MIRA INFORM REPORT

Report Date :

07.11.2012

IDENTIFICATION DETAILS

Name :	FLAMINGO PHARMACEUTICALS LIMITED

Registered Office :	7/1, Corporate Park, Sion – Trombay Road, Chembur, Mumbai- 400071, Maharashtra

Country :	India

Financials (as on) :	31.03.2011

Date of Incorporation :	12.06.1985

Com. Reg. No.:	11 - 36572

Capital Investment/ Paid-up Capital:	Rs.68.040 Millions

CIN No.: [Company Identification No.]	U51900MH1985PLC036572

TAN No.: [Tax Deduction & Collection Account No.]	MUMF03725B

PAN No.: [Permanent Account No.]	AAACF4211B

Legal Form :	A Closely Held Public Limited Liability Company

Line of Business :	Manufacturer of Different Types of Pharmaceutical Formulations.

No. of Employees:	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (46)

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Maximum Credit Limit :	USD 3960000

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 – June 30, 2012

Country Name

Previous Rating

(31.03.2012)

Current Rating

(30.06.2012)

India

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

INDIAN ECONOMIC OVERVIEW

India is developing into an open-market economy, yet traces of its past autarkic policies remain. Economic liberalization, including industrial deregulation, privatization of state-owned enterprises, and reduced controls on foreign trade and investment, began in the early 1990s and has served to accelerate the country's growth, which has averaged more than 7% per year since 1997. India's diverse economy encompasses traditional village farming, modern agriculture, handicrafts, a wide range of modern industries, and a multitude of services. Slightly more than half of the work force is in agriculture, but services are the major source of economic growth, accounting for more than half of India's output, with only one-third of its labor force. India has capitalized on its large educated English-speaking population to become a major exporter of information technology services and software workers. In 2010, the Indian economy rebounded robustly from the global financial crisis - in large part because of strong domestic demand - and growth exceeded 8% year-on-year in real terms. However, India's economic growth in 2011 slowed because of persistently high inflation and interest rates and little progress on economic reforms. High international crude prices have exacerbated the government's fuel subsidy expenditures contributing to a higher fiscal deficit, and a worsening current account deficit. Little economic reform took place in 2011 largely due to corruption scandals that have slowed legislative work. India's medium-term growth outlook is positive due to a young population and corresponding low dependency ratio, healthy savings and investment rates, and increasing integration into the global economy. India has many long-term challenges that it has not yet fully addressed, including widespread poverty, inadequate physical and social infrastructure, limited non-agricultural employment opportunities, scarce access to quality basic and higher education, and accommodating rural-to-urban migration.

Source : CIA

EXTERNAL AGENCY RATING

Rating Agency Name	CARE
Rating	A3 (Short Term)
Rating Explanation	Moderate degree of safety it carry higher credit risk.
Date	16.10.2012

Rating Agency Name	CARE
Rating	BBB-(Term Loan)
Rating Explanation	Moderate degree of safety it carry credit risk.
Date	16.10.2012

RBI DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

EPF (Employee Provident Fund) DEFAULTERS’’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2012.

LOCATIONS

Registered Office/Corporate Office :	7/1, Corporate Park, Sion –Trombay Road, Chembur, Mumbai- 400071, Maharashtra, India.
Tel. No.:	91-22-25234120 / 25235242 / 43 / 45 , 67975242 / 43/ 45/25275242
Fax No.:	91-22-25233085 / 25246837 / 55975249 / 25233095
E-Mail :	ashf@giasbm01.vsnl.net.in
Website :	http://www.flamingopharma.com
Area :	6767 Sq. ft.
Location :	Owned

Factory 1 :	R-662, T.T.C. Industrial Area, Rabale, Navi Mumbai - 400 071, Maharashtra.
Tel. No.:	91-22-27695593 / 27696998 / 27694571 / 227607130
Fax No.:	91-22-27693844
E-Mail :	mailfplrbl@vsnl.net.in
Area:	4439 Sq.Mtrs
Location:	Owned

Factory 2 :	E-28, Taloja Industrial Area, Taloja, Raigad – 410 208, Maharashtra
Tel. No.:	91-22-27411372 / 65162742
Fax No.:	91-22-27411386
E-Mail :	mailfpltlg@vsnl.net.in
Area:	6480 Sq. Mtrs
Location:	Owned

DIRECTORS

AS ON 27.09.2012

Name :

