MIRA INFORM REPORT

Report Date :

10.04.2013

IDENTIFICATION DETAILS

Name :	DINESH REMEDIES LIMITED
Registered Office :	Shri Dinesh Mills Premises, Padra Road, Vadodara – 390 005, Gujarat
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	09.02.2005
Com. Reg. No.:	04-045447
Capital Investment / Paid-up Capital :	Rs.235.916 millions
CIN No.: [Company Identification No.]	U24230GJ2005PLC045447
TAN No.: [Tax Deduction & Collection Account No.]	BRDD01134A
PAN No.: [Permanent Account No.]	AACCD1121E
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer of Empty Hard Gelatin Capsules.
No. of Employees :	Not Available

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 704000
Status :	Moderate
Payment Behaviour :	Slow
Litigation :	Clear
Comments :	Subject is an established company having a moderate track record. There appear some accumulated losses recorded by the company. However, the company has performed well in 2012. Trade relations are reported to be fair. Business is active. Payments are reported to be slow. The company can be considered for business dealings with great caution.

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 :	Shri Dinesh Mills Premises, Padra Road, Vadodara – 390 005, Gujarat, India
Tel. No.:	91-265-2330060-2330065
Fax No.:	91-265-2336195
E-Mail :	drl@dineshmills.com sorjitra@dineshmills.com
Website:	http://www.dineshremedies.com
Factory Office :	Village Mahuwad, Haranma Road, Padra-Jambusar Highway, Taluka Padra, Vadodara – 391 440, Gujarat, India
Tel. No.:	91-2662-267200/ 290518
Fax No.:	91-2662-267198
E-Mail :	drl-sales@dineshremedies.com

DIRECTORS

As on 31.08.2012

Name :	Mr. Nimishbhai Upendrabhai Patel
Designation :	Managing Director
Address :	Krishnarpan, Gotri – Sevasi Road, P.O. Sevasi, Vadodara – 391 101, Gujarat, India
Date of Birth/Age :	22.12.1965
Qualification :	B.B.A., M.B.A.(USA)
Date of Appointment :	14.11.2005
DIN No.:	00039549
Voter ID No.:	GJ/22/151/337355
Name :	Mr. Upendrabhai Maganbhai Patel
Designation :	Director
Address:	Krishnarpan, Gotri – Sevasi Road, P.O. Sevasi, Vadodara – 391 101, Gujarat, India
Date of Birth/Age :	13.07.1928
Qualification :	B.Sc., M.B.A. (USA)
Date of Appointment:	09.02.2005
DIN No.:	00036315
Voter ID No.:	GJ/22/151/337353
Name :	Mr. Bharatbhai Upendrabhai Patel
Designation :	Director
Address:	Samir Estate, Gotri – Sevasi Road, P.O. Sevasi, Vadodara – 391 101, Gujarat, India
Date of Birth/Age :	09.12.1983
Qualification :	B. Text., MBA (USA)
Date of Appointment :	09.02.2005
DIN No.:	00039543
Voter ID No.:	GJ/22/151/337351
Name :	Mr. Rashmikant Chhaganbhai Patel
Designation :	Director
Address:	9, Ashmita Society, Maninagar (East), Ahmedabad – 380 008, Gujarat, India
Date of Birth/ Age:	14.09.1942
Qualification :	B.Com.
Date of Appointment:	14.11.2005
DIN No.:	00752593
PAN No.:	AETPP5363E
Name :	Mr. Manish Ishwarbhai Patel
Designation :	Director
Address:	212, Sarah Court, West Over Woods, New York, Delaware, USA
Date of Birth/ Age:	08.11.1966
Qualification :	B.S.-Elect. Engg., M.B.A.(USA)
Date of Appointment:	14.11.2005
DIN No.:	01120586
Name :	Mr. Hosi Navalsha Elavia
Designation :	Nominee Director
Address :	501, Pluto Apartment, Near Marble Arch, Race Course Circle, Vadodara – 390 007, Gujarat, India
Date of Birth/Age :	26.08.1936
Qualification :	B.Com., LL.B., AICWA
Date of Appointment :	08.02.2007
DIN No.:	01013388
Name :	Mr. Sanjivkumar Mahendralal Shah
Designation :	Director
Address:	“Mainak” C.G. Road, Opposite OBC Bank, Ellisbridge, Ahmedabad – 380 006, Gujarat, India
Date of Birth/ Age:	13.04.1961
Qualification :	B.Com., M.B.A. (USA), AIT (USA)
Date of Appointment:	14.11.2005
DIN No.:	00065796
Name :	Mr. Paresh Manilal Saraiya
Designation :	Director
Address:	9, Charotar Society, Old Padra Road, Vadodara – 390 021, Gujarat, India
Date of Birth / Age:	12.08.1953
Qualification :	B. E. (Mechanical)
Date of Appointment:	29.09.2011
DIN No.:	00063971

