MIRA INFORM REPORT

Report Date :

12.12.2013

IDENTIFICATION DETAILS

Name :	MMC HEALTHCARE LIMITED
Registered Office :	No.61, Kurinji Street, Fathima Nagar, Valasarawakkam, Chennai – 600087, Tamilnadu
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	28.02.1996
Com. Reg. No.:	18-034651
Capital Investment / Paid-up Capital :	Rs.13.672 Millions
CIN No.: [Company Identification No.]	U93090TN1996PLC034651
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer of Pharma Products.
No. of Employees :	160 (Approximately) (30 In Office) (130 In Factory)

RATING & COMMENTS

MIRA’s Rating :

B (30)

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

Maximum Credit Limit :	USD 267000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having a moderate track record. Profitability of the company appears to be low. However, trade relations are fair. Business is active. Payment terms are slow but correct. The company can be considered for business dealing 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	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

The current downturn provides an opportunity to push ahead with reforms to accelerate growth, says the latest India Development Update report released by the World Bank. The report says that the adverse effects of rupee depreciation are likely to be offset by the gains in the exports performance due to improved external competitiveness. Since May this year, the local currency has depreciated substantially and fell to a record level of Rs 68.85 to a dollar on August, 28.

A stagflation like situation appears to have arisen as inflation jumped to an eight month high of 6.46 % for the month of September. It is up from 6.10 % in August. Growth continues to be muted with factory output plunging to 0.6  % in August. Onion prices have risen nearly 300 % from last September. Vegetables cost nearly 90 % more than they did last year. Wake up to the economic contribution of slum dwellers. They contribute more than 7.5 % to the country’s gross domestic product, according to a recent study conducted in 50 top cities.

136000 estimated number of jobs created during the second quarter of the current financial year. 50000 estimated number of additional jobs in the field of corporate social responsibility in the coming years.

The International Finance Corporation expects to come out with its rupee linked bonds issue before the end of 2013 as a part of its plan to raise $ 1 billion. The Apple iPhone 5c (Rs 41900 for 16 GB variant) and 5s (Rs 53500 for 16GB variant) has been launched in India from 1^st November.

The Land Acquisition Act to provide just and fair compensation to farmers will come into force from January 1 next year, said Rural Development Minister Jairam Ramesh. The Act replaces a 119 year old registration. The Securities and Exchange Board of India has approved the trading of currency futures on the Bombay Stock Exchange. The exchange plans to launch the currency futures platform with advanced trading technology by the end of November.

EXTERNAL AGENCY RATING

Rating Agency Name	ICRA
Rating	BB- (Term Loan Facilities)
Rating Explanation	Have moderate risk of default.
Date	March 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.

INFORMATION PARTED BY

Name :	Mr. Shakti
Designation :	Accountant
Contact No.:	91-44-24868412
Date :	12.12.2013

LOCATIONS

Registered Office/ Corporate Office :	No.61, Kurinji Street, Fathima Nagar, Valasarawakkam, Chennai – 600087, Tamilnadu, India
Tel. No.:	91-44-24868412/ 8413 / 24866348/ 6358
Mobile No.:	91-9841084304 (Jayaraman)
Fax No.:	91-44-24866378
E-Mail :	mncfactory@vsnl.net gmaccounts@mmchealthcarindia.com mmcsales@vsnl.net mmchr@mmchealthcareindia.com
Website :	www.mmchealthcareindia.com
Area :	3000 Sq. ft
Location :	Owned
Factory 1 :	No. 34-B, SIDCO Industrial Estate, Thirumazisai, Chennai-602107, Tamilnadu, India
Tel. No.:	91-44-26810201
Fax No.:	91-44-26810202
Area :	36000 sq. ft.
Location :	Owned
Factory 2 :	Solan- Kalka State Highway, NH-22, Deon Ghat, Solan-173211, Himachal Pradesh, India
Tel. No.:	91-172-228401/ 228402
Fax No.:	91-172-227013
Area :	32000 sq. ft.
Location :	Owned

