MIRA INFORM REPORT

Report Date :

13.06.2013

IDENTIFICATION DETAILS

Name :	HESTER BIOSCIENCES LIMITED (w.e.f. 19.02.2008)
Formerly Known As :	HESTER PHARMACEUTICALS LIMITED HESTER PHARMACEUTICALS PRIVATE LIMITED
Registered Office :	1st Floor, 'Pushpak', Panchvati Cross Road, C.G. Road, Ahmedabad – 380006, Gujarat
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	29.04.1987
Com. Reg. No.:	04-022333
Capital Investment / Paid-up Capital :	Rs.56.712 Millions
CIN No.: [Company Identification No.]	L99999GJ1987PLC022333
PAN No.: [Permanent Account No.]	AAACH2863B
Legal Form :	A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges.
Line of Business :	Manufacturer of Poultry Vaccines.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (50)

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

Maximum Credit Limit :	USD 2400000
Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is a well established company having a satisfactory track record. Company has performed well during 2012, and also has achieved better growth. Liquidity position of the company is healthy. Debtors and Inventory management should be looked upon, in order to drive sustained improvement in cash accruals and lessen down the dependency on the external borrowings. However, trade relations are fair. Business is active. Payments are reported as 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	CRISIL
Rating	BBB (Long Term Rating)
Rating Explanation	Moderate degree of safety and moderate credit risk.
Date	October 18, 2012

Rating Agency Name	CRISIL
Rating	A3+ (Short Term Rating)
Rating Explanation	Moderate degree of safety and higher credit risk.
Date	October 18, 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 :	1st Floor, 'Pushpak', Panchvati Cross Road, C.G. Road, Ahmedabad – 380006, Gujarat, India
Tel. No.:	91-79-26445106/ 26445107
Fax No.:	91-79-26445105
E-Mail :	mail@hesterbiosciences.co.in
Website :	http://www.hesterbiosciences.co.in
Factory :	Village: Merda-Ardraj, Taluka: Kadi District: Mehsana - 382721, Gujarat, India
Tel. No.:	91-2764-285502/ 285454
Fax No.:	91-2764-285673
E-Mail :	plant@hesterbiosciences.co.in

DIRECTORS

As on: 14.09.2012

Name :	Mr. Bhupendra Vittaldas Gandhi
Designation :	Director
Address :	3A, Sherbanu, 111, Maharshi Karve Road, Mumbai – 400020, Maharashtra, India
Date of Birth/Age :	16.10.1942
Date of Appointment :	03.12.1992
PAN No.:	AABPG9647G
DIN No.:	00437907
Name :	Mr. Rajiv Dinesh Gandhi
Designation :	Managing Director
Address :	3-B, 399 Apartment, Bodadev, Ahmedabad – 380054, Gujarat, India
Date of Birth/Age :	11.07.1962
Date of Appointment :	29.04.1987
PAN No.:	AABPG9730G
DIN No.:	00438037
Name :	Mr. Sanjiv Dinesh Gandhi
Designation :	Director
Address :	22/23, Franklin Apartment, Palimala Road, Bandra (West), Mumbai – 400050, Maharashtra, India
Date of Birth/Age :	15.03.1965
Date of Appointment :	29.04.1987
PAN No.:	AABPG9729P
DIN No.:	00024548
Name :	Mr. Darayus Noshir Lakdawalla
Designation :	Director
Address :	224, Gusted Mansion J, Dalal Road, Tardeco, Mumbai – 400007, Maharashtra, India
Date of Birth/Age :	18.02.1961
Date of Appointment :	01.03.1990
DIN No.:	00438231
Name :	Mr. Ravin Kanti Gandhi
Designation :	Director
Address :	174, Delaware Unit, 5409, Chicago IL, 60611, USA
Date of Birth/Age :	06.07.1973
Date of Appointment :	22.04.1999
PAN No.:	ADZPG9942K
DIN No.:	00438361
Name :	Mr. Vimal Ramniklal Ambani
Designation :	Director
Address :	Vimal House, Near Stadium, Navrangpura, Ahmedabad – 380009, Gujarat, India
Date of Birth/Age :	26.10.1961
Date of Appointment :	01.02.2003
DIN No.:	00351512
Name :	Mr. Abhinava Ramprasad Shukla
Designation :	Director
Address :	A6, Malay Society, Near Shreyas Crossing, Ambawadi, Ahmedabad – 380015, Gujarat, India
Date of Birth/Age :	06.10.1945
Date of Appointment :	21.04.2005
DIN No.:	00438506
Name :	Mr. Vishwesh Patel
Designation :	Director
Address :	199, Revranya Society, Shreyas Tekra, Opposite Yoga Society, Ahmedabad – 380015, Gujarat, India
Date of Birth/Age :	15.01.1977
Date of Appointment :	23.05.2010
DIN No.:	00503666
Name :	Dr. Parimal D. Tripathi
Designation :	Alternate Director
Address :	134, Goyal Park, Vastrapur, Ahmedabad – 380015, Gujarat, India
Date of Birth/Age :	11.07.1959
Date of Appointment :	27.06.2003

