MIRA INFORM REPORT

Report Date :

19.07.2013

IDENTIFICATION DETAILS

Name :	VASUDHA PHARMA CHEM LIMITED
Registered Office :	78/A, Vengal Rao Nagar, Hyderabad – 500038, Andhra Pradesh
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	20.12.1994
Com. Reg. No.:	01-019021
Capital Investment / Paid-up Capital :	Rs. 350.000 Millions
CIN No.: [Company Identification No.]	U24230AP1994PLC019021
PAN No.: [Permanent Account No.]	AAACV9857D
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer of Active Pharmaceutical Ingredients and Pharma Intermediates.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (51)

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

Maximum Credit Limit :	USD 5430000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Exist
Comments :	Subject is an established company having satisfactory track record. There appears a significant increase in the net sales as well as the net profitability of the company during 2012. Financial position seems to be good. Trade relations are fair. Business is active. Payment terms are usually correct. 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 – 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

EXTERNAL AGENCY RATING

Rating Agency Name	FITCH
Rating	Long Term Rating : (FITCH) BBB+
Rating Explanation	Default risk is low and payment of financial commitments is considered adequate
Date	August 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 Office :	78/A, Vengal Rao Nagar, Hyderabad – 500038, Andhra Pradesh, India
Tel. No.:	91-40-44763666/ 23711717/ 23812046
Fax No.:	91-40-23706696/ 23811576
E-Mail :	legal@vasudhapharma.com vasudha@vasudhapharma.com
Website :	www.vasudhapharma.com
Unit I:	Plot No. 39, A and B, Phase I, I.D.A, Jeedimetla, Hyderabad - 500055 Andhra Pradesh, India
Unit II:	Plot No. 79, Jawaharlal Nehru Pharma City, Parawada, District Vishakhapatnam - 531021, Andhra Pradesh, India
Unit III:	Plot No. 23, 24, Jawaharlal Nehru Pharma City, Parawada, District Vishakhapatnam - 531021, Andhra Pradesh, India

DIRECTORS

AS ON 27.09.2012

Name :

Mr. Venkata Ramaraju Manthena

Designation :

Chairman and Managing director

Address :

Plot No. 281, F/A Road, No. 10B, Jubilee Hills, Hyderabad – 500033, Andhra Pradesh, India

Date of Birth/Age :

15.06.1946

Qualification :

M Sc (Organic Chemistry)

Date of Appointment :

04.09.2012

PAN No.:

AARPM1206D

DIN No.:

00085767

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	Company/ LLP Status	Defaulting status
1	U24230AP1991PLC013162	VASUDHA ORGANICS LIMITED	Director	04/09/1991	04/09/1991	Active	NO
2	U24230AP1994PLC019021	VASUDHA PHARMA CHEM LIMITED	Managing director	04/09/2012	20/12/1994	Active	NO
3	U24100AP1996PLC024189	SHRI RAM CHLOROCHEM LIMITED	Director	30/10/2000	30/10/2000	Active	NO
4	U70102AP2003PLC041857	VASUDHA HOMES LIMITED	Director	13/10/2003	13/10/2003	Active	NO
5	U45400AP2007PTC054693	VASUDHA COMFORT LIVING PRIVATE LIMITED.	Director	02/07/2007	02/07/2007	Active	NO
6	U45200AP2007PTC054735	VASUDHA SATELLITE TOWNSHIPS PRIVATE LIMITED	Director	09/07/2007	09/07/2007	Active	NO
7	U45200AP2009PTC065778	VRR INFRACON PRIVATE LIMITED	Director	10/11/2009	10/11/2009	Active	NO
8	U24100AP2010PLC070652	VEDA BIOFUEL LIMITED	Director	14/06/2013	11/07/2011	Active	NO

Name :

Mr. Ashok Srinivasa Raju Mantena

Designation :

Whole-time director

Address :

Flat No. 1201, A Block, Fortune Towers, Madhapur, Beside Petrol Bank, Hyderabad – 500081, Andhra Pradesh, India

Date of Birth/Age :

