MIRA INFORM REPORT

Report Date :

11.06.2013

IDENTIFICATION DETAILS

Name :	SAGAR DRUGS AND PHARMACEUTICALS PRIVATE LIMITED
Registered Office :	38/3 and 46/1, Kanbhakuha Road, Singarwa, Taluka Dascrol, Ahmedabad – 382430, Gujarat
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	26.02.1985
Com. Reg. No.:	04-007679
Capital Investment / Paid-up Capital :	Rs. 2.500 Millions
CIN No.: [Company Identification No.]	U24231GJ1985PTC007679
Legal Form :	Private Limited Liability Company
Line of Business :	Subject is engaged in the business of manufacturing dyes and dye intermediates.
No. of Employees :	Information declined by the management

RATING & COMMENTS

MIRA’s Rating :

Ba (47)

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

Maximum Credit Limit :	USD 1200000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is an established company having a satisfactory track record. There appears slight dip in its sales during 2012. However, general financial strength seems to be good. Trade relations are reported to be fair. Business is active. Payments are reported to be usually correct and as per commitment. The company can be considered for normal business dealings at usual trade terms and condition.

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

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.

INFORMATION DECLINED BY

Name :	Ms. Binal Denasri
Designation :	Accountant
Contact No.:	91-79-26308930
Date :	10.06.2013

LOCATIONS

Registered Office :	38/3 and 46/1, Kanbhakuha Road, Singarwa, Taluka Dascrol, Ahmedabad – 382430, Gujarat, India
Tel. No.:	91-79-26308930
Fax No.:	Not Available
E-Mail :	info@sagardrugs.com

DIRECTORS

As on 17.09.2012

Name :	Mr. Rohibhai Jayantibhai Patel
Designation :	Managing Director
Address :	D/2, Rajhans Society, Ellisbridge, Ahmedabad- 380006, Gujarat, India
Date of Birth/Age :	27.08.1952
Date of Appointment :	01.10.1998
DIN No.:	0140.3023
Name :	Mrs. Meenaben Rohitbhai Patel
Designation :	Director
Address :	D/2, Rajhans Society, Ellisbridge, Ahmedabad- 380006, Gujarat, India
Date of Birth/Age :	01.01.1956
Date of Appointment :	20.02.2004
DIN No.:	01367569
Name :	Mr. Ankur Rohitbhai Patel
Designation :	Whole –time Director
Address :	D/2, Rajhans Society, Ellisbridge, Ahmedabad- 380006, Gujarat, India
Date of Birth/Age :	05.11.1979
Date of Appointment :	29.09.1999
DIN No.:	01367495
Name :	Mr. Sagar Rohitbhai Patel
Designation :	Director
Address :	D/2, Rajhans Society, Ellisbridge, Ahmedabad- 380006, Gujarat, India
Date of Birth/Age :	17.02.1984
Date of Appointment :	03.03.2003
DIN No.:	01367729

KEY EXECUTIVES

Name :	Ms. Binal Denasri
Designation :	Accountant

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 17.09.2012

Names of Shareholders	No. of Shares
Sar Investment Private Limited	98000
Jay Investment Private Limited	97500
Rohitbhai Patel	39300
Meenaben Patel	100
Ankurbhai Patel	5040
Sagarbhai Patel	6040
Ankurbhai Patel	2000
Sagarbhai Patel	2000
Shilpaben Patel	20
Total	250000

Equity Share Break up (Percentage of Total Equity)

As on 17.09.2012

Category	Percentage
Bodies corporate	78.20
Directors or relatives of Directors	21.80
Total	100.00

BUSINESS DETAILS

Line of Business :

Subject is engaged in the business of manufacturing dyes and dye intermediates.

PRODUCTION STATUS (As on 31.03.2011)

Particulars	Unit	**Installed Capacity	**Actual Production
Dye intermediates	M.T	5320	1017

Note: Certified by the Company and being technical matter not verified by Auditors.

GENERAL INFORMATION

No. of Employees :

Information declined by the management

Bankers :

Bank of India, Ahmedabad Main Branch Mezzanine Floor, Bank of India Building Bhadra, Ahmedabad – 380001, Gujarat, India

Facilities :

Secured Loan	31.03.2012 (Rs. in Millions)	31.03.2011 (Rs. in Millions)
Deferred Payment Liabilities
Vehicle Hire Purchase Loans	1.966	4.563
Less: Loan installments payable within one year	1.862	0.000
Total	0.104	4.563

Banking Relations :	--
Auditors :
Name :	Darshan Shah and Associates Chartered Accountants
Address :	A-6, Ground Floor, Vasupuya Chambers, Income Tax, Ashram Road, Ahmedabad – 380014, Gujarat, India
PAN No.:	ABIPS3385F
Associates/Subsidiaries :	Gpsar Healthcare Limited CIN: U24230GJ1999PLC035606

