MIRA INFORM REPORT

Report Date :

12.04.2013

IDENTIFICATION DETAILS

Name :	ERAWAT PHARMA LIMITED (w.e.f. 17.08.1994)
Formerly Known As :	ERAWAT PHARMA PRIVATE LIMITED
Registered Office :	302, Anu Apartment, 21/22, Shankar Nagar, Indore – 452 018, Madhya Pradesh
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	01.03.1993
Com. Reg. No.:	10-007538
Capital Investment / Paid-up Capital :	Rs.54.000 millions
CIN No.: [Company Identification No.]	U02423MP1993PLC007538
IEC No.:	1104004011
TAN No.: [Tax Deduction & Collection Account No.]	BPLE00157D
PAN No.: [Permanent Account No.]	AAACE3757F
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 (36)

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

Maximum Credit Limit :	USD 311000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having a moderate track record. The financial performance seems to be improving over a year. Trade relations are reported to be fair. Business is active. Payments are reported to be slow but correct. The company can be considered for business dealings with slight 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 :	302, Anu Apartment, 21/22, Shankar Nagar, Indore – 452 018, Madhya Pradesh, India
Tel. No.:	91-731-6659100/ 6659103/ 2566020/ 2556036/ 2566024 91-731-6659107/ 6659108/ 6659103 (Direct Line – Export)
Fax No.:	91-731-2560929
E-Mail :	info@erawatgroup.com mk.sharma@erawatgroup.com hema@erawatgroup.com erqwatpharma@ancharnet.in mk.gupta@erawatgroup.com
Website :	http://www.erawat.com
Area :	800 sq. ft. (Approximately)
Location :	Owned
Factory :	512, Industrial Area No.3, Pithampura, District Dhar – 454 744, Madhya Pradesh, India
Tel. No.:	91-7292-256243/ 668010
E-Mail :	erawatpharma@sancharnet.in
Area :	80000 sq. ft.
Location :	Leased

/DIRECTORS

As on 29.09.2012

Name :	Mr. Hemchandra Jain
Designation :	Managing Director
Address :	10-11, Utkarsh Vihar, Indore – 452 018, Madhya Pradesh, India
Date of Birth/Age :	05.07.1950
Qualification :	M.E. in Industrial Prod.
Date of Appointment :	01.03.1993
DIN No.:	00051967
PAN No.:	ABFPJ3836M
Name :	Mr. Abhishek Jain
Designation :	Director
Address :	302, Anu Apartment, 21/22, Shankar Nagar, Indore – 452 018, Madhya Pradesh, India
Date of Birth/Age :	03.01.1977
Qualification :	B.E. (Mech.)
Date of Appointment :	11.07.2003
DIN No.:	00969226
PAN No.:	ABBPJ7802R
Name :	Mr. Raj Damodar Kirtani
Designation :	Director
Address :	T-101, Friend’s Houses, Kanadia, Ring Road Corner, Indore – 452 016, Madhya Pradesh, India
Date of Birth/Age :	28.09.1952
Qualification :	B. Com (HONS.), LLM, IFCWA AIAM, AMIMA, DCP
Date of Appointment :	27.02.1995
DIN No.:	00467197
Name :	Mr. Vinod Gokulchand Kataria
Designation :	Director
Address :	B-402, Samay Apartment, Near Vastrapur Telephone Exchange, Bima Nagar, Ahmedabad – 380 015, Gujarat, India
Date of Birth/Age :	30.09.1952
Qualification :	B.E. (Electrical)
Date of Appointment :	27.02.1995
DIN No.:	02068086
Name :	Mr. Devindar Singh Sodhi
Designation :	Director
Address :	403, Satyam-I, Wing-A, Raheja Complex, Malad (East), Mumbai, Maharashtra, India
Date of Birth/Age :	27.09.1947
Qualification :	B.E. (Mech.)
Date of Appointment :	30.04.1997
DIN No.:	02418573
Name :	Mr. Vasant Raj Solanki
Designation :	Director
Address :	Deepak Jyoti Tower, B Wing, 13^th Floor, Flat No.1306, Parel Tank Road, Kala Chowki, Mumbai – 400 033, Maharashtra, India
Date of Birth/Age :	03.06.1950
Qualification :	B.E. (Mech.)
Date of Appointment :	16.08.1994
DIN No.:	02438562
PAN No.:	AAQPS2904R

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 29.09.2012

Note:

Shareholding details file attached.

