MIRA INFORM REPORT

Report Date :

19.10.2012

IDENTIFICATION DETAILS

Name :	SARVOTHAM CARE LIMITED
Registered Office :	1-20-248, Umajay Complex, 2^nd Floor, Rasoolpura, Secunderabad – 500003, Andhra Pradesh
Country :	India
Financials (as on) :	31.03.2011
:	07.07.1995
Com. Reg. No.:	01-020979
Capital Investment / Paid-up Capital :	Rs.41.533 Millions
CIN No.: [Company Identification No.]	U24110AP1995PLC020979
TAN No.: [Tax Deduction & Collection Account No.]	HYDS02839E
Legal Form :	A Closely Held Public Limited Liability Company
:
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

B (31)

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

Maximum Credit Limit :	USD 450000
Status :	Moderate
Payment Behaviour :	Slow
Litigation :	Clear
Comments :	Subject is an established company having moderate track. The profit and loss statement for the year 2011 was not made available. However, trade relations are reported as fair. Business is active. Payments are reported to be slow as per previous year record. 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 – June 30, 2012

Country Name	Previous Rating (31.03.2012)	Current Rating (30.06.2012)
India	A1	A1

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

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 :	1-20-248, Umajay Complex, 2^nd Floor, Rasoolpura, Secunderabad – 500003, Andhra Pradesh, India
:	91-40-65215576/ 27813701/ 27903758/ 27843226/ 27903226/ 65216836
:	91-40-27908708/ 8700/ 271929
:
:	www.sarvothamcare.com
Factory 1 :	6-197/1, Quthbullapur, Jeedimetla (V), Medchal Road, Hyderabad – 500855, Andhra Pradesh, India
Tel. No.:	91-40-23097769/23097737/23087737/23087769
Fax No.:	91-40-23096542/23083542
E-Mail :	sarvothamfac@sarvothamcare.com
Factory 2 :	Village Jhadrmajri, Baddi Road, Nalgarh Taluka, Solan District – 174103, Himachal Pradesh, India
Tel. No.:	91-1795-271930 to 35
Fax No.:	91-1795-271929

DIRECTORS

(AS ON 23.09.2011)

Name :

Mr. Mulakala Dopesh Raja

Designation :

Director

Address :

H. No.202, Plot No.123, Amaravathi Housing Colony, Bapuji Nagar, Bowenpally, Secunderabad – 500 011, Andhra Pradesh, India

Date of Birth/Age :

26.05.1984

Date of Appointment :

15.09.2010

DIN No.:

01176660

Other Directorships :

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	U24239AP2002PLC038573	Sarvotham Remedies Limited	Director	28-01-07	28-01-07	Active	NO
2	U24110AP1995PLC020979	Sarvotham Care Limited	Director	15-09-10	15-09-10	Active	NO

Name :

Mr. Mulakala Mohan Krishna

Designation :

Managing Director

Address :

H. No.202, Plot No.123, Amaravathy City, Hashathpet, Secunderabad – 500 011, Andhra Pradesh, India

Date of Birth/Age :

01.04.1958

Date of Appointment :

24.07.2000

DIN No.:

01448535

Other Directorships :

S.No.		CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	U24110AP1989PTC010678		Specific Laboratories Private Limited	Managing director	17-11-89	17-11-89	Active	NO
2	U24110AP1995PLC020979		Sarvotham Care Limited	Director	24-07-00	24-07-00	Active	NO

Name :

Mr. Basava Raju Dontam Setty

Designation :

Director

Address :

22C-11-2, Power Pet, Eluru, West Godavari – 534 002, Andhra Pradesh, India

Date of Birth/Age :

12.08.1963

Date of Appointment :

27.09.2003

DIN No.:

02578263

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

(AS ON 31.03.2011)

Names of Shareholders	No. of Shares
A. Indusree	1000
A. Madhusree	1000
T. Jagadish Kumar Rao	1000
B. Hela Rao	19300
B. Prem Kumar (NRI)	1000
B.V. Rao (NRI)	31000
D. Kamala Kumari	26000
D. Kishore	2000
D. Madheswari Rama Chandran	74000
D. Parameswari	9000
D. R. Karthik	4000
D. R. Sri Krishna	4000
D. Srinivas	10000
D. Umameheswara Rao	5000
D. Vani	2000
D. Vishweswara Rao	21500
A. Somashekar Rao	1000
G. Venkata Subba Rao	1000
M. Triveni Satya	20000
L. Dhana Laxmi	1000
Lingarnaneni Vijaya Laxmi Eluru	1000
M. Dinakar	4500
M. Dopesh Raja	223000
M. Karisma Kavitha	2000
M. Leela Kumari	46000
M. Mohan Krishna (Trust)	50000
M. Mohan Krishna	3085900
M. Sajan Kiran	8000
M. Subbalaxmi	85000
M. Sujanan Sheela	238500
M Triveni	10500
M V Gangadhar Rao	30500
M Yasodhara Srinivas	29500
M. Uma Devi	10000
Kanchen Seth	1000
N. Sri Mahalakshmi	10000
Rayala Chandra Sekhar	1000
Rayi Koumstubhamani	1000
S.L.N. Rao	5000
M. Sireesha Rao	5000
A. Surya Kumari	2000
T. Appa Rao	2500
T. Sulochana Rao	12600
M. Umamaheswar	1000
D. Basava Raju	53000
Total	4153300

