MIRA INFORM REPORT

Report Date :

09.08.2013

IDENTIFICATION DETAILS

Name :	SPARSH BIO-TECH PRIVATE LIMITED
Registered Office :	Plot No. 1, Survey No. 242/243/244, Village: Lakhabavad, Post Khodiyar Colony, District Jamnagar – 361006, Gujarat
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	30.03.2001
Com. Reg. No.:	04-039373
Capital Investment / Paid-up Capital :	Rs. 33.517 Millions
CIN No.: [Company Identification No.]	U24231GJ2001PTC039373
TAN No.: [Tax Deduction & Collection Account No.]	RKTS02395B
PAN No.: [Permanent Account No.]	AAFCS5556F
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Pharmaceuticals Products.
No. of Employees :	103 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (46)

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Maximum Credit Limit :	USD 520000
Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is an established company having a satisfactory track record. Trade relations are reported as fair. Business is active. Payment terms are usually correct. The company can be considered 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 – March 31^st, 2013

Country Name	Previous Rating (31.12.2012)	Current Rating (31.03.2013)
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

We are living in a world where volatility and uncertainty have become the New Normal. We saw a change of government in countries like Tunisia, Egypt, Libya and Vietnam. Once powerful countries in Europe are now fighting for bankruptcy. We have taken growth in the developing part of the world for granted but economic growth in China and India has begun to slow. Companies that were synonymous with their product categories just a few years ago are now no longer in existence. Kodak, the inventor of the digital camera had to wind up its operations, HMV, the British entertainment retailing company and Borders, once the second largest bookstore have shut down due to their inability to evolve their business models with the changing time. Readers’ Digest, Thomson Register are no more !

There is another megatrend happening. The World order is changing as economic power shifts from West to East. According to McKinsey study, it took Britain more than 100 years to double its economic output per person during its industrial revolution and the US later took more than 50 years to do the same. More than a century later, China and India have doubled their GDP per capital in 12 and 18 years respectively. By 2020, emerging Asia will become the world’s largest consuming block, overtaking North America.

The years after the outbreak of the global financial crisis, the world economy continues to remain fragile. The Indian economy demonstrated remarkable resilience in the initial years of the contagion but finally lost ground last year. GDP growth slowed down. Currency has been weakening. There is a marked deceleration in agriculture, industry and services. Dampening sentiment led to a cut-back in investment as well as private consumption expenditure.  Inflation remained at high levels fuelled by the pressure from the food and fuel sectors. The large fiscal and current account deficit s continued to cause grave concern. It is imperative that India regains its growth trajectory of 8-9 % sooner than later. This is crucially important given the need to create gainful livelihood opportunities for the millions living in poverty as also the large contingent of young people joining the job market every year.

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. Jitendra
Designation :	Finance Department
Contact No.:	91-288-2889032
Date :	09.08.2013

LOCATIONS

Registered Office / Factory :	Plot No. 1, Survey No. 242/243/244, Village: Lakhabavad, Post Khodiyar Colony, District Jamnagar – 361006, Gujarat, India
Tel. No.:	91-288-2889032/ 33/ 34
Fax No.:	91-288-2889036
E-Mail :	account@sparshbiotech.com
Website :	http://www.sparshbiotech.com
Location :	Owned

DIRECTORS

As on: 28.09.2012

Name :	Mr. Ashok Juthlal Maru
Designation :	Managing Director
Address :	Flat No. 105-106, Indra Darshan Block No. 12, Phase - II, Behind Oshiwara Link Road, Andheri (West), Mumbai - 400 053 Maharashtra, India
Date of Birth/Age :	29.08.1953
Date of Appointment :	01.04.2006
PAN No.:	AACPM3792M
DIN No.:	00299779
Name :	Mr. Paras Juthlal Maru
Designation :	Director
Address :	501, Jay Tpwer, Hirji Mistry Road, Jamnagar - 361 005, Gujarat, India
Date of Birth/Age :	28.02.1961
Date of Appointment :	01.04.2003
PAN No.:	AACPM3798B
DIN No.:	00299409
Name :	Mr. Sundeep Premchand Maru
Designation :	Director
Address :	Poonam, 5 - Oswal Colony, Summair Club Road, Jamnagar - 361 005, Gujarat, India
Date of Birth/Age :	15.05.1974
Date of Appointment :	30.09.2005
DIN No.:	00299854
Name :	Mr. Rasik Hirji Haria
Designation :	Director
Address :	Bukoto Housing Estate, Block - A1, Bukoto, Kampala, Uganda, Africa
Date of Birth/Age :	10.01.1962
Date of Appointment :	03.11.2001
DIN No.:	00300027

