MIRA INFORM REPORT

Report Date :

10.04.2013

IDENTIFICATION DETAILS

Name :	MERIT ORGANICS LIMITED
Registered Office :	Shop No. 76, Whispering Palm Shopping Centre, Lokhandwala Complex, Akurli Road, Kandivli (East), Mumbai – 400101, Maharashtra
Country :	India
Financials (as on) :	31.03.2008
Date of Incorporation :	22.05.1992
Com. Reg. No.:	11-066904
Capital Investment / Paid-up Capital :	Rs. 16.364 Millions
CIN No.: [Company Identification No.]	U24230MH1992PLC06609
TAN No.: [Tax Deduction & Collection Account No.]	MUMM08509E
PAN No.: [Permanent Account No.]	AAACM7899L
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer and Exporter of Pharmaceutical.
No. of Employees :	133 (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 56000
Status :	Moderate
Payment Behaviour :	Unknown
Litigation :	Clear
Comments :	Subject is a company having a moderate track record. The management has not filed the financials of the company with the government department after the year 2009. Mr. Vibhu, Director has provided us with all information but the financial are not verified. However, trade relations are reported as fair. Business is active. Payment terms are unknown. 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.

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.

INFORMATION PARTED BY

Name :	Mr. Vibhu Kejriwal
Designation :	Director
Contact No.:	91-22-66994836
Date :	01.04.2013

LOCATIONS

Registered Office/ Factory :	Shop No. 76, Whispering Palm Shopping Centre, Lokhnadwala Complex, Akurli Road, Kandivli (East), Mumbai – 400101, Maharashtra, India
Tel. No.:	91-22-66994836/ 29655118
Fax No.:	91-22-29655118/ 66994836
E-Mail :	vaibhav@meritorganics.com vibhu@meritorganics.com merit123@vsnl.com
Website :	www.meritorganics.in
Location :	Owned
Factory:	Located at: Ø Gujarat

DIRECTORS

AS ON 30.09.2008

Name :	Mr. Purshottam Atmaram Kejriwal
Designation :	Chairman cum Managing director
Address :	3/C1802, Whispering Palm, Akvri Road, Kandivali [East], Mumbai – 400101, Maharashtra, India
Date of Birth/Age :	09.10.1955
Qualification :	Graduate
Date of Appointment :	22.05.1992
DIN No.:	02476745
Name :	Mr. Vibhu Kejriwal
Designation :	Director
Date of Birth/Age :	37 Years
Qualification :	Graduate
Name :	Mr. Kostur Kejriwal
Designation :	Director
Date of Birth/Age :	34 Years
Qualification :	Graduate

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 30.09.2008

Names of Shareholders	No. of Shares
Atmaram Kejriwal	42640
Basant Kumar Kejriwal	14536
Geeta Devi Kejriwal	6210
Manjushree Kejriwal	14610
Jyoti Devi Kejriwal	13810
Arun Kumar Kedia	500
Ansu Kumar Amar	5000
Amar Nath Mishra	10000
Vibhu Kumar Amar	8950
Bishwanath Bajaj	500
Dhanraj Jain	1000
Mahadev Das	4500
Hemraj Agarwal	1000
Nirmal Kumar	100
Ritu Kabra	1000

AS ON 30.09.2008

Equity Share Breakup	Percentage of Holding
Category
Bodies corporate	58.35
Directors or relatives of directors	16.11
Other top fifty shareholders	1.47
Others	24.07
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer and Exporter of Pharmaceutical.
Products :	General Products Ø Tablets (Uncoated) Ø Tablets (Coated) Ø Capsules Lactum Products Ø Dispersible Tablets Ø Dry Syrup Liquid Oral Section Ointments Injectable Veterinary Products
Exports :
Products :	Pharmaceutical.
Countries :	Ø Africa
Terms :
Selling :	L/C, Cash and Credit
Purchasing :	L/C, Cash and Credit

GENERAL INFORMATION

Customers :	Wholesalers and Retailers
No. of Employees :	133 (Approximately)
Bankers :	Ø Bank of Baroda, A. Chakravarty Road, Ashok Nagar, Kandivali (East), Mumbai - 400101, Maharashtra, India Tel No.: 91-22-28875773/ 28874857 Fax No.: 91-22-28070058 Email: akurli@bankofbaroda.com Ø Small Industries Development Bank of India, Vikas Deep, 22 Station Road, Lucknow - 226019, Uttar Pradesh, India

