MIRA INFORM REPORT

Report Date :

19.12.2013

IDENTIFICATION DETAILS

Name :	R.N. LABORATORIES PRIVATE LIMITED
Formerly Known As :	SKY CHEM PRIVATE LIMITED
Registered Office :	404, VIP Plaza, Off Link Road, Andheri (West), Mumbai – 400053, Maharashtra
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	04.12.1998
Com. Reg. No.:	11-117339
Capital Investment / Paid-up Capital :	Rs. 0.101 Million
CIN No.: [Company Identification No.]	U24200MH1998PTC117339
TAN No.: [Tax Deduction & Collection Account No.]	MUMR20663G
PAN No.: [Permanent Account No.]	AAECS2969P
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer and Exporter of Pharma Products.
No. of Employees :	400 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (48)

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

Maximum Credit Limit :	USD 400
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Exist
Comments :	Subject is an established company having satisfactory track record. The management has failed to file its financial with government department for the year 2013. As per available financial of 2012, the ratings reflect the promoter’s extensive experience in the pharmaceutical industry and its established relationship with its customers. Further rating also reflects the company’s above-average financial risk profile, marked by low gearing and above-average debt protection metrics. Trade relations are 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

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	CRISIL
Rating	Long term rating : BBB-
Rating Explanation	Moderate degree of safety and moderate credit risk.
Date	March 26, 2013

Rating Agency Name	CRISIL
Rating	Short term rating : A3
Rating Explanation	Moderate degree of safety and higher credit risk.
Date	March 26, 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. Rahul
Designation :	Finance Manager
Contact No.:	91-22-26736664
Date :	19.12.2013

LOCATIONS

Registered Office :	404, VIP Plaza, Off Link Road, Andheri (West), Mumbai – 400053, Maharashtra, India
Tel. No.:	91-22-26736664
Fax No.:	91-22-26736643
E-Mail :	mpin@vsnl.net rnpin@vsnl.net accounts@rnpharma.com rohit@rnpharma.com sales.rnlab@gmail.com sales@rnlaboratories.com
Website :	www.rnlaboratories.com
Location :	Owned
Admin Office :	Plot No. 1 and 86 (Surat SEZ), Survey No. 327/P and 278/P, Village Sachin, Near Sachin Railway Station, Diamond Park, Sachin, District Surat - 394230, Gujarat, India
Factory :	Plot No. 117 and 138, Surat SEZ, Near Sachin GIDC, Village Sachin, Taluka Choryasi, Surat – 394230, Gujarat, India
Location :	Owned

DIRECTORS

AS ON 28.09.2012

Name :

Mr. Rohit Shamlal Garg

Designation :

Director

Address :

2-B, 171, Classique Building, New Link Road, Andheri (West), Mumbai – 400053, Maharashtra, India

Date of Appointment :

04.12.1998

DIN No.:

00700594

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	Company/ LLP Status	Defaulting status
1	U24200MH1998PTC117339	R.N. LABORATORIES PRIVATE LIMITED	Director	04/12/1998	04/12/1998	Active	NO
2	U24233MH2011PTC224152	R.N. DRUGS PRIVATE LIMITED	Director	19/11/2011	19/11/2011	Active	NO

Name :

Mr. Nitin Shamlal Garg

Designation :

Director

Address :

1720/1721, Raheja Classique, New Link Road, Andheri (West), Mumbai – 400053, Maharashtra, India

Date of Appointment :

04.12.1998

DIN No.:

02430137

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	Company/ LLP Status	Defaulting status
1	U24200MH1998PTC117339	R.N. LABORATORIES PRIVATE LIMITED	Director	04/12/1998	04/12/1998	Active	NO
2	U24233MH2011PTC224152	R.N. DRUGS PRIVATE LIMITED	Director	19/11/2011	19/11/2011	Active	NO

Name :

Mr. Sham Lal Garg

Designation :

Director

Address :

2B/12, Sea Palace Society Juhu Tara Road, Santacruze (West), Mumbai – 400049, Maharashtra, India

Date of Appointment :

04.12.1998

DIN No.:

02887465

KEY EXECUTIVES

Name :	Mr. Rahul
Designation :	Finance Manager

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 28.09.2012

Names of Shareholders	No. of Shares
Nitin Shamlal Garg	500
Rohit Shamlal Garg	500
Shamlal Garg	10
Total	1010

AS ON 28.09.2012

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

BUSINESS DETAILS

Line of Business :	Manufacturer and Exporter of Pharma Products.
Exports :
Products :	Finished Goods
Countries :	· Belgium USA UK China
Imports :
Products :	Raw Material
Countries :	· China Belgium
Terms :
Selling :	Credit
Purchasing :	Credit

GENERAL INFORMATION

Suppliers :

Hebei Medipharm Company Limited, China

Customers :

End Users

· Unilab Chemicals and Pharmaceuticals Private Limited, Mumbai

No. of Employees :

400 (Approximately)

Bankers :

Bank of India, Andheri (West) Branch, Bank of India Building, Mumbai - 400058, Maharashtra, India

Facilities :

SECURED LOANS	31.03.2012 (Rs. In Millions)	31.03.2011 (Rs. In Millions)
SHORT TERM BORROWINGS
Working Capital from Bank (Secured against hypothecation of stock and debtors)	47.673	19.149
Total	47.673	19.149

Banking Relations :	--
Auditors :
Name :	R.A. Kuvadia and Company Chartered Accountants
Address :	1/7, Chaitanya Society, Vakola Bridge, Santacruz (East), Mumbai – 400055, Maharashtra, India
Tel. No.:	91-22-26681719
Fax No.:	91-22-26680488
E-Mail :	rashmikantca@yahoo.co.in
Income-tax PAN of auditor or auditor's firm :	AAHPL0055A
Sister Concerns :	R.N. Pharma R.N. Investment

CAPITAL STRUCTURE

AS ON 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
10,000	Equity Shares	Rs. 100/- each	Rs. 1.000 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1,010	Equity Shares	Rs. 100/- each	Rs. 0.101 Million

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	0.101	0.101
(b) Reserves & Surplus	156.731	86.565
(c) Money received against share warrants	0.000	0.000
(2) Share Application money pending allotment	0.620	0.620
Total Shareholders’ Funds (1) + (2)	157.452	87.286
(3) Non-Current Liabilities
(a) long-term borrowings	0.000	0.000
(b) Deferred tax liabilities (Net)	1.380	0.318
(c) Other long term liabilities	0.000	0.000
(d) long-term provisions	0.000	0.000
Total Non-current Liabilities (3)	1.380	0.318
(4) Current Liabilities
(a) Short term borrowings	49.232	38.630
(b) Trade payables	36.527	47.338
(c) Other current liabilities	2.330	1.144
(d) Short-term provisions	15.632	0.355
Total Current Liabilities (4)	103.721	87.467
TOTAL	262.553	175.071
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	110.877	56.144
(ii) Intangible Assets	0.000	0.000
(iii) Capital work-in-progress	25.000	24.809
(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	5.394	5.118
(e) Other Non-current assets	0.000	0.000
Total Non-Current Assets	141.271	86.071
(2) Current assets
(a) Current investments	0.000	0.000
(b) Inventories	32.072	39.936
(c) Trade receivables	75.856	45.173
(d) Cash and cash equivalents	6.574	2.636
(e) Short-term loans and advances	6.779	1.222
(f) Other current assets	0.001	0.033
Total Current Assets	121.282	89.000
TOTAL	262.553	175.071

SOURCES OF FUNDS		31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		0.101
2] Share Application Money		0.620
3] Reserves & Surplus		88.191
4] (Accumulated Losses)		0.000
NETWORTH		88.912
LOAN FUNDS
1] Secured Loans		6.700
2] Unsecured Loans		1.272
TOTAL BORROWING		7.972
DEFERRED TAX LIABILITIES		0.249
TOTAL		97.133
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		52.305
Capital work-in-progress		0.000
INVESTMENT		0.000
DEFERRED TAX ASSETS		0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	7.418
	Sundry Debtors	27.277
	Cash & Bank Balances	0.415
	Other Current Assets	0.000
	Loans & Advances	32.860
Total Current Assets		67.970
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors
	Other Current Liabilities	22.708
	Provisions	0.434
Total Current Liabilities		23.142
Net Current Assets		44.828
MISCELLANEOUS EXPENSES		0.000
TOTAL		97.133