KEY EXECUTIVES

Name :	Mr. Jitendra
Designation :	Finance Department
PAN No.:

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on: 28.09.2012

Names of Shareholders	No. of Shares
Premchand Narsi Maru	201000
Ashok Juthlal Maru	671200
Rasik Hirji Haria	620500
Pragna Rasik Haria	385000
Paras Juthlal Maru	502800
Sushant Ashok Maru	166700
Sundeep Premchand Maru	222600
Jatin Premchand Maru	167600
Mukat Premchand Maru	134200
Rupali Sundeep Maru	112500
Rakhi Jatin Maru	167600
Total	3351700

Equity Share Break up (Percentage of Total Equity)

As on: 28.09.2012

Category	Percentage
Directors or relatives of directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Pharmaceuticals Products.

Products :

ITC Code	Product Description
30041030	Amoxicillin Capsules 250
30042012	Cephalexin Capsules 250
30041010	Penicillin-V Tablets 250

Exports :

Products :

• Finished goods

Countries :

• Tanzania
• Uganda

Imports :

Products :

• Raw material

Countries :

• China

Terms :

Selling :

Credit

Purchasing :

Credit/ Depend

GENERAL INFORMATION

Customers :

End Users

No. of Employees :

103 (Approximately)

Bankers :

• Axis Bank Limited, Trishul 3rd Floor Opposite Samartheshwar Temple, Law Garden Ellisbridge, Ahmedabad - 380006, Gujarat, India
• Oriental Bank of Commerce, E- Block, Harsha Bhawan, Connaught Place, New Delhi – 110001, India

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2012	As on 31.03.2011
Short term borrowings
Working capital loans form bank repayable on demand
Foreign currency loan	20.292	10.282
Total	20.292	10.282

Banking Relations :	--
Auditors :
Name :	Rajnikant V. Pragada Chartered Accountant
Address :	102, Riddhi Siddhi, Opposite Axis Bank, Park Colony main Road, near Joggers Park, Jamnagar – 361008, Gujarat, India
Tel. No.:	91-288-2558952
PAN No.:	ANTPP0162A

CAPITAL STRUCTURE

As on: 28.09.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
5000000	Equity Shares	Rs.10/- each	Rs. 50.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
3351700	Equity Shares	Rs.10/- each	Rs. 33.517 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2012	31.03.2011
EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	33.517	33.517
(b) Reserves & Surplus	97.135	90.490
(c) Money received against share warrants	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000
Total Shareholders’ Funds (1) + (2)	130.652	124.007
(3) Non-Current Liabilities
(a) long-term borrowings	0.000	0.000
(b) Deferred tax liabilities (Net)	6.767	0.000
(c) Other long term liabilities	0.000	0.000
(d) long-term provisions	0.000	0.000
Total Non-current Liabilities (3)	6.767	0.000
(4) Current Liabilities
(a) Short term borrowings	20.292	10.282
(b) Trade payables	35.018	77.919
(c) Other current liabilities	3.897	2.346
(d) Short-term provisions	0.000	15.027
Total Current Liabilities (4)	59.207	105.574
TOTAL	196.626	229.581
ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	51.555	47.091
(ii) Intangible Assets	0.000	0.000
(iii) Capital work-in-progress	6.147	9.792
(iv) Intangible assets under development	0.000	0.000
(b) Non-current Investments	0.000	0.000
(c) Deferred tax assets (net)	0.000	0.000
(d) Long-term Loan and Advances	10.191	1.650
(e) Other Non-current assets	0.000	0.000
Total Non-Current Assets	67.893	58.533
(2) Current assets
(a) Current investments	21.579	6.010
(b) Inventories	35.722	39.369
(c) Trade receivables	59.669	95.074
(d) Cash and cash equivalents	6.535	10.030
(e) Short-term loans and advances	4.217	18.929
(f) Other current assets	1.011	1.636
Total Current Assets	128.733	171.048
TOTAL	196.626	229.581