AS ON 23.09.2011

Equity Share Breakup	Percentage of Holding
Category
Directors or relatives of directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Subject is engaged in the manufacture of Pharmaceutical Formulations such as health, home and personal care products.
Products :	v Health Care Products v Personal Care Products v Home Care Products

PRODUCTION STATUS (AS ON 31.03.2010)

Particulars	Unit	Installed Capacity
Liquids of 250 ml.	Nos.	17050000
Liquids of 500 ml.	Nos.	13540000
Liquids of 4 ml.	Nos.	96000000
Creams of 100 gms.	Nos.	12000000
Powders of 500 gms.	Nos.	1800000
Tubes and Bottles (Baddi Unit)	Nos.	129400000

GENERAL INFORMATION

Customers :

v Amway India Enterprises, New Delhi

v Dr. Reddy's Laboratories Limited, Hyderabad

v Parker Robinson (Private) Limited Kolkata

v Gillette India Limited, Mumbai

v Bayer (India) Limited, Mumbai

v Wen Ken Group Companies, Singapore

v Cipla Limited and Lamar, Mumbai

v Johnson Diversey, Mumbai

v East India Pharmaceuticals Limited, Kolkata

v Nandan Biomatrix Limited, Hyderabad

v Menarini Raunaq Pharma Limited, New Delhi

v Yeturu Biotech Limited, Hyderabad

No. of Employees :

Not Available

Bankers :

v State Bank of India,

SIB Saifabad Branch, Hyderabad, Andhra Pradesh, India 

v Standard Chartered Bank,

G-5, Ground Floor, Ashoka Bhopal, Chambers, Sardar Patel Road, Secunderabad – 500003, Andhra Pradesh, India

v Standard Chartered Bank,

6-3-1090, Raj Bhavan Road, Somajiguda, Hyderabad – 500082, Andhra Pradesh, India

Facilities :

Secured Loans	31.03.2011	31.03.2010
	(Rs. In Millions)
Working Capital Loan (The Working Capital Loan is secured by way of Hypothecation of Stocks, Book Debts, mortgage of Company's Fixed Assets and guaranteed by the Managing Director of the Company)	39.700	34.222
Total	39.700	34.222
Unsecured Loans	31.03.2011	31.03.2010
	(Rs. In Millions)
Loan From Shareholders	0.183	0.183
Loan from Others	0.350	0.250
Sales Tax Deferrment	11.985	12.656
Total	12.518	13.089

Banking Relations :	--
Auditors :
Name :	K.B.S. and Associates Chartered Accountants
Address :	6-2-940, Flat No.403, Padmaja Chambers, Khairatabad, Hyderabad – 500 004, Andhra Pradesh, India
Income-tax PAN of auditor or auditor's firm :	AAHFK9248F

CAPITAL STRUCTURE

(AS ON 23.09.2011)

Authorised Capital :

No. of Shares	Type	Value	Amount
4500000	Equity Shares	Rs.10/- each	Rs.45.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
4153300	Equity Shares	Rs.10/- each	Rs.41.533 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		41.533	36.033	36.033
2] Share Application Money		0.121	5.601	5.581
3] Reserves & Surplus		71.704	67.867	65.786
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		113.358	109.501	107.400
LOAN FUNDS
1] Secured Loans		39.700	34.222	32.056
2] Unsecured Loans		12.518	13.089	13.539
TOTAL BORROWING		52.218	47.311	45.595
DEFERRED TAX LIABILITIES		11.091	10.094	8.627
TOTAL		176.667	166.906	161.622
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		105.317	110.284	92.612
Capital work-in-progress		0.332	0.000	10.825
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	59.508	36.369	29.053
	Sundry Debtors	44.460	38.936	38.293
	Cash & Bank Balances	3.564	4.245	4.939
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	34.588	37.494	35.291
Total Current Assets		142.120	117.044	107.576
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	48.957	32.119	28.348
	Other Current Liabilities	21.233	27.713	18.447
	Provisions	0.932	0.590	2.596
Total Current Liabilities		71.122	60.422	49.391
Net Current Assets		70.998	56.622	58.185
MISCELLANEOUS EXPENSES		0.020	0.000	0.000
TOTAL		176.667	166.906	161.622