Mr. Ashwin Jethalal Thacker

Designation :

Managing Director

Address :

702, Sabari Aangan, 11^th Road, Chembur, Mumbai – 400077, Maharashtra, India

Date of Birth/Age :

13.10.1989

Qualification :

B. Sc. (Hons), DBM, DMM (Bom)

Date of Appointment :

01.04.2012

Din No.:

00048595

Other Directorship:

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U51900MH1985PLC036572	FLAMINGO PHARMACEUTICALS LIMITED	Managing director	01/04/2012	23/06/1986	-	Active	NO
2	U33110MH1993PTC070699	MINI MED LABORATORIES PVT LTD	Director	08/02/1993	08/02/1993	-	Active	NO
3	U51397MH2006PTC163870	ROTALINE MOLEKULE PRIVATE LIMITED	Director	18/08/2006	18/08/2006	-	Active	NO
4	U24239MH2008PLC180639	FLAMINGO HEALTHCARE LIMITED	Director	25/03/2010	31/03/2008	-	Active	NO
5	U70109MH2010PTC205846	Flamingo Infra Developers Private Limited	Director	22/07/2010	22/07/2010	-	Active	NO

Name :

Mr. Deepak Bhupatrai Goradia

Designation :

Director

Address :

222, Sabari Aangan, 7^th Floor, 11^th Road, Next to Saraswati Vidyalay Chembur, Mumbai – 400071, Maharashtra, India

Date of Birth/Age :

03.09.1997

Qualification :

Date of Appointment :

03.09.1997

Din No.:

00058544

Other Directorship:

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U51900MH1985PLC036572	FLAMINGO PHARMACEUTICALS LIMITED	Director	03/09/1997	03/09/1997	-	Active	NO
2	U80222MH2000PTC124347	AMERICAN INSTITUTE OF CAREER MANAGEMENT PRIVATE LIMITED	Director	18/02/2000	18/02/2000	-	Dormant	NO
3	U74120MH2009PTC192146	MAPLE FINTAX SOLUTIONS PRIVATE LIMITED	Director	01/05/2009	01/05/2009	-	Active	NO

Name :

Mr. Suhas Sadanand Ganpul

Designation :

Director

Address :

236, Pratiksha Building, 3^rd Floor, Flat No.10, Babhai, Ram Mandir Road, Borivali (West),Mumbai – 400092, Maharashtra, India

Date of Birth/Age :

17.11.2009

Qualification :

Date of Appointment :

29.09.2010

Din No.:

00179817

Other Directorship:

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U72900MH2000PTC126786	EINFRATECH SYSTEMS INDIA PRIVATE LIMITED	Director	30/03/2007	30/03/2007	25/10/2008	Active	NO
2	U72200MH2000PTC124816	EITBIZ INDIA Private LIMITED	Director	31/03/2007	31/03/2007	10/10/2008	Active	NO
3	U72900MH2008PTC184438	IT CAPITAL SERVICES PRIVATE LIMITED	Director	09/07/2008	09/07/2008	12/10/2012	Active	NO
4	U65999MH2008PTC185150	S2 CAPITAL SERVICES PRIVATE LIMITED	Director	10/09/2012	28/07/2008	-	Active	NO
5	U15900MH1954PTC009394	RANJIT LILADHAR PRIVATE LIMITED	Director	01/09/2008	01/09/2008	28/11/2008	Active	NO
6	L72900MH2000PLC123796	COMMEX TECHNOLOGY LIMITED	Director	30/12/2008	31/10/2008	11/09/2010	Active	NO
7	U92120MH2008PTC186405	NEXT GEN FILMS PRIVATE LIMITED	Director	28/11/2008	28/11/2008	20/04/2009	Active	NO
8	U74990MH2008NPL188856	ALL INDIA PICKLEBALL ASSOCIATION	Director	12/12/2008	12/12/2008	-	Active	NO
9	U51900MH1985PLC036572	FLAMINGO PHARMACEUTICALS LIMITED	Director	29/09/2010	17/11/2009	-	Active	NO
10	U74140MH2010PTC206837	First Call Advisory India Private Limited	Director	21/08/2010	21/08/2010	-	Active	NO
11	U45200MH2010PTC203649	LINFORD DEVELOPERS PRIVATE LIMITED	Director	23/09/2010	23/09/2010	-	Active	NO
12	L51900MH1981PLC023931	Empower India Limited	Director	14/02/2012	21/10/2010	-	Active	NO
13	U67190MH2010PTC210127	UNIVERSAL CAPITAL HOUSE PRIVATE LIMITED	Director	28/09/2012	14/11/2011	-	Active	NO
14	U92190MH2008PTC184793	STALLION ENTERTAINMENT PRIVATE LIMITED	Director	28/09/2012	14/12/2011	-	Active	NO
15	U74900MH2008PTC185333	IT PEOPLE BPO PRIVATE LIMITED	Director	28/09/2012	14/12/2011	-	Active	NO
16	U72900MH2008PTC179392	IT PEOPLE POWER EXCHANGE PRIVATE LIMITED	Director	28/09/2012	20/12/2011	-	Active	NO
17	U80301MH2012PTC234227	Advantage Career Systems Private Limited	Director	06/08/2012	06/08/2012	-	Active	NO