26.03.1972

Qualification :

M S (Chemical Engineering)

Date of Appointment :

01.01.2012

DIN No.:

00085896

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	U24230AP1991PLC013162	VASUDHA ORGANICS LIMITED	Director	04/09/1991	04/09/1991	-	Active	NO
2	U24230AP1994PLC019021	VASUDHA PHARMA CHEM LIMITED	Whole-time director	01/01/2012	24/06/1998	-	Active	NO
3	U24100AP1996PLC024189	SHRI RAM CHLOROCHEM LIMITED	Managing director	30/10/2008	30/10/2000	-	Active	NO
4	U70102AP2003PLC041857	VASUDHA HOMES LIMITED	Director	13/10/2003	13/10/2003	-	Active	NO
5	U45400AP2007PTC054693	VASUDHA COMFORT LIVING PRIVATE LIMITED.	Director	02/07/2007	02/07/2007	-	Active	NO
6	U45200AP2007PTC054735	VASUDHA SATELLITE TOWNSHIPS PRIVATE LIMITED	Director	09/07/2007	09/07/2007	-	Active	NO
7	U45200AP2009PTC065778	VRR INFRACON PRIVATE LIMITED	Director	10/11/2009	10/11/2009	-	Active	NO
8	U40102AP2010PTC068506	HARITH URJA PRIVATE LIMITED	Additional director	17/11/2011	17/11/2011	-	Active	NO
9	U40108AP2012PTC078732	SARAYU WIND POWER (TALLIMADUGULA) PRIVATE LIMITED	Director	24/01/2012	24/01/2012	-	Active	NO
10	U40104AP2012PTC078724	SARAYU WIND POWER (ADONI) PRIVATE LIMITED	Director	24/01/2012	24/01/2012	-	Active	NO
11	U40108AP2012PTC078980	SARAYU CLEANGEN PRIVATE LIMITED	Director	07/02/2012	07/02/2012	05/12/2012	Active	NO
12	U40108AP2012PTC078981	SARAYU WIND POWER (KONDAPURAM) PRIVATE LIMITED	Director	07/02/2012	07/02/2012	-	Active	NO
13	U45200AP2007PTC056651	VASISTHA INFRASTRUCTURE PRIVATE LIMITED	Director	28/09/2012	09/04/2012	-	Active	NO

Name :

Mr. Anand Manthena

Designation :

Whole-time director

Address :

MCH No. 8-1-330, Tolic Howki, Magnificient Homes, H. NO. 7, Beside Reliance Mart, Hyderabad – 500008, Andhra Pradesh, India

Date of Birth/Age :

10.06.1974

Qualification :

MBA

Date of Appointment :

01.01.2012

DIN No.:

00085970

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	Company/ LLP Status	Defaulting status
1	U24230AP1994PLC019021	VASUDHA PHARMA CHEM LIMITED	Whole-time director	01/01/2012	16/03/1998	Active	NO
2	U24230AP1991PLC013162	VASUDHA ORGANICS LIMITED	Managing director	01/10/2010	27/09/2002	Active	NO
3	U24100AP1996PLC024189	SHRI RAM CHLOROCHEM LIMITED	Director	28/09/2002	28/09/2002	Active	NO
4	U70102AP2003PLC041857	VASUDHA HOMES LIMITED	Director	13/10/2003	13/10/2003	Active	NO
5	U45400AP2007PTC054693	VASUDHA COMFORT LIVING PRIVATE LIMITED	Director	02/07/2007	02/07/2007	Active	NO
6	U45200AP2007PTC054735	VASUDHA SATELLITE TOWNSHIPS PRIVATE LIMITED	Director	09/07/2007	09/07/2007	Active	NO
7	U45200AP2009PTC065778	VRR INFRACON PRIVATE LIMITED	Director	10/11/2009	10/11/2009	Active	NO

Name :

Mr. Jagadeeswaravarma Raju Vegesana

Designation :

Director

Address :

Plot No. 62, Behind Siddarthanagar, Hyderabad – 500038, Andhra Pradesh, India

Date of Birth/Age :

