MIRA INFORM REPORT

Report Date :

06.04.2013

IDENTIFICATION DETAILS

Name :	ALKA LABORATORIES PRIVATE LIMITED (w.e.f. 18.06.2009)
Formerly Known As :	ALKA REMEDIES PRIVATE LIMITED
Registered Office :	117/118, Neha Industrial Estate, Off Duttapada Road, Borivali, Mumbai – 400066, Maharashtra
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	12.05.1998
Com. Reg. No.:	11-114840
Capital Investment / Paid-up Capital :	Rs. 10.800 Millions
CIN No.: [Company Identification No.]	U24200MH1998PTC114840
TAN No.: [Tax Deduction & Collection Account No.]	MUMA21884C
PAN No.: [Permanent Account No.]	AACCA7721R
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Drugs, Chemicals and Solvents.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (45)

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

Maximum Credit Limit :	USD 396000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track record. 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	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

EXTERNAL AGENCY RATING

Rating Agency Name	CARE
Rating	SE 2B
Rating Explanation	High performance capability and moderate credit risk.
Date	Outstanding as of April 5, 2013

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 :	117/118, Neha Industrial Estate, Off Duttapada Road, Borivali, Mumbai – 400066, Maharashtra, India
Tel. No.:	91-22-28540011/ 28543394
Fax No.:	91-22-28541425
E-Mail :	info@alkalabs.com info@alkaremedies.com
Website :	www.alkalabs.com

DIRECTORS

AS ON 29.09.2012

Name :	Mr. Dungarmal Govindram Bajaj
Designation :	Director
Address :	D-11, Nand Dham, Khandar Pada, Dahisar (West), Mumbai – 400068, Maharashtra, India
Date of Appointment :	12.05.1998
DIN No.:	00535593
Name :	Saroj Dungarmal Bajaj
Designation :	Director
Address :	D-11, Nand Dham, Bhau Saheb Parab Road, Dahisar (West), Mumbai – 400068, Maharashtra, India
Date of Appointment :	29.09.2012
DIN No.:	00144240
Name :	Mr. Arun Kedia
Designation :	Director
Address :	C-11/238, Sector - III, Rohini, Delhi – 110085, India
Date of Appointment :	28.01.2006
DIN No.:	03046539

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 29.09.2012

Names of Shareholders	No. of Shares
Ramlal Bajaj	183500
Dungarmal Bajaj	448400
Chanchal R. Bajaj	122400
Alka Bajaj	9500
Durgadutt Shantilal	10000
Naresh Kumar Bajaj	5000
Shravan Bajaj	10000
R.P. Bajaj	33000
Sarita R. Bajaj	17500
Saroj D. Bajaj	141500
Omprakash Dhandharia	100
Santosh Devi Dhandharia	100
Vijay Kumar Modi (HUF)	1000
S. Sanju Modi	1000
Payal Modi	1000
Chandrika M. Shah	1000
Mahesh Kumar Bajaj	100
Ramawatar Bajaj	100
Rekha Bajaj	100
Sulochna M. Bajaj	49100
Anubhav Bhimsaria	500
Chandanben H. Patel	100
Sona Bajaj	45000
Total	1080000

AS ON 29.09.2012

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

BUSINESS DETAILS

Line of Business :

Manufacturer of Drugs, Chemicals and Solvents.

PRODUCTION STATUS (AS ON 31.03.2011)

Particulars	Unit	Actual Production
6-Amino Penicillinic Acid	Qty-Kgs	--
Phenyl Acetic Acid	Qty-Kgs	--
Nimuselide	Qty-Kgs	95,100

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

Ø State Bank of Mysore

Ø Deutche Bank

Ø Citibank

Ø ICICI Bank Limited, Landmark Race Cource Circle, Alkapuri, Baroda – 390015, Gujarat, India

Ø The Hongkong and Shanghai Banking Corporation Limited, 52/60, Mahatma Gandhi Road, Fort, Mumbai – 400001, Maharashtra, India

Ø HDFC Bank Limited

Facilities :

Secured Loans	31.03.2012	31.03.2011
	(Rs. In Millions)
Term loans from banks	35.420	0.000
Long-term maturities of finance lease obligations	12.392	12.455
Loans repayable on demand	16.380	14.727
Total	64.192	27.182

Banking Relations :	--
Auditors :
Name :	Pavan M Poddar Chartered Accountant
Address :	34/11 Vrindavan Society, Thane (West), Mumbai – 400601, Maharashtra, India
Tel. No.:	91-22-25345795/ 32047387
Income-tax PAN of auditor or auditor's firm :	AASRR3712A