KEY EXECUTIVES

Name :	K Muralidharan
Designation :	Secretary
Address :	Flat No.103, Building 11, Neelam Nagar, Phase –II, Mulund (East), Mumbai – 400018, Maharashtra, India
Date of Birth/Age :	01.07.2010
Date of Appointment :	01.07.2010
Pan No.:	AGEPK5441P

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 27.09.2012

Names of Shareholders		No. of Shares
Ashwin Thacker		4163400
Raju Thacker		1895400
Pranay Thacker		722400
Parth Thacker		60
Joyce John		30
Raechelle Murzello		30
Sanjay Gujar		30
Minimed Laboratories, India		22650

Total		6804000

Equity Share Break up (Percentage of Total Equity)

AS ON 27.09.2012

Category		Percentage

Bodies corporate		0.33
Directors or relatives of directors		99.66
Other top fifty shareholders		0.01

Total		100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Different Types of Pharmaceutical Formulations.

Products :

ITEM CODE NUMBER	PRODUCT DESCRIPTION
Ibuprofen	30049063
Cephalexin	30042012
Amoxycillin	30041030

PRODUCTION STATUS AS ON 31.03.2010

Particulars	Installed Capacity (in Lacs) *	Licensed Capacity *
Tablets	24,494	NA
Capsules	9,624	NA
Dry Syrups	84	NA
Injectibles	585	NA

* As Certified by management

Particulars	Unit	Actual Production
Tablets	(000’s)	1,926,721
Capsules	(000’s)	873,953
Dry Syrups	Bottles	4,058,397
Injectibles	Vials	12,497,362

Production is net wastage/disposal and control samples

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

Axis Bank Limited, Trishul 3rd Floor Opposite Samartheshwar Temple, Law Garden Ellisbridge, Ahmedabad - 380006, Gujarat, India

State Bank of India, Overseas Branch, Raheja Chamber, Nariman Point, Mumbai - 400005, Maharashtra, India

Bank of India, Andheri Corporate Banking Branch, M.D.I. Building, 28, S. V. Road, Andheri (West), Mumbai - 400058,Maharashtra, India

Facilities :

Secured Loans	As on 31.03.2011 Rs. in millions	As on 31.03.2010 Rs. in millions
Rupee term loans banks secured	169.286	67.234
Foreign currency loans banks secured	70.211	105.752
Working capital loans banks secured	225.153	315.438
Working capital loans financial institutions secured	241.536	127.048
Loans taken for vehicles secured	1.853	0.749
	708.039	616.221

Unsecured Loans	As on 31.03.2011 Rs. in millions	As on 31.03.2010 Rs. in millions

Loans directors unsecured	39.000	0.000

Total	39.000	0.000


Banking Relations :	--

Auditors :
Name :	Sarvaiya Pravin Muljibhai Chartered Accountant
Address :	4 Kermani Building, 1st Floor, Sir P.M. Road, Opposite City Bank, Fort Mumbai- 400001, Maharashtra, India
Pan No.:	AAOPS8153J

CAPITAL STRUCTURE

As on 27.09.2012

Authorised Capital :

No. of Shares	Type	Value	Amount

10000000	Equity Shares	Rs.10/- each	Rs.100.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount

6804000	Equity Shares	Rs.10/- each	Rs.68.040 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		68.040	68.040	68.040
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		921.495	826.888	448.165
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		989.535	894.928	516.205
LOAN FUNDS
1] Secured Loans		708.039	616.221	554.049
2] Unsecured Loans		39.000	0.000	14.000
TOTAL BORROWING		747.039	616.221	568.049
DEFERRED TAX LIABILITIES		73.590	50.665	58.334