KEY EXECUTIVES

Name :	Mr. Shrihari Keshavlal Shukla
Designation :	Secretary
Address :	B/35, Parth Residency, Ajwa Road, Vadodara – 390 019, Gujarat, India
Date of Birth/Age :	22.09.1971
Date of Appointment :	06.09.2007
PAN No.:	ANKPS5467L

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 31.08.2012

Names of Shareholders	No. of Shares
Shri Dinesh Mills Limited, India	13098095
Upendrabhai M. Patel	1
Bharatbhai U. Patel	1
Nimishbhai U. Patel	1
Roopaben B. Patel	1
Aurshaben N. Patel	1
Rashmikant C. Patel Chandrikaben R. Patel Dixit R. Patel	3139715
Star Capsules LLC, USA	7353765
Total	23591580

As on 31.08.2012

Equity Share Breakup	Percentage of Holding
Category
Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others]	31.00
Bodies corporate	56.00
Directors or relatives of directors	13.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Empty Hard Gelatin Capsules.

Products :

Item Code No.	Product Description
96020030	Empty Hard Gelatin Capsule

PRODUCTION STATUS (AS ON 31.03.2011)

Particulars	2010-11
Class of Goods - Empty Hard Gelatin Capsules
a. Licensed Capacity	Note-1
b. Installed Capacity as certified by Chief Executive Officer (C.E.O) and Accepted by Auditors.	24000 lacs
c. Production meant for sale (Note-2 ) Qty. In Lac No.	20573.22

Note 1: Company has filed Industrial Entrepreneurs Memorandum for 17500 lacs Nos. of Capsules with SIA, Ministry of Commerce and Industry, and Government of India.

Note 2: Production, Stock and Turnover figures include Captively Consumed quantity.

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

· The South Indian Bank Limited, S I B House Mission Quarters, T.B. Road, Thrissur – 680 001, Kerala, India

· The South Indian Bank Limited, Sayajigunj, Vadodara – 390 005, Gujarat, India

· Bank of Baroda

· Central Bank of India

· Indian Overseas Bank

Facilities :

Secured Loans	31.03.2012 (Rs. in Millions)	31.03.2011 (Rs. in Millions)
LONG-TERM BORROWINGS
Rupee term loans from banks	(A) 82.924	(B) 58.106
Working capital loans from banks	(C) (0.363)	(D) 17.079
Total	82.561	75.185

(A) Secured by exclusive and specific charge on Fixed Assets

(B) Secured by exclusive and specific charge on Fixed Assets

(C) Cash Credit facilities (Working capital loans are secured by hypothecation of present and future stock of raw materials, stock-in-process, finished goods, stores and spares, book debts, material in transit, etc.)

(D) Cash Credit facilities (Working capital loans are secured by hypothecation of present and future stock of raw materials, stock-in-process, finished goods, stores and spares, book debts, material in transit, etc.)