PROFIT & LOSS ACCOUNT (CONSOLIDATED)

	PARTICULARS		31.03.2010	31.03.2009
	SALES
		Income	155.467	201.437
		Conversion Charges	23.678	21.400
		Other Income	1.737	4.659
		TOTAL (A)	180.882	227.496
Less	EXPENSES
		Materials consumption	107.319	152.519
		Purchases (Traded Goods)	0.214	0.188
		Salaries and wages	15.728	15.603
		Manufacturing, Administrative and Other Expenses	36.678	35.891
		Accretion/(Decretion) to stocks	4.124	(4.099)
		TOTAL (B)	164.063	200.102
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		16.818	27.394
Less	INTEREST & OTHER FINANCIAL EXPENSES (D)		4.498	6.271
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		12.320	21.123
Less/ Add	DEPRECIATION/ AMORTISATION (F)		10.108	9.426
	PROFIT BEFORE TAX (E-F) (G)		2.212	11.697
Less	TAX (H)		1.467	1.899
	PROFIT AFTER TAX (G-H) (I)		0.745	9.798
	EARNINGS IN FOREIGN CURRENCY		3.478	0.731
	IMPORT VALUE		8.771	5.679
	Earnings Per Share (Rs.)		0.21	2.72

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	NA	0.41	4.31
Net Profit Margin (PBT/Sales)	(%)	NA	1.42	5.81
Return on Total Assets (PBT/Total Assets}	(%)	NA	0.89	5.84
Return on Investment (ROI) (PBT/Networth)		NA	0.02	0.11
Debt Equity Ratio (Total Liability/Networth)		1.09	0.98	0.88
Current Ratio (Current Asset/Current Liability)		2.00	1.94	2.18

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	Check List by Info Agents	Available in Report (Yes / No)
1]	Year of Establishment	Yes
2]	Locality of the firm	Yes
3]	Constitutions of the firm	Yes
4]	Premises details	No
5]	Type of Business	Yes
6]	Line of Business	Yes
7]	Promoter's background	Yes
8]	No. of employees	No
9]	Name of person contacted	No
10]	Designation of contact person	No
11]	Turnover of firm for last three years	Yes
12]	Profitability for last three years	Yes
13]	Reasons for variation <> 20%	-----
14]	Estimation for coming financial year	No
15]	Capital in the business	Yes
16]	Details of sister concerns	No
17]	Major suppliers	No
18]	Major customers	Yes
19]	Payments terms	No
20]	Export / Import details (if applicable)	No
21]	Market information	-----
22]	Litigations that the firm / promoter involved in	-----
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
31]	Date of Birth of Proprietor/Partner/Director, if available	Yes
32]	PAN of Proprietor/Partner/Director, if available	No
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	No

NOTE: Purchase detailers are not available.

Bankers Charges Report as per Registry

Corporate identity number of the company	U24110AP1995PLC020979
Name of the company	SARVOTHAM CARE LIMITED
Address of the registered office or of the principal place of business in India of the company	1-20-248, Umajay Complex, 2^nd Floor, Rasoolpura, Secunderabad – 500 003, Andhra Pradesh, India E-Mail: l.d.reddy@gmail.com
This form is for	Modification of charge
Charge identification number of the modified	10113052
Type of charge	Immovable Property Book Debts Movable Property (not being pledge)
Particular of charge holder	Standard Chartered Bank, 6-3-1090, Raj Bhavan Road, Somajiguda, Hyderabad – 500 082, Andhra Pradesh, India E-Mail: shekar.subramanyarajeurs@sc.com
Nature of description of the instrument creating or modifying the charge	Memorandum of hypothecation
Date of instrument Creating the charge	02.01.2012
Amount secured by the charge	Rs.70.000 millions
Brief particulars of the principal terms and conditions and extent and operation of the charge	Rate of Interest: As per agreement Terms of Repayment: 8 equal quarterly installments from the date of drawdown starting 3^rd month of drawdown date Margin: As per agreement Extent and Operation of the charge: The charge is fully operated till the loan is fully repaid
Short particulars of the property charged	First charge on unencumbered movable fixed assets of the company Exclusive first ranking mortgage over the properties
Particulars of the present modification	Working Capital BD (including CC) - Rs.50.000 millions LC (including BG) - Rs.5.000 millions TL (New) - Rs.15.000 millions

FIXED ASSETS:

v Plant and Machinery

v Lab Equipments

v Miscellaneous Fixed Assets

v Computers

v Electrical Equipment

v Furniture and Fittings

v Vehicles

v Lab Equipments

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] ourt 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.52.97
UK Pound	1	Rs.85.45
Euro	1	Rs.69.46

INFORMATION DETAILS

Report Prepared by :

NIT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	3
--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		31

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.