MIRA INFORM REPORT

Report Date :

21.12.2013

IDENTIFICATION DETAILS

Name :	RENOWN PHARMACEUTICALS PRIVATE LIMITED (w.e.f.13.10.2009)
Formerly Known As :	RENOWN CERATEK PRIVATE LIMITED
Registered Office :	4, Nikunj Appartment, Behind Jaldhara Complex, Vasna Road, Vadodara – 390015, Gujarat
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	05.09.2005
Com. Reg. No.:	04-046714
Capital Investment / Paid-up Capital :	Rs. 40.000 Millions
CIN No.: [Company Identification No.]	U24230GJ2005PTC046714
TAN No.: [Tax Deduction & Collection Account No.]	BRDR01348E
PAN No.: [Permanent Account No.]	AADCR0916L
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer and Exporter of Soft Gelatin Capsules for Medicinal and Non-Medicinal Uses.
No. of Employees :	100 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (26)

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

Maximum Credit Limit :	USD 590000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track record. Latest financial of 2013 is not available with us. As claimed by Mr. Malay Trivedi, Accounts Manager that the company has achieved turnover of 119.900 Millions in the year 2013, which is not verified. As per of 2012, company has changed its line of business from operation and maintenance contract of gas engine to manufacturing soft gelatin capsules for medicinal and non-medicinal uses. It has incurred loss from its operation. However, trade relations are fair. Business is active. Payment terms are slow but correct. The company can be considered for business dealings 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	CARE
Rating	Long term bank facilities : B
Rating Explanation	Risk prone credit quality and very high credit risk
Date	March 5, 2013

Rating Agency Name	CARE
Rating	Short term bank facilities : A4
Rating Explanation	Minimal degree of safety and very high credit risk.
Date	March 5, 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. Malay Trivedi
Designation :	Accounts Manager
Contact No.:	91-2662-244131
Date :	19.12.2013

LOCATIONS

Registered Office :	4, Nikunj Appartment, Behind Jaldhara Complex, Vasna Road, Vadodara – 390015, Gujarat, India
Tel. No.:	91-265-2250511
Fax No.:	91-265-2250611
E-Mail :	info@renownpharma.com malaytrvedi@renownpharma.com marketing@renownpharma.com
Website :	renownpharma.com
Location :	Owned
Corporate and Manufacturing Unit :	Survey No. 143/A and B, Village Ranu, Taluka Padra, District Vadodara – 341445, Gujarat, India
Tel. No.:	91-2662-244131/ 32/ 33/ 34
Fax No.:	hr1@renownpharma.com jaswinderanand@renownpharma.com

DIRECTORS

AS ON 30.09.2013

Name :

Mr. Ramesh Subhkaran Jatia

Designation :

Managing director

Address :

148/1, Near Visa Court Apartment, Sayed Vasana Road Vadodara – 390015, Gujarat, India

Date of Birth/Age :

04.10.1960

Date of Appointment :

31.12.2009

DIN No.:

00008298

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	L26921GJ1985PLC008196	BELL CERAMICS LIMITED	Whole-time director	01/01/2007	28/05/1991	30/03/2008	Amalgamated	NO
2	L55101DL1980PLC011037	ASIAN HOTELS (NORTH) LIMITED	Director	28/11/1992	28/11/1992	07/11/2013	Active	NO
3	U70100GJ1996PTC030853	DEEPAK GARDEN FRESH PRIVATE LIMITED	Director	01/02/1999	01/02/1999	29/03/2009	Active	NO
4	U55101MH2005PTC151196	GRANDEOUR HOTELS PRIVATE LIMITED	Director	10/02/2005	10/02/2005	01/09/2010	Active	NO
5	U51109GJ2007PTC050708	GLORIOUS TRADING PRIVATE LIMITED	Director	01/05/2007	01/05/2007	-	Active	NO
6	U55100MH2005PTC157086	JATIA HOTELS & RESORTS PRIVATE LIMITED	Additional director	17/01/2008	17/01/2008	28/01/2008	Amalgamated	NO
7	U26914GJ2008PTC052999	ROBUST CERATECH PRIVATE LIMITED	Director	21/02/2008	21/02/2008	-	Active	NO
8	U26933GJ2004PLC043426	ADVATECH CERA TILES LIMITED	Managing director	20/08/2008	10/07/2008	07/10/2009	Active	NO
9	U26933GJ2008PLC054520	NAUMEE CERAMICA INDIA LIMITED	Director	21/07/2008	21/07/2008	-	Active	NO
10	U24230GJ2005PTC046714	RENOWN PHARMACEUTICALS PRIVATE LIMITED	Managing director	31/12/2009	31/12/2009	-	Active	NO

