MIRA INFORM REPORT

Report Date :

08.07.2013

IDENTIFICATION DETAILS

Name :	ZENARA PHARMA PRIVATE LIMITED (w.e.f. 23.07.2008)
Formerly Known As :	DANMED PHARMACEUTICALS PRIVATE LIMITED
Registered Office :	Plot No. 87-95, Phase-III, IDA, Cherlapally, Hyderabad – 500051, Andhra Pradesh
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	18.03.2004
Com. Reg. No.:	01-042894
Capital Investment / Paid-up Capital :	Rs. 334.934 Millions
CIN No.: [Company Identification No.]	U24239AP2004PTC042894
TAN No.: [Tax Deduction & Collection Account No.]	HYDD01366B
PAN No.: [Permanent Account No.]	AABCD9399K
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Pharmaceutical Drug’s.
No. of Employees :	100 (Approximately)

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 1000000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having a moderate track record. There appears some accumulated losses recorded by the company which seems +to be increasing over years. However, 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 some cautions.

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

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 / Corporate Office/ Factory :	Plot No. 87-95, Phase-III, IDA, Cherlapally, Hyderabad – 500051, Andhra Pradesh, India
Tel. No.:	91-40-27260848
Mobile No.:	91-9703049798 (Mr. Krishna Prasad)
Fax No.:	91-40-27290849
E-Mail :	mohan@akasamandassociates.com danmedpharma@gmail.com careers@zenara.com harsha@zenara.com shankar@akasamconsulting.com phanikumar@zenara.com
Website :	http://www.zenara.com

DIRECTORS

As on: 28.09.2012

Name :

Mr. Ashok Narasimhan

Designation :

Director

Address :

55, ELM Drive, North Harrow – HA27BY, United Kingdom, India

Date of Birth/Age :

17.07.1955

Date of Appointment :

28.09.2012

DIN No.:

02333924

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	U24233MH2001PTC130909	CEEJAY HEALTHCARE PRIVATE LIMITED	Director	19/02/2001	19/02/2001	-	Active	YES
2	U24239AP2004PTC042894	ZENARA PHARMA PRIVATE LIMITED	Director	28/09/2012	13/02/2012	-	Active	NO

Name :

Mr. William Merwin Haskel

Designation :

Director

Address :

93, Bernard Drive, Basking Ridge, New Jersey – 0719202695, United States of America, India

Date of Birth/Age :

25.03.1961

Date of Appointment :

15.05.2012

DIN No.:

03620379

Name :

Mr. Gregory Paul Sargen

Designation :

Director

Address :

26, Crest Drive, Basking Ridge, New Jersey – 0719202695, United States of America, India

Date of Birth/Age :

16.06.1965

Date of Appointment :

15.05.2012

DIN No.:

03620384

Name :

Mr. Steven Mark Klosk

Designation :

Director

Address :

852, High Woods DR, Franklin Lakes, New Jersey – 074172257, United States of America, India

Date of Birth/Age :

02.03.1957

Date of Appointment :

15.05.2012

DIN No.:

03620382

KEY EXECUTIVES

Name :	Mrs. Harsha Wardhan Govindu
Designation :	Secretary
Address :	Flat No. 306, Carnation Block Ark Homes, Near Bolarum, Railway Station, Bolarum, Secunderabad, Hyderabad – 500010, Andhra Pradesh, India
Date of Birth/Age :	12.11.1983
Date of Appointment :	09.07.2012
PAN No.:	ABPPW2229P

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on: 28.09.2012

Names of Shareholders	No. of Shares
Camzena Holdings Limited, Mauritius	17082258
Nulife (Cyprus) Limited, Cyprus	16411151
Zenara Pharma Limited, London	10
Total	33493419

Equity Share Break up (Percentage of Total Equity)

As on: 28.09.2012

Category	Percentage
Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others]	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer of Pharmaceutical Drug’s.
Exports :
Products :	Finished good
Countries :	· USA · Singapore
Imports :
Products :	Finished goods, Raw material
Countries :	· UK · Denmark
Terms :
Selling :	Cash and Credit
Purchasing :	Cash and Credit / Depend

GENERAL INFORMATION

No. of Employees :	100 (Approximately)
Bankers :	The South Indian Bank Limited, Industrial Finance Branch, 110, Raheja Towers, Anna Salai, Chennai – 600002, Tamil Nadu, India

Banking Relations :	--
Auditors :
Name :	M/s. Haribhakti and company Chartered Accountants
Address :	Raja Pushpa House, 3^rd Floor, Plot No. 34, Slicon Valley Madhapur, Hyderabad – 500081, Andhra Pradesh, India
PAN No.:	AAAFH2010F
Associates :	· Camzena Holdings Limited, Mauritius · Zenara Pharma Limited (UK) · Nulife (Cyprus) Limited, Cyprus · Ceejay Healthcare Private Limited CIN No. U24233MH2001PTC130909

