MIRA INFORM REPORT

Report Date :

12.06.2013

IDENTIFICATION DETAILS

Name :	S KANT PHARMA PRIVATE LIMITED ESKAY FINE CHEMICALS A DIVISION OF S KANT PHARMA PRIVATE LIMITED
Registered Office :	Plot No. 7, Turbhe-Thane Belapur Road, Navi Mumbai - 400705, Maharashtra
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	14.06.1983
Com. Reg. No.:	11-030195
Capital Investment / Paid-up Capital :	Rs. 1.500 Millions
CIN No.: [Company Identification No.]	U24239MH1983PTC030195
PAN No.: [Permanent Account No.]	AAACA1234A
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer and Exporter of Bulk Drugs and Micro Bars.
No. of Employees :	100 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (48)

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

Maximum Credit Limit :	USD 1256000
Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is a well established company having a satisfactory track record. The financial position seems to be strong. Trade relations are reported to be fair. Business is active. Payments are reported to be usually correct and as per commitments. The company can be considered for normal 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	ICRA
Rating Explanation	ICRA has suspended its rating (ICRA) BBB due to lack of information.
Date	September 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.

INFORMATION PARTED BY

Name :	Mr. Dinesh Karkerea
Designation :	Chief Accountant
Contact No.:	91-22-66227575
Date :	11.06.2013

LOCATIONS

Registered Office / Factory :	Plot No. 7, Turbhe-Thane Belapur Road, Navi Mumbai - 400705, Maharashtra, India
Tel. No.:	91-22-23648882/ 27681505/ 27681708
Fax No. :	91-22-23633900/ 27681708
E-Mail :	eskay@sk1932.com eskay@skageexports.com anita@sk1932.com
Website :	http://www.sk1932.com
Area :	1000000 Sq. ft.
Location :	Owned
Administrative Office :	3-A, Shivsagar Estate, Dr. Annie Besant Road, Worli, Mumbai - 400018, Maharashtra, India
Tel. No.:	91-22-66227575
Fax No.:	91-22-66227600/ 66227500/ 23633900
E-Mail :	anuh@skageexports.com info@sk1932.com
Area :	25000 Sq. ft.
Location :	Owned

DIRECTORS

AS ON 24.08.2012

Name :	Mr. Bipin Nemchand Shah
Designation :	Director
Address :	1801, Dev Darshan, 50 Ridge Road, Teen Batti, Mumbai - 400006, Maharashtra, India
Date of Birth/Age :	07.03.1949
Date of Appointment :	03.02.2012
PAN No.:	AACPS5406N
DIN No.:	00083244
Name :	Mr. Ketan Lalit Shah
Designation :	Director
Address :	B2/2, Amalfi, 27/B, L. D. Ruparel Marg, Malabar Hill, Mumbai - 400006, Maharashtra, India
Date of Birth/Age :	26.05.1971
Date of Appointment :	07.03.1996
PAN No.:	AABPS7803G
DIN No.:	00083326
Name :	Mr. Samir Jayantilal Shah
Designation :	Director
Address :	Flat No. 3B, Suvas Apartment, Rungta Lane 68, F. Nepeansea Road, Mumbai -400006, Maharashtra, India
Date of Birth/Age :	22.10.1966
Date of Appointment :	14.03.2007
PAN No.:	AAAFS4445H
DIN No.:	00157396
Name :	Mr. Lalit Popatlal Shah
Designation :	Director
Address :	B2/2, Amalfi, 27/B, L. D. Ruparel Marg, Malabar Hill, Mumbai - 400006, Maharashtra, India
Date of Birth/Age :	02.10.1936
Date of Appointment :	31.03.1998
PAN No.:	AABPS7815C
DIN No.:	00396345

KEY EXECUTIVES

Name :	Mr. Dinesh Karkerea
Designation :	Chief Accountant

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 24.08.2012

Names of Shareholders	No. of Shares
Jayantilal Popatlal Shah	270
Lalitkumar Popatlal Shah	1200
Japosha Investments and Traders Private Limited, India	4530
L. P. Shah Holdings and Traders Private Limited, India	7500
Mrudula Jayantilal Shah	900
Samir Jayantilal Shah	300
Ketan Lalitkumar Shah	300
Total	15000

AS ON 24.08.2012

Equity Share Breakup	Percentage of Holding
Category
Bodies corporate	80.20
Directors or relatives of directors	19.80
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer and Exporter of Bulk Drugs and Micro Bars.
Exports :
Products :	Bulk Drugs and Micro Bars
Countries :	Ø USA Ø UK Ø Japan Ø China Ø Europe Ø Middle East
Imports :
Products :	Raw Material
Countries :	Ø Japan Ø China Ø Europe
Terms :
Selling :	Cash and Credit
Purchasing :	Cash and Credit

GENERAL INFORMATION

Suppliers :

Ø Nirmit Chemicals, Baroda

Customers :

End Users

Ø Anita Medical System Private Limited, Mumbai

No. of Employees :

