MIRA INFORM REPORT

Report Date :

13.04.2013

IDENTIFICATION DETAILS

Name :	COMED CHEMICALS LIMITED
Registered Office :	3^rd Floor, Oriental Business Centre, Opposite Suraj Plaza, Sayajigunj, Vadodara - 390005, Gujarat
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	02.03.1988
Com. Reg. No.:	04-010415
Capital Investment / Paid-up Capital :	Rs. 121.703 Millions
CIN No.: [Company Identification No.]	U24231GJ1988PLC010415
PAN No.: [Permanent Account No.]	AABCC0242N
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer of Pharmaceutical Products.
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 900000
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	ICRA
Rating	Cash Credit Facility: BBB-
Rating Explanation	Moderate degree of safety. It carry moderate credit risk
Date	February, 2013

Rating Agency Name	ICRA
Rating	Short Term Fund Based Limit: A3
Rating Explanation	Moderate degree of safety. It carry higher credit risk.
Date	February, 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 :	3^rd Floor, Oriental Business Centre, Opposite Suraj Plaza, Sayajigunj, Vadodara - 390005, Gujarat, India
Tel. No.:	91-265-2361584/2363229
Fax No.:	91-265-2362524
E-Mail :	comedchemicals@comedchemicals.com finance@comedchemicals.com info@comedchemicals.com

DIRECTORS

As on: 27.09.2012

Name :

Mr. Jaswinder Singh Joginder Singh Sethi

Designation :

Managing director

Address :

45, Green Park Society, Makarpura Road, Baroda, Gujarat, India

Date of Birth/Age :

28.03.1952

Qualification :

B.Com

Date of Appointment :

27.07.2007

PAN No.:

ACBPS2718J

DIN No.:

00024116

Other Directorship:

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U24231GJ1988PLC010415	COMED CHEMICALS LIMITED	Managing director	27/07/2007	06/03/1988	-	Active	NO
2	U51397PB1994PTC014343	JAY BEE DISTRIBUTORS PVT LTD	Director	21/03/1994	21/03/1994	-	Active	NO
3	U24231GJ2002PLC040853	COMED BIO-TECH LIMITED	Managing director	12/06/2002	12/06/2002	16/02/2010	Active	NO
4	U24230GJ2004PLC057400	COMED PHARMACEUTICALS LIMITED	Director	01/12/2004	01/12/2004	01/04/2007	Amalgamated	NO

Name :

Mr. Jagjeetsingh Gurdayalsingh Channa

Designation :

Whole-time director

Address :

House No. 2527, Sector 47/C, Chandigarh, India

Date of Birth/Age :

28.11.1950

Qualification :

B.Com

Date of Appointment :

27.07.2007

PAN No.:

ACDPC3771F

DIN No.:

01741116

Other Directorship:

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U24231GJ1988PLC010415	COMED CHEMICALS LIMITED	Whole-time director	27/07/2007	06/03/1988	-	Active	NO
2	U51397PB1994PTC014343	JAY BEE DISTRIBUTORS PVT LTD	Director	21/03/1994	21/03/1994	08/08/2011	Active	NO
3	U24231GJ2002PLC040853	COMED BIO-TECH LIMITED	Director	12/06/2002	12/06/2002	-	Active	NO
4	U24230GJ2004PLC057400	COMED PHARMACEUTICALS LIMITED	Director	01/12/2004	01/12/2004	01/04/2007	Amalgamated	NO

Name :

Mr. Paramjeet Kour

Designation :

Director

Address :

8, Sangeet Society, Near Taksh Complex, Vasna Road, Vadodara, Gujarat, India

Date of Birth/Age :

14.11.1959

Qualification :

B.Com

Date of Appointment :

30.11.1993

PAN No.:

AJCPM5415A

DIN No.:

02359494

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on: 27.09.2012

Names of Shareholders	No. of Shares
Sethi Jaswinder Singh	1171394
Channa Jagjitsingh	1963504
Jashanjit Singh	3254700
Kuldeep Singh Mehta	1200238
Depinder Singh	1159522
Satwinder Paul Kaur	1030994
Kulvinder Kaur	677514
Mandeep Kaur	48992
Paramjit Kaur	646322
Mipandeepsingh Mehta	311500
Sunamdeep Singh Mehta	24024
Avneet Kaur	400340
Comed Biotech Limited	21200
Jaybee Distributors Private Limited	260000
Total	12170244

Equity Share Break up (Percentage of Total Equity)

As on: 27.09.2012

Category	Percentage
Bodies corporate	0.38
Directors or relatives of Directors	31.06
Others	68.56
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Pharmaceutical Products.

Products :

ITC Code	Description of product
96020030	Hard Gelatine Capsule Shell IP

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

· Punjab National Bank, MCB Sardar Bhavan, Raopura, Vadodara - 390001, Gujarat, India

· ICICI Bank Limited

· Karnataka Bank Limited

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2012	As on 31.03.2011
Term loans from banks (The company has taken term loan against the additional charge on immovable property of the company. The said term loan has been repaid during the current financial year.)	0.000	34.694
Long-term maturities of finance lease obligations (Secured against first charge on vehicles financed and company has also availed refinance on old vehicles)	7.585	3.023
Working capital loans from banks	93.005	97.574
Total	100.590	135.291

Banking Relations :	--
Auditors :
Name :	H. Patel and Company Chartered Accountant
Address :	Vadodara, Gujarat, India
PAN.:	ACQPP5827Q
Name :	P. Kant Tandon and Company Chartered Accountant
Address :	Vadodara, Gujarat, India
PAN.:	AAGFP7035A

CAPITAL STRUCTURE

As on: 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
18000000	Equity Shares	Rs.10/- each	Rs. 180.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
12170244	Equity Shares	Rs.10/- each	Rs. 121.703 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		121.703	60.851	57.560
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		109.573	111.584	61.741
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		231.276	172.435	119.301
LOAN FUNDS
1] Secured Loans		100.590	135.291	131.980
2] Unsecured Loans		0.000	0.000	52.570
TOTAL BORROWING		100.590	135.291	184.550
DEFERRED TAX LIABILITIES		7.032	8.324	8.306
TOTAL		338.898	316.050	312.157
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		289.485	305.279	130.219
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		2.072	2.072	50.772
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	50.927	81.200	46.380
	Sundry Debtors	113.179	60.493	93.232
	Cash & Bank Balances	4.596	1.930	3.587
	Other Current Assets	20.411	27.172	42.825
	Loans & Advances	24.645	20.497	36.765
Total Current Assets		213.758	191.292	222.789
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	58.572	53.018	81.623
	Other Current Liabilities	58.901	114.841	17.422
	Provisions	48.944	14.734	12.225
Total Current Liabilities		166.417	182.593	111.270
Net Current Assets		47.341	8.699	111.519
MISCELLANEOUS EXPENSES		0.000	0.000	19.647
TOTAL		338.898	316.050	312.157

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011
	SALES
		Income	942.586	668.656
		Other Income	1.376	0.381
		TOTAL (A)	943.962	669.037
Less	EXPENSES
		Cost of materials consumed	317.593	212.639
		Purchases of stock-in-trade	80.816	68.857
		Changes in inventories of finished goods, work-in-progress and stock-in-trade	11.474	5.144
		Employee benefit expense	117.241	91.591
		Other expenses	263.134	206.864
		TOTAL (B)	790.258	585.095
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		153.704	83.942
Less	FINANCIAL EXPENSES (D)		27.025	33.251
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		126.679	50.691
Less/ Add	DEPRECIATION/ AMORTISATION (F)		50.003	38.554
	PROFIT BEFORE TAX (E-F) (G)		76.676	12.137
Less	TAX (H)		15.167	2.523
	PROFIT AFTER TAX (G-H) (I)		61.509	9.614
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	11.866	11.759
	TOTAL EARNINGS		11.866	11.759
	Earnings Per Share (Rs.)		0.51	0.08

