MIRA INFORM REPORT

Report Date :

25.04.2013

IDENTIFICATION DETAILS

Name :	CHEMCAPS LIMITED
Registered Office :	205 Elite House 36 Community, Kailash Colony Extension, New Delhi – 110048, Delhi
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	18.06.1980
Com. Reg. No.:	55-091361
Capital Investment / Paid-up Capital :	Rs. 13.450 Million
CIN No.: [Company Identification No.]	L5139DL1980PLC091361
PAN No.: [Permanent Account No.]	AABCC1120D
Legal Form :	A Public Limited Liability company. The company’s Share are Listed on the Stock Exchange.
Line of Business :	Manufacturer of Empty Hard Gelatin Capsules.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

B (33)

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

Maximum Credit Limit :	USD 9394000
Status :	Moderate
Payment Behaviour :	Slow but Correct
Litigation :	Clear
Comments :	Subject is an established company having a moderate track record. The financial strength of the company is moderate. The profitability is low. However trade relation are fair. Payments are reported as slow but correct. 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

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 :	205 Elite House 36 Community, Kailash Colony Extension, New Delhi – 110048, India
Tel. No.:	91-11-26447492/26432774
Fax No.:	91-11-26442889
E-Mail :	chemcaps@airtelmail.in mittal@chemcaps.com
Website :	www.chemcaps.com
Corporate/ Factory Office :	C-584, RIICO Industrial Area, Bhiwadi-301019, Distt. Alwar, Rajasthan, (India)
Tel. No.:	91-1493-220746 / 221052
E-Mail :	chemcaps@touchtelindia.net

DIRECTORS

As on 24.09.2012

Name :	Prem Chand Goel
Designation :	Managing Director
Address :	79, Sukhdev Vihar, New Delhi – 110025, India.
Date of Birth/Age :	10.01.1943
Date of Appointment :	18.06.1983
DIN No.:	00516619
Name :	Arun Kumar Mittal
Designation :	Whole-time director
Address :	D 810, New Friend Colony, New Delhi – 25, India.
Date of Birth/Age :	30.06.1954
Date of Appointment :	18.06.1983
DIN No.:	00049425
Name :	Suresh. P. Gungnai
Designation :	Director
Address :	B 15, Soamani Nagar, New Delhi – 110065, India.
Date of Birth/Age :	11.04.1927
Date of Appointment :	07.10.1986
DIN No.:	00011239
Name :	Surendra. K. Ajmani
Designation :	Director
Address :	F 223, New Rajinder Nagar, New Delhi – 60, India.
Date of Birth/Age :	10.10.1939
Date of Appointment :	20.07.1987
DIN No.:	00196234
Name :	Vinay Mahajan
Designation :	Whole-time director
Address :	193, Sukhdev Vihar, New Delhi – 110025, India.
Date of Birth/Age :	10.12.1954
Date of Appointment :	18.06.1983
DIN No.:	02713603

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 24.09.2012

NOTE : Major Shareholders Detail File Attached

Equity Share Break up (Percentage of Total Equity)

Category	Percentage
Bodies corporate	0.07
Directors or relatives of Directors	65.87
Other top fifty shareholders	25.44
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Empty Hard Gelatin Capsules.

Products :

ITC No. of Product	2834
Product Description	Hard Gelatin Capsules

Production status :

a) Capacity (As certified by the management)	2010 – 2011
Product Empty Hard Gelatine Capsules
Licensed Capacity	627 Million
Installed Capacity	627 Million
b) Actual Production:
Empty Hard Gelatine Capsules (including purchase)	691.1720 Million

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

State Bank of India, Greater Kailash Part 1, New Delhi – 110048, India

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2011	As on 31.03.2010
Rupees term loans bank secured	18.466	16.331
Rupees term loans other secured	0.564	0.000
Total	19.030	16.331

Note :

1) Working Capital Loan: Working Capital Loan from State Bank of India is secured by Hypothecation of Stocks of raw materials, finished goods and store and spares.

2) Others loans : From ICICI Bank Limited is secured against Hypothecation of cars and personal guarantee of Directors.

Banking Relations :	--
Auditors :
Name :	Aggarwal and Rampal Chartered Accountant
Address :	E 67, LG Floor, Masjid Moth, Greater Kailash III, New Delhi – 110048, India.
PAN.:	AACFD9312N

CAPITAL STRUCTURE

As on 24.09.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
2000000	Equity Shares	Rs.10/- each	Rs.20.000 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1345000	Equity Shares	Rs.10/- each	Rs. 13.450 Million

FINANCIAL DATA

[all figures are in Rupees Millions]

.