10.08.1955

Qualification :

M com

Date of Appointment :

01.04.2012

DIN No.:

01125213

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	Company/ LLP Status	Defaulting status
1	U24230AP1994PLC019021	VASUDHA PHARMA CHEM LIMITED	Whole-time director	01/04/2012	26/12/2006	Active	NO
2	U24100AP1996PLC024189	SHRI RAM CHLOROCHEM LIMITED	Director	28/09/2007	24/01/2007	Active	NO

Name :

Mr. Venkata Surya Naga Vara Prasad Raju Mantena

Designation :

Director

Address :

LIG-17, Vuda Phase-I, Kurmanna Palem Gajuwaka, Visakhapatnam – 530046, Andhra Pradesh, India

Date of Birth/Age :

10.08.1964

Qualification :

B com

Date of Appointment :

20.09.2012

DIN No.:

00686034

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	Company/ LLP Status	Defaulting status
1	U01122AP2006PTC049540	EKALAVYA FARMS AND RESORTS PRIVATE LIMITED	Director	21/03/2006	21/03/2006	Active	NO
2	U24230AP1994PLC019021	VASUDHA PHARMA CHEM LIMITED	Whole-time director	20/09/2012	20/09/2007	Active	NO

Name :

Mr. Venkata Raju Kalidindi

Designation :

Director

Address :

50-121-49/110, 4B Geethika Residency B. S. Layout, Seethammadhara, Visakhapatnam – 530013, Andhra Pradesh, India

Date of Birth/Age :

08.06.1964

Qualification :

Bachellor of Engineer

Date of Appointment :

23.03.2009

DIN No.:

02568582

Name :

Venkatachelam Samba Murthy Perinkolam

Designation :

Director

Address :

H.N. 8-2-310/R/8 Road, No. 14, Banjara Hills, Hyderabad – 500034, Andhra Pradesh, India

Date of Birth/Age :

13.09.1938

Date of Appointment :

23.09.2011

DIN No.:

03598725

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	Company/ LLP Status	Defaulting status
1	U24230AP1994PLC019021	VASUDHA PHARMA CHEM LIMITED	Director	23/09/2011	19/07/2011	Active	NO

Name :

Venkatanaga Mantena Madhusudhan Raju

Designation :

Whole Time Director

Address :

Plot No. 498, Bhagat Singh Nagar, ADJ to Vasanth Nagar, Kukatpally, Hyderabad – 500072, Andhra Pradesh, India

Date of Birth/Age :

02.05.1976

Date of Appointment :

01.04.2012

DIN No.:

00685753

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	U70102AP2003PTC040255	EKTA DEVELOPERS PRIVATE LIMITED	Director	09/01/2003	09/01/2003	11/07/2011	Active	NO
2	U24230AP1994PLC019021	VASUDHA PHARMA CHEM LIMITED	Whole-time director	01/04/2012	19/07/2011	-	Active	NO

MAJOR SHAREHOLDERS

AS ON 27.09.2012

NOTE: SHAREHOLDING DETAILS FILE ATTACHED.

AS ON 27.09.2012

Equity Share Breakup	Percentage of Holding
Category
Bodies corporate	0.99
Directors or relatives of directors	96.75
Other top fifty shareholders	2.26
TOTAL	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Active Pharmaceutical Ingredients and Pharma Intermediates.

Products :

ITC Code	Product Descriptions
29225024	Domperidone
29333990	Loratadine
29147090	Cyproheptadine

PRODUCTION STATUS [AS ON 31.03.2011]

CAPACITIES AND PRODUCTION

1. As the product mix is changing from time to time, it is not possible to quantify the installed capacity.

2. Production during the year 2010-11 is 2100829 Kgs.

3. The Production is as certified by the management.

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

· Citibank N.A, 506-507, Level - 5, Prestige Meridian – 2, No.30, M G Road, Bangalore-560001, Karnataka, India

· HDFC Bank Limited, HDFC Bank House Senapati Bapat Marg, Lower Parel (West), Mumbai - 400013, Maharashtra, India