Banking Relations :	--
Auditors :
Name :	Dhirubhai Shah and Company Chartered Accountants
Address :	401/408, Aditya, Opposite Maun Apartments, Near Khadayta Colony, Ellisbridge, Ahmedabad – 380 006, Gujarat, India
Income-tax PAN of auditor or auditor's firm :	AABFD1936H
Holding Company :	Shri Dinesh Mills Limited CIN No.: L17110GJ1935PLC000494 Corporate and Registered Office: P.O. Box No.2501, Padra Road, Vadodara - 390 020, Gujarat, India Tel. No.: 91-265-2330060/ 61/ 62/ 63/ 64/ 65 Fax No.: 91-265-2336195 Website: www.dineshmills.com

CAPITAL STRUCTURE

As on 31.08.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
25000000	Equity Shares	Rs.10/- each	Rs.250.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
23591580	Equity Shares	Rs.10/- each	Rs.235.916 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		235.916	230.000	210.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		0.000	0.000	0.000
4] (Accumulated Losses)		(60.014)	(74.321)	(78.635)
NETWORTH		175.902	155.679	131.365
LOAN FUNDS
1] Secured Loans		82.561	75.185	88.874
2] Unsecured Loans		0.000	0.000	0.000
TOTAL BORROWING		82.561	75.185	88.874
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		258.463	230.864	220.239
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		230.245	181.371	185.359
Capital work-in-progress		0.000	0.000	0.157
INVESTMENT		0.000	0.000	0.000
DEFERRED TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	10.862	11.031	10.010
	Sundry Debtors	29.879	43.913	28.587
	Cash & Bank Balances	1.127	1.547	0.495
	Other Current Assets	0.177	0.155	0.000
	Loans & Advances	13.647	14.316	17.516
Total Current Assets		55.692	70.962	56.608
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	21.314	14.616	21.340
	Other Current Liabilities	5.235	6.133	0.041
	Provisions	0.925	0.720	0.504
Total Current Liabilities		27.474	21.469	21.885
Net Current Assets		28.218	49.493	34.723
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		258.463	230.864	220.239

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Revenue from operations	137.646	129.283	102.683
		Other Income	0.886	0.608	0.553
		TOTAL (A)	138.532	129.891	103.236
Less	EXPENSES
		Cost of materials consumed	47.907	49.934	99.823
		Changes in inventories of finished goods, work-in-progress and stock-in-trade	(0.589)	1.553
		Employee benefit expense	18.887	17.707
		Other expenses	41.002	37.453
		Exceptional items	0.062	0.000
		TOTAL (B)	107.269	106.647	99.823
Less	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		31.263	23.244	3.413
Less	FINANCIAL EXPENSES (D)		5.792	8.158	7.816
	PROFIT/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		25.471	15.086	(4.403)
Less/ Add	DEPRECIATION/ AMORTISATION (F)		11.164	10.772	10.302
	PROFIT/ (LOSS) BEFORE TAX (E-F) (G)		14.307	4.314	(14.705)
Less	TAX (H)		0.000	0.000	(0.032)
	PROFIT/ (LOSS) AFTER TAX (G-H) (I)		14.307	4.314	(14.673)
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		(74.320)	(78.634)	(63.961)
	BALANCE CARRIED TO THE B/S		NA	(74.320)	(78.634)
	EARNINGS IN FOREIGN CURRENCY		12.813	2.709	3.648
	Earnings/ (Loss) Per Share (Rs.)		0.61	0.20	(0.72)

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	10.33	3.32	(14.21)
Net Profit Margin (PBT/Sales)	(%)	10.39	3.34	(14.32)
Return on Total Assets (PBT/Total Assets}	(%)	5.00	1.71	(6.08)
Return on Investment (ROI) (PBT/Networth)		0.08	0.03	(0.11)
Debt Equity Ratio (Total Debt/Networth)		0.47	0.48	0.68
Current Ratio (Current Asset/Current Liability)		2.03	3.31	2.59

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) 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	Yes
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	Yes
33) Voter ID No of Proprietor/Partner/Director, if available	Yes
34) External Agency Rating, if available	No

FIXED ASSETS

· Land

· Buildings

· Factory Building

· Plant and Machinery

· Furniture and Fixtures

· 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 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 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.54.46
UK Pound	1	Rs.83.13
Euro	1	Rs.70.99

INFORMATION DETAILS

Report Prepared by :

SMN

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	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	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
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.