MIRA INFORM REPORT

Report Date :

10.06.2013

IDENTIFICATION DETAILS

Name :	ISHITA DRUGS AND INDUSTRIES LIMITED
Registered Office :	Survey No.179/1, Vasna – Iyava, Taluka Sanand, Ahmedabad – 382210, Gujarat
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	05.02.1992
Com. Reg. No.:	04-017054
Capital Investment / Paid-up Capital :	Rs. 29.903 Millions
CIN No.: [Company Identification No.]	L24231GJ1992PLC017054
IEC No.:	0894000314
TAN No.: [Tax Deduction & Collection Account No.]	AHMI00085B
PAN No.: [Permanent Account No.]	AAACI3630B
Legal Form :	A Public Limited Liability company. The company’s Share are Listed on the Stock Exchange.
Line of Business :	Manufacture of Bulk Actives and Salts, Drug Intermediates, Fine Chemicals, Food Additives, Specialty/ Performance Chemicals, Pharmaceutical Formulations, Healthcare Products, Dyes and Dye Intermediates.
No. of Employees :	45 (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 186000
Status :	Moderate
Payment Behaviour :	Sloe but correct
Litigation :	Clear
Comments :	Subject is an established company having a moderate track record. There appears dip in its profitability and sales during 2012. 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 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 – 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 :	Survey No.179/1, Vasna – Iyava, Sarkhej Viramgam Highway, Taluka Sanand, Ahmedabad – 382210, Gujarat, India
Tel. No.:	91-79-26467886 / 2717-284244 / 284246
Fax No.:	91-79-26404961
E-Mail :	ishitadrugs@vsnl.net
Website :	http://www.ishitadrugs.in http://www.ishitadrugs.com
Corporate Office :	11, Valmik Complex, C. G. Road, Ahmedabad – 380006, Gujarat, India
Tel. No.:	91-79-26468353/ 26467886/ 26403214/ 30928120
Fax No.:	91-79-26404961
E-Mail :	ishita@wilnetonline.net
Area :	1300 Sq ft
Location :	Owned
Plant Location :	179/1, Vasana – Iyava, Sarkhej Viramgam Highway, Taluka: Sanand, District – Ahemadabad, Gujarat, India
Tel. No.:	91-2717-284244/ 284246

DIRECTORS

As on 29.09.2012

Name :

Mr. Jagdishprasad Gokulchand Agrawal

Designation :

Managing Director

Address :

Kanchanjangha, 18/1, Mahalaxmi Society, Paldi, Ahmedabad – 380007, Gujarat, India

Date of Birth/Age :

10.10.1947

Date of Appointment :

05.02.1992

DIN No.:

01031687

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	U24231GJ1991PTC016251	ISHITA OVERSEAS PRIVATE LIMITED	Director	11-09-91	11-09-91	-	Active	NO
2	L24231GJ1992PLC017054	ISHITA DRUGS AND INDUSTRIES LIMITED	Managing director	05-02-92	05-02-92	-	Active	NO
3	U65910GJ1993PLC019431	UMANG FINANCIAL SERVICES LIMITED	Director	07-12-94	07-12-94	-	Active	NO

Name :

Abha Jagdishprasad Agrawal

Designation :

Director

Address :

Kanchanjangha, 18/1, Mahalaxmi Society, Paldi, Ahmedabad – 380007, Gujarat, India

Date of Birth/Age :

12.02.1951

Date of Appointment :

05.02.1992

DIN No.:

01589479

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	U24231GJ1991PTC016251	ISHITA OVERSEAS PRIVATE LIMITED	Director	11-09-91	11-09-91	-	Active	NO
2	L24231GJ1992PLC017054	ISHITA DRUGS AND INDUSTRIES LIMITED	Director	05-02-92	05-02-92	-	Active	NO
3	U24110GJ1972PTC002169	ANVI LIFESCIENCES PRIVATE LIMITED	Director	05-05-09	05-05-09	-	Active	NO

Name :

Mr. Shyamkumar Omprakash Agarwal

Designation :

Director

Address :

D/1, Dhaval Ganga Apartment, Carter Road, Bandra (West), Mumbai – 400050, Maharashtra, India

Date of Birth/Age :

01.09.1945

Date of Appointment :

20.05.1992

DIN No.:

00808820

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	U24110MH1982PTC028674	SKOM CHEMICALS PVT LTD	Director	09-11-82	09-11-82	-	Active	NO
2	L24231GJ1992PLC017054	ISHITA DRUGS AND INDUSTRIES LIMITED	Director	20-05-92	20-05-92	-	Active	NO
3	U99999MH1994NPL082149	DOMBIVLI COMMON EFFLUENT TREATMENT PLANT	Director	23-09-00	23-09-00	20-08-09	Active	NO

