MIRA INFORM REPORT

Report Date :

17.08.2013

IDENTIFICATION DETAILS

Name :	MORVEL LABORATORIES PRIVATE LIMITED
Registered Office :	25, Jawahar Nagar Society, Visnagar, District Mehsana – 382 010, Gujarat
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	16.05.1983
Com. Reg. No.:	04-6187
Capital Investment / Paid-up Capital :	Rs.1.300 Millions
CIN No.: [Company Identification No.]	U24231GJ1983PTC006187
TAN No.: [Tax Deduction & Collection Account No.]	AHMM03523C
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer and Exporter of Pharmaceuticals.
No. of Employees :	50 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (43)

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

Maximum Credit Limit :	USD 13000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is an established company having a satisfactory track record. The company has improved its performance and has shown an increase in its sales turnover. Management has also reported a decent profit over previous year loss. Trade relations are fair. Business is active. Payment terms are reported as usually correct. The concern 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 [GENERAL DETAILS]

Name :	Mr. Kalpesh Patel
Designation :	Accounts Department
Contact No.:	91-2762-255041
Date :	14.08.2013

LOCATIONS

Registered Office :	25, Jawahar Nagar Society, Visnagar, District Mehsana – 382 010, Gujarat, India
Tel. No.:	91-2762-255041/42
Fax No.:	91-2762-240145
E-Mail :	info@morvellab.com morvellab@sify.com
Website :	http://www.morvellab.com
Area :	400 sq. ft.
Location :	Owned
Factory / Marketing Office :	251 G.I.D.C. Estate, Near Modera Cross Road, Opposite Sremandar Temple, Mehsana - 384 002, Gujarat, India
Tel. No.:	91-2762-255041 / 255042
Fax No.:	91-2762-240145

DIRECTORS

AS ON 25.09.2012

Name :	Mr. Rikinbhai B Patel
Designation :	Director
Address :	25, Jawahar Nagar Society, Opposite Dagla Road Visnagar, Gujarat, India
Date of Birth/Age :	31 Years
Experience :	Engineering
Date of Appointment :	08.09.2004
DIN No.:	01066258
Name :	Mrs. Minaxiben K. Patel
Designation :	Director
Address :	Bharatnagar Society, Visnagar, India
Date of Birth/Age :	30 Years
Qualification :	B. Ed.
Date of Appointment :	16.07.2003
DIN No.:	02370944

KEY EXECUTIVES

Name :	Mr. Kalpesh Patel
Designation :	Accounts Department

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 25.09.2012

Names of Shareholders	No. of Shares
Patel Rikin	2669
Patel Shardaben	1690
Patel Meenaben	600
Patel Gangarambhai	600
Patel Jayantibhai	500
Patel Baldevbhai	410
Patel Parulben	400
Patel Jayesh	390
Patel Ashish	361
Patel Khemabhai	220
Patel Amratbhai	210
Patel Darshit	210
Patel Amratbhai	200
Patel Tribhovandas	200
Patel Arvindkumar	200
Patel Dashrathlal	200
Patel Rameshbhai	200
Patel Dhavalkumar	200
Patel Shanibhai	200
Patel Lalitaben	200
Patel Gangaben	200
Patel Sagarbhai	200
Patel Jyosnaben	200
Patel Sureshbhai	200
Patel Ramilaben	200
Patel Mohanbhai	200
Patel Narayanbhai	200
Patel Jayantibhai	200
Patei Gordhanbhai	200
Patel Babubhai	200
Patel Gopalbhai	200
Patel Revabhai HUF	200
Patel Narottamdas HUF	200
Patel Prahladbhai	200
Patel Maganbhai	180
Patel Jushumatiben	100
Patel Rinku	20
Patel Renu	10
Patel Kamalbhai	10
Patel BharatKumar	10
Patel Hasmukhbhai	10
TOTAL	13000

AS ON 25.09.2012

Equity Share Breakup	Percentage of Holding
Category
Directors or relatives of directors	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer and Exporter of Pharmaceuticals.
Terms :
Selling :	Cash and Credit
Purchasing :	Cash and Credit

PRODUCTION STATUS [AS ON 31.03.2012]

Licensed Capacity	Not Applicable
Installed Capacity	13500000 VAIALS
Actual Production	2730234 VAIALS

GENERAL INFORMATION

Customers :

Wholesalers and Retailers

No. of Employees :

50 (Approximately)

Bankers :

• Bank of Baroda, Mehsana Highway Branch, Gujarat, India
• The Mehsana Nagrik Sahakari Bank Limited, Near Arvind Baugh, Opposite, Sarvajanik Kanya Vidhyalaya, Mehsana – 384001, Gujarat, India
• The Visnagar Nagrik Sahakari Bank Limited, Visnagar
• Mehsana Urban Co-Operative Bank Limited
• Sarvoday Nagrik Sahakari Bank Limited
• Dena Bank, Mehsana
• Dena Bank, Mumbai
• Sarvoday Commercial Co-Operative Bank Limited

Facilities :

Secured Loan	As on 31.03.2012 [Rs. in Millions]	As on 31.03.2011 [Rs. in Millions]
Long Term Borrowings
The Mehsana Nagrik Sahakari Bank Limited
Vehicle Loan [Secured by hypothecation of said vehicle]	0.579	0.000
TOTAL	0.579	0.000