KEY EXECUTIVES

Name :	Ms. Amala G Parikh
Designation :	Secretary
Address :	A/11, Sumeru Bunglow, Behind Sunrise Park, Vastrapur, Ahmedabad – 380054, Gujarat, India
Date of Birth/Age :	07.11.1957
Date of Appointment :	01.04.2009
PAN No.:	AFUPS6363R

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on: 31.03.2013

Category of Shareholders	No. of Shares	Percentage of Holding
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	3354291	39.43
Bodies Corporate	362838	4.27
Sub Total	3717129	43.70
(2) Foreign
Individuals (Non-Residents Individuals / Foreign Individuals)	803955	9.45
Sub Total	803955	9.45
Total shareholding of Promoter and Promoter Group (A)	4521084	53.15
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	11500	0.14
Foreign Institutional Investors	31222	0.37
Sub Total	42722	0.50
(2) Non-Institutions
Bodies Corporate	347810	4.09
Individuals
Individual shareholders holding nominal share capital up to Rs. 0.100 Million	1202420	14.13
Individual shareholders holding nominal share capital in excess of Rs. 0.100 Million	1915967	22.52
Any Others (Specify)	476797	5.60
Non Resident Indians	469292	5.52
Any Other	5	0.00
Foreign Nationals	7500	0.09
Sub Total	3942994	46.35
Total Public shareholding (B)	3985716	46.85
Total (A)+(B)	8506800	100.00
(C) Shares held by Custodians and against which Depository Receipts have been issued	0	0.00
(1) Promoter and Promoter Group	0	0.00
(2) Public	0	0.00
Sub Total	0	0.00
Total (A)+(B)+(C)	8506800	0.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Poultry Vaccines.

Products :

Product Description	ITC Code
Gumboro I+	30023900

PRODUCTION STATUS (As on: 31.03.2011)

Particulars	Unit	Installed Capacity	Actual Production
Poultry Vaccines	in million doses	4800	2763.25

Note: Actual Production comprises of 147249 (Prev.Yr.202794) Bottles of Killed Vaccines and 1132894 (Prev.Yr.1330732) Vials of Live Vaccines.

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

Bank of India, Navrangpura Branch Ground Floor Boi Building, Near Swastik Char Rasta C G Road Navrangpura, Ahmedabad - 380009, Gujarat, India

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2012	As on 31.03.2011
LONG TERM BORROWINGS
Term loans from banks	9.873	30.174
Loans repayable on demand from banks (Hire Purchase loans from Banks)	2.865	3.893
Loans repayable on demand from others (Hire Purchase loans from other Parties)	0.148	1.026
SHORT TERM BORROWINGS
Loans repayable on demand from banks (From Bank- Cash Credit)	127.316	147.853
Total	140.202	182.946

Banking Relations :	--
Auditors :
Name :	Shah Nariealwala and Company Chartered Accountants
Address :	608, Shitiratna, Near Panchwati Circle, Panchwati, Ellisbridge, Ahmedabad – 380006, Gujarat, India
PAN No.:	AAHFS7086F
Subsidiary Company :	Hester Biosciences (Mauritius) Limited
Associates :	· Hester Coatings Private Limited CIN No.: U45201GJ1995PTC026168 · Sinsui India Private Limited CIN No.: U24239GJ2000PTC038922