Name :

Mr. Prakash Ranjan Rastogi

Designation :

Director

Address :

2, Blooming Heights, 1^st Floor, Pali Hill Road, Bandra (West), Mumbai – 400050, Maharashtra, India

Date of Birth/Age :

31.07.1944

Date of Appointment :

30.09.2006

DIN No.:

00110862

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	L24231GJ1992PLC017054	ISHITA DRUGS AND INDUSTRIES LIMITED	Director	30-09-06	30-09-06	-	Active	NO
2	L36992MH1948PLC014083	RALLIS INDIA LIMITED	Director	13-03-07	13-03-07	-	Active	NO

Name :

Govind Gupta

Designation :

Director

Address :

23, Amra Shagan Near Ramdevnagar Char Rasta, Ahmedabad – 380054, Gujarat, India

Date of Birth/Age :

02.12.1947

Date of Appointment :

20.05.1992

DIN No.:

00052690

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	L24231GJ1992PLC017054	ISHITA DRUGS AND INDUSTRIES LIMITED	Director	20-05-92	20-05-92	-	Active	NO
2	U72200GJ1997PTC043461	INDUSA INFOTECH SERVICES PRIVATE LIMITED	Director	22-05-00	22-05-00	-	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 31.12.2012

Category of Shareholder	Total No. of Shares	Total Shareholding as a % of total No. of Shares
A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	939122	31.41
Bodies Corporate	427300	14.29
Sub Total	1366422	45.70
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	1366422	45.70
(B) Public Shareholding
(1) Institutions
(2) Non-Institutions
Bodies Corporate	225559	7.54
Individuals
Individual shareholders holding nominal share capital up to Rs. 0.100 million	1088745	36.41
Individual shareholders holding nominal share capital in excess of Rs. 0.100 million	304199	10.17
Any Others (Specify)	5375	0.18
Non Resident Indians	5375	0.18
Sub Total	1623878	54.30
Total Public shareholding (B)	1623878	54.30
Total (A)+(B)	2990300	100.00
(C) Shares held by Custodians and against which Depository Receipts have been issued	0000	0.00
(1) Promoter and Promoter Group	0000	0.00
(2) Public	0000	0.00
Sub Total	0000	0.00
Total (A)+(B)+(C)	2990300	0.00

BUSINESS DETAILS

Line of Business :

Manufacture of Bulk Actives and Salts, Drug Intermediates, Fine Chemicals, Food Additives, Specialty/ Performance Chemicals, Pharmaceutical Formulations, Healthcare Products, Dyes and Dye Intermediates.

Products :

Products Description	Item Code No.
Norfloxacin	29419060
Nicotininc Acid and Salt	29362920
Sulfonamides	29350015

GENERAL INFORMATION

No. of Employees :

45 (Approximately)

Bankers :

Corporation Bank, Near Head Post office, Navrangpura, Ahmedabad – 380009, Gujarat, India

Facilities :

Secured Loan	31.03.2012 (Rs. In Millions)	31.03.2011 (Rs. In Millions)
Loan Taken for Fixed Assets	0.130	0.443
Working Capital Loans from Banks	0.092	2.717
Total	0.222	3.160

Banking Relations :	--
Auditors :
Name :	Kishor and Goyal Company Chartered Accountants
Address :	305, P.B Parekh Tower, Opposite Vanijya Bhavan , Kankaria, Ahmedbabad, Gujarat, India
PAN.:	AANPG3497L
Relatives of Key Management Personnel :	Ishita Pharmaceuticals PAN No.: AAAF13079B Anvi Lifesciences Private Limited PAN No.: AAACC6329H CIN No.: U24110GJ1972PTC002169 J and J Chemicals PAN No.: AAPPA7820F

