MIRA INFORM REPORT

Report Date :

30.08.2013

IDENTIFICATION DETAILS

Name :	ACEBRIGHT (INDIA) PHARMA PRIVATE LIMITED (w.e.f. 24.04.2012)

Formerly Known As :	CDYMAX (INDIA) PHARMA PRIVATE LIMITED (w.e.f. 06.08.2009) INTERMED LABS PRIVATE LIMITED

Registered Office :	116/117 Kiadb Industrial Area, Jigani, 2^nd Phase, Bangalore – 560105, Karnataka

Country :	India

Financials (as on) :	31.03.2012

Date of Incorporation :	27.10.1994

Com. Reg. No.:	08-016472

Capital Investment / Paid-up Capital :	Rs.33.400 Millions

CIN No.: [Company Identification No.]	U85110KA1994PTC016472

Legal Form :	Private Limited Liability Company

Line of Business :	Manufacturer of active pharmaceutical ingredient (API)

No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

B (28)

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

Maximum Credit Limit :	USD 1500000

Status :	Moderate

Payment Behaviour :	Slow but correct

Litigation :	Clear

Comments :	Subject is a well established company having moderate track record. The company has incurred loss in the year 2012. However, trade relations are fair. Business is active. Payment terms are slow but correct. The company can be considered for business 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 – March 31^st, 2013

Country Name

Previous Rating

(31.12.2012)

Current Rating

(31.03.2013)

India

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.

EXTERNAL AGENCY RATING

Rating Agency Name	CARE
Rating	Long term bank facilities: BB -
Rating Explanation	Inadequate credit quality and high credit risk.
Date	17 December 2012

Rating Agency Name	CARE
Rating	Short term bank facilities: A4
Rating Explanation	Minimal degree of safety and very high credit risk.
Date	17 December 2012

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 :	116/117 Kiadb Industrial Area, Jigani, 2^nd Phase, Bangalore – 560105, Karnataka, India
Tel. No.:	91-8110-415513
Fax No.:	Not Available
E-Mail :	manorama@acebright.in

DIRECTORS

As on 29.09.2012

Name :

Mr. Manorama Avinash

Designation :

Director

Address :

24, Srija, 9^th Cross, 5^th Main, 1^st Stage, RK Layout, Padmanabhaanaagr, Bangalore – 560070, Karnataka, India

Date of Birth/Age :

23.04.1972

Date of Appointment :

07.05.2011

DIN No.:

03457332

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	U85110KA1994PTC016472	ACEBRIGHT (INDIA) PHARMA PRIVATE LIMITED	Director	07/05/2011	07/05/2011	-	Active	NO
2	U24230MH2003PTC142920	APPLE LIFECARE (INDIA) PRIVATE LIMITED	Director	26/09/2012	03/12/2011	-	Active	NO
3	U24239MH2008PTC185974	MABPHARM PRIVATE LIMITED	Director	28/09/2012	01/03/2012	-	Active	NO
4	U24233MH2012FTC238017	DESANO PHARMACEUTICALS PRIVATE LIMITED	Additional director	15/05/2013	15/05/2013	-	Active	NO

Name :

Mr. Ying Kan

Designation :

Director

Address :

Rm. 1302, No. 8, Lane 1089, Dingxiang Road, Shanghai - 200135

Date of Birth/Age :

04.03.1973

Date of Appointment :

07.05.2011

DIN No.:

03479630

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	U85110KA1994PTC016472	ACEBRIGHT (INDIA) PHARMA PRIVATE LIMITED	Director	07/05/2011	07/05/2011	-	Active	NO
2	U24230MH2003PTC142920	APPLE LIFECARE (INDIA) PRIVATE LIMITED	Director	26/09/2012	03/12/2011	-	Active	NO
3	U24239MH2008PTC185974	MABPHARM PRIVATE LIMITED	Director	28/09/2012	01/03/2012	-	Active	NO
4	U24233MH2012FTC238017	DESANO PHARMACEUTICALS PRIVATE LIMITED	Additional director	15/05/2013	15/05/2013	-	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 29.09.2012