· Kotak Mahindra Bank Limited

· ICICI Bank Limited

Facilities :

Secured Loan	As on 31.03.2012 [Rs. in Millions]	As on 31.03.2011 [Rs. in Millions]
Long Term Borrowings
Rupee Term Loans From Banks	117.647	164.706
Foreign Currency Term Loans From Banks	0.000	12.500
Short Term Borrowings
Rupee Term Loans From Banks	596.133	517.966
TOTAL	713.780	695.172

Banking Relations :	--
Auditors :
Name :	Paturi and Associates Chartered Accountants
Address :	G1, Jayaramakrishna Residency, Jaya Prakash Nagar, Yellareddyguda, Hyderabad – 500073, Andhra Pradesh, India
PAN No:	AAQPP2545M
Other Related Parties :	· Shri Ram Chlorochem Limited · Vasudha Organics Limited

CAPITAL STRUCTURE

AS ON 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
35000000	Equity Shares	Rs.10/- each	Rs.350.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
35000000	Equity Shares	Rs.10/- each	Rs.350.000 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	350.000	350.000
(b) Reserves & Surplus	1007.520	677.285
(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)	1357.520	1027.285
(3) Non-Current Liabilities
(a) long-term borrowings	146.009	206.951
(b) Deferred tax liabilities (Net)	42.359	38.558
(c) Other long term liabilities	0.000	0.000
(d) long-term provisions	0.000	0.000
Total Non-current Liabilities (3)	188.368	245.509
(4) Current Liabilities
(a) Short term borrowings	596.133	517.966
(b) Trade payables	370.006	362.359
(c) Other current liabilities	213.697	247.899
(d) Short-term provisions	0.000	0.000
Total Current Liabilities (4)	1179.836	1128.224
TOTAL	2725.724	2401.018
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	842.470	870.424
(ii) Intangible Assets	0.000	0.000
(iii) Capital work-in-progress	13.157	7.280
(iv) Intangible assets under development	0.000	0.000
(b) Non-current Investments	0.000	0.000
(c) Deferred tax assets (net)	0.000	0.000
(d) Long-term Loan and Advances	0.000	0.000
(e) Other Non-current assets	0.000	0.000
Total Non-Current Assets	855.627	877.704
(2) Current assets
(a) Current investments	0.000	0.000
(b) Inventories	515.158	360.488
(c) Trade receivables	1030.903	874.414
(d) Cash and cash equivalents	165.745	77.838
(e) Short-term loans and advances	158.161	210.379
(f) Other current assets	0.130	0.195
Total Current Assets	1870.097	1523.314
TOTAL	2725.724	2401.018

SOURCES OF FUNDS		31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		350.000
2] Share Application Money		0.000
3] Reserves & Surplus		466.162
4] (Accumulated Losses)		0.000
NETWORTH		816.162
LOAN FUNDS
1] Secured Loans		632.012
2] Unsecured Loans		29.922
TOTAL BORROWING		661.934
DEFERRED TAX LIABILITIES		33.389
TOTAL		1511.485
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		639.293
Capital work-in-progress		106.193
INVESTMENT		0.000
DEFERREX TAX ASSETS		0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	329.855
	Sundry Debtors	773.568
	Cash & Bank Balances	57.166
	Other Current Assets	170.908
	Loans & Advances	6.091
Total Current Assets		1337.588
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	547.123
	Other Current Liabilities	20.045
	Provisions	9.592
Total Current Liabilities		576.760
Net Current Assets		760.828
MISCELLANEOUS EXPENSES		5.171
TOTAL		1511.485

