MIRA INFORM REPORT

Report Date :

22.02.2013

IDENTIFICATION DETAILS

Name :	NOSCH LABS PRIVATE LIMITED
Registered Office :	Flat No. 404 to 406, IV^th Floor, Vijay Sai Towers, Opposite BJP Office, Kukatpally, Hyderabad – 500 072, Andhra Pradesh
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	02.08.2001
Com. Reg. No.:	01-37086
Capital Investment / Paid-up Capital :	Rs. 13.333 Millions
CIN No.: [Company Identification No.]	U24231AP2001PTC037086
TAN No.: [Tax Deduction & Collection Account No.]	HYDN00704E
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer and Exporter of Bulk Drugs and Intermediates.
No. of Employees :	300 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (52)

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

Maximum Credit Limit :	USD 3700000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is an established company having fine track record. There appears some dip in the profitability of the company. However, networth of the company is satisfactory. General financial position of the company is good. Trade relations are reported as fair. Business is active. Payments are reported to be regular and as per commitment. The company can be considered normal 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 – 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 Office :	Flat No. 404 to 406, IV^th Floor, “Vijay Sai Towers”, Opposite BJP Office, Kukatpally, Hyderabad – 500 072, Andhra Pradesh
Tel. No.:	91-40-23154400/ 01/02/03 (5 lines)
Fax No.:	91-40-23154405 / 2315 4406
E-Mail :	dodda@noschlabs.net noschlabs@noschlabs.net hyd2_nosch@sancharnet.in vasanth@noschlabs.net noschaccounts@noschlabs.net
Website :	www.noschlabs.net www.noschlab.com
Location :	Owned
Corporate Office :	Flat No. 201 and 202, Bhanu Enclave, 7-1-638 to 643/1, Sunder Nagar, Erragadda, Hyderabad – 500 038, Andhra Pradesh, India
Tel. No.:	91- 40-23818065 / 23704075 / 23818059 / 23818068/ 23701740
Fax No.:	91-40-23818059
E-Mail :	hyd2_nosch@sancharnet.in vasanth@noschlabs.net dadda@noschlabs.net gpc@noschlabs.net noschlaba@noschlabs.net
Website :	www.noschlabs.com www.noschlabs.net
Location :	Rented
Factory 1 :	5-5-35/33/3, Prashanthi Nagar, IDA, Kukatpally, Hyderabad – 500 072, Andhra Pradesh, India
Location :	Owned
Factory 2:	Survey No.14, IDA Gadda Potharam Village, Kazipally Jinnaram, Medak District - 500319, Andhra Pradesh, India
Location :	Owned
Factory 3:	D. Nagaram Village, Choutuppal Mandal, Nalgonda District – 508252, Andhra Pradesh, India
Factory 4:	Veliminedu Village, Chityal Mandal, Nalgonda District - 508114 Andhra Pradesh, India

DIRECTORS

As on 30.08.2012

Name :	Dr. Satyanarayana Reddy Bhimireddy
Designation :	Managing Director
Address :	Plot No. 12, Srinivasa Nagar Medical Society, Water Tank Lane, Kukatpally, Hyderabad, Rangareddy – 500072, Andhra Pradesh, India
Date of Birth/Age :	14.01.1964
Qualification :	P.H.D
Date of Appointment :	01.10.2001
DIN No.:	00008173
Name :	Mr. Reddy Rajasekhar Tummuru
Designation :	Whole Time Director
Address :	Plot No.: 637, 1^st Floor, Vivekanada Nagar, Rangareddy, Hyderabad – 500072, Andhra Pradesh, India
Date of Birth/Age :	19.02.1973
Date of Appointment :	01.10.2001
DIN No.:	00008266
Name :	Mr. Veera Venkata Satyanarayana Reddy Dodda
Designation :	Whole Time Director
Address :	7-1-643, Flat No. 301, Lassy, A / Pujithaapts, Sunder Nagar, Hyderabad – 500038, Rangareddy , Andhra Pradesh, India
Date of Birth/Age :	10.06.1971
Date of Appointment :	01.10.2001
DIN No.:	00008220
Name :	Mr. Gustavo Daniel Lorenzo Pelizzari
Designation :	Director
Address :	Calle Costa Brava, 24, Madrid – 28034, Spain
Date of Birth/Age :	07.09.1972
Date of Appointment :	22.06.2006
DIN No.:	00104930
Name :	Ms. Isabel Alcalde Giraudo, Foreigner
Designation :	Director
Address :	Calle Nueva 16, Las Rozas, Madrid – 28231, Spain
Date of Birth/Age :	07.08.1969
Date of Appointment :	22.06.2006
DIN No.:	00105072