Names of Shareholders		No. of Shares
Medsyn Laboratories Private Limited, India		8775
Couplet Limited, British Virginia Islands		325225
Manorama Avinash		1

Total		334001

Equity Share Break up (Percentage of Total Equity)

As on 29.09.2012

Category	Percentage
Foreign holdings( Foreign institutional investor(s), Foreign companie(s) Foreign financial institution(s), Non-resident Indian(s) or Overseas Corporate bodies or Others	97.37
Bodies corporate	2.63
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer of active pharmaceutical ingredient (API)

Products :	Bulk Drugs

PRODUCTION STATUS (As on 31.03.2012)

Particulars	Unit	Installed Capacity	Actual Production
Bulk Drugs	M.T Per Annum	235	14.99

NOTE: The installed capacity is as certified by management and verified by Auditors since this is a technical matter

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

Corporation Bank, Industrial Finance Branch, No.30, 1^st Floor, 2^nd Cross, Rallaram Memorial Building, CSI Compound Mission Road, Bangalore – 560027, Karnataka, India

Facilities :

Secured Loan	31.03.2012 (Rs. in Millions)	31.03.2011 (Rs. in Millions)
Long-term Borrowings
Term Loan from Corporation Bank, Industrial Finance Branch	121.793	144.293
Interest on term loan payable	1.438	1.703
Short-term borrowings
CC Account No. 30009 from Corporation Bank, Industrial Finance Branch	48.027	20.530
Total	171.258	166.526


Banking Relations :

Auditors :
Name :	R. Natarajan Chartered Accountant
Address :	19/1, 2^nd Floor, 6^th Main, 9^th Cross, Malleswaram, Bangalore -560003, Karnataka, India
Tel. No.:	23348770
Mobile No.:	91-9448067041
E-Mail :	Natarajan9@gmail.com
PAN N Income-tax PAN of auditor or auditor's firm :	AANPR6508D

CAPITAL STRUCTURE

As on 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount

500000	Equity Shares	Rs.100/- each	Rs. 50.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount

334001	Equity Shares	Rs.100/- each	Rs. 33.400 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2012	31.03.2011	31.03.2010
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	33.400	23.400	11.700
(b) Reserves & Surplus	334.643	248.385	85.059
(c) Money received against share warrants	0.000	0.000	0.000

(2) Share Application money pending allotment	0.000	0.000	0.000
Total Shareholders’ Funds (1) + (2)	368.043	271.785	96.759

(3) Non-Current Liabilities
(a) long-term borrowings	219.060	386.325	231.145
(b) Deferred tax liabilities (Net)	10.652	1.597	1.729
(c) Other long term liabilities	0.000	0.000	0.000
(d) long-term provisions	31.033	31.033	27.423
Total Non-current Liabilities (3)	260.745	418.955	260.297

(4) Current Liabilities
(a) Short term borrowings	48.027	20.530	5.166
(b) Trade payables	265.211	58.790	200.868
(c) Other current liabilities	0.810	3.850	3.099
(d) Short-term provisions	13.030	7.545	9.479
Total Current Liabilities (4)	327.078	90.715	218.612

TOTAL	955.866	781.455	575.668

II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	492.054	64.043	58.464
(ii) Intangible Assets	0.000	0.000	0.000
(iii) Capital work-in-progress	53.267	347.801	206.166
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	0.014	0.014	0.014
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	146.254	135.172	94.716
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	691.589	547.030	359.360

(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	0.000	0.000	0.000
(c) Trade receivables	146.155	96.544	49.456
(d) Cash and cash equivalents	36.148	83.244	99.546
(e) Short-term loans and advances	0.176	0.136	27.069
(f) Other current assets	81.798	54.501	40.237
Total Current Assets	264.277	234.425	216.308