CAPITAL STRUCTURE

AS ON 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
2,500,000	Equity Shares	Rs. 10/- each	Rs. 25.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1,080,000	Equity Shares	Rs. 10/- each	Rs. 10.800 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2012	31.03.2011	31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		10.800	5.000	5.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		88.114	66.567	62.424
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		98.914	71.567	67.424
LOAN FUNDS
1] Secured Loans		64.192	27.182	20.176
2] Unsecured Loans		34.146	37.149	25.522
TOTAL BORROWING		98.338	64.331	45.698
DEFERRED TAX LIABILITIES		3.261	2.463	1.785
TOTAL		200.513	138.361	114.907
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		112.801	107.052	101.708
Capital work-in-progress		33.703	0.000	0.000
INVESTMENT		0.053	0.050	0.046
DEFERRED TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	45.405	29.255	12.841
	Sundry Debtors	80.928	143.065	22.343
	Cash & Bank Balances	0.135	0.277	0.338
	Other Current Assets	0.102	0.130	0.000
	Loans & Advances	14.535	4.503	4.451
Total Current Assets		141.105	177.230	39.973
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	71.389	132.722	23.768
	Other Current Liabilities	15.760	13.249	1.653
	Provisions	0.000	0.000	1.557
Total Current Liabilities		87.149	145.971	26.978
Net Current Assets		53.956	31.259	12.995
MISCELLANEOUS EXPENSES		0.000	0.000	0.158
TOTAL		200.513	138.361	114.907

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income
		Other Income
		TOTAL	731.433	618.706	100.145
Less	EXPENSES
		Office Expenses
		Administrative Expenses
		Advertising Expenses
		TOTAL	719.551	610.691	96.609
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION		11.882	8.015	3.536
Less/ Add	DEPRECIATION/ AMORTISATION		2.193	1.773	1.411
	PROFIT BEFORE TAX		9.689	6.242	2.125
Less	TAX		2.642	2.099	0.425
	PROFIT AFTER TAX		7.047	4.143	1.700
	EARNINGS IN FOREIGN CURRENCY
		FOB value of Exports	N.A.	10.177	13.492
	Earnings Per Share (Rs.)		6.53	12.48	3.40

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	0.96	0.67	1.70
Return on Total Assets (PBT/Total Assets}	(%)	3.82	2.20	1.50
Return on Investment (ROI) (PBT/Networth)		0.10	0.09	0.02
Debt Equity Ratio (Total Debt/Networth)		0.99	0.90	0.68
Current Ratio (Current Asset/Current Liability)		1.62	1.21	1.48

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	No
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	Yes

UNSECURED LOANS

Unsecured Loans	31.03.2012	31.03.2011
	(Rs. In Millions)
Loans and advances from related parties	30.719	33.199
Term loans from banks	2.174	2.115
Other Loans and advances	1.253	1.835
Total	34.146	37.149

BANKERS CHARGES REPORT AS PER REGISTRY

Corporate identity number of the company	U24200MH1998PTC114840
Name of the company	ALKA LABORATORIES PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	117/118, Neha Industrial Estate, Off Duttapada Road, Borivali, Mumbai – 400066, Maharashtra, India Email: info@alkalabs.com
This form is for	Creation of charge
Type of charge	Book debts Others [Exclusive Charge on Stock and Receivables]
Particular of charge holder	The Hongkong and Shanghai Banking Corporation Limited, 52/60, Mahatma Gandhi Road, Fort, Mumbai – 400001, Maharashtra, India Email: pareshmehta@hsbc.co.in
Nature of description of the instrument creating or modifying the charge	Deed of Hypothecation dtd 22 October 2012 for Exclusive charge over Stocks and Receivables both present and future for INR 70 Mn.
Date of instrument Creating the charge	22.10.2012
Amount secured by the charge	Rs. 70.000 Millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest Interest shall be payable by the Company on the banking facilities as per Bank tariff subject however that the Bank shall have the right to change the rate of interest after giving notice to the Company. Terms of Repayment In Consideration of Banking facilities sanctioned/ to be sanctioned, the company has hypothecated and charged to the bank by way of exclusive charge over S&R both present & future for INR 70 Mn, as per Deed of Hypothecation to secure the repayments of the advances together with interest cost and all other charges Margin The company shall maintain such margin as may be specified by the Bank from time to time. Extent and Operation of the charge In case the Company fails to fulfill its obligations under the agreement, the bank shall be entitled to take possession of the hypothecated assets and sell them by public auction or private contract and utilize the proceeds in full or part settlement of its claims.
Short particulars of the property charged	All the borrower's stock-in-trade both present and future, included stock of RM , WIP, spares and stores & finished goods whether stored in the Borrower's factory, and All the Borrower's present and future Book debts, outstanding monies, receivables, claims due or owing or which may at any time become due and owing more particularly described in DOH.

FIXED ASSETS

Ø Freehold Land - Hyderabad

Ø Leasehold Land - Nardhana

Ø Leasehold Land - Bhiwadi

Ø Office Premises

Ø Plant and Machinery

Ø Laboratory Equipment

Ø Furniture and Fixtures

Ø Borewell

Ø Factory Building

Ø Office Equipments

Ø Computers

Ø Electrical Equipments

Ø Air Conditioner

Ø Motor Car

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. 54.88
UK Pound	1	Rs. 83.54
Euro	1	Rs. 70.90

INFORMATION DETAILS

Report Prepared by :

BVA

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
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
DEFAULTERS
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		45

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.