100 (Approximately)

Bankers :

Bank of India, Worli Naka Branch, Pankaj Mansion, Opposite Podar Hospital, Dr. A. B. Road, Worli Naka, Mumbai – 400018, Maharashtra, India

Facilities :

Total Facility – Rs. 260.000 Millions [Bank of India]

Secured Loans	31.03.2012	31.03.2011
	(Rs. In Millions)
Short Term Borrowings
Loans repayable on demand from banks	0.180	5.087
Total	0.180	5.087

Banking Relations :	--
Auditors :
Name :	Chokshi and Chokshi Chartered Accountants
Address :	15/17, Raghavji 'B' Building, Ground Floor, Raghavji Road, Gowalia Tank, Off Kemps Corner, Mumbai - 400036, Maharashtra, India
Tel. No.:	91-22-23836900
Income-tax PAN of auditor or auditor's firm :	AAAFC2633B
Associates :	Ø S. Kant Healthcare Limited [U24230MH1996PLC098246] Ø Sevatilal Kantilal and Company Ø Bharti and Company Ø Anuh Pharma Limited [L24230MH1960PLC011586] Ø L. P. Shah Holding and Traders Private Limited Ø S. K. Distributors Ø Eskay Specialty Chemicals Ø Eskay Iodine Private Limited [U24100MH2011PTC221911] Ø S.K. Age Export

CAPITAL STRUCTURE

AS ON 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
25,000	Equity Shares	Rs. 100/- each	Rs. 2.500 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
15,000	Equity Shares	Rs. 100/- each	Rs. 1.500 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	1.500	1.500
(b) Reserves & Surplus	312.644	236.770
(c) Money received against share warrants	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000
(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	1.408	2.285
(d) long-term provisions	0.491	0.489
(4) Current liabilities
(a) Short term borrowings	0.180	5.087
(b) Trade payables	278.988	128.578
(c) Other current liabilities	43.280	17.362
(d) Short-term provisions	39.743	16.755
TOTAL	678.234	408.826
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	28.772	29.537
(ii) Intangible Assets	0.000	0.000
(iii) Capital work-in-progress	0.000	0.202
(iv) Intangible assets under development	0.000	0.000
(b) Non-current Investments	100.000	0.000
(c) Deferred tax assets (net)	0.808	0.089
(d) Long-term Loan and Advances	58.049	29.610
(e) Other Non-current assets	13.714	9.900
(2) Current assets
(a) Current investments	154.762	83.706
(b) Inventories	78.823	51.728
(c) Trade receivables	154.949	133.720
(d) Cash and cash equivalents	37.316	45.368
(e) Short-term loans and advances	1.660	2.342
(f) Other current assets	49.381	22.624
TOTAL	678.234	408.826

SOURCES OF FUNDS		31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		1.500
2] Share Application Money		0.000
3] Reserves & Surplus		209.243
4] (Accumulated Losses)		0.000
NETWORTH		210.743
LOAN FUNDS
1] Secured Loans		4.993
2] Unsecured Loans		0.000
TOTAL BORROWING		4.993
DEFERRED TAX LIABILITIES		0.223
TOTAL		215.959
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		31.931
Capital work-in-progress		0.000
INVESTMENT		48.135
DEFERREX TAX ASSETS		0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	34.414
	Sundry Debtors	133.158
	Cash & Bank Balances	68.482
	Other Current Assets	5.309
	Loans & Advances	26.932
Total Current Assets		268.295
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	117.633
	Current Liabilities	1.660
	Provisions	13.109
Total Current Liabilities		132.402
Net Current Assets		135.893
MISCELLANEOUS EXPENSES		0.000
TOTAL		215.959

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income		593.992	418.272
		Other Income		53.498	29.729
		TOTAL (A)	1221.277	647.490	448.001
Less	EXPENSES
		Cost of Material Sold		3.709	7.015
		Manufacturing Expenses		543.690	362.883
		Administrative, Selling and Other Expenses		51.580	36.731
		Prior Period Expenses		0.088	0.006
		TOTAL (B)	1106.379	599.067	406.635
	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		[Including Financial and Depreciation Expenses]	48.423	41.366
Less	FINANCIAL EXPENSES (D)			0.063	1.358
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)			48.360	40.008
Less/ Add	DEPRECIATION/ AMORTISATION (F)			4.391	4.891
	PROFIT BEFORE TAX (E-F) (G)		114.898	43.969	35.117
Less	TAX (H)		37.281	14.688	10.992
	PROFIT AFTER TAX (G-H) (I)		77.617	29.281	24.125
	EARNINGS IN FOREIGN CURRENCY
		FOB Value of Exports	777.219	190.150	108.395
	IMPORTS
		Raw Materials	857.571	450.696	257.227
	Earnings Per Share (Rs.)		5174.47	1952.07	1608.37

Particulars	31.03.2013
Sales Turnover (Approximately)	1390.000

Expected Sales (2013-2014): Rs. 1500.000 Millions

The above information has been parted by Mr. Dinesh Karkerea [Chief Accountant]