Name :

Mr. Satish Duggappa Bangera

Designation :

Director

Address :

803, Gambs Tower, Near Good Shepards Church Four Bunglows, Juhu Link Road, Andheri West Mumbai – 400058, Maharashtra, India

Date of Birth/Age :

23.10.1959

Date of Appointment :

31.12.2009

DIN No.:

05177377

Name :

Mr. Katapady Raghuveer Katapady Gunduraya Bhat

Designation :

Director

Address :

8/8, Shivagi Nagar, Opposite Glaxo Labs, Dr. A B Road, Worli Mumbai – 400025, Maharashtra, India

Date of Birth/Age :

19.07.1940

Date of Appointment :

31.12.2009

DIN No.:

02902754

Name :

Mr. Atishay Ramesh Jatia

Designation :

Director

Address :

148/1, Near Visa Court Apartment, Sayed Vasana Road Vadodara – 390015, Gujarat, India

Date of Birth/Age :

18.09.1987

Date of Appointment :

28.09.2007

DIN No.:

02315891

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	U24230GJ2005PTC046714	RENOWN PHARMACEUTICALS PRIVATE LIMITED	Director	28/09/2007	28/09/2007	Active	NO
2	U70100GJ1996PTC030853	DEEPAK GARDEN FRESH PRIVATE LIMITED	Additional director	29/03/2009	29/03/2009	Active	NO
3	U55204GJ2012PLC070465	RENOWN HOSPITALITY LIMITED	Director	25/05/2012	25/05/2012	Active	NO

Name :

Mrs. Smita Rameshkumar Jatia

Designation :

Director

Address :

148/1, Near Visa Court Apartment, Sayed Vasana Road Vadodara – 390015, Gujarat, India

Date of Birth/Age :

23.11.1963

Date of Appointment :

05.09.2005

DIN No.:

00510718

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	U70100GJ1996PTC030853	DEEPAK GARDEN FRESH PRIVATE LIMITED	Whole-time director	01/02/1999	01/02/1999	-	Active	NO
2	U24230GJ2005PTC046714	RENOWN PHARMACEUTICALS PRIVATE LIMITED	Director	05/09/2005	05/09/2005	-	Active	NO
3	U55101MH2005PTC151196	GRANDEOUR HOTELS PRIVATE LIMITED	Director	10/07/2006	10/07/2006	20/02/2010	Active	NO
4	U26933GJ2004PLC043426	ADVATECH CERA TILES LIMITED	Director	01/03/2007	01/03/2007	10/07/2008	Active	NO
5	U51109GJ2007PTC050708	GLORIOUS TRADING PRIVATE LIMITED	Director	01/05/2007	01/05/2007	-	Active	NO
6	U55100MH2005PTC157086	JATIA HOTELS & RESORTS PRIVATE LIMITED	Director	26/09/2008	28/08/2008	20/02/2010	Amalgamated	NO
7	U55204GJ2012PLC070465	RENOWN HOSPITALITY LIMITED	Director	25/05/2012	25/05/2012	-	Active	NO

