MIRA INFORM REPORT

Report Date :

09.02.2013

IDENTIFICATION DETAILS

Name :	SYNOKEM PHARMACEUTICALS LIMITED
Registered Office :	Synokem House , 14/486, Synder Vihar, Outer Ring Road, Paschim Vihar, New Delhi - 110087
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	18.08.1983
Com. Reg. No.:	55–016353
Capital Investment / Paid-up Capital :	Rs. 6.000 Millions
CIN No.: [Company Identification No.]	U34239DL1983PLC016353
TAN No.: [Tax Deduction & Collection Account No.]	DELS20482A
PAN No.: [Permanent Account No.]	AAACS1164N
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer of Pharmaceuticals Products.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (49)

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

Maximum Credit Limit :	USD 709000
Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is an established company having a satisfactory track record. General financial position of the company is good. Trade relations are reported as fair. Business is active. Payments are reported to be usually correct and as per commitments. The company can be considered normal for business dealings at usual trade terms and condition.

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 – June 30, 2012

Country Name	Previous Rating (31.03.2012)	Current Rating (30.06.2012)
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

India is developing into an open-market economy, yet traces of its past autarkic policies remain. Economic liberalization, including industrial deregulation, privatization of state-owned enterprises, and reduced controls on foreign trade and investment, began in the early 1990s and has served to accelerate the country's growth, which has averaged more than 7% per year since 1997. India's diverse economy encompasses traditional village farming, modern agriculture, handicrafts, a wide range of modern industries, and a multitude of services. Slightly more than half of the work force is in agriculture, but services are the major source of economic growth, accounting for more than half of India's output, with only one-third of its labor force. India has capitalized on its large educated English-speaking population to become a major exporter of information technology services and software workers. In 2010, the Indian economy rebounded robustly from the global financial crisis - in large part because of strong domestic demand - and growth exceeded 8% year-on-year in real terms. However, India's economic growth in 2011 slowed because of persistently high inflation and interest rates and little progress on economic reforms. High international crude prices have exacerbated the government's fuel subsidy expenditures contributing to a higher fiscal deficit, and a worsening current account deficit. Little economic reform took place in 2011 largely due to corruption scandals that have slowed legislative work. India's medium-term growth outlook is positive due to a young population and corresponding low dependency ratio, healthy savings and investment rates, and increasing integration into the global economy. India has many long-term challenges that it has not yet fully addressed, including widespread poverty, inadequate physical and social infrastructure, limited non-agricultural employment opportunities, scarce access to quality basic and higher education, and accommodating rural-to-urban migration.

Source : CIA

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/ Corporate Office :	Synokem House , 14/486, Synder Vihar, Outer Ring Road, Paschim Vihar, New Delhi – 110087, India
Tel. No.:	91-11-32501809/ 25271800/ 25271809
Fax No.:	91-11-25287839/ 25258417
E-Mail :	info@synokempharma.com akapoorca@hotmail.com abhinavarora@synokempharma.com
Website :	www.synokempharma.com
Haridwar Plant :	Plot No. 35-36, Sector 6 A, I.I.E, Sidcul, Ranipur (BHEL), Haridwar - 249403, Uttrakhand, India
Tel. No.:	91-1334-239120/ 239119
Fax No.:	91-1334-239120
E-Mail :	works@synokempharma.com

DIRECTORS

AS ON 25.09.2012

Name :	Mr. Jagmohan Arora
Designation :	Managing director
Address :	6-226 Sunder Vihar, New Delhi – 110087, India
Date of Birth/Age :	25.02.1942
Date of Appointment :	01.08.1983
DIN No.:	00154807
Name :	Mr. Abhinav Arora
Designation :	Director
Address :	6-226 Sunder Viharash, New Delhi – 110087, India
Date of Birth/Age :	16.04.1984
Date of Appointment :	01.07.2005
DIN No.:	00154626
Name :	Mrs. Indu Arora
Designation :	Director
Address :	6-226 Sunder Viharash, New Delhi – 110087, India
Date of Birth/Age :	12.12.1948
Date of Appointment :	01.08.1983
DIN No.:	01220889

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 25.09.2012

Names of Shareholders	No. of Shares
Jagmohan Arora	203000
Indu Arora	218325
J.M. Arora (HUF)	80000
Abhinav Arora	98672
Rajeev Gulati	1
Ritu Gulati	1
Shailey Arya	1
Total	600000

AS ON 25.09.2012

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

BUSINESS DETAILS

Line of Business :	Manufacturer of Pharmaceuticals Products.
Products :	v Alfa – Beta Tabs v Apetone Syrup v Atorkem-10 Tabs v Atorkem-20 Tabs v Azikem Tablets v Azikem-DT Tabs v Acik Tablets v Acik Plus Tablets v Beta-Cobal Tabs v Becotin Biotin Tablets v Beta-Cobal Forte Tabs v Broncure v Chlozep Tablets v Casyno 500 v Beta-Coba 500 msg Injection

GENERAL INFORMATION

Customers :

v Abbott

v Alkem

v Elder

v Emcure

v Fourrts

v Glenmark

v Intas

v Lupin

v Medley

v Macleods

v Meyer

v Ranbaxy Laboratories Limited

v Torrent

v Wallace

No. of Employees :