Banking Relations :	--
Auditors :
Name :	Manoj Chaubey and Company Chartered Accountants
Address :	42, 1st Floor, Singh Industrial, Estate No. 3, Ram Mandir Road, Gorgaon [West], Mumbai – 400104, Maharashtra, India
Income-tax PAN of auditor or auditor's firm :	ACCPC8514B

CAPITAL STRUCTURE

AS ON 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
3,250,000	Equity Shares	Rs. 10/- each	Rs. 32.500 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1,636,351	Equity Shares	Rs. 10/- each	Rs. 16.364 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2008	31.03.2007	31.03.2006
SHAREHOLDERS FUNDS
1] Share Capital		16.364	16.364	16.364
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		0.000	0.000	0.000
4] (Accumulated Losses)		(2.363)	(2.727)	(3.086)
NETWORTH		14.001	13.637	13.278
LOAN FUNDS
1] Secured Loans		0.000	0.000	0.000
2] Unsecured Loans		14.045	8.559	10.136
TOTAL BORROWING		14.045	8.559	10.136
DEFERRED TAX LIABILITIES		0.000	0.000	1.140
TOTAL		28.046	22.196	24.554
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		16.482	16.421	17.556
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	11.457	15.681	12.029
	Sundry Debtors	23.002	1.576	9.771
	Cash & Bank Balances	0.141	0.087	0.154
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	5.248	2.532	3.052
Total Current Assets		39.848	19.876	25.006
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	2.337	1.951	1.519
	Other Current Liabilities	25.610	11.817	16.278
	Provisions	0.337	0.333	0.211
Total Current Liabilities		28.284	14.101	18.008
Net Current Assets		11.564	5.775	6.998
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		28.046	22.196	24.554

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2008	31.03.2007	31.03.2006
	SALES
		Income	52.160	16.276	46.379
		Other Income	0.056	0.096	5.178
		TOTAL (A)	52.216	16.372	51.557
Less	EXPENSES
		Cost of Goods Sold	45.307	9.386	36.255
		Staff Expenses	1.668	0.940	2.613
		Administrative and Other Expenses	2.120	1.668	2.748
		Sales and Distribution Expenses	1.719	1.319	7.066
]		Foreign Exchange difference	0.000	0.000	0.095
		TOTAL (B)	50.814	13.313	48.777
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		1.402	3.059	2.780
Less	FINANCIAL EXPENSES (D)		0.044	0.447	0.232
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		1.358	2.612	2.548
Less/ Add	DEPRECIATION/ AMORTISATION (F)		0.908	2.171	2.369
	PROFIT BEFORE TAX (E-F) (G)		0.450	0.441	0.179
Less	TAX (I)		0.071	0.082	0.085
	PROFIT AFTER TAX (G-I) (J)		0.379	0.359	0.094
Less	INCOME TAX FOR EARLIER YEAR		0.016	0.000	0.000
	BALANCE CARRIED TO THE B/S		0.363	0.359	0.094
	Earnings Per Share (Rs.)		0.23	0.22	0.06

Particulars	31.03.2012	31.03.2011
Sales Turnover (Approximately)	100.000	80.000

Expected Sales (2012-2013): Rs. 130.000 Millions

The above information has been parted by Mr. Vibhu (Director)

KEY RATIOS

PARTICULARS		31.03.2008	31.03.2007	31.03.2006
PAT / Total Income	(%)	0.73	2.19	0.18
Net Profit Margin (PBT/Sales)	(%)	0.86	2.71	0.39
Return on Total Assets (PBT/Total Assets}	(%)	0.80	1.21	0.42
Return on Investment (ROI) (PBT/Networth)		0.03	0.03	0.01
Debt Equity Ratio (Total Debt/Networth)		1.00	0.63	0.76
Current Ratio (Current Asset/Current Liability)		1.41	1.41	1.39

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	Yes
9]	Name of person contacted	Yes
10]	Designation of contact person	Yes
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	Yes
15]	Capital in the business	Yes
16]	Details of sister concerns	No
17]	Major suppliers	No
18]	Major customers	No
19]	Payments terms	Yes
20]	Export / Import details (if applicable)	Yes
21]	Market information	--
22]	Litigations that the firm / promoter involved in	--
23]	Banking Details	Yes
24]	Banking facility details	No
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	No
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

UNSECURED LOANS

Unsecured Loans	31.03.2008	31.03.2007
	(Rs. In Millions)
Directors, their friends/associates	8.704	7.527
Security Deposits/Other Deposits From Distributors/Stockists	5.341	1.032
TOTAL	14.045	8.559

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

Information Gathered by :	JML
Report Prepared by :	BVA

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	NO
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	YES
--AFFILIATION	YES/NO	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTERS
--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.