As on 29.09.2012

Equity Share Breakup	Percentage of Holding
Category
Bodies corporate	26.60
Directors or relatives of directors	47.31
Other top fifty shareholders	26.09
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Empty Hard Gelatin Capsules.

Products :

Item Code No. (ITC Code)	96020030
Product Description	Empty Hard Gelatin Capsules

PRODUCTION STATUS (AS ON 31.03.2012)

Particulars	2011-2012
a. Licensed Capacity	N.A.
b. Installed Capacity E.H.G. Capsules	16000
c. Actual Production E.H.G. Capsules	23241.08

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

• Bank of India, Palasia Branch, 575/1, M.G. Road, Indore - 452 001, Madhya Pradesh, India
• Industrial Development Bank of India, IDBI Tower, Cuffe Parade, Mumbai – 400 005, Maharashtra, India
• ICICI Bank Limited
• Export-Import Bank of India, Centre One Building, Floor 21, World Trade Centre, Cuffe Parade, Mumbai – 400 005, Maharashtra, India

Facilities :

Secured Loans	31.03.2012 (Rs. in Millions)	31.03.2011 (Rs. in Millions)
LONG-TERM BORROWINGS
Rupee term loans from banks (Term Loan from Bank of India) (Repayment term as per agreement)	15.094	1.857
Deferred payment Indian sources (Liability of CST) (Repayment term as per agreement)	0.391	3.246
Loans taken for Vehicles (Vehicle Loan from HDFC) (Repayment term as per agreement)	1.966	0.609
SHORT-TERM BORROWINGS
Rupee term loans from banks Term Loan from Bank of India (Repayable on demand)	1.140	0.959
Loans repayable on demand from banks (Secured against Hypothecation of Assets) (Repayable on demand)	14.883	19.727
Deferred payment Indian sources (Payment liabilities of MPCT and CST) (Repayment term as per agreement)	2.867	3.660
Loans taken for vehicles (Vehicle Loan from HDFC) (Repayment term as per agreement)	1.430	0.743
Total	37.771	30.801

Banking Relations :	--
Auditors :
Name :	Mahesh Virendra and Company Chartered Accountants
Address :	56-A, Saket Nagar, Kanha Kunj, Near Manish Apartment, Indore, Madhya Pradesh, India
PAN No.:	ABUPG6753H
Associate :	Erawat Engineering Private Limited
Enterprises which are owned, or have significant influence of or are partners with Key management personnel and their relatives :	Padmawati Goods Transport Amit Enterprises

CAPITAL STRUCTURE

As on 29.09.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
5400000	Equity Shares	Rs.10/- each	Rs.54.000 millions
200000	Preference Shares	Rs.10/- each	Rs.2.000 millions
	Total		Rs.56.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
5340000	Equity Shares	Rs.10/- each	Rs.53.400 millions
60000	Preference Shares	Rs.10/- each	Rs.0.600 million
	Total		Rs.54.000 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		54.000	54.000	54.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		23.838	13.110	7.235
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		77.838	67.110	61.235
LOAN FUNDS
1] Secured Loans		37.771	30.801	20.235
2] Unsecured Loans		0.000	0.000	11.054
TOTAL BORROWING		37.771	30.801	31.289
DEFERRED TAX LIABILITIES		8.846	9.391	10.556
TOTAL		124.455	107.302	103.080
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		55.887	60.980	60.420
Capital work-in-progress		33.475	4.189	0.000
INVESTMENT		0.000	0.000	0.000
DEFERRED TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	14.707	17.725	17.009
	Sundry Debtors	27.966	32.166	35.386
	Cash & Bank Balances	0.100	0.492	0.071
	Other Current Assets	6.088	4.167	0.000
	Loans & Advances	5.601	4.425	4.325
Total Current Assets		54.462	58.975	56.791
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	14.464	13.612	11.337
	Other Current Liabilities	0.000	0.000	0.424
	Provisions	4.905	3.230	2.636
Total Current Liabilities		19.369	16.842	14.397
Net Current Assets		35.093	42.133	42.394
MISCELLANEOUS EXPENSES		0.000	0.000	0.266
TOTAL		124.455	107.302	103.080

