MIRA INFORM REPORT

Report Date :

31.12.2013

IDENTIFICATION DETAILS

Name :	DEURALI-JANTA PHARMACEUTICALS PVT. LTD.
Registered Office :	355, Hattisar, Kamalpokhari, G.P.O. Box 4239, Kathmandu
Country :	Nepal
Financials (as on) :	31.03.2011
Date of Incorporation :	16.08.1988
Legal Form :	Private Limited Company
Line of Business :	Manufacturer of pharmaceutical products such as Antibiotics & Oral Solids (Tablets/Capsules/Dry powders) as well as Liquid Dosage Forms
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba

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

Status :	Satisfactory
Payment Behaviour :	No Complaints
Litigation :	Clear

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 – September 30, 2013

Country Name	Previous Rating (30.06.2013)	Current Rating (30.09.2013)
Nepal	B1	B1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

Nepal ECONOMIC OVERVIEW

Nepal is among the poorest and least developed countries in the world, with about one-quarter of its population living below the poverty line. Agriculture is the mainstay of the economy, providing a livelihood for three-fourths of the population and accounting for a little over one-third of GDP. Industrial activity mainly involves the processing of agricultural products, including pulses, jute, sugarcane, tobacco, and grain. Nepal has considerable scope for exploiting its potential in hydropower, with an estimated 42,000 MW of feasible capacity, but political instability hampers foreign investment. Additional challenges to Nepal's growth include its landlocked geographic location, civil strife and labor unrest, and its susceptibility to natural disaster.

Source : CIA

Company name & address

Deurali-Janta Pharmaceuticals Pvt. Ltd.

Corporate & Sales Office

355, Hattisar, Kamalpokhari,

G.P.O. Box: 4239, Kathmandu, Nepal

Tel: +977 1 4435167

Fax: +977 1 4435166

E-mail: djpl@wlink.com.np / djpl@deuralijanta.com / cfo@deuralijanta.com

Factory

Dhapasi-1, Kathmandu, Nepal

Tel: +977 1 4371061

Fax: +977 1 4375574

History

It is a private limited company incorporated at Kathmandu under Govt. Act No. 104719 of 16.08.1988.

Directors

· Haribhakta Sharma

Ram Gurung

Radha Raman Prasad

Mahesh Gour Hari

Bankers

· Nepal Standard Chattered Bank., Kathmandu (Nepal)

Nepal Grindlays Bank, Kathmandu (Nepal)

Information parted by

Name : Mr. Ramesh

Designation : Account Department

Mobile No.: 097714435167

Shareholding Pattern

Shareholders Name	No. of Equity Shares
Haribhakta Sharma	193,796
Ram Gurung	2,455
Radha Raman Prasad	60,317
Mahesh Gour Hari	5,100
Total	261,668

Auditors

N.Amartya & Co

Pulchuwk

Lalitpur,Nepal.

Business

The company has grown rapidly to become one of the leading manufacturers of Pharmaceutical Products such as Antibiotics & Oral Solids (Tablets/Capsules/Dry powders) as well as Liquid Dosage Forms. Deurali - Janta embraces leading edge technology in quality production. The company is always committed to constant development and improvement, resulting in providing better service to its customers, a fundamental assurance on which Deurali – Janta’s reputation is built on. With the aspiration and flair of achieving excellence for the product produced, Deurali – Janta introduced and holds state of art technology at the manufacturer plant.

Deurali – Janta comprises of young, energetic and dedicated professionals who have the expertise knowledge and perception to bring about latest technologies in pharmaceuticals industries. Deurali – Janta is constantly exercising critical thinking to maintain professional competence for excelling the quality of its products. Deurali – Janta will always embrace highest standard of character to serve and promote quality of life through quality product with higher performance.

Deurali – Janta is devoted to enhance the work skills and knowledge of our co-workers by providing them with ample training, experience and exposure within and outside Nepal whenever feasible.

Capitalization Structure

Authorized Share Capital	:	Rs. 5,000,000 divided into 500,000 Equity Shares of Rs. 10/- each.
Issued, Subscribed & Paid Up Capital	:	Rs. 2,616,680 divided into 261,668 Equity Shares of Rs. 10/- each.
Face Value	:	Rs. 10/- each.
Last AGM	:	July 15, 2011

Financial Data

Balance Sheet (Amount in Rupees Mln.)

Particular	March 31, 2011	March 31, 2010
Sources of Funds
Share Capital	2.62	0.59
Reserves & Surplus	13.56	3.40
Unsecured Loans	2.67	4.30
Deferred Tax Liability (Net)	0.01	0.01
Total Liabilities	18.86	8.30
Application Of Funds
Gross Block	1.28	0.88
Less: Depreciation	0.43	0.24
Net Block	0.85	0.64
Current Assets, Loan and Advances
Inventories	30.24	22.01
Sundry Debtors	10.84	9.63
Cash And Bank Balances	0.14	0.82
Loans and Advances	2.49	1.31
	43.71	33.77
Less : Current Liabilities & Provisions
Current Liabilities	23.56	25.09
Provisions	2.18	1.06
	25.74	26.15
Net Current Assets	17.97	7.62
Miscellaneous Expenditure	0.04	0.04
Total Assets	18.86	8.30

Remarks : Payments are reported to be correct and regular as per commitments. Trade relations are fair.

Consider good for normal business Engagement as usual trade terms & condition.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.62.00
UK Pound	1	Rs.102.17
Euro	1	Rs.85.19

INFORMATION DETAILS

Report Prepared by :

MNL

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	--

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%)

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