CAPITAL STRUCTURE

As on 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
250000	Equity Shares	Rs.10/- each	Rs. 2.500 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
250000	Equity Shares	Rs.10/- each	Rs. 2.500 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		2.500	2.500	2.500
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		303.954	299.213	297.171
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		306.454	301.713	299.671
LOAN FUNDS
1] Secured Loans		0.104	4.563	2.820
2] Unsecured Loans		19.371	43.260	56.604
TOTAL BORROWING		19.475	47.823	59.424
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		325.929	349.536	359.095
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		32.815	34.396	36.868
Capital work-in-progress		7.374	1.384	0.000
INVESTMENT		58.175	100.324	104.001
DEFERRED TAX ASSETS		0.677	0.574	1.179
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	35.912	36.634	26.828
	Sundry Debtors	32.647	20.322	28.790
	Cash & Bank Balances	21.057	12.317	4.775
	Other Current Assets	1.723	3.226	0.846
	Loans & Advances	156.752	162.341	173.598
Total Current Assets		248.091	234.840	234.837
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	13.930	10.570	11.449
	Other Current Liabilities	6.961	11.100	6.025
	Provisions	0.312	0.312	0.316
Total Current Liabilities		21.203	21.982	17.790
Net Current Assets		226.888	212.858	217.047
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		325.929	349.536	359.095

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	126.120	133.402
		Other Income	11.993	14.886
		TOTAL (A)	138.113	148.288	160.978
Less	EXPENSES
		Cost of Material Consumed	65.485	65.292
		Purchase of Trading Goods	4.132	0.315
		Purchase of Trading Goods (c) Changes In inventories of Finished Goods, Work-in-progress and Stock- in--trade	-2.579	-2.662
		Employee Benefits Expenses	8.364	10.268
		Other Expenses	51.555	63.203
		TOTAL (B)	126.957	136.416	174.786 (Including Financial Expenses)
Less	PROFIT / (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		11.156	11.872
Less	FINANCIAL EXPENSES (D)		0.704	0.611
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		10.452	11.261	(13.808)
Less/ Add	DEPRECIATION/ AMORTISATION (F)		5.523	4.773	5.247
	PROFIT / (LOSS) BEFORE TAX (E-F) (G)		4.929	6.488	(19.055)
Less	TAX (H)		(0.103)	4.155	(0.003)
	PROFIT / (LOSS) AFTER TAX (G-H) (I)		5.032	2.333	(19.052)
	APPROPRIATIONS
		Transfer to General Reserve	2.500	2.500	2.500
		Dividend	0.250	0.250	0.250
		Corporate Tax on Dividend	0.041	0.041	0.042
	BALANCE CARRIED TO THE B/S		266.305	264.064	264.522
	EARNINGS IN FOREIGN CURRENCY		35.515	74.727	73.691
	Earnings/ (Loss) Per Share (Rs.)		20.13	9.33	(76.21)

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	3.64	1.57	(11.84)
Net Profit Margin (PBT/Sales)	(%)	3.91	4.86	NA
Return on Total Assets (PBT/Total Assets}	(%)	1.99	2.76	(8.11)
Return on Investment (ROI) (PBT/Networth)		0.02	0.02	(0.06)
Debt Equity Ratio (Total Debt /Networth)		0.06	0.16	0.20
Current Ratio (Current Asset/Current Liability)		11.70	10.68	13.20

LOCAL AGENCY FURTHER INFORMATION

SUNDRY CREDITORS DETAILS:

Particulars	31.03.2012	31.03.2011	31.03.2010
	(Rs. In Millions)
Sundry Creditors	13.930	10.570	11.449
Total	13.930	10.570	11.449

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	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	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

OPERATIONS

During the year, the Company has earned income of Rs. 138.100 Millions against Rs. 148.300 Millions in the previous year. The Company had earned Profit after Tax of Rs 5.032 Millions as compared to the profit after Tax of Rs. 2.333 Millions in the previous year. The directors are hopeful to make a improve the position in the coming years.

FUTURE PROSPECTUS

The outcome of the research and development of the products of the company has shown good results and new products being developed by the company are accepted in the international market from quality and cost point of view. The Directors are confident to achieve better result in future.

SUBSIDIAIIY COMPANIES

M/s. SAR Oraganisers Private Limited is the wholly owned subsidiary and M/s. GPSAR Healthcare Limited is the subsidiary company of the Company. The audited copy of accounts of above subsidiaries is attached for the information. The investment in SAR Organizers Private Limited is 99.99% and the investment in GPSAR Healthcare Limited is 52%

CORPORATE INFORMATION

The Company is engaged in the business of manufacturing dyes and dye intermediates.