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Revenue from operations	166.926	154.585	124.287
		Other Income	2.207	0.886	0.697
		TOTAL (A)	169.133	155.471	124.984
Less	EXPENSES
		Cost of materials consumed	73.135	76.768	114.189
		Changes in inventories of finished goods, work-in-progress and stock-in-trade	1.390	2.273
		Employee benefit expense	15.276	13.603
		Other expenses	54.827	48.390
		Exceptional Items	0.114	0.000
		TOTAL (B)	144.742	141.034	114.189
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		24.391	14.437	10.795
Less	FINANCIAL EXPENSES (D)		3.841	3.494	1.727
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		20.550	10.943	9.068
Less/ Add	DEPRECIATION/ AMORTISATION (F)		6.325	6.110	5.492
	PROFIT BEFORE TAX (E-F) (G)		14.225	4.833	3.576
Less	TAX (H)		3.497	(1.041)	(0.441)
	PROFIT AFTER TAX (G-H) (I)		10.728	5.874	4.017
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		13.110	7.235	3.218
	BALANCE CARRIED TO THE B/S		23.838	13.110	7.235
	EARNINGS IN FOREIGN CURRENCY		59.258	43.335	25.087
	Earnings Per Share (Rs.)		2.01	1.10	NA

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	6.34	3.78	3.21
Net Profit Margin (PBT/Sales)	(%)	8.52	3.13	2.88
Return on Total Assets (PBT/Total Assets}	(%)	12.89	4.03	3.05
Return on Investment (ROI) (PBT/Networth)		0.18	0.07	0.06
Debt Equity Ratio (Total Debt/Networth)		0.49	0.46	0.51
Current Ratio (Current Asset/Current Liability)		2.81	3.50	3.94

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	Yes
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	No
34) External Agency Rating, if available	No

EXPANSION:

It is proposed to install four new machines to cater to the increasing demand of different sizes of capsules. The construction work is completed and erection and commissioning of plant and machinery is going on and two machines are expected to install in 2012-13 financial Year. The EXIM Bank have sanction term loan of Rs.32.000 millions for purchases of plant and machinery.

Bankers Charges Report as per Registry

Corporate identity number of the company	U02423MP1993PLC007538
Name of the company	ERAWAT PHARMA LIMITED
Address of the registered office or of the principal place of business in India of the company	302, Anu Apartment, 21/22, Shankar Nagar, Indore – 452 018, Madhya Pradesh, India E-Mail: mk.gupta@erawatgroup.com
This form is for	Creation of charge
Type of charge	Movable Property (not being pledge)
Particular of charge holder	Export-Import Bank of India, Centre One Building, Floor 21, World Trade Centre, Cuffe Parade, Mumbai – 400 005, Maharashtra, India E-Mail: smeagrigroup@eximbankindia.in
Nature of description of the instrument creating or modifying the charge	Unattested deed of hypothecation dated 28.09.2012 executed by Erawat Pharma Limited ("the borrower") in favour of Export-Import Bank of India ("Exim Bank").
Date of instrument Creating the charge	28.09.2012
Amount secured by the charge	Rs.32.000 millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest: INR: LTMLR + 250 bps payable monthly; USD: 550 bps above LIBOR payable quarterly; in accordance with the provisions of loan agreement dated September 28, 2012 Terms of Repayment: To be repaid in 20 (twenty) equal quarterly installments commencing June 2014. Margin: Rs.8.064 millions being 20.13% of the project cost of Rs.40.064 millions Extent and Operation of the charge: The charge created vide Deed of Hypothecation dated 28.09.2012 shall operate as a continuing security by way of Exclusive charge on the entire movable fixed assets of the borrower, both present and future acquired / to be acquired out of Exim Bank's Term Loan.
Short particulars of the property charged	Exclusive charge on the entire movable fixed assets of the borrower, both present and future acquired / to be acquired out of Exim Bank's Term Loan

FIXED ASSETS:

· Land

· Buildings

· Plant and Machinery

· Furniture and Fixtures

· Vehicles

· Office Equipment

· Computer

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.54.53
UK Pound	1	Rs.83.60
Euro	1	Rs.71.33

INFORMATION DETAILS

Report Prepared by :

SMN

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	4
--LIQUIDITY	1~10	4
--LEVERAGE	1~10	4
--RESERVES	1~10	4
--CREDIT LINES	1~10	4
--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		36

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.