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		TOTAL	360.000 (Approximately)	NA	NA
Less	EXPENSES
		TOTAL	NA	NA	NA
	PROFIT BEFORE TAX		NA	NA	49.914
Less	TAX		NA	NA	0.184
	PROFIT AFTER TAX		NA	NA	49.730
	Earnings Per Share (Rs.)		NA	NA	49237.62

Particulars	31.03.2013
Sales Turnover (Approximately)	460.000

Expected Sales (2013-2014): Rs. 600.000 Millions

The above information has been parted by Mr. Rahul (Finance Manager)

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
Return on Total Assets (PBT/Total Assets}	(%)	NA	NA	41.50
Return on Investment (ROI) (PBT/Networth)		NA	NA	0.57
Debt Equity Ratio (Total Debt/Networth)		0.31	0.44	0.09
Current Ratio (Current Asset/Current Liability)		1.17	1.02	2.94

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 two years	Yes
12]	Profitability for last one year	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	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	Yes

LITIGATION DETAILS

HIGH COURT OF BOMBAY

CASE DETAILS

BENCH: BOMBAY

Lodging No: SSL/1896/2011 Filing Date: 05.07.2011 Reg. No.: SS/2667/2011 Reg. Date: 21.10.2011

Petitioner: LCL LOGISTIX (INDIA) PRIVATE LIMITED Respondent: R.N. LABORATORIES PRIVATE LIMITED

Petn. Adv : BEENA PILLAI (0)

District: MUMBAI

Bench: SINGLE

Status: Transferred Category: MONETARY SUITS

Transfer Date: 03.10.2012 Remark: TRANSFERRED TO CITY CIVIL COURT

Act: Code of Civil Procedure

CURRENT MATURITIES OF LONG TERM DEBT: NOT AVAILABLE

INDEX OF CHARGES

S.NO.	CHARGE ID	DATE OF CHARGE CREATION/MODIFICATION	CHARGE AMOUNT SECURED	CHARGE HOLDER	ADDRESS	SERVICE REQUEST NUMBER (SRN)
1	10203521	10/12/2012 *	160,000,000.00	BANK OF INDIA	ANDHERI (WEST) BRANCH, BANK OF INDIA BUILDING, G ROUND FLOOR, 28, S. V. ROAD, ANDHERI (WEST), MUMBAI - 400058, MAHARASHTRA, INDIA	B65484487
2	10204376	10/12/2012 *	160,000,000.00	BANK OF INDIA	ANDHERI (WEST) BRANCH, BANK OF INDIA BUILDING, G ROUND FLOOR, 28, S. V. ROAD, ANDHERI (WEST), MUMBAI - 400058, MAHARASHTRA, INDIA	B65483539
3	10193858	17/11/2009	5,000,000.00	BANK OF INDIA	ANDHERI (WEST) BRANCH, BANK OF INDIA BUILDING, G ROUND FLOOR, 28, S. V. ROAD, ANDHERI (WEST), MUMBAI - 400058, MAHARASHTRA, INDIA	A76460906

* Date of charge modification

UNSECURED LOANS

UNSECURED LOANS	31.03.2012 (Rs. In Millions)	31.03.2011 (Rs. In Millions)
SHORT TERM BORROWINGS
Loan from Directors	1.261	19.481
Loan from Related Party	0.298	0.000
Total	1.559	19.481

TRADE REFERENCES:

· Hebei Medipharm Company Limited, China

Unilab Chemicals and Pharmaceuticals Private Limited, Mumbai

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 records 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 records 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. 61.92
UK Pound	1	Rs. 100.83
Euro	1	Rs. 85.27

INFORMATION DETAILS

Information Gathered by :	HTL
Report Prepared by :	BVA

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--CREDIT LINES	1~10	5
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	YES
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTERS
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		48

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.