TOTAL	955.866	781.455	575.668

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income
		Other Income
		TOTAL (A)	452.159	416.918	662.076

Less	EXPENSES
		Office Expenses
		Administrative Expenses
		Advertising Expenses
		TOTAL (B)	428.414	391.326	633.864

Less	PROFIT / (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		23.745	25.592	28.212

Less	FINANCIAL EXPENSES (D)		19.041	4.808	9.900

	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		4.704	20.784	18.312

Less/ Add	DEPRECIATION/ AMORTISATION (F)		38.465	5.552	4.771

	PROFIT / (LOSS) BEFORE TAX (E-F) (G)		(33.761)	15.232	13.541

Less	TAX (H)		9.055	5.293	5.701

	PROFIT / (LOSS) AFTER TAX (G-H) (I)		(42.816)	9.939	7.840

Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		76.035	66.096	58.256

	BALANCE CARRIED TO THE B/S		33.219	76.035	66.096

	EARNINGS IN FOREIGN CURRENCY		57.991	66.797	119.158

	IMPORTS
		Raw Materials	238.250	290.681	453.835
	TOTAL IMPORTS

	Earnings / (Loss) Per Share (Rs.)		(128.19)	42.47	NA

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	(0.09)	2.38	1.18

Return on Total Assets (PBT/Total Assets}	(%)	(3.53)	1.95	2.35

Return on Investment (ROI) (PBT/Networth)		(0.09)	0.06	0.14

Debt Equity Ratio (Total Debt /Networth)		0.73	1.50	2.44

Current Ratio (Current Asset/Current Liability)		0.81	2.58	0.99

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

UNSECURED LOAN

PARTICULARS	31.03.2012 (Rs. in Millions)	31.03.2011 (Rs. in Millions)
Long-term Borrowings
From Corporate Bodies
FKH Investment Private Limited	0.000	200.000
Interest on loan (FKH Investment)	0.000	4.882
Couplet Limited	94.367	35.237
Interest on loan (Couplet Limited)	1.463	0.210
Total	95.830	240.329

INDEX OF CHARGES

S.NO.	CHARGE ID	DATE OF CHARGE CREATION/MODIFICATION	CHARGE AMOUNT SECURED	CHARGE HOLDER	ADDRESS	SERVICE REQUEST NUMBER (SRN)
1	90199431	09/05/2001	36,000,000.00	CORPORATION BANK	INDUSTRIAL FINANCE BRANCH, BHARAT HOUSE; BOMBAY SAMACHAR MARG, MUMBAI, MAHARASHTRA - 400023, INDIA	-
2	80010584	06/09/2006 *	23,738,000.00	CORPORATION BANK	INDUSTRIAL FINANCE BRANCH, NO.1, QUEENS ROAD, BANGALORE, KARNATAKA - 560001, INDIA	-
3	80010585	29/06/2009 *	380,000,000.00	CORPORATION BANK	INDUSTRIAL FINANCE BRANCH,NO.30, 1ST FLOOR, 2ND CR, RALLARAM MEMORIAL BLDG. CSI COMPOUND MISSION ROAD, BANGALORE, KARNATAKA - 560027, INDIA	A66882986

NOTE: * Date of charge modification

FIXED ASSETS

· Land

· Building Elevator

· Electrical Installation

· Furniture and Fixture

· Lab Equipment

· Office Equipment

· Plant and Machinery

· Fire Hydrant System

· Pollution Control

· Safety

· Computers

· Vehicle

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.67.71
UK Pound	1	Rs.105.14
Euro	1	Rs.90.03

INFORMATION DETAILS

Report Prepared by :

KVT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILIRY	1~10	2
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	4
--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	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		28

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.

MIRA INFORM REPORT

(0.09)

(3.53)

(0.09)

0.73

0.81

INDEX OF CHARGES

Unit