Not Available

Bankers :

v Bank of Maharashtra, Paschim Vihar, New Delhi – 110087, India

v Axis Bank Limited

v HDFC Bank Limited

v Kotak Mahindra Bank

v ICICI Bank Limited

Facilities :

Secured Loans	31.03.2012	31.03.2011
	(Rs. In Millions)
From Bank Bills sent for Collection	0.000	8.069
Bank of Maharashtra	24.428	0.000
Total	24.428	8.069

Banking Relations :	--
Auditors :
Name :	Ajay Kapoor and Company Chartered Accountants
Address :	S-2B, Ansal Utility, Commercial Complex, Paschim Vihar, New Delhi – 110063, India
Income-tax PAN of auditor or auditor's firm :	AAEPK4633K

CAPITAL STRUCTURE

AS ON 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
600,000	Equity Shares	Rs. 10/- each	Rs. 6.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
600,000	Equity Shares	Rs. 10/- each	Rs. 6.000 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2012	31.03.2011	31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		6.000	6.000	6.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		171.249	119.780	76.652
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		177.249	125.780	82.652
LOAN FUNDS
1] Secured Loans		24.428	8.069	12.420
2] Unsecured Loans		28.325	5.209	0.000
TOTAL BORROWING		52.753	13.278	12.420
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		230.002	139.058	95.072
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		108.793	61.271	50.654
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.000	0.000	1.000
DEFERRED TAX ASSETS		1.146	1.068	1.068
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	91.109	66.052	32.462
	Sundry Debtors	178.785	126.986	80.748
	Cash & Bank Balances	2.112	1.381	4.785
	Other Current Assets	16.002	3.025	0.897
	Loans & Advances	16.883	11.532	5.484
Total Current Assets		304.891	208.976	124.376
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	157.705	111.527	60.944
	Other Current Liabilities	8.855	13.191	8.968
	Provisions	18.268	7.539	12.120
Total Current Liabilities		184.828	132.257	82.032
Net Current Assets		120.063	76.719	42.344
MISCELLANEOUS EXPENSES		0.000	0.000	0.006
TOTAL		230.002	139.058	95.072

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Revenue from operation	711.829	523.249	363.789
		Other Income	0.268	0.301	0.024
		TOTAL (A)	712.097	523.550	363.813
Less	EXPENSES
		Cost of Material consumed	541.280	382.060
		Changes in inventories of finished goods	(15.720)	(7.690)
		Employee Benefit Expenses	29.019	19.176
		Other Expenses	82.571	67.598
		TOTAL (B)	637.150	461.144	320.479
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		74.947	62.406	43.334
Less	FINANCIAL EXPENSES (D)		1.295	0.882	1.036
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		73.652	61.524	42.298
Less/ Add	DEPRECIATION/ AMORTISATION (F)		9.408	7.928	6.355
	PROFIT BEFORE TAX (E-F) (G)		64.244	53.596	35.943
Less	TAX (H)		12.775	10.467	6.355
	PROFIT AFTER TAX (G-H) (I)		51.469	43.129	29.588
Less	APPROPRIATIONS
		Transfer to General Reserve	0.000	5.176	3.594
		Dividend	0.000	0.000	6.000
		Tax on Dividend	0.000	0.000	1.020
	BALANCE CARRIED TO THE B/S		51.469	37.953	18.974
	Earnings Per Share (Rs.)		85.78	71.88	49.31

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	7.23	8.24	8.13
Net Profit Margin (PBT/Sales)	(%)	9.03	10.24	9.88
Return on Total Assets (PBT/Total Assets}	(%)	15.53	19.83	20.54
Return on Investment (ROI) (PBT/Networth)		0.36	0.43	0.43
Debt Equity Ratio (Total Debt/Networth)		0.30	0.11	0.15
Current Ratio (Current Asset/Current Liability)		1.65	1.58	1.52

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	Yes
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	No

UNSECURED LOANS

Unsecured Loans	31.03.2012	31.03.2011
	(Rs. In Millions)
Axis Bank Limited – Honda City	0.403	0.562
HDFC Bank Car Loan	0.038	0.144
HDFC Bank Car Loan	0.153	0.237
HDFC Bank Car Loan	0.038	0.144
HDFC Bank Car Loan	0.225	0.349
Kotak Mahindra Bank Innova	0.254	0.484
Axis Bank Limited – 10	0.342	0.000
Bank of Maharashtra Car Loan	0.000	0.984
ICICI HDFC Loan – Gurgaon	26.872	0.000
Bank of Maharashtra	0.000	2.305
Total	28.325	5.209

Note: The registered office of the company has been shifted from “A-3/35A, Green Apartments, Paschim Vihar, New Delhi – 110063, India.” to the present w.e.f. 15.04.2008

FIXED ASSETS:

v Land

v Building

v Plant and Machinery

v Generators

v Air Conditioner

v Furniture and Fixture

v Electrical Equipment

v Vehicles

v Lab Equipment

v Office Equipment

v Computer

v Tools and Equipments

v Computer Software

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. 53.57
UK Pound	1	Rs. 84.25
Euro	1	Rs. 71.79

INFORMATION DETAILS

Report Prepared by :

BVA

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	7
--CREDIT LINES	1~10	5
--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
TOTAL		49

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	-

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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.