CAPITAL STRUCTURE

As on: 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
10500000	Equity Shares	Rs.10/- each	Rs.105.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
5671200	Equity Shares	Rs.10/- each	Rs.56.712 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	56.712	51.912
(b) Reserves & Surplus	543.784	411.503
(c) Money received against share warrants	0.000	0.000
(2) Share Application money pending allotment	0.000	16.440
(3) Non-current liabilities
(a) long-term borrowings	12.886	35.093
(b) Deferred tax liabilities (Net)	24.480	25.458
(c) Other long term liabilities	0.000	0.000
(d) long-term provisions	0.000	0.000
(4) Current liabilities
(a) Short term borrowings	127.316	147.853
(b) Trade payables	40.035	33.261
(c) Other current liabilities	42.138	47.090
(d) Short-term provisions	72.109	48.655
TOTAL	919.460	817.265
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	364.424	390.232
(ii) Intangible Assets	0.902	1.483
(iii) Capital work-in-progress	63.039	0.444
(iv) Intangible assets under development	0.000	0.000
(b) Non-current Investments	25.000	25.000
(c) Deferred tax assets (net)	0.000	0.000
(d) Long-term Loan and Advances	30.002	25.091
(e) Other Non-current assets	0.000	0.000
(2) Current assets
(a) Current investments	0.000	0.000
(b) Inventories	275.628	226.797
(c) Trade receivables	143.636	132.173
(d) Cash and cash equivalents	11.934	9.087
(e) Short-term loans and advances	4.895	6.958
(f) Other current assets	0.000	0.000
TOTAL	919.460	817.265

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		51.912
2] Share Application Money		0.000
3] Reserves & Surplus		356.729
4] (Accumulated Losses)		0.000
NETWORTH		408.641
LOAN FUNDS
1] Secured Loans		201.490
2] Unsecured Loans		0.000
TOTAL BORROWING		201.490
DEFERRED TAX LIABILITIES		26.548
TOTAL		636.679
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		398.362
Capital work-in-progress		0.000
INVESTMENT		0.000
DEFERREX TAX ASSETS		0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	169.616
	Sundry Debtors	110.158
	Cash & Bank Balances	9.571
	Other Current Assets	0.000
	Loans & Advances	121.730
Total Current Assets		411.075
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	28.256
	Other Current Liabilities	11.089
	Provisions	133.413
Total Current Liabilities		172.758
Net Current Assets		238.317
MISCELLANEOUS EXPENSES		0.000
TOTAL		636.679

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	482.634	419.714	375.323
		Other Income	2.439	1.314	0.811
		TOTAL (A)	485.073	421.028	376.134
Less	EXPENSES
		Cost of materials consumed	119.213	113.757
		Purchases of stock-in-trade	6.720	1.891
		Changes in inventories of finished goods, work-in-progress and stock-in-trade	(51.449)	(54.585)
		Employee benefit expense	68.681	58.193
		Prior period items	0.206	0.000
		Other expenses	150.181	119.879
		TOTAL (B)	293.552	239.135	214.176
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		191.521	181.893	161.958
Less	FINANCIAL EXPENSES (D)		28.269	25.276	23.625
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		163.252	156.617	138.333
Less/ Add	DEPRECIATION/ AMORTISATION (F)		41.234	44.779	42.334
	PROFIT BEFORE TAX (E-F) (G)		122.018	111.838	95.999
Less	TAX (H)		44.106	35.878	35.667
	PROFIT AFTER TAX (G-H) (I)		77.912	75.960	60.332
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		117.390	82.620	55.850
Less	APPROPRIATIONS
		Dividend on equity shares	5.670	18.170	15.570
		Dividend Tax	0.920	3.020	2.590
		General Reserve	40.000	20.000	15.400
	BALANCE CARRIED TO THE B/S		148.720	117.390	82.620
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	29.210	32.980	7.780
	TOTAL EARNINGS		29.210	32.980	7.780
	IMPORTS
		Raw Materials	44.521	44.530	29.406
	TOTAL IMPORTS		44.521	44.530	29.406
	Earnings Per Share (Rs.)		13.74	14.63	11.62

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	16.06	18.04	16.04
Net Profit Margin (PBT/Sales)	(%)	25.28	26.65	25.58
Return on Total Assets (PBT/Total Assets}	(%)	14.68	14.12	11.86
Return on Investment (ROI) (PBT/Networth)		0.20	0.24	0.23
Debt Equity Ratio (Total Debt/Networth)		0.23	0.38	0.49
Current Ratio (Current Asset/Current Liability)		1.55	1.35	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	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	--
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	No
29]	Last accounts filed at ROC	No
30]	Major Shareholders, if available	No
31]	Date of Birth of Proprietor/Partner/Director, if available	No
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	Yes

REVIEW OF OPERATIONS

The last financial year saw a steady growth in the sales. The sales area coverage within India remained the same, thereby giving an indication of growth in terms of market share.