TOTAL		1810.164	1561.814	1142.588

APPLICATION OF FUNDS

FIXED ASSETS [Net Block]		884.606	877.926	516.923
Capital work-in-progress		155.953	44.495	31.450

INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000

CURRENT ASSETS, LOANS & ADVANCES
	Inventories	306.861	319.459	392.023
	Sundry Debtors	485.550	406.202	377.122
	Cash & Bank Balances	88.482	36.875	17.024
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	362.360	225.900	132.157
Total Current Assets		1243.253	988.436	918.326
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	401.805	336.213	347.473
	Other Current Liabilities	38.699	40.077	67.379
	Provisions	62.653	31.771	(2.214)
Total Current Liabilities		503.157	408.061	412.638
Net Current Assets		740.096	580.375	505.688

MISCELLANEOUS EXPENSES		29.509	59.018	88.527

TOTAL		1810.164	1561.814	1142.588

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	2073.316	2152.573
		Other Income	34.896	17.031
		TOTAL (A)	2108.212	2169.604	1870.509

Less	EXPENSES
		Consumption materials changes inventories	1280.808	1315.561
		Manufacturing service costs	144.446	128.281
		Employee related expenses	186.894	208.142
		Administrative selling other expenses	229.266	269.396
		Research development expenditure	18.470	20.931
		TOTAL (B)	1859.884	1942.311	1671.437

Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		248.328	227.293	199.072

Less	FINANCIAL EXPENSES (D)		55.698	70.957	75.532

	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		192.630	156.336	123.540

Less/ Add	DEPRECIATION/ AMORTISATION (F)		51.497	42.989	38.425

	PROFIT BEFORE TAX (E-F) (G)		141.133	113.347	85.115

Less	TAX (H)		31.996	(5.571)	(9.761)

	PROFIT AFTER TAX (G-H) (I)		109.137	118.918	94.876

Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		255.939	163.165	84.573

Less	APPROPRIATIONS
		Transfer to General Reserve	11.107	11.144	10.313
		Dividend	30.000	15.000	5.103
		Tax on Dividend			0.868
	BALANCE CARRIED TO THE B/S		323.969	255.939	163.165

	EARNINGS IN FOREIGN CURRENCY		1958.844	1964.782	1675.879

	IMPORTS
	Raw and Packing materials			241.491	147.734
	Capital Goods		293.554	4.559	11.337
	TOTAL IMPORTS			246.050	159.071

	Earnings Per Share (Rs.)		16.04	17.48	13.94

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	5.18	5.48	5.07

Net Profit Margin (PBT/Sales)	(%)	6.69	5.27	NA

Return on Total Assets (PBT/Total Assets}	(%)	6.63	6.07	5.93

Return on Investment (ROI) (PBT/Networth)		0.14	0.13	0.16

Debt Equity Ratio (Total Liability/Networth)		1.26	1.14	1.90

Current Ratio (Current Asset/Current Liability)		2.47	2.42	2.23

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	Yes
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	No
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
Date of Birth of Proprietor/Partner/Director, if available	Yes
PAN of Proprietor/Partner/Director, if available	No
Voter ID No of Proprietor/Partner/Director, if available	No
External Agency Rating, if available	Yes

OPERATIONS:

During the year the Income from Operations of the Company marginally declined due to lower domestic sales. Export income of Rs.2020.800 Millions (previous year Rs.2017.600 Millions) almost remained at the same level as that of previous year on account of production constraints at Taloja, which have since been removed. Development of new products by the R and D team would enable the Company produce and export value added products. Favorable exchange rates and consequently gains there from, contributed to the otherwise steady margin.

On the domestic business front, the progress was stunted due to abnormal attrition of field and management staff. The Company is in the process of rebuilding this business, with a different strategy of focusing only on markets where there is a possibility of positive contribution, both to the business and contribution.

EXPANSION PROJECT:

The company has embarked upon an expansion programme for enhancing its production capacities and has started implementing the project in the notified Pharma SEZ, at Krushnoor, Dist. Nanded in Maharashtra at a cost of about Rs.1450.000 Millions The facilities will enable the company to produce oral solid dosages, injectibles, liquids in betalactum/cephalosporin and non betalactum/non cephalosporin ranges.