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	3823.691	2778.174	2435.671
		Other Income	1.953	1.402	0.941
		TOTAL (A)	3825.644	2779.576	2436.612
Less	EXPENSES
		Cost of materials consumed	2462.296	1718.230
		Employee benefit expense	178.980	145.757
		Other expenses	631.947	543.656	2111.147
		Changes in inventories of finished goods, work-in-progress and stock-in-trade	(77.727)	(64.050)
		TOTAL (B)	3195.496	2343.593	2111.147
Less	PROFIT / (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		630.148	435.983	325.465
Less	FINANCIAL EXPENSES (D)		57.061	51.938	46.066
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		573.087	384.045	279.399
Less/ Add	DEPRECIATION/ AMORTISATION (F)		82.571	67.481	59.607
	PROFIT / (LOSS) BEFORE TAX (E-F) (G)		490.516	316.564	219.792
Less	TAX (H)		160.281	105.441	76.372
	PROFIT / (LOSS) AFTER TAX (G-H) (I)		330.235	211.123	143.420
	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		35.300	24.200	NA
	APPROPRIATIONS
		Transfer to General Reserve	260.000	200.000	140.000
	BALANCE CARRIED TO THE B/S		105.535	35.323	3.420
	EARNINGS IN FOREIGN CURRENCY
		FOB Value of Exports	1202.527	717.525	670.523
	TOTAL EARNINGS		1202.527	717.525	670.523
	IMPORTS
		Raw Materials and Packing Materials	771.906	544.851	458.799
		Capital Goods	3.742	7.803	1.714
		Stores and Spares and Lab Chemicals	0.304	0.000	0.524
	TOTAL IMPORTS		775.952	552.654	461.037
	Earnings / (Loss) Per Share (Rs.)		9.44	6.03	4.41

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	8.63	7.60	5.89
Net Profit Margin (PBT/Sales)	(%)	12.83	11.39	9.02
Return on Total Assets (PBT/Total Assets}	(%)	18.08	13.22	11.12
Return on Investment (ROI) (PBT/Networth)		0.36	0.31	0.27
Debt Equity Ratio (Total Debt/Networth)		0.55	0.71	0.81
Current Ratio (Current Asset/Current Liability)		1.59	1.35	2.32

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	Yes
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

CASE STATUS INFORMATION SYSTEMS

ITTA 625 / 2006 ITTASR 4140 / 2006 CASE IS:PENDING
PETITIONER	RESPONDENT
THE COMMISSIONER OF INCOME TAX-III, HYDERABAD	VS VASUDHA PHARMA CHEM LIMITED
PET.ADV. : NARASIMHA SARMA	RESP.ADV. : RAVI
SUBJECT: U/SEC. 143 ASSESSMENT	DISTRICT:  HYDERABAD
FILING DATE:  16-11-2006 POSTING STAGE :  FOR ADMISSION REG. DATE    :   17-11-2006 LISTING DATE :  22-12-2006 HON'BLE JUDGE(S): J.CHELAMESWAR D.APPA RAO

Unsecured Loan	As on 31.03.2012 [Rs. in Millions]	As on 31.03.2011 [Rs. in Millions]
Long Term Borrowings
Loans Repayable on Demand	28.362	29.745
TOTAL	28.362	29.745

REVIEW OF OPERATIONS:

Having commenced the operations in the third manufacturing facility at Plot Nos. 23 and 24, Jawaharlal Nehru Pharma City, Parawada Mandal, Visakhapatnam District, Andhra Pradesh by the end of FY 2010-11, the company consolidated its business during the financial year 2011-12 by synchronizing the total manufacturing activity between the three manufacturing facilities. With reference to National Bank Loan Ratings, ‘Fitch Ratings’ has affirmed India based Vasudha Pharma Chem Limited’s National Long-Term Rating at ‘Fitch BBB+ (Ind)’ while revising its outlook to ‘Positive’ from ‘ Stable’ during its annual review in August, 2012.

OUTLOOK:

The company’s business policy is sustainable growth by capturing the market opportunities through proper balance of risk and reward. The company’s continuous focus on R and D resulted in process improvement of existing products and development of viable processes for new products showed the excellent results of operating margin improvement. The scaling up of operations, strengthening the quality of man power and improving the internal efficiencies across various functions also contributed to the higher operation margins. All the three manufacturing facilities of the company are suitable for obtaining regulatory approvals and customer acceptances. The company is continuing to pursue its filling of DMF’s for its various products with US, European, Korea, Japanese, Chinese and Russian drug regulatory authorities. The company has five products in the R and D pipeline, which will be launched in the financial year 2013-14. The company’s increased supplies to the existing customers, addition of new products and entry in to the regulated markets will drive the future growth of the company.