Banking Relations :	--
Auditors :
Name :	Babulal Patel and Company Chartered Accountants
Address :	2^nd Floor, A/10 and 11, Ajanta Commercial Centre, Near Income Tax Office, Ashram Road, Ahmedabad – 380014, Gujarat, India
Tel. No.:	91-79-27540268 (O) / 27640806 (R)
PAN No:	ABCPP5322K

CAPITAL STRUCTURE

AS ON 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
15000	Equity Shares	Rs.100/- each	Rs.1.500 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
13000	Equity Shares	Rs.100/- each	Rs.1.300 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2012	31.03.2011
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	1.300	1.300
(b) Reserves & Surplus	1.962	1.523
(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)	3.262	2.823
(3) Non-Current Liabilities
(a) long-term borrowings	0.579	0.000
(b) Deferred tax liabilities (Net)	0.104	(0.079)
(c) Other long term liabilities	0.000	0.000
(d) long-term provisions	0.000	0.000
Total Non-current Liabilities (3)	0.683	(0.079)
(4) Current Liabilities
(a) Short term borrowings	8.319	9.093
(b) Trade payables	13.177	8.604
(c) Other current liabilities	2.827	2.530
(d) Short-term provisions	(0.085)	(0.292)
Total Current Liabilities (4)	24.238	19.935
TOTAL	28.183	22.679
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	7.140	6.546
(ii) Intangible Assets	0.000	0.000
(iii) Capital work-in-progress	0.000	0.000
(iv) Intangible assets under development	0.000	0.000
(b) Non-current Investments	0.026	1.101
(c) Deferred tax assets (net)	0.000	0.000
(d) Long-term Loan and Advances	0.000	0.000
(e) Other Non-current assets	0.000	0.000
Total Non-Current Assets	7.166	7.647
(2) Current assets
(a) Current investments	0.000	0.000
(b) Inventories	5.751	4.970
(c) Trade receivables	9.257	6.135
(d) Cash and cash equivalents	4.459	2.442
(e) Short-term loans and advances	1.550	1.485
(f) Other current assets	0.000	0.000
Total Current Assets	21.017	15.032
TOTAL	28.183	22.679

SOURCES OF FUNDS		31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		1.300
2] Share Application Money		0.000
3] Reserves & Surplus		2.095
4] (Accumulated Losses)		0.000
NETWORTH		3.395
LOAN FUNDS
1] Secured Loans		0.000
2] Unsecured Loans		9.240
TOTAL BORROWING		9.240
DEFERRED TAX LIABILITIES		0.122
TOTAL		12.757
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		5.170
Capital work-in-progress		0.000
INVESTMENT		1.101
DEFERREX TAX ASSETS		0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	4.547
	Sundry Debtors	11.875
	Cash & Bank Balances	2.554
	Other Current Assets	0.000
	Loans & Advances	2.024
Total Current Assets		21.000
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	11.816
	Other Current Liabilities	2.057
	Provisions	0.641
Total Current Liabilities		14.514
Net Current Assets		6.486
MISCELLANEOUS EXPENSES		0.000
TOTAL		12.757

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	40.682	35.083	39.651
		Other Income	0.264	0.026	0.024
		TOTAL (A)	40.946	35.109	39.675
Less	EXPENSES
		Cost of Materials Consumed	19.475	18.134
		Other Manufacturing Expenses	10.310	9.446
		Purchase of Goods Traded	0.239	0.149	37.906
		Employee Benefits Expenses	2.379	2.477
		Other Expenses	6.432	4.206
		Changes in Inventories of Finished Goods, Process and Stock in Trade	(0.612)	0.218
		TOTAL (B)	38.223	34.630	37.906
Less	PROFIT / (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		2.723	0.479	1.769
Less	FINANCIAL EXPENSES (D)		0.959	0.531	0.815
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		1.764	(0.052)	0.954
Less/ Add	DEPRECIATION/ AMORTISATION (F)		0.997	0.721	0.719
	PROFIT / (LOSS) BEFORE TAX (E-F) (G)		0.767	(0.773)	0.235
Less	TAX (H)		0.329	(0.201)	0.097
	PROFIT / (LOSS) AFTER TAX (G-H) (I)		0.438	(0.572)	0.138
	Earnings / (Loss) Per Share (Rs.)		33.69	(43.97)	10.59

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	1.07	(1.63)	0.35
Net Profit Margin (PBT/Sales)	(%)	1.89	(2.20)	0.59
Return on Total Assets (PBT/Total Assets}	(%)	2.72	(3.58)	0.90
Return on Investment (ROI) (PBT/Networth)		0.23	(0.27)	0.07
Debt Equity Ratio (Total Debt/Networth)		2.73	3.22	2.72
Current Ratio (Current Asset/Current Liability)		0.87	0.75	1.45

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	Yes
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)	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]	PAN of Proprietor/Partner/Director, if available	No
32]	Date of Birth 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

Unsecured Loan	As on 31.03.2012 [Rs. in Millions]	As on 31.03.2011 [Rs. in Millions]
Short Term Borrowings
Loans From Directors and Shareholders	1.409	1.226
Loans From Share Holders	6.910	7.867
TOTAL	8.319	9.093

FIXED ASSETS:

• Leasehold Land
• Building
• Plant and Machinery
• Electric Installation
• Laboratory Equipment
• Office Equipment
• Furniture and Fixtures
• Vehicles
• 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.61.82
UK Pound	1	Rs.96.57
Euro	1	Rs.82.45

INFORMATION DETAILS

Information Gathered by :	NYA
Report Prepared by :	TPT

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	4
--LEVERAGE	1~10	5
--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	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		43

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.