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.08.2012

Names of Shareholders	No. of Shares
Bhimireddy Satyanara Yana Reddy	261000
Tummuru Rajasekhrreddy	99750
Dodda Veera Venkata Satypanrayana Reddy	131250
Bhimireddy Vijayalakshmi	45000
Bhimireddy Goutham Reddy	15000
Bhimireddy Vivek Reddy	15000
Tummuru Sridevi	30000
Tummuru Radhadevi	33750
Tummuru Vekatarami	30000
Tummuru Avinash Reddy	15000
Doda Madhavi	33750
Doda Vijaya Spandana	29500
Appala Ramprasad	8000
Mandapati Satyanarayan A Reddy	16000
Doda Vijaya Samhita	19250
Gali Pradeep Chowdhury	1500
Cheennareddy Sasidhar	750
Tummuru Hamsathi	15500
Alkmaar Export B V, The Netherlands	533333
TOTAL	1333333

Equity Share Breakup (Percentage of Total Equity)

As on 30.08.2012

Category	Percentage
Foreign Holding Foreign Institutional Investor(S),Foreign Companies(S), Foreign Financial Institution(S), Non-Resident Indian(S), Or Overseas Corporate Bodies Or Other	40.00
Directors or relatives of directors	60.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer and Exporter of Bulk Drugs and Intermediates.

Products :

Product Description	ITC Code No
Bulk Drugs and Intermediates	2942.00

• List of active pharmaceutical Ingredients
• Semi – Finished Formulations
• Intermediate Chemicals

PRODUCTION STATUS

As on 31.03.2012

Particulars	Units	31.03.2012
Bulk Drugs and Intermediates	Kgs.	2,81,207.99
Formulations (i.e., Capsules)	Nos.	1,44,30,500.00

GENERAL INFORMATION

No. of Employees :

300 (Approximately)

Bankers :

• Axis Bank Limited, Begumpet Branch, 6-3-879/B, Greenlands Road, Begumpet, Hyderabad, Andhra Pradesh, India

• Axis Bank Limited, Credit Management Centre, 5-2-183/184, 8751 (Old), 3^rd Floor, R.P Road, Secundrabad – 500003, Andhra Pradesh, India

Facilities :

Secured Loans	31.03.2012 Rs. In Millions	31.03.2011 Rs. In Millions
Working Capital Cash Credit Loans (Secured by first and exclusive charge on all assets)	43.476	70.336
Hire Purchase Loans	0.000	0.226
Total	43.476	70.562

Banking Relations :	--
Auditors :
Name :	P S N Ravishankar and Associates Chartered Accountants
Address :	Flat No. 205, Second Floor, B-Block, Khushal Towers, Khiratabad, Hyderabad – 500004, Andhra Pradesh, India
Tel. No.:	91-40-23320558/23393381
Fax No.:	91-40-23393381
E-Mail :	psnra@yahoo.com
Related Parties :	Alkmaar Export B.V Chemo Espania S.L Labotatories Liconsa S.A Quimica Sintetics S.A Chem. East Limited Zhejiang Gold Pharma Company Limited Chemo Iberica

CAPITAL STRUCTURE

As on 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
1500000	Equity Shares	Rs.10/- each	Rs.15.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1333333	Equity Shares	Rs.10/- each	Rs.13.333 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		13.333	13.333	13.333
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		901.147	784.302	633.317
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		914.480	797.635	646.650
LOAN FUNDS
1] Secured Loans		43.476	70.562	43.461
2] Unsecured Loans		0.000	0.000	0.000
TOTAL BORROWING		43.476	70.562	43.461
DEFERRED TAX LIABILITIES		52.957	35.642	23.955
TOTAL		1010.913	903.839	714.066
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		569.288	410.400	437.590
Capital work-in-progress		3.772	114.264	0.000
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	267.502	261.395	171.857
	Sundry Debtors	317.889	306.563	306.559
	Cash & Bank Balances	42.602	39.143	6.497
	Other Non-Current Assets	11.029	5.165
	Other Current Assets	81.441	96.699	73.734
	Loans & Advances	3.775	8.789	26.242
Total Current Assets		724.238	717.754	584.889
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	160.468	200.640	192.659
	Other Current Liabilities	11.688	16.958	7.428
	Provisions	114.229	120.981	108.326
Total Current Liabilities		286.385	338.579	308.413
Net Current Assets		437.853	379.175	276.476
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		1010.913	903.839	714.066