KEY EXECUTIVES

Name :	Mr. Malay Trivedi
Designation :	Accounts Manager

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 30.09.2013

Names of Shareholders	No. of Shares
Smita Ramesh Jatia	2117000
Kamal K Sethia	2500
Satish Dugappa Bangera	55797
Addison Holding Limited, Dubai	1040739
Ramesh Subhkaran Jatia	390000
Atishay Ramesh Jatia	100000
Ankita Ramesh Jatia	75000
Ramesh Subhkaran Jatia (HUF)	374293
Total	4155329

AS ON 30.09.2013

Equity Share Breakup	Percentage of Holding
Category
Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others]	25.00
Directors or relatives of directors	75.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer and Exporter of Soft Gelatin Capsules for Medicinal and Non-Medicinal Uses.
Exports :
Products :	Finished Goods
Countries :	· UK Vietnam Israel
Terms :
Selling :	Cash and Credit
Purchasing :	Cash and Credit

GENERAL INFORMATION

Customers :

Others

No. of Employees :

100 (Approximately)

Bankers :

· State Bank of India, Mid Corporate Group Industrial Finance Branch, Marble Acrch, Race Course Circle, Vadodara - 390007, Gujarat, India

Shree Vardhman Co-operative Bank Limited

HDFC Bank Limited

Facilities :

SECURED LOANS

31.03.2012

(Rs. In Millions)

31.03.2011

(Rs. In Millions)

LONG-TERM BORROWINGS

From State Bank of India - Term Loan for New Project at Ranu

295.736

35.375

From Shree Vardhman Co-Operative Bank - Term Loan against Gas Engine

{Repayable in 60 equated monthly installments of Rs. 0.160 Million each including interest, starting from 18/11/2010.}

4.157

5.412

From HDFC Bank (Car Loan)

{Repayable in 60 equated monthly installments of Rs. 0.013 Million each including interest, starting from 19/12/2009.}

0.233

0.359

SHORT TERM BORROWINGS

Working Capital Loan - From State Bank of India (Cash Credit)

1.968

0.000

Total

302.094

41.146

LONG-TERM BORROWINGS

Security :

Secured against the entire Factory Land, Building, Plant and Machineries, Equipments and other Fixed Assets of the Company of its new project at Ranu, Gujarat. The funding is further secured by personal guarantees of three directors of the Company as well Second Charge on Residential Property of the Managing Director and pledging of equity shares of listed companies held by the Managing Director.

Rate of Interest :

0.25% above SBAR i.e. present effective rate of 12% p.a. with money rest and annual reset.

Repayment Schedule :

Year	No. of Installments	Inst. Amount (Rs. In Millions)	Total Amount (Rs. In Millions)
2012-13	12	1.750	21.000
2013-14	12	2.500	30.000
2014-15	12	5.000	60.000
2015-16	12	5.000	60.000
2016-17	12	5.000	60.000
2017-18	12	5.000	60.000
2018-19	2	10.000	20.000
	1	9.000	9.000
Total	75		320.000

Shree Vardhman Cooperative Bank Term Loan :

Term Loan from Vardhman Sahakari Bank Limited is secured against hypothecation of Gas Engine owned by the Company. The same is further secured by personal guarantees of two of the Directors and three relatives of Directors.

SHORT TERM BORROWINGS

Working Capital Loan :

Working Capital Loan from SBI is Cash Credit facility, repayable on demand, and secured by way of Hypothecation over entire Current Assets of the Company including Stocks and Receivables at Factory Premises. Personal Guarantees and Collateral Security as per Term Loan. Cash Credit Limit capped at Rs. 30.000 Millions upto 31st March, 2012. Interest Payable @ 4% above base rate at monthly rests (effective rate at time of section being 14%)