DIRECTORS

As on: 31.03.2013

Name :	Mr. Ramasamy Savrirajan Jayaraman
Designation :	Whole Time Director
Address :	No. 7, Maria Station, Sathya Nagar Extension, Padi, Chennai-600050, Tamilnadu, India
Date of Birth/Age :	12.04.1956
Date of Appointment :	26.02.1996
DIN No.:	02099884
Name :	Mr. Mariapppan Ravichandran
Designation :	Whole Time Director
Address :	No. 2, Periyar Street, Gandhi Nagar West Avadi, Chennai-600054, Tamilnadu, India
Date of Birth/Age :	18.05.1955
Date of Appointment :	01.05.2003
DIN No.:	02099849
Name :	Mr. Malliab Rajarathinam
Designation :	Whole Time Director
Address :	No. 99, Metro Nagar ,Alapakkam, Chennai – 600116, Tamilnadu, India
Date of Birth/Age :	25.04.1957
Date of Appointment :	01.04.2005
DIN No.:	02100011
Name :	Mrs. Jayaraman Girjadevi
Designation :	Whole Time Director
Address :	No. 7, Maria Station, Sathya Nagar Extension, Padi, Chennai-600050, Tamilnadu, India
Date of Birth/Age :	11.06.1963
Date Of Appointment :	01.05.2003
DIN No.:	02628077
Name :	Mrs. Rajarathinam Shanti
Designation :	Director
Address :	No. 99, Metro Nagar ,Alapakkam, Chennai – 600116, Tamilnadu, India
Date of Birth/Age :	11.06.1963
Date Of Appointment :	01.04.2008
DIN No.:	02722960
Name :	Mrs. R. Vidyavathi
Designation :	Director

KEY EXECUTIVES

Name :	Mr. Shakti
Designation :	Accountant

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on: 31.03.2013

Details of Shareholders holding more than 5% shares in the company

	As at 31-03-2013
Name of the Shareholder	No. of Shares Held	% of Holding
R.R. Shanthi	120644	8.83
M. Rajarathinam	100126	7.32
R. Subash Vallab	140961	10.31
M. Ravichandra	182203	13.33
Vidyavathi	106396	7.78
R. S. Jayaraman	193321	14.14
Girijia Devi	105484	7.72
W. Gideon Dhanasekaran	87128	6.37
Jothi Arulmani	79720	5.83

BUSINESS DETAILS

Line of Business :	Manufacturer of Pharma Products.
Imports :
Products :	Finished Goods
Countries :	· Sri Lanka · Algeria
Terms :
Selling :	Credit
Purchasing :	Credit

GENERAL INFORMATION

Suppliers :

· Subham Pharma Private Limited

· Rathna Traders

Customers :

Consignment Agents

· Markss HLC Private Limited

No. of Employees :

160 (Approximately) (30 In Office) (130 In Factory)

Bankers :

· State Bank of India, SME Guindy, Chennai - 600087, Tamilnadu, India

· ICICI Bank Limited, Chennai, Tamilnadu, India

Facilities :

Cash Credit Rs.66.000 Millions (From State Bank of India)

(Rs. In Millions)

Secured Loan	As on 31.03.2013	As on 31.03.2012
LONG TERM BORROWINGS
Indian Rupee Term Loan from Banks	4.082	6.503
Finance lease obligation	0.346	0.288
SHORT TERM BORROWINGS
Cash Credits from Banks	54.084	49.680
Total	58.512	56.471

Banking Relations :	--
Auditors :
Name :	CRCKVN and Associates Chartered Accountants
Address :	Chennai – 600018, Tamilnadu, India
Cost Accountants :
Name :	M Chitra and Associates Cost Accountants
Address :	Chennai – 600092, Tamilnadu, India
Sister Concern :	· Hepta Pharma Private Limited · MMC Healthcare (Himachal Pradesh) Private Limited

CAPITAL STRUCTURE

As on: 31.03.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
1500000	Equity Shares	Rs.10/- each	Rs.15.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1367244	Equity Shares	Rs.10/- each	Rs.13.672 Millions

b. Reconciliation of Shares Outstanding at the beginning and at the end of the reporting period

	As at 31-03-2013
Particulars	Number	Rs. In Millions
Shares Outstanding at the beginning of the year	1367244	13.672
Shares Outstanding at the end of the year	1367244	13.672

b) Details of Shareholders holding more than 5% shares in the company

	As at 31-03-2013
Name of the Shareholder	No. of Shares Held	% of Holding
R.R. Shanthi	120644	8.83
M. Rajarathinam	100126	7.32
R. Subash Vallab	140961	10.31
M. Ravichandra	182203	13.33
Vidyavathi	106396	7.78
R. S. Jayaraman	193321	14.14
Girijia Devi	105484	7.72
W. Gideon Dhanasekaran	87128	6.37
Jothi Arulmani	79720	5.83