CAPITAL STRUCTURE

As on 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
3500000	Equity Shares	Rs.10/- each	Rs. 35.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
2990300	Equity Shares	Rs.10/- each	Rs. 29.903 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		29.903	29.903	29.903
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		16.608	14.531	10.645
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		46.511	44.434	40.548
LOAN FUNDS
1] Secured Loans		0.222	3.160	0.732
2] Unsecured Loans		0.000	0.000	0.000
TOTAL BORROWING		0.222	3.160	0.732
DEFERRED TAX LIABILITIES		0.699	0.584	0.424
TOTAL		47.432	48.178	41.704
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		9.610	9.791	10.129
Capital work-in-progress		0.202	0.202	0.000
INVESTMENT		16.661	13.537	5.037
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	6.669	13.226	18.858
	Sundry Debtors	10.804	26.435	10.942
	Cash & Bank Balances	9.356	6.217	12.716
	Other Current Assets	0.122	0.090	0.000
	Loans & Advances	0.932	2.195	3.272
Total Current Assets		27.883	48.163	45.788
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	5.724	21.968
	Other Current Liabilities	0.359	0.828	15.847
	Provisions	0.841	0.719	3.403
Total Current Liabilities		6.924	23.515	19.250
Net Current Assets		20.959	24.648	26.538
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		47.432	48.178	40.704

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	53.606	88.290	63.929
		Other Income	1.463	1.123	1.832
		TOTAL (A)	55.069	89.413	65.761
Less	EXPENSES
		Cost of material consumed	20.359	55.814
		Purchases of Stock-in-trade	9.722	9.772
		Changes in inventories of finished goods, work-in-progress and stock-in-trade	6.252	(3.628)
		Employee benefit	3.387	3.072
		Other expenses	11.190	17.569
		TOTAL (B)	50.910	82.599	57.916
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		4.159	6.814	7.845
Less	FINANCIAL EXPENSES (D)		0.281	0.207	0.348
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		3.878	6.607	7.497
Less/ Add	DEPRECIATION/ AMORTISATION (F)		0.783	0.742	1.871
	PROFIT BEFORE TAX (E-F) (G)		3.095	5.865	5.626
Less	TAX (H)		1.018	1.979	3.022
	PROFIT AFTER TAX (G-H) (I)		2.077	3.886	2.604
	Earnings Per Share (Rs.)		0.69	1.31	1.30

QUARTERLY / SUMMARISED RESULTS

PARTICULARS	30.06.2012	30.09.2012	31.12.2012	31.03.2013
Type	1^st Quarter	2^nd Quarter	3^rd Quarter	4^th Quarter
Net Sales	14.400	33.800	30.600	38.800
Total Expenditure	13.400	32.500	29.400	36.900
PBIDT (Excl OI)	1.000	1.300	1.200	1.900
Other Income	0.300	0.400	0.600	0.600
Operating Profit	1.400	1.700	1.800	2.500
Interest	0.000	0.100	0.100	0.100
Exceptional Items	0.00	0.000	0.000	0.000
PBDT	1.300	1.700	1.700	2.400
Depreciation	0.200	0.200	0.200	0.300
Profit Before Tax	1.100	1.400	1.500	2.100
Tax	0.300	0.400	0.500	0.800
Provisions and contingencies	0.000	0.000	0.000	0.000
Profit After Tax	0.800	1.000	1.000	1.300
Extraordinary Items	0.000	0.000	0.000	0.000
Prior period expenses	0.000	0.000	0.000	0.000
Other adjustment	0.000	0.000	0.000	0.000
Net profit	0.800	1.000	1.000	1.300

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	3.77	4.35	3.96
Net Profit Margin (PBT/Sales)	(%)	5.77	6.64	8.800
Return on Total Assets (PBT/Total Assets}	(%)	8.19	10.12	10.06
Return on Investment (ROI) (PBT/Networth)		0.07	0.13	0.14
Debt Equity Ratio (Total Debt /Networth)		0.00	0.07	0.01
Current Ratio (Current Asset/Current Liability)		4.02	2.05	2.38

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	No
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

BUSINESS OPERATIONS AND FINANCIAL PERFORMANCE:

The overall recessionary conditions prevailing all over the world during the period affected the exports of the company and the total exports (direct and indirect) declined to Rs. 7.491 millions from Rs. 41.515 millions during the previous year. Consequently, the turnover of the company also declined to Rs. 55.069 millions (PY Rs. 89.428 millions). This also led to a corresponding decline in the Profit before tax to Rs. 3.095 millions (PY Rs. 5.864 millions).

During the year, the company has increased its investments in agro-commodities out of its surplus funds. This has not only helped in diversifying the business risk, but also improved returns on the idle funds, thereby helping maintain the profitability during recessionary conditions. The company would continue to look for more opportunities in this area.

FUTURE OUTLOOK:

In the current year, the company intends to focus on looking for alternate export products and markets, so as to get back on the growth path. The management of the company has redoubled its efforts to increase the exports (direct and indirect), which would be the key for future growth.

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.56.74
UK Pound	1	Rs.88.53
Euro	1	Rs.75.20

INFORMATION DETAILS

Report Prepared by :

ANK

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	YES
--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	-

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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.