SOURCES OF FUNDS		31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		32.000
2] Share Application Money		0.000
3] Reserves & Surplus		64.285
4] (Accumulated Losses)		0.000
NETWORTH		96.285
LOAN FUNDS
1] Secured Loans		0.000
2] Unsecured Loans		13.677
TOTAL BORROWING		13.677
DEFERRED TAX LIABILITIES		0.000
TOTAL		109.962
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		44.408
Capital work-in-progress		9.132
INVESTMENT		0.000
DEFERREX TAX ASSETS		0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	24.608
	Sundry Debtors	56.886
	Cash & Bank Balances	16.298
	Other Current Assets	1.366
	Loans & Advances	10.678
Total Current Assets		109.836
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	43.163
	Other Current Liabilities	1.779
	Provisions	8.472
Total Current Liabilities		53.414
Net Current Assets		56.422
MISCELLANEOUS EXPENSES		0.000
TOTAL		109.962

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income
		Other Income
		TOTAL (A)	242.048	279.686	187.446
Less	EXPENSES
		Office Expenses
		Administrative Expenses
		Advertising Expenses
		TOTAL (B)	223.594	243.656	163.412
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		18.454	36.030	24.034
Less	FINANCIAL EXPENSES (D)		6.454	0.564	1.647
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		12.000	35.466	22.387
Less/ Add	DEPRECIATION/ AMORTISATION (F)		2.982	2.665	2.486
	PROFIT BEFORE TAX (E-F) (G)		9.018	32.801	19.901
Less	TAX (H)		2.373	6.595	3.602
	PROFIT AFTER TAX (G-H) (I)		6.645	26.206	16.299
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		90.491	64.285	47.986
	BALANCE CARRIED TO THE B/S		97.136	90.491	64.285
	EARNINGS IN FOREIGN CURRENCY		138.169	141.911	112.514
	IMPORTS
		Raw Materials	42.109	54.401	13.693
	TOTAL IMPORTS		42.109	54.401	13.693
	Earnings Per Share (Rs.)		1.98	7.82	--

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	2.75	9.37	8.70
Return on Total Assets (PBT/Total Assets}	(%)	4.73	14.92	12.90
Return on Investment (ROI) (PBT/Networth)		0.07	0.27	0.21
Debt Equity Ratio (Total Debt/Networth)		0.16	0.08	0.14
Current Ratio (Current Asset/Current Liability)		2.18	1.62	2.06

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	No
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	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

OPERATIONS

The Company has achieved turnover of Rs. 240.078 Millions for the year ended 31st March, 2012 as against Rs. 278.893 Millions in the previous year, a decrease of 13.92% as compared to corresponding previous year. High fluctuation in currency rate has caused significant reduction in margin and off-take by buyers. The company continued with its strategy to grow and invest in key markets and expanded its ground presence to six markets of Africa, South East Asia and Latin America as well as to concrete on third party exports on P2P basis in the other markets where it does not operates. This strategy will fully utilized capacity and will provide additional boost the turnover and consequently bottom line of the company.

INDEX OF CHARGES

S.No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10113511	03/07/2013 *	42,400,000.00	Axis Bank Limited	TRISHUL 3RD FLOOR OPP SAMARTHESHWAR TEMPLE, LAW GARDEN ELLISBRIDGE, AHMEDABAD, Gujarat - 380006, INDIA	B80610900

FIXED ASSETS

• Plant and Machinery
• Furniture and Fixture
• Factory Building
• Vehicle
• 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. 61.11
UK Pound	1	Rs. 94.77
Euro	1	Rs. 81.54

INFORMATION DETAILS

Information Gathered by :	PDT
Report Prepared by :	DPH

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	6
--CREDIT LINES	1~10	6
--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	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		46

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	-

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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.