MIRA INFORM REPORT

Report Date :

17.06.2013

IDENTIFICATION DETAILS

Name :	STELLENCE PHARMSCIENCE PRIVATE LIMITED (w.e.f. 13.12.2011)
Formerly Known As :	STELLENCE PHARMSCIENCE LIMITED (w.e.f. 01.04.2010) KARNATAKA CHEMSYN LIMITED
Registered Office :	No.456, 1A and 1B, Industrial Area, Jigani, Bangalore-562106, Karnataka
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	01.01.1992
Com. Reg. No.:	08-012673
Capital Investment / Paid-up Capital :	Rs. 147.008 Millions
CIN No.: [Company Identification No.]	U85110KA1992PLC012673
TAN No.: [Tax Deduction & Collection Account No.]	BLRK07078B
PAN No.: [Permanent Account No.]	AABCK9903A
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Niche Pharmaceutical Products like Contrast Media Agents.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

B (27)

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Maximum Credit Limit :	USD 1700000
Status :	Moderate
Payment Behaviour :	Slow
Litigation :	Clear
Comments :	Subject is an established