These state-of-the-art facilities are expected to qualify for UK MHRA and US FDA approvals and will cater to UK, European and US markets. The plants are expected to become commercially operational by the first quarter of FY 2012-13, barring unforeseen circumstances.

FINANCE:

The Company has been regular in servicing the debt acquired by it from the banks for its expansion and long term working capital commitments.

The financial closure for the project has been achieved. The company has made arrangements with Axis Bank and Exim Bank for long term borrowings to part finance the project cost.

FORM 8

Corporate identity number of the company	U51900MH1985PLC036572
Name of the company	FLAMINGO PHARMACEUTICALS LIMITED
Address of the registered office or of the principal place of business in India of the company	7/1, Corporate Park, Sion – Trombay Road,Chembur,Mumbai- 400071, Maharashtra, India. Email: ashf@flamingopharma.com
This form is for	Creation of charge
Type of charge	Movable property (not being pledge)
Particular of charge holder	Axis Bank Limited, Trishul 3rd Floor Opposite Samartheshwar Temple, Law Garden Ellisbridge, Ahmedabad - 380006, Gujarat, India Email: p.oza@axisbank.com
Nature of instrument creating charge	Loan agreement against Movable property
Date of instrument Creating the charge	03.08.2012
Amount secured by the charge	Rs. 0.818 Million
Brief of the principal terms an conditions and extent and operation of the charge	Rate of interest 11.65% per annum. Term of Payment: 59 Monthly Installment of Rs.18,275.Each Margin Nil. Extent and operation of the charge 100%
Short particulars of the property charged (Including location of the property)	Force Traveller (1 Unit ) Vehicle No.MH26-N-9036

Fixed Assets

Leasehold Land
Factory Building
Office Premises Building
Plant and Machinery
Furniture and Fixtures
Office Equipments
Vehicles

AS PER WEB SITE DETAILS

PROFILE

Subject was founded in 1985 as Flamingo Impex Private Limited by Mr. Ashwin Thacker. It has made its mark as an honest and progressive firm over the years. Flamingo enjoys an ever growing base of loyal customers around 50 countries across all 5 continents.

Flamingo products are qualitative therapeutics which is affordable to one and all. The products manufactured at Flamingo confirm to national and international quality standards of WHO-GMP, UK-MHRA / EU-GMP and various other approvals.

The success of Flamingo can be attributed to its two manufacturing units Rabale and Taloja located at the outskirts of Mumbai which conform to world class quality standards. The Rabale facility was set up specifically for Semi Regulated Markets and Taloja facility was built for Regulated Markets (Contract Manufacturing).

At Flamingo the focus of their business revolves around making healthy life not just a privilege but a right that can be enjoyed by all.

MILESTONES

Since its birth in 1985, Flamingo has crossed many a tough roads to establish itself as a highly commendable global pharmaceutical firm. On its way it has laid a number of note worthy milestones to which the success of the firm can be univocally attributed.

· 1985 - Flamingo is born

· 1995 - Started Manufacturing unit at Rabale, near Thane

· 2001 - Started second manufacturing facility at Taloja near Raigad district for regulated markets

· 2003 - Received WHO GMP accreditation for Taloja facility

· 2005 - Received UK MHRA approval for Taloja facility

· 2005 - Received Indian Drug Manufacturer Association (IDMA) Quality Excellence Award

· 2005 - Received British Retail Consortium (BRC) certification

· 2006 - EOU Certification for Taloja and Rabale facility

· 2007 - Launch of Flamingo’s Domestic division

· 2007 - Received British Retail Consortium Certification (BRC) renewal for Taloja facility

· 2007 - Flamingo’s RandD lab receives recognition from Department of Science and Technology, Government of India

· 2008 - EU-GMP (UK MHRA) Certification Renewal for Taloja facility

· 2008 - Received WHO GMP Certification Renewal for Taloja facility

· 2009 - Implementation of SAP throughout the organisation

· 2010 - Inception of 2 new manufacturing facilities in Nanded, Maharashtra

· 2010 - UK-MHRA certificate renewal for Taloja facility

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 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.54.60
UK Pound	1	Rs.87.31
Euro	1	Rs.69.86

INFORMATION DETAILS

Report Prepared by :

BYI

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	5
--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	NO
--AFFILIATION	YES/NO	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		46

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

306.861

485.550

88.482

0.000

362.360

1243.253

401.805

38.699

62.653

503.157

740.096

Unit