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	6.36	4.52	5.39
Net Profit Margin (PBT/Sales)	(%)	NA	7.40	8.40
Return on Total Assets (PBT/Total Assets}	(%)	19.90	10.76	11.70
Return on Investment (ROI) (PBT/Networth)		0.37	0.18	0.17
Debt Equity Ratio (Total Debt/Networth)		0.00	0.02	0.02
Current Ratio (Current Asset/Current Liability)		1.59	2.43	2.03

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	Yes
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 five years	Yes
12]	Profitability for last three years	Yes
13]	Reasons for variation <> 20%	--
14]	Estimation for coming financial year	Yes
15]	Capital in the business	Yes
16]	Details of sister concerns	Yes
17]	Major suppliers	Yes
18]	Major customers	Yes
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	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	Yes
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	Yes

FUTURE OUTLOOK:

The Company is deploying its resources in the best possible way to increase business volumes and plans to achieve increased business in the current year.

BANKERS CHARGES REPORT AS PER REGISTRY

Corporate identity number of the company	U24239MH1983PTC030195
Name of the company	S KANT PHARMA PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	Plot No. 7, Turbhe-Thane Belapur Road, Navi Mumbai - 400705, Maharashtra, India Email: eskay@sk1932.com
This form is for	Modification of charge
Charge identification number of the modified	90227838
Type of charge	Movable property (not being pledge)
Particular of charge holder	Bank of India, Worli Naka Branch, Pankaj Mansion, Opposite Podar Hospital, Dr. A. B. Road, Worli Naka, Mumbai – 400018, Maharashtra, India Email: WorliNaka.MumbaiSouth@bankofindia.co.in
Nature of description of the instrument creating or modifying the charge	Supplemental Deed of Hypothecation.
Date of instrument Creating the charge	10.05.2012
Amount secured by the charge	Rs.260.000 Millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest Interest/commission at the rate/s as mentioned in the copy of supplemental Deed attached or at such other rate/s as may be notified by Bank from time to time. Terms of Repayment On Demand. Margin As specified by the Bank from time to time. Extent and Operation of the charge Security in favour of Bank as first charge for due payment of all monies including the principal sums/interest/commission, costs, charges and expenses and all other moneys, whatsoever due owing and payable by the borrower to Bank under or in respect of or in connection with or in anywise concerning or relating to the said facilities agreed to be granted and/or granted by the Bank to the borrower as aforesaid and Also for due repayment of all present and future indebtedness and liabilities of the borrower to the Bank of any kind in any manner whether solely or jointly, primary or collateral, accrued or accruing with all relative interest/commission, charges, costs (between Advocate and client) and expenses. Revised Facility and Limits (Rs. in Millions): i) CC (St./ BD (upto 90 days)): Rs.10.000 ii) IBP/IBD 90 days: Rs.10.000 iii) EPC (90 days): Rs.10.000 iv) FBP/FBN: (150 days): Rs.10.000 Max FBL: Rs.10.000 NFBL v) LC (I/F) DP/DA 180 days, Buyers Credit: (upto 180 days) Rs.249.000 vi) BG (I/F): Rs.1.000 Max NFBL :Rs.250.000 Total Max :Rs.260.000.
Short particulars of the property charged	Hypothecation of Fine Pharmaceutical chemicals including therein stocks thereof for the time being whether raw or manufactured or in process of manufacture. And also all producers goods and any and every tangible movable property of the borrower lying at Plot No. 7, Thane Belapur Road, Thane or wherever else the same may be.
Date of Modification	13.02.2006
Particulars of the present modification	The charge on hypothecated assets now stands revised to Rs.260.000 Millions. The Address of the Bank as charge holder is Changed from Opera House Branch to Worli Naka Branch Revised Facility and Limits (Rs. in Millions): i) CC (St./ BD (upto 90 days)) :Rs.10.000 ii) IBP/IBD 90 days: Rs.10.000 iii) EPC (90 days): Rs.10.000 iv) FBP/FBN: (150 days): Rs.10.000 Max FBL: Rs.10.000 NFBL v) LC (I/F) DP/DA 180 days, Buyers Credit: (upto 180 days) Rs.249.000 vi) BG (I/F): Rs.1.000 Max NFBL: Rs.250.000 Total Max : Rs.260.000.

TRADE REFERENCES:

Ø Anita Medical System Private Limited, Mumbai

Ø Nirmit Chemicals, Baroda

FIXED ASSETS:

Ø Buildings

Ø Plant and equipment

Ø Furniture and fixtures

Ø Vehicles

Ø Laboratory Equipment

Ø Material storage and Handling Equipment

Ø Electrical Installation

Ø Computers

Ø Office Equipment

Ø Factory Building

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. 58.93
UK Pound	1	Rs. 91.81
Euro	1	Rs. 78.18

INFORMATION DETAILS

Information Gathered by :	SVA
Report Prepared by :	BVA

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	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTERS
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		48

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.