MIRA INFORM REPORT

Report Date :

22.02.2013

IDENTIFICATION DETAILS

Name :	ATRA PHARMACEUTICALS LIMITED
Formerly Known As :	ATRA PHARMACEUTICALS PRIVATE LIMITED
Registered Office :	Anjali Complex, Khadkeshwar, Aurangabad-431001, Maharashtra
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	01.10.1991
Com. Reg. No.:	11-063442
Capital Investment / Paid-up Capital :	Rs.58.996 Millions
CIN No.: [Company Identification No.]	U24230MH1991PLC063442
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer of Medicine Like Tablets, Capsules, and Pharmaceuticals Drugs.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

B (36)

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

Maximum Credit Limit :	USD 651000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having a moderate track record. The company recorded modest scale of operation. The external borrowing seems to be increasing over years. However, company has improved in its financial performance during the current year. Trade relations are reported to be fair. Business is active. Payments are reported to be slow but correct. The company can be considered for business dealings with slight 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 – 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

EXTERNAL AGENCY RATING

Rating Agency Name	CARE
Rating	BB [Long Term Facilities]
Rating Explanation	Having moderate risk of default regarding timely servicing of financial obligation.
Date	May 2012

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 / Head Office :	Anjali Complex, Khadkeshwar, Aurangabad-431001, Maharashtra, India
Tel. No.:	91-240-6609911/22/2332211
Fax No.:	91-240-6609990/2331515
E-Mail :	info@atrapharma.com atra99@hotmail.com
Factory 1 :	H-19, MIDC, Waluj, Aurangabad-431133, Maharashtra, India
Tel. No.:	91-240-6603311/22
Fax No.:	91-240-6603366
E-Mail :	works@atrapharma.com
Factory 2 :	H-12 and 13, MIDC, Waluj, Aurangabad-431136, Maharashtra, India
Tel No.:	91-240-6603340/6603340/6603341
Fax No.:	91-240-6609900
Mumbai Office :	D-402, Krishna Galaxy, Dattamandir Road, Vakola, Santacruz (East), Mumbai-400055, Maharashtra, India
Tel. No.:	91-22-26680072/26682059
Fax No.:	91-22-26682059
E-Mail :	Narendra-tembe@atrapharma.com

DIRECTORS

AS ON 26.09.2012

Name :	Crd. Anil Moreshwar Save [Retd.]
Designation :	Managing Director
Address :	Anjali Complex, Khadkeshwar, Aurangabad-431001, Maharashtra, India
Date of Birth/Age :	13.05.1953
Date of Appointment :	01.10.1991
Din No.:	00561935
Name :	Mr. Atul Moreshwar Save
Designation :	Director
Address :	Anjali Complex, Khadkeshwar, Aurangabad-431001, Maharashtra, India
Date of Birth/Age :	26.02.1962
Date of Appointment :	01.10.1991
Din No.:	00562021
Name :	Dr. Rajeev Yadav Churi
Designation :	Director
Address :	Flat No. 9, Moon Stone Apartment, 65-E, Linking Road, Santacruz (West), Mumbai, Maharashtra, India
Date of Birth/Age :	10.12.1956
Date of Appointment :	01.10.1991
Din No.:	00561987
Name :	Mrs. Anjali Deepak Raut
Designation :	Director
Address :	Jamuna, Triveni Co-operative Housing Society, Navghar, Bassein Road, Thane (West), Maharashtra, India
Date of Birth/Age :	22.06.1969
Date of Appointment :	01.12.1995
Din No.:	01188379
Name :	Mr. Ajit Moreshwar Save
Designation :	Director
Address :	Anjali Complex, Khadkeshwar, Aurangabad-431001, Maharashtra, India
Date of Birth/Age :	19.02.1956
Date of Appointment :	01.12.1995
Din No.:	00561875
Name :	Mr. Deepak Hari Raut
Designation :	Director
Address :	Jamuna, Triveni Co-operative Housing Society, Navghar, Bassein Road, Thane (West), Maharashtra, India
Date of Birth/Age :	12.10.1950
Date of Appointment :	01.12.1995
Din No.:	01239598
Name :	Mr. Arpit Anil Save
Designation :	Director
Address :	Anjali Complex, Khadkeshwar, Aurangabad-431001, Maharashtra, India
Date of Birth/Age :	10.08.1987
Date of Appointment :	01.04.2010
Din No.:	02863344

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 26.09.2012

NOTE: SHAREHOLDING DETAILS FILE ATTACHED.

AS ON 26.09.2012

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

BUSINESS DETAILS

Line of Business :

Manufacturer of Medicine Like Tablets, Capsules, and Pharmaceuticals Drugs.