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2013	31.03.2012
EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	13.672	13.672
(b) Reserves & Surplus	53.181	51.005
(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)	66.853	64.677
(3) Non-Current Liabilities
(a) long-term borrowings	4.428	6.791
(b) Deferred tax liabilities (Net)	0.000	0.000
(c) Other long term liabilities	0.000	0.000
(d) long-term provisions	3.727	3.566
Total Non-current Liabilities (3)	8.155	10.357
(4) Current Liabilities
(a) Short term borrowings	59.659	54.130
(b) Trade payables	49.794	30.924
(c) Other current liabilities	6.834	15.629
(d) Short-term provisions	9.969	5.409
Total Current Liabilities (4)	126.256	106.092
TOTAL	201.264	181.126
ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	61.369	61.638
(ii) Intangible Assets	8.873	10.138
(iii) Capital work-in-progress	0.000	0.875
(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	1.303	1.272
(e) Other Non-current assets	0.000	0.000
Total Non-Current Assets	71.545	73.923
(2) Current assets
(a) Current investments	0.000	0.000
(b) Inventories	65.807	50.376
(c) Trade receivables	55.491	46.454
(d) Cash and cash equivalents	0.467	1.313
(e) Short-term loans and advances	7.954	9.060
(f) Other current assets	0.000	0.000
Total Current Assets	129.719	107.203
TOTAL	201.264	181.126

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013	31.03.2012
	SALES
		Income	412.281	384.064
		Other Income	0.060	0.679
		TOTAL (A)	412.341	384.743
Less	EXPENSES
		Cost of Materials Consumed	120.731	140.565
		Purchases of Stock in trade	136.492	95.146
		Changes in Inventories of Finished goods, Work-in-progress and Stock-in-trade	(13.960)	(1.061)
		Employee benefits Expenses	63.313	48.737
		Other Expenses	86.612	81.607
		Exceptional Items – Income tax demand Ass yr 2012-13	0.052	0.137
		Extra ordinary items – Prior period item	0.060	0.000
		TOTAL (B)	393.300	365.131
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		19.041	19.612
Less	FINANCIAL EXPENSES (D)		10.045	9.031
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		8.996	10.581
Less/ Add	DEPRECIATION/ AMORTISATION (F)		4.694	3.394
	PROFIT BEFORE TAX (E-F) (G)		4.302	7.187
Less	TAX (H)		1.329	2.221
	PROFIT AFTER TAX (G-H) (I)		2.973	4.966
	EARNINGS IN FOREIGN CURRENCY		15.319	12.086
	Earnings Per Share (Rs.)		2.17	3.63

Expected Sales (2013-2014): Rs.500.000 Millions

The above information has been parted by Mr. Shakti

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012
PAT / Total Income	(%)	0.72	1.29
Net Profit Margin (PBT/Sales)	(%)	1.04	1.87
Return on Total Assets (PBT/Total Assets}	(%)	2.14	3.99
Return on Investment (ROI) (PBT/Networth)		0.06	0.11
Debt Equity Ratio (Total Debt/Networth)		0.96	0.94
Current Ratio (Current Asset/Current Liability)		1.03	1.01

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 two years	Yes
12]	Profitability for last two years	Yes
13]	Reasons for variation <> 20%	--
14]	Estimation for coming financial year	Yes
15]	Capital in the business	Yes
16]	Details of sister concerns	Yes
17]	Major suppliers	Yes
18]	Major customers	Yes
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	No
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	Yes

UNSECURED LOAN

(Rs. In Millions)

Particular	As on 31.03.2013	As on 31.03.2012
SHORT TERM BORROWINGS
Deposit	4.350	4.450
Others (pl specify) Loans from Directors	1.225	0.000
Total	5.575	4.450

MACRO ECONOMIC OVERVIEW:

As per the Pharma Trac Market Intelligence report 2013, the domestic Indian pharmaceutical market has grown at a pace of about 14% in the year 2012 (Jan to Dec 2012). The IMS report estimates that the growth of Rs.720000.000 Millions Indian Pharmaceutical market will be in the range of 14% - 17% during 2012 -2016. The industry growth estimates may undergo a downward revision triggered by the recent slowing down of the Indian economy that is estimated to clock about 5% of GDP growth in 2013 against the peak growth rate of about 9% during 2005 to 2010. But, we believe that the growth rate will hover around 13- 14% as the industry is moderately insulated from economic growth cycles.

TRADE REFERENCE

· Subham Pharma Private Limited

· Rathna Traders

· Markss HLC Private Limited

FIXED ASSETS

Tangible Assets

· Land

· Buildings

· Plant and Equipments

· Furniture and Fixtures

· Vehicles

· Office Equipments

Intangible Assets

· Computers and Computer Software

· Technical Know how

· Copyrights

· Patents

· Trade Marks

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.61.33
UK Pound	1	Rs.100.79
Euro	1	Rs.84.38

INFORMATION DETAILS

Information Gathered by :	HTL
Report Prepared by :	VRN

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--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	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		30

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.