Banking Relations :	--
Auditors :
Name :	Naresh and Company Chartered Accountants
Address :	201-203,City Enclave, Opposite Polo Ground, Bagikhana, Vadodara – 390001, Gujarat, India
Income-tax PAN of auditor or auditor's firm :	AACFM7595C
Enterprise over which Key Management Persons have significant influence :	· Deepak Garden Fresh Private Limited Naumee Ceramica India Limited Glorious Trading Private Limited Robust Ceratech Private Limited

CAPITAL STRUCTURE

AS ON 30.09.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
5,000,000	Equity Shares	Rs. 10/- each	Rs. 50.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
4,155,329	Equity Shares	Rs. 10/- each	Rs. 41.553 Millions

AS ON 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
5,000,000	Equity Shares	Rs.10/- each	Rs.50.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
4,000,000	Equity Shares	Rs.10/- each	Rs.40.000 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	40.000	28.663
(b) Reserves & Surplus	108.685	80.990
(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)	148.685	109.653
(3) Non-Current Liabilities
(a) long-term borrowings	345.439	88.818
(b) Deferred tax liabilities (Net)	20.476	1.813
(c) Other long term liabilities	2.106	2.106
(d) long-term provisions	0.253	0.054
Total Non-current Liabilities (3)	368.274	92.791
(4) Current Liabilities
(a) Short term borrowings	1.968	0.000
(b) Trade payables	6.228	2.146
(c) Other current liabilities	76.492	55.122
(d) Short-term provisions	0.243	0.651
Total Current Liabilities (4)	84.931	57.919
TOTAL	601.890	260.363
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	512.804	14.772
(ii) Intangible Assets	0.000	0.000
(iii) Capital work-in-progress	0.000	203.438
(iv) Intangible assets under development	0.127	0.000
(b) Non-current Investments	0.212	0.212
(c) Deferred tax assets (net)	20.476	0.000
(d) Long-term Loan and Advances	11.545	15.934
(e) Other Non-current assets	0.000	0.000
Total Non-Current Assets	545.164	234.356
(2) Current assets
(a) Current investments	0.367	0.202
(b) Inventories	9.592	0.000
(c) Trade receivables	2.806	0.815
(d) Cash and cash equivalents	0.887	0.601
(e) Short-term loans and advances	43.047	24.389
(f) Other current assets	0.027	0.000
Total Current Assets	56.726	26.007
TOTAL	601.890	260.363

SOURCES OF FUNDS		31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		19.195
2] Share Application Money		8.445
3] Reserves & Surplus		5.889
4] (Accumulated Losses)		0.000
NETWORTH		33.529
LOAN FUNDS
1] Secured Loans		3.847
2] Unsecured Loans		0.000
TOTAL BORROWING		3.847
DEFERRED TAX LIABILITIES		1.637
TOTAL		39.013
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		14.892
Capital work-in-progress		14.231
INVESTMENT		2.107
DEFERREX TAX ASSETS		0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	0.000
	Sundry Debtors	0.815
	Cash & Bank Balances	1.514
	Other Current Assets	0.000
	Loans & Advances	13.175
Total Current Assets		15.504
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	3.438
	Other Current Liabilities	3.781
	Provisions	0.502
Total Current Liabilities		7.721
Net Current Assets		7.783
MISCELLANEOUS EXPENSES		0.000
TOTAL		39.013

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
SALES
	Turnover	5.824	9.048	9.038
	Other Income	1.879	1.679	NA
	TOTAL (A)	7.703	10.727	NA
EXPENSES
	TOTAL (B)	26.460	5.420	NA
PROFIT / (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		(18.757)	5.307	NA
FINANCIAL EXPENSES (D)		5.792	0.856	NA
PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		(24.549)	4.451	NA
DEPRECIATION/ AMORTISATION (F)		3.153	1.069	NA
PROFIT / (LOSS) BEFORE TAX (E-F) (G)		(9.812)	3.382	3.214
TAX (H)		1.812	0.827	0.722
PROFIT / (LOSS) AFTER TAX (G-H) (I)		(7.999)	2.556	2.492
IMPORTS
	Capital Goods	4.142	16.680	0.000
Earnings / (Loss) Per Share (Rs.)		(2.62)	1.25	1.29