FUTURE PROSPECTS

Their company is poised for a upward spiral growth in the coming years. Beginning this financial year, Hester has launched 3 additional divisions - Large Animal Biologicals, Large Animal healthcare and Poultry healthcare, besides its existing Poultry Biologicals division. The products in the new division would be launched in phases beginning from October 2012. With the launch of these divisions, Hester expects a better penetration in the domestic as well as in the international veterinary market.

Bankers Charges Report as per Registry

Corporate identity number (CIN) or foreign company registration number of the company	L99999GJ1987PLC022333
Name of the company	HESTER BIOSCIENCES LIMITED
Address of the registered office or of the principal place of business in India of the company	1st Floor, 'Pushpak', Panchvati Cross Road, C.G. Road, Ahmedabad – 380006, Gujarat, India E-mail: mail@hesterbiosciences.co.in
This form is for	Modification of charge
Charge identification (ID) number of the charge to be modified	10067558
Type of charge	· Immovable property · Any interest in immovable property
Particular of charge holder	Bank of India, Navrangpura Branch Ground Floor Boi Building, Near Swastik Char Rasta C G Road Navrangpura, Ahmedabad - 380009, Gujarat, India E-Mail: navrangpura.ahmedabad@bankofindia.co.in
Nature of instrument creating charge	Supplemental memorandum of entry for extension of EQ mortgage dated 24.09.2012 for extension of equitable mortgage Ch on immov prop of the co to secure modified, revised and increased fund based and non fund based total aggregate limits of Rs. 281.900 Millions Regd with sub registrar SRO Kadi at Sr no 4719 of BK No 1 on 24.09.2012 containing 30 pages
Date of instrument Creating the charge	24.09.2012
Amount secured by the charge	Rs.281.900 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest TM LN III and IV - 4% + BR Prsntly 14.50% P. A. CC - 3.50% + BR Prsntly 14% P. A. or such other rate as may be prescribed by bk from time to time STR CHNL / BK GUA - as Appl fm time to time Terms of Repayment Term Loan III - 20 qtrly instalments of Rs. 11.50 Millions each commenced fm oct 2010 Term Loan IV - 20 qtrly instalments of Rs. 46.75 Millions each commencing after 6 months of first disbursement CC Stock - on demand / annual review CC book debts - on demand / annual review star CHNL / BK GUA - on demand / annual review Margin CC STKS - 25%, CC BK DTS - 40%, TM LN III - 25%, TL IV - 25.20% Star Channel Credit - NIL Bank GUA - 115% Extent and Operation of the charge First and Exclusive Eq Mortgage Ch On All Immovable Prop I. E. Land and Buildings, Sheds Structures and Plant and Mach Attached To The Earth Situate At Village Merda Ta Kadi Dist Mehsana and Pushpak, Ahd To Secure Modified, Revised and Increased Tot Fund Based and Non Fund Based Aggregate Lim of rs 281.900 Millions alongwith interest, addl int, penal interest, liquidated damages, costs, charges and commission and such other amt due to the bank of what so ever nature Others Revised Limits - Amt Rs In Millions Existing FB and NFB Limits Rs.245.100 Millions Additional Limits Rs.113.50 Millions Total Max Aggregate Limits Rs. 281.900 Millions
Short particulars of the property or asset(s) charged (including complete address and location of the property)	All the immovable prop i. E. Land situate at rev survey no 1972 adm 12444 sq mtrs at vil merda - Adraj Taluka Kadi District Mehsana and all buildings, sheds, structure and P and M attached to earth All the immovable prop i. E. Land situate at rev survey no 1973 Adm 16635 Sq Mtrs At Vil Merda - Adraj Taluka Kadi District Mehsana and All Buildings, Sheds, Structure and P and M attached to earth All the immovable prop i. E. Land situate at rev Survey No 1975 Paiki 2 Adm 11368 Sq Mtrs At Vil Merda - Adraj Taluka Kadi District Mehsana and All Buildings, Sheds, Structure and P and M attached to earth All the immovable prop i. E. Land situate at rev Survey No 1976 Paiki 2 Adm 3851 Sq Mtrs At Vil Merda - Adraj Taluka Kadi District Mehsana and All Buildings, Sheds, Structure and P and M attached to earth All the immovable prop i. E. Land situate at rev Survey No 1977 Paiki 2 Adm 6632 Sq Mtrs At Vil Merda - Adraj Taluka Kadi District Mehsana and All Buildings, Sheds, Structure and P and M attached to earth All piece and parcel of 1st Floor Adm 2825 Sq Fts Eq To 262.42 Mtrs in com complex knw as 'pushpak' on na land bearing f p no 681/9 of t p scheme no 3/6 mouje : chahdavad, Taluka : city, Reg District Ahm
Date of instrument modifying the charge	24.09.2012
Particulars of the present modification	Bank has granted additional FB and NFB LIM of Rs. 113.500 Millions thereby total FB and NFB aggregate LIM are modified and revised and increased fm Rs. 245.100 Millions to Rs. 281.900 Millions. Thus first and exclusive equitable mortgage Ch on all immovable properties of the co being land, bldg, sheds, structures and fixed plant and mach etc has been extended and will operate for Rs. 281.900 Millions w. E. F. 24.09.2012