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	1189.112	1200.238	930.111
		Other Income	29.826	35.715	(8.913)
		TOTAL (A)	1218.938	1235.953	921.198
Less	EXPENSES
		Cost of Materials Consumed	632.266	730.100	493.709
		Purchase of Stock-in-Trade	30.818	19.243
		Manufacturing Expenses	121.973	112.848	61.347
		Employee Benefits Expenses	50.431	38.276	29.295
		Administrative Expenses	29.093	21.383	16.343
		Selling and Distribution Expenses	49.628	60.255	46.482
		Remuneration to Directors	18.984	18.330	8.140
		Increase/(Decrease) in Finished Goods	4.447	(75.275)	(7.000)
		Exceptional Items - Excess / (Short) provision for taxes	0.000	0.068	(0.041)
		TOTAL (B)	937.640	925.228	648.275
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		281.298	310.725	272.923
Less	FINANCIAL EXPENSES (D)		9.528	14.375	3.913
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		271.770	296.350	269.010
Less/ Add	DEPRECIATION/ AMORTISATION (F)		26.564	15.498	9.824
	PROFIT BEFORE TAX (E-F) (G)		245.206	280.852	259.186
Less	TAX (H)		66.374	67.676	47.380
	PROFIT AFTER TAX (G-H) (I)		178.831	213.176	211.806
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		573.629	447.644	323.235
Less	APPROPRIATIONS
		Proposed dividend	53.333	53.333	53.333
		Dividend Tax	8.652	8.858	9.064
		Transfer to General Reserve	25.000	25.000	25.000
	BALANCE CARRIED TO THE B/S		665.475	573.629	447.644
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	910.964	985.395	655.289
		Other Earnings	0.847	0.737	2.047
	TOTAL EARNINGS		911.811	986.132	657.336
	IMPORTS
		Raw Materials	85.818	122.754	66.876
		Capital Goods	7.444	5.858	18.837
		Components and Expenses	11.947	10.087	11.306
	TOTAL IMPORTS		105.209	138.699	97.019
	Earnings Per Share (Rs.)		134.12	159.88	159.00

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	14.67	17.25	22.99
Net Profit Margin (PBT/Sales)	(%)	20.62	23.40	27.87
Return on Total Assets (PBT/Total Assets}	(%)	18.96	24.89	25.35
Return on Investment (ROI) (PBT/Networth)		0.27	0.35	0.40
Debt Equity Ratio (Total Debt/Networth)		0.05	0.09	0.07
Current Ratio (Current Asset/Current Liability)		2.53	2.12	1.90

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	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]	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

NOTE:

The Registered office of the company has been shifted from Flat No. 201 and 202, Bhanu Enclave, Sunder Nagar, Erragadda, Hyderabad-38, Andhra Pradesh, India to present address w.e.f. 16.09.2008

REVIEW OF THE BUSINESS

During the year, the Company has achieved a Net Sales and Other Income of Rs.1218.938 Millions as against Rs. 1235.954 Millions in the previous year and earned a net profit of Rs.178.831 Millions (Previous Year Rs.213.244 Millions) after providing Income Tax and Deferred Tax of Rs. 66.376 Millions (Previous Year Rs. 67.676 Millions).

The Directors are confident of achieving better results in the years to come. The Board of Directors are of the opinion that the present and future market scenario of the Pharma Sector is extremely good and proposes to expand in manufacturing and marketing facilities of the company..

COMMERCIAL PRODUCTION

The Company has started the commercial production at D. Nagaram Unit and Veliminedu Unit on 31-10-2010 and 11-07-2011 respectively.

FIXED ASSETS

· Land

· Factory Building

· Plant and Machinery

· Lab Equipment

· Office Equipment

· Electrical Equipment

· Furniture and Fixtures

· EDP Equipment

· Vehicles

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 :

BSN

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	7
--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		52

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.