Particulars	31.03.2013
Sales Turnover (Approximately)	119.900
	[Good business done by company]

The above information has been parted by Mr. Malay Trivedi (Accounts Manager)

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	(103.84)	23.83	NA
Net Profit Margin (PBT/Sales)	(%)	(168.48)	37.38	35.56
Return on Total Assets (PBT/Total Assets}	(%)	(1.69)	5.96	10.57
Return on Investment (ROI) (PBT/Networth)		(0.07)	0.03	0.10
Debt Equity Ratio (Total Debt/Networth)		2.34	0.81	0.11
Current Ratio (Current Asset/Current Liability)		0.67	0.45	2.01

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	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%	Yes
14]	Estimation for coming financial year	No
15]	Capital in the business	Yes
16]	Details of sister concerns	Yes
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	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

INDEX OF CHARGES

S.NO.	CHARGE ID	DATE OF CHARGE CREATION/MODIFICATION	CHARGE AMOUNT SECURED	CHARGE HOLDER	ADDRESS	SERVICE REQUEST NUMBER (SRN)
1	10305281	08/10/2013 *	418,000,000.00	STATE BANK OF INDIA	MID CORPORATE GROUP INDUSTRIAL FINANCE BRANCH, MARBLE ACRCH, RACE COURSE CIRCLE, VADODARA - 390007, GUJARAT, INDIA	B87105227
2	10300543	28/10/2010	7,000,000.00	SHREE VARDHAMAN SAHAKARI BANK LIMITED	NEAR TARKESHWAR MAHADEV, RAOPURA, BARODA - 390001, GUJARAT, INDIA	B08626947
3	10248102	08/10/2013 *	418,000,000.00	STATE BANK OF INDIA	MID CORPORATE GROUP INDUSTRIAL FINANCE BRANCH, MARBLE ACRCH, RACE COURSE CIRCLE, VADODARA - 390007, GUJARAT, INDIA	B90663386

* Date of charge modification

UNSECURED LOANS

UNSECURED LOANS	31.03.2012 (Rs. In Millions)	31.03.2011 (Rs. In Millions)
LONG-TERM BORROWINGS
Inter Corporate Deposits	5.762	3.689
From Directors	12.963	12.523
From Members & Relatives	6.588	0.460
Others :
Inter Corporate Deposits	20.000	31.000
Total	45.313	47.672
LONG-TERM BORROWINGS Unsecured Loans : The amount taken as unsecured loans viz Inter-Corporate Borrowing and Loans from Directors and Members are usually payable on demand but the company reserves its right to defer the payment of the same for a period exceeding 12 months. Also these loans have been treated as part of Promoters Contribution for the Term Loan from SBI and hence are not repayable in the short run. Interest has been paid on Inter Corporate Deposits @ 12% / 14% No interest has been paid on the unsecured loans taken from Directors and Members as per the requirement of SBI Term Loan whereby no such interest is to be paid till repayment of the Term Loan.

CHANGE OF ADDRESS:

The registered office of the company has been shifted from 1/148 Vasna Road, Off Old Padra Road, Vadodara - 390015, Gujarat, India to present address w.e.f. 07.09.2009

FINANCIAL RESULTS

As you might be aware Company has ventured into the business of pharmaceuticals and neutraceuticals, beginning with manufacturing soft gelatin capsules for medicinal and nonmedicinal uses. Company had completed the change of name and objects and re-shuffling / broadbasing of the Board of Directors during the earlier year. Thereafter Company had acquired Land and started construction of a state-of-the-art manufacturing facilities. The Project Cost was expected to be around Rs. 500.000 Millions. Tie-up was made with an overseas entity which has acquired strategic stake in our Company at a premium to part fund the project cost. Necessary borrowing arrangements have been made with State Bank of India for additional funding.