FIXED ASSETS

Tangible Assets

· Land

· Buildings

· Plant and Equipment

· Factory Equipments

· Furniture and Fixtures

· Vehicles

· Office Equipment

· Computer Equipments

· Livestock

Intangible Assets

· Computer Software

AS PER WEBSITE DETAILS

PRESS RELEASE

WHO GMP Certification awarded to Hester

8 February 2013

Launching of Bivalent Marek's Disease Live Vaccine containing HVT and SB1 Strains

WHO GMP Certification awarded to Hester

Hester today received the WHO GMP Certification for Poultry Vaccines. This certification would help Hester in hastening the registration process in many countries, as well as in opening the registration doors in the regulated markets.

Launching of Bivalent Marek's Disease Live Vaccine containing HVT and SB1 Strains Hester is in the process of launching its locally produced Bivalent Marek's Disease Live vaccine containing HVT and SB1 strains. Currently, trials are being conducted. The market for this vaccine is approximately Rs. 300 million. At present, nearly 50% of the vaccine requirement is imported. Hester's local production of this vaccine will be an import replacement, besides providing a cost advantage to the Indian poultry farmers.

Hester expects an overall growth of 25% in sales in this financial year, over last year.

HESTER ACQUIRES THE BUSINESS OF INNOVES ANIMAL HEALTH PRIVATE LIMITED

16.10.2012

Hester entered into a Business Transfer Agreement (BTA) with Innoves Animal Health Private Limited, a Delhi based company involved in the marketing of Large Animal Health Products for the dairy.

Through the BTA, Hester has acquired the products, the brands and the marketing network of Innoves. All the employees of Innoves including the key management team have joined Hester.

Innoves product brands - CURX, PROTIN-C, BETA4VET, HIFCR are well accepted in the dairy market.

This acquisition of the Innoves business is in line with Hester's business plans to set up a Large Animal Health Division.

Hester now has a ready platform to launch its Large Animal Health business which will not only market Innoves products, but also the Hester range of large animal products and large animal vaccines.

Hester would be launching its own large animal health product range through the newly acquired Innoves marketing infrastructure. The current distribution network and infrastructure of Hester would be utilized to distribute Innoves products, thereby sizably reducing distribution costs.

Hester has currently embarked on manufacturing PPR, Goat Pox, Brucella Abortus S-19 and Theileria -vaccines for large animals.

PPR vaccine is part of the National Disease eradication program of the Government of India. The susceptible animal population for PPR is 212 million, making it a market for Rs. 800 million. Besides, there is a high demand of the vaccine in Asia and Southern Africa.

Hester will be the first company to commercially manufacture Goat Pox vaccine in India. The susceptible animal population for Goat Pox is 140 million, making it a market for Rs. 450 million. There is a good demand for this vaccine in Asia and Southern African countries.

The expected turnover from the Large Animal Health division of Hester, for the Indian market, in the first 12 months would be Rs. 100 million and is expected to grow at over 20% on a year to year basis.

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.58.27
UK Pound	1	Rs.91.16
Euro	1	Rs.77.50

INFORMATION DETAILS

Report Prepared by :

VRN

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	5
--PROFITABILIRY	1~10	6
--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	YES
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		50

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.