CAPITAL STRUCTURE

As on: 28.09.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
38000000	Equity Shares	Rs.10/- each	Rs.380.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
33493419	Equity Shares	Rs.10/- each	Rs.334.934 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	334.934	334.934
(b) Reserves & Surplus	(75.736)	(25.216)
(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)	259.198	309.718
(3) Non-Current Liabilities
(a) long-term borrowings	0.000	0.000
(b) Deferred tax liabilities (Net)	0.000	0.000
(c) Other long term liabilities	7.696	5.950
(d) long-term provisions	2.131	1.500
Total Non-current Liabilities (3)	9.827	7.450
(4) Current Liabilities
(a) Short term borrowings	0.000	0.000
(b) Trade payables	3.620	16.666
(c) Other current liabilities	15.119	18.639
(d) Short-term provisions	0.020	0.000
Total Current Liabilities (4)	18.759	35.305
TOTAL	287.784	352.473
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	186.482	193.972
(ii) Intangible Assets	50.534	51.406
(iii) Capital work-in-progress	0.000	0.632
(iv) Intangible assets under development	0.000	0.000
(b) Non-current Investments	0.000	0.000
(c) Deferred tax assets (net)	0.000	7.233
(d) Long-term Loan and Advances	15.831	17.099
(e) Other Non-current assets	4.379	7.929
Total Non-Current Assets	257.226	278.271
(2) Current assets
(a) Current investments	0.000	0.000
(b) Inventories	14.173	15.531
(c) Trade receivables	1.490	9.248
(d) Cash and cash equivalents	10.447	45.128
(e) Short-term loans and advances	4.231	3.119
(f) Other current assets	0.217	1.176
Total Current Assets	30.558	74.202
TOTAL	287.784	352.473

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		323.901
2] Share Application Money		0.000
3] Reserves & Surplus		0.943
4] (Accumulated Losses)		(70.884)
NETWORTH		253.960
LOAN FUNDS
1] Secured Loans		0.000
2] Unsecured Loans		0.000
TOTAL BORROWING		0.000
DEFERRED TAX LIABILITIES		0.000
TOTAL		253.960
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		265.467
Capital work-in-progress		0.000
INVESTMENT		0.000
DEFERREX TAX ASSETS		(17.102)
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	5.617
	Trade receivable	5.419
	Cash & Bank Balances	0.420
	Other Current Assets	0.000
	Loans & Advances	30.797
Total Current Assets		42.253
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	11.387
	Other Current Liabilities	22.685
	Provisions	2.586
Total Current Liabilities		36.658
Net Current Assets		5.595
MISCELLANEOUS EXPENSES		0.000
TOTAL		253.960

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Revenue from operations	44.041	41.710	65.397
		Other Income	2.670	6.711	3.909
		TOTAL	46.711	48.421	69.306
Less	EXPENSES
		TOTAL	89.998	72.163	94.875
	PROFIT / (LOSS) BEFORE TAX		(43.287)	(23.742)	(25.569)
Less	TAX		7.233	(24.336)	4.753
	PROFIT / (LOSS) AFTER TAX		(50.520)	0.594	(30.322)
	Earnings Per Share (Rs.)		(0.15)	0.00	(0.09)

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	(108.15)	1.22	(43.75)
Net Profit Margin (PBT/Sales)	(%)	(98.29)	(56.92)	(39.10)
Return on Total Assets (PBT/Total Assets}	(%)	(15.04)	(6.89)	(8.31)
Return on Investment (ROI) (PBT/Networth)		(0.17)	(0.08)	(0.10)
Debt Equity Ratio (Total Debt/Networth)		0.00	0.00	0.00
Current Ratio (Current Asset/Current Liability)		1.62	2.10	1.15

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%	--
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	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	No
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 No.135, Siripuram Colony, Malakpet, Hyderabad - 500016, Andhra Pradesh, India to the present address w.e.f. 29.09.2006.

FINANCIAL REVIEW

There has been a marginal increase in the revenues, while losses have increased primarily due to reversal of deferred taxes, amortization of intangible assets, and increases in professional consultancy charges and wages.

BUSINESS REVIEW

Plans for expansion and consolidation of business are underway, and the company’s products are expected to soon find preferred channels in India and overseas. Having received EU regulatory approval last year, the company is fully equipped to cater to contract manufacturing requirements from India and abroad. The Directors are exploring various additional ways to improve the Company’s business prospects. Plans for product diversification, new tie-ups and over-all improvement of internal processes are at an advanced stage, and are expected to yield tangible results.

FIXED ASSETS:

· Land

· Building

· Technical Know How

· Computer

· Plant and Machinery

· Office Equipment

· Furniture and Fixtures

· Electrical Installation

· Lab Equipment

· Water System

· 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 records exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proeeding 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. 60.33
UK Pound	1	Rs. 90.79
Euro	1	Rs. 77.81

INFORMATION DETAILS

Report Prepared by :

DPH

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	NO
--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
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
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.