.2011	31.03.2010	31.03.2009
Sundry Creditors
Sundry creditors for expenses	0.905	0.000	0.000
Sundry creditors for fixed assets	6.474	0.000	0.000
Sundry Creditors	19.789	0.000	0.000
Total	27.168	0.000	0.000

PERFORMANCE

Company achieved Net Sales of Rs.78.00 Millions for the year ended 31st March, 2011 as against the net sales of Rs. 82.36 Millions achieved in the previous year. At the year ended gross profit is Rs.17.95 Millions (Previous year Rs. 17.72 Millions) and a pre-tax profit of Rs.1.43 Millions (Previous year Rs. 1.44 Millions).

FORM 8

Corporate identity number of the company	U24230MH1987PTC044050
Name of the company	PRACHI PHARMACEUTICALS PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	8, Princess Street, E. R. Road, Near J. J. Hospital Signal, Mumbai – 400 003, Maharashtra, India
This form is for	Creation of charge
Type of charge	Movable property (not being pledge) Others
Particular of charge holder	Bombay Mercantile Co-operative Bank Limited, E R Road Branch, Mumbai – 400003, Maharashtra, India
Nature of instrument creating charge	Agreement of Hypothecation of Tangible Movable Property
Date of instrument Creating the charge	10.09.2011
Amount secured by the charge	Rs. 3.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of interest Interest rate of 15.50 % p.a. with monthly rest. Penal Interest in addition to the agreed rate in case of default Terms of repayment Term Loan repayable in 60 monthly installment of Rs. 0.050 million each commencing one month after the date of disbursement. Interest to collected as and when due. Margin 40 % on Hypothecated Assets Extent and operation of the charge To secure the due repayment of the Term Loan of Rs. 3.000 Millions and for all costs, interest and other charges thereon, first charge and hypothecation of machinery and equipments of the Company
Short particulars of the property charged (Including location of the property)	First charge and hypothecation of machinery and equipments of the Company

TRADE REFERENCE

· Hetero Drugs Limited

· Kantilal Maniklal and Company

FIXED ASSETS

• Leasehold Land
• Factory Building
• Plant and Machinery
• Electric Installation
• Office Equipments
• Furniture and Fixtures
• Computers
• Cylinder Purchase
• Motor Car
• Air Conditioners
• Fire Extinguisher

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. 55.93
UK Pound	1	Rs. 88.14
Euro	1	Rs. 70.87

INFORMATION DETAILS

Information Gathered by :	SVA
Report Prepared by :	DPT

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	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	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		27

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.