These financial statements have been prepared on an accrual basis and under historical cost convention and in compliance, in all material aspects, with the applicable accounting principles in India, the applicable accounting standards notified under Section 211 (3C) and the other relevant provisions of the Companies Act, 1956.

All the assets and liabilities have been classified as current or non-current as per the Company's normal operating cycle and other criteria set out in Schedule VI to the Companies Act, 1956. Based on the nature of products and the time between the acquisition of assets for processing and their realization in cash and cash equivalent, the Company has ascertained its operating cycle to be less than 12 months

UNSECURED LOAN

PARTICULARS	31.03.2012 (Rs. in Millions)	31.03.2011 (Rs. in Millions)
Installment payable within one year	1.862	0.000
Loan from Directors	17.509	43.260
Total	19.371	43.260

BANKERS CHARGES REPORT AS PER REGISTRY

Corporate identity number of the company	U24231GJ1985PTC007679
Name of the company	SAGAR DRUGS AND PHARMACEUTICALS PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	38/3 and 46/1, Kanbhakuha Road, Singarwa, Taluka Dascrol, Ahmedabad – 382430, Gujarat, India Email: info@sagardrugs.com
This form is for	Creation of charge Modification of charge
Charge identification (ID) number of the charge to be modified	90100039
Type of charge	· Immovable property · Any interest in immovable property
Particular of charge holder	CIN: U24231GJ1985PTC007679 Bank of India, Ahmedabad Main Branch Mezzanine Floor, Bank of India Building Bhadra, Ahmedabad – 380001, Gujarat, India Email: ahmedabad.ahmedabad@bankofindia.co.in
Nature of instrument creating charge	Supplemental memorandum of entry for extension of equitable mortgage charge on immovable properties executed by the company to secure the modified and revised fund based and non fund based total aggregate credit facilities of Rs. 27.500 Millions registered with SRO Ahmedabad - 12 (Nikol) at Sr No 4050 of book no 1 on 25.04.2012 containing 27 pages
Date of instrument Creating the charge	25.04.2012
Amount secured by the charge	Rs. 27.500 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest CC STK / BD - 2.75% Above BR Presently 13.25% P. A. On Monthly Rest Basis or such other rate as may BE pres by bk fm time to time EPC / FBP / FBN / IBP / IBN / LC / GUA - AS Per BK rules Terms of Repayment CC Stocks / CC BK DTS - ON Demand/ Annual Review EPC - ON Demand/ Annual Review FBP / FBN / IBP / IBN - ON Demand/ Annual Review LC - ON Demand/ Annual Review Bank Guarantee - On Demand/ Annual Review Margin CC Stocks - 25%, CC Book Debts - 40% EPC - 10%, FBP / FBN - NIL, IBP / IBN - 10% LC - 25%, GUA - 10% Extent and Operation of the charge First and exclusive charge by way of equitable mortgage extended / modified on all immovable properties being building, sheds, structures, const and fixed plant and machinery of the company in favour of boi to secure the modified and revised fund based and nonf fund based total aggregate facilities of Rs. 27.500 Millions along with interest, additional interest penal interest liquidated damages, costs, charges, commission and all other amt due to the bank from time to time of what so ever nature. Others Amt Rs In Millions Existing Limits Rs 31.000 Revised Limits Rs. 27.500
Short particulars of the property or asset(s) charged (including complete address and location of the property)	All The Peice and Parcel Of Prop Being Bldg, Const, Sheds, Super Structures Adm 4012 Sq Mtr With All Amenities Const On Land Sur No 38/3 and Sur No 46/1 Mouje Singarva Taluka Dascroi District Ahmedabad
Date of instrument modifying the charge	12.05.2005
Particulars of the present modification	Bank has granted additional credit facilities of Rs. 61.000 Millions with max modified and revised fb + nfb aggregate limits to Rs. 27.500 Millions and thereby total aggregate fb and nfb limits are modified and revised fm Rs 31.000 Millions to Rs. 27.500 Millions and thus equitable mortgage on immovable properties of the co being buildings, sheds, structures and constr and fixed plant and mach will extend and operate for Rs. 27.500 Millions w. E. F. 25.04.2012.

FIXED ASSETS

Tangible Assets

• Land
• Building
• Roads and Machinery
• Plant and Machines
• Office Equipments
• Computers
• Furniture and Fixtures
• Vehicle

Intangible Assets

• Trade Mark Development
• Computer Software

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.57.78
UK Pound	1	Rs.89.71
Euro	1	Rs.76.24

INFORMATION DETAILS

Information Gathered by :	SVA
Report Prepared by :	KVT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	6
--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	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		47

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.