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2011	31.03.2010	31.03.2009
SHAREHOLDERS FUNDS
1] Share Capital		13.450	13.450	13.450
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		10.037	9.943	9.905
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		23.487	23.393	23.355
LOAN FUNDS
1] Secured Loans		19.030	16.331	15.045
2] Unsecured Loans		0.000	0.000	0.000
TOTAL BORROWING		19.030	16.331	15.045
DEFERRED TAX LIABILITIES		0.588	0.661	0.651
TOTAL		43.105	40.385	39.051
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		14.639	15.468	15.313
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	19.442	19.088	16.209
	Sundry Debtors	11.315	8.756	8.515
	Cash & Bank Balances	0.797	0.780	0.863
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	8.503	9.748	8.914
Total Current Assets		40.057	38.372	34.501
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	7.655	9.406	7.580
	Other Current Liabilities	3.562	3.804	2.389
	Provisions	0.374	0.245	0.794
Total Current Liabilities		11.591	13.455	10.763
Net Current Assets		28.466	24.917	23.738
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		43.105	40.385	39.051

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	55.174	54.367	59.890
		Other Income	0.781	(0.142)	1.093
		TOTAL (A)	55.955	54.225	60.983
Less	EXPENSES
		Consumption Material Changes Inventories	19.857	18.268
		Manufacturing Services Cost	1.868	1.824	56.399
		Employee Related Expenses	10.832	10.563
		Administrative Selling other Expenses	18.902	19.340
		TOTAL (B)	51.459	49.995	56.399
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		4.496	4.230	4.584
Less	FINANCIAL EXPENSES (D)		2.693	2.585	2.682
Less/ Add	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		1.803	1.645	1.902
Less/ Add	DEPRECIATION/ AMORTISATION (F)		1.653	1.575	1.541
	PROFIT BEFORE TAX (G)		0.150	0.070	0.361
Less	TAX		0.056	0.021	0.304
	PROFIT AFTER TAX		0.094	0.049	0.057
	EARNINGS IN FOREIGN CURRENCY		27.046	30.641	NA
	Earnings Per Share (Rs.)		0.07	0.04	0.04

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	0.27	0.13	0.09
Net Profit Margin (PBT/Sales)	(%)	0.27	0.12	0.60
Return on Total Assets (PBT/Total Assets}	(%)	0.27	0.13	0.72
Return on Investment (ROI) (PBT/Networth)		0.00	0.00	0.01
Debt Equity Ratio (Total Debt /Networth)		0.81	0.70	0.64
Current Ratio (Current Asset/Current Liability)		3.45	2.85	3.20

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	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

FORM 8

Corporate identity number of the company	L51397DL1980PLC091361
Name of the company	CHEMCAPS LIMITED
Address of the registered office or of the principal place of business in India of the company	205 Elite House 36 Community, Kailash Colony Extension, New Delhi- 110048, Delhi, India
This form is for	Modification of charge
Charge identification (ID) number of the charge to be modified	10001499
Type of charge	Book debts Movable property (not being pledge)
Particular of charge holder	State Bank of India
Nature of instrument creating charge	Letter of Arrangement sanctioning the modification of Limits.
Date of instrument Creating the charge	10.12.2012
Amount secured by the charge	Rs. 22.000 million
Brief of the principal terms an conditions and extent and operation of the charge	Rate of interest: 2% above the basic rate (presently 9.75%). Present effective rate 11.75% Term of Payment: repayable on demand Margin: Margin 25% on raw material, SIP & FG, 40% on Book Debts. Extent and operation of the charge: As per Agreement Others:
Short particulars of the property charged (Including location of the property)	i. Property situated at C 584, RIICO Industrial Area, Bhiwadi, Distt. Alwar, Rajasthan as colletral. ii. Charge on current assets, SIP and FG and Book Debts
Date of last modification prior to the present modification	22.10.2010
Particulars of the present modification	Credit Limit remains at 20000000 (Cash Credit (Hypo) EPC is at 12.500 million and Cash Credit (Hypo) is at 7.500 million) on 10.12.2012. Moreover one way interchangeability of 20% of EPC Limit to CC (Hypo) is also allowed. Moreover SME Car Loan of Rs 2.000 million is also sanctioned.

OPERATIONS AND FINANCIAL RESULTS:

The company manufactured during the year 661.625 Million capsules (previous year 675.187) resulting in a capacity utilization of about 105.52% (previous year 107.68%).

The Sales during the year were 715.301 Million capsules (Previous year 693.096 Million) for Rs. 5698.600million (previous year Rs. 5661.000 million). During the year Company exported goods worth Rs. 2704.600 million (previous year Rs. 3064.1million) on F.O.B. basis.

The profit (after interest but before depreciation) of the Company for the year is Rs.180.300 million (previous year Rs. 164.6 millions) and profit after tax is Rs. 9.400 millions (previous year Rs.49.000 million).

The company has adequate internal control systems for monitoring production, sales and financial matters.

PROSPECTS

The demand for the company’s products is expected to remain steady during the year. As already intimated the Company has got the Drug Master File No. 19924 from, Food and Drugs Administration. United States This will open up the U.S. and other markets for the Company’s Products, which will enable the company to get stronger footing in the international markets.

State Bank of India has renewed the increased working facilities which will enable the smooth working of the Company.

There has been a general decrease in realization because of the Rupee appreciation versus the U. S. Dollars which has affected the profitability of the Company and due to increase in the price of various inputs. The Company has approached the customers for price increase and negotiations in this regard are currently under way and are in positive trend

Fixed Assets :

• Building
• Building (Capital WIP)
• Office Equipments
• Furniture And Fixtures
• Plant And Machinery
• Vehicles
• Power, Lighting and Generating Systems
• Laboratory Equipments
• Computers

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. 54.30
UK Pound	1	Rs. 82.89
Euro	1	Rs. 70.80

INFORMATION DETAILS

Report Prepared by :

ANK

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	2
--LIQUIDITY	1~10	4
--LEVERAGE	1~10	4
--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	YES
--AFFILIATION	YES/NO	NO
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		33

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.