BANKERS CHARGES REPORT AS PER REGISTRY

This form is for	Modification of charge
Charge identification number of the modified	90123295
Corporate identity number of the company	U24230AP1994PLC019021
Name of the company	VASUDHA PHARMA CHEM LIMITED
Address of the registered office or of the principal place of business in India of the company	78/A, Vengal Rao Nagar, Hyderabad – 500038, Andhra Pradesh, India
Type of charge	Immovable Property
Particular of charge holder	Citibank N.A, 506-507, Level - 5, Prestige Meridian – 2, No.30, M G Road, Bangalore-560001, Karnataka, India Email: mounika.kancheti@citi.com
Nature of description of the instrument creating or modifying the charge	Memorandum of Entry (MOE) of Export and Import Bank of India (Exim Bank) dated 20-3-2012
Date of instrument Creating the charge	20.03.2012
Amount secured by the charge	Rs.330.000 Millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest As agreed between the Borrower and Bank from time to time. Terms of Repayment Repayable on Demand Margin Cash Margin of 10% on sight LCs/ULCs or as may be agreed from time to time. Extent and Operation of the charge First Pari Passu charge on the current assets (including stocks and book debts) both present and future along with other working capital Banks i.e. Kotak Mahindra Bank Limited, HDFC Bank Limited and Standard Chartered Bank. Second Pari Passu Charge on all movable fixed assets (including plant and machinery, office equipment, furniture and fixtures etc) and immovable properties of the Borrower, both present and future along with Kotak Mahindra Bank Limited, HDFC Bank Limited and Standard Chartered Bank.
Short particulars of the property charged	I.(a)Pari Passu First charge on whole of current assets of Borrower both present and future; and(b) Pari Passu second charge on whole of movable fixed assets of Borrower both present and future situated at: (i) Plot No.39/A,39/B,35/B and 37/A, IDA, Jeedimetla, Hyderabad; (ii) Plot No.79, Jawaharlal Nehru Pharma City, Thanam Village, Parawada Mandal, Visakhapatnam District; and (iii) Plot No.23 and 24, Jawaharlal Nehru Pharma City, Thanam Village, Parawada Mandal, Visakhapatnam District II. Pari Passu second charge on the whole of Lands and immovable properties of the Borrower both present and future situated at: (i) Plot No.39/A,39/B,35/B and 37/A, IDA, Jeedimetla, Hyderabad; (ii) Plot No.79, Jawaharlal Nehru Pharma City, Thanam Village, Parawada Mandal, Visakhapatnam District; (iii) Plot No.23 and 24, Jawaharlal Nehru Pharma City, Thanam Village, Parawada Mandal, Visakhapatnam District; and (iv) Lands at Cheryal Village, Sangareddy Mandal, Medak District.
Date of latest modification prior to the present modification	19.12.2011
Particulars of the present modification	Working Capital Limits of Rs.330.000 Millions sanctioned by Bank vide its Deed of Modification dated 19-12-2011, which was secured by first pari passu charge on whole of current assets and second pari passu charge on all movable fixed assets is now further secured by second pari passu charge on whole of lands and immovable properties of Borrower by creation of joint mortgage by constructive delivery of Title Deeds with Export and Import Bank of India vide its Memorandum of Entry dated 20-3-2012.

FIXED ASSETS:

· Freehold Land

· Buildings

· Plant and Machinery

· Electrical Installation

· Analytical and Lab Equipment

· Other Assets

· Computers

· Office Equipments

· Furniture and Fixture

· 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.59.71
UK Pound	1	Rs.90.59
Euro	1	Rs.78.22

INFORMATION DETAILS

Report Prepared by :

RAJ

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--CREDIT LINES	1~10	5
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	YES
--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
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		51

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.