The setup work for the manufacturing facility continued in full-swing. However, due to certain delays in obtaining NA permission for land resulted in few delays in the expected time lines. As a result construction work spilled over to the year. As per revised targets the setup of the manufacturing facility was completed during the year with trail production commencing from October, 2011 and commercial production starting from March 2012. Company has presently started operating two manufacturing lines with a third line possible to be installed subsequently. The coming year will be the first full fledge year of operations for the pharmaceutical business.

For the year, the company achieved a turnover of Rs. 2.598 Millions from manufacturing of soft-gel capsules in March 2012 being the first full month of operations. Also Company had revenues of Rs. 3.770 Millions from the Operation and Maintenance Contract of their Gas Engine. The five-year contract expired this year and the engine has been sent for maintenance resulting in lower annual revenue on this front. All in all they achieved a turnover of Rs. 5.824 Millions. However considering the finance costs and other expenses (even after capitalisation of proportionate portions to the project) and the heavy depreciation charge resulted in a net loss of almost Rs. 8.000 Millions including cash losses.

The Company will start revenue generation from the manufacturing business in the current year since it will be a full year of operations with full scale of operations being achieved. The order pipeline is also good. Company has also taken many important accreditations such as WHO GMP and is also in process of taking country / continent based approvals. Some approvals may cause some delays but all in all with good demand position , the Company should be able to achieve a healthy turnover and should be able to generate cash surpluses though the net result might still be negative on account of the expected heavy initial depreciation charge.

All in all they expect this year to be a take-off year for the Company on a firm path of growth and progress.

GENERAL INFORMATION OF THE COMPANY

Subject is a Vadodara, Gujarat, India based Company presently engaged in the business of manufacturing of soft gelatin capsules for medicine and non-medicinal uses.

The Company was incorporated in the year 2005 originally as “Renown Ceratek Private Limited” in order to undertake the business of manufacturing and dealing in Ceramic Tiles. In the initial few years there were no major business activities undertaken and the only revenues were from leasing of a Gas Engine. Subsequently, in the year 2009-10, after making business viability study, the management proposed to pursue the business of pharmaceuticals and neutraceuticals, principally manufacturing of soft gelatin capsules to begin with for medicinal and non-medicinal uses, mostly on contract manufacturing basis.

Consequently in the Extra Ordinary General Meeting of the Members held on 4th August, 2009, the Shareholders approved the change in the Main Objects of the Company from ceramic business to said pharmaceutical business. Further to the change in the main objects of the Company, the Management also decided to change the name of the Company to accurately and correctly reflect the new objects of the Company. Accordingly, in the Annual General Meeting of the Company held on 15th September, 2009, the Shareholders of the Company approved the change in the name of the Company to Renown Pharmaceuticals Private Limited. The change was approved by the Office of the Registrar of Companies, Gujarat by way of grant of certificate dtd. 13th October, 2009.

Post the Change of Objects and Name as aforesaid, the Company acquired Land and started construction of a new plant. The Construction activity was completed during the year with the Company commencing its trial production from September, 2011. The total project cost exceeded Rs. 500.000 Millions and has been funded through Term Loans from Banks and Promoters Contributions and Foreign Direct Investment in the Company.

The Company has commenced its commercial production from March, 2012. Company has presently started operating two manufacturing lines with a third line possible to be installed subsequently. The coming year will be the first full fledge year of operations for the pharmaceutical business.

FIXED ASSETS:

· Gas Engine

Land

Building

Furniture and Fixtures

Vehicle

Equipments

Other Equipments

Computer

Plant and Machinery

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 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. 62.24
UK Pound	1	Rs. 101.81
Euro	1	Rs. 84.88

INFORMATION DETAILS

Information Gathered by :	NYA
Report Prepared by :	BVA

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	2
--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	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		26

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.