	PARTICULARS		31.03.2010
	SALES
		Income	620.691
		Other Income	1.452
		TOTAL (A)	622.143
Less	EXPENSES
		Manufacturing service costs	80.498
		Consumption materials changes inventories	289.849
		Contract cost	3.448
		Administrative selling other expenses	131.342
		Employee related expenses	71.373
		Research development expenditure	8.611
		TOTAL (B)	585.121
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		37.022
Less	FINANCIAL EXPENSES (D)		21.675
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		15.347
Less/ Add	DEPRECIATION/ AMORTISATION (F)		14.606
	PROFIT BEFORE TAX (E-F) (G)		0.741
Less	TAX (H)		(1.681)
	PROFIT AFTER TAX (G-H) (I)		2.422
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	12.978
	TOTAL EARNINGS		12.978
	Earnings Per Share (Rs.)		0.42

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	6.52	1.44	0.39
Net Profit Margin (PBT/Sales)	(%)	8.13	1.82	0.12
Return on Total Assets (PBT/Total Assets}	(%)	15.24	2.45	0.21
Return on Investment (ROI) (PBT/Networth)		0.33	0.07	0.001
Debt Equity Ratio (Total Debt /Networth)		0.43	0.78	1.55
Current Ratio (Current Asset/Current Liability)		1.28	1.05	2.00

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

BANKERS CHARGES REPORT AS PER REGISTRY

Corporate identity number of the company	U24231GJ1988PLC010415
Name of the company	COMED CHEMICALS LIMITED
Address of the registered office or of the principal place of business in India of the company	3^rd Floor, Oriental Business Centre, Opposite Suraj Plaza, Sayajigunj, Vadodara - 390005, Gujarat, India finance@comedchemicals.com
This form is for	Creation of charge
Type of charge	Immovable property
Particular of charge holder	Punjab National Bank, MCB Sardar Bhavan, Raopura, Vadodara - 390001, Gujarat, India bo3406@pnb.co.in
Nature of instrument creating charge	Memorandum of Entry for Equitable Mortgage
Date of instrument Creating the charge	13.06.2012
Amount secured by the charge	Rs. 90.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest @ BR + 4.25% less 1% i.e. 13.75% presently and as stipulated by bank from time to time Terms of Repayment CC - Repayable on Demand Margin @ 25% for stocks and book debts and as stipulated by bank from time to time Extent and Operation of the charge First and Exclusive charge on company's assets as mentioned in Col 15 of this form in favour of Punjab National Bank. Others CC - Hypo stock and book debts - Rs. 90.000 Millions
Short particulars of the property or asset(s) charged (including complete address and location of the property)	· Factory premises at Village Rania, Taluka Savli, District Vadodara N.A. Land bearing R S No. 359 admeas. 10421 Sq. Mtrs. comprising of factory land and building, fixed plant and machinery and other fixed assets · Office No.201, 217, 218, 219, 220 and 221 situated on 2nd 'B' floor of Orient Business Centre Complex super built up area of 2852 Sq. Fts. and off. premises no.201A on front portion of 2nd floor adm. 5374 Sq Ft · both situated at Sayajiganj Ward bearing Municipal S No. 462/1 · of mouje Baroda kasba, being City S No. 318, 319, 320 and 321 and on land bearing R S No.462/1 of mouje Baroda kasba being City S No. 322, 323, 324 and 325 admeas. 6000 Sq. Fts.

FIXED ASSETS:

· Land

· Factory Building

· Office Building

· Plant And Machinery

· Vehicle

· Office Equipments

· Furniture and Fixtures

· Electrical Equipment

· Laboratory Equipment

· Motor Car

· Computer

· Road

· Telephone Systems

· Air Conditioning plant

· Temporary sheds

· Computer Software

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. 54.44
UK Pound	1	Rs. 83.78
Euro	1	Rs. 71.33

INFORMATION DETAILS

Report Prepared by :

UDS

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
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	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	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
--DEFAULTER
--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.