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

· Punjab National Bank, B/O Plot 316, N-3, CIDCO, Aurangabad-431003, Maharashtra, India

· Export Import Bank of India, Mumbai, Maharashtra, India

Facilities :

Secured Loan	As on 31.03.2012 [Rs. in Millions]	As on 31.03.2011 [Rs. in Millions]
Term loans from banks	263.800	34.400
Working capital loans from banks	68.069	0.232
TOTAL	331.869	34.632

Banking Relations :	--
Auditors :
Name :	Ashok Patil and Associates Chartered Accountants
Address :	A.P. Heights, Behind Gopal Cultural Hall, New Osmanpura, Aurangabad, Maharashtra, India
PAN No:	ABFPP1555R
Associates/Subsidiaries :	· Savera Pharmaceuticals Private Limited · Savera Carriers And Contractors Private Limited

CAPITAL STRUCTURE

AS ON 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
10000000	Equity Shares	Rs.10/- each	Rs.100.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
5899620	Equity Shares	Rs.10/- each	Rs.58.996 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		58.996	51.435	48.471
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		103.955	99.605	66.036
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		162.951	151.040	114.507
LOAN FUNDS
1] Secured Loans		331.869	34.632	417.189
2] Unsecured Loans		11.055	13.268	22.840
TOTAL BORROWING		342.924	47.900	440.029
DEFERRED TAX LIABILITIES		17.934	16.054	15.537
TOTAL		523.809	214.994	570.073
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		79.769	49.544	284.943
Capital work-in-progress		255.510	34.849	151.706
INVESTMENT		23.205	38.032	22.985
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	44.504	13.709	62.376
	Sundry Debtors	14.240	18.297	12.404
	Cash & Bank Balances	31.439	110.261	6.129
	Other Current Assets	77.784	45.497	0.000
	Loans & Advances	105.480	58.909	89.317
Total Current Assets		273.447	246.673	170.226
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	18.190	47.165	23.126
	Other Current Liabilities	25.766	29.844	29.168
	Provisions	64.166	77.095	7.773
Total Current Liabilities		108.122	154.104	60.067
Net Current Assets		165.325	92.569	110.159
MISCELLANEOUS EXPENSES		0.000	0.000	0.280
TOTAL		523.809	214.994	570.073

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	117.302	112.191	114.823
		Other Income	4.322	4.480	2.545
		TOTAL (A)	121.624	116.671	117.368
Less	EXPENSES
		Cost of materials consumed	31.329	27.651
		Employee benefit expense	33.174	42.480
		Other expenses	38.870	104.454	81.289
		Exceptional items	(0.669)	(141.291)
		TOTAL (B)	102.704	33.294	81.289
Less	PROFIT / (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		18.920	83.377	36.079
Less	FINANCIAL EXPENSES (D)		1.451	5.807	16.957
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		17.469	77.570	19.122
Less/ Add	DEPRECIATION/ AMORTISATION (F)		6.312	9.735	11.787
	PROFIT / (LOSS) BEFORE TAX (E-F) (G)		11.157	67.835	7.335
Less	TAX (H)		3.380	31.277	4.010
	PROFIT / (LOSS) AFTER TAX (G-H) (I)		7.777	36.558	3.325
	APPROPRIATIONS
		Proposed Dividend on Equity Share	2.950	2.572	2.424
		Tax on Dividend	0.479	0.417	0.412
	BALANCE CARRIED TO THE B/S		2.811	33.569	0.489
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	9.554	8.013	NA
	Earnings / (Loss) Per Share (Rs.)		1.32	7.11	0.69

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	6.39	31.33	2.83
Net Profit Margin (PBT/Sales)	(%)	9.51	60.46	6.39
Return on Total Assets (PBT/Total Assets}	(%)	3.15	22.90	1.61
Return on Investment (ROI) (PBT/Networth)		0.07	0.45	0.06
Debt Equity Ratio (Total Debt/Networth)		2.10	0.32	3.84
Current Ratio (Current Asset/Current Liability)		2.53	1.60	2.83

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	Yes
17]	Major suppliers	No
18]	Major customers	No
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]	PAN of Proprietor/Partner/Director, if available	No
32]	Date of Birth of Proprietor/Partner/Director, if available	Yes
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	Yes

Unsecured Loan	As on 31.03.2012 [Rs. in Millions]	As on 31.03.2011 [Rs. in Millions]
Deferred payment liabilities	11.055	13.268
TOTAL	11.055	13.268

PERFORMANCE:

During the year under consideration, the company has achieved a net turnover of Rs. 117.302 Millions as compared to the net turnover of Rs. 112.191 Millions of last year. It has earned net profit before tax of Rs. 10.489 Millions during this year as compared to net loss of Rs. 73.456 Millions of preceding year. No doubt they have achieved good results for FY 2012, but they believe they are poised to achieve organic as well as inorganic growth in the years.

In the coming years they intend to concentrate more on their own domestic sales which is presently restricted to four states of Andhra Pradesh, Gujarat, Madhya Pradesh and Chhattisgarh. They plan to appoint franchisee distributors Pan India for their generic product range. Besides their own sales in domestic market, they wish to focus on niche products in the Allopathic, Ayurvedic and Veterinary range for exports to Rest of the World Market, while trying to register their products from their new plant in the regulated Markets like Australia, South Africa, Europe and subsequently USA etc. The company has also aggressively started preparing dossiers and soon intends to file for Market Authorization in various countries. They are also working for patent filing and hope to file at least two patents in the next year. The company despite having sold one of its manufacturing units in the previous year has been able to maintain the production output by various steps taken to improve productivity and optimal utilization of plant and machinery. The table below would highlight the performance of the company in absolute terms.

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.54.48
UK Pound	1	Rs.82.71
Euro	1	Rs.72.23

INFORMATION DETAILS

Report Prepared by :

TPT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--PROFITABILIRY	1~10	4
--LIQUIDITY	1~10	4
--LEVERAGE	1~10	4
--RESERVES	1~10	4
--CREDIT LINES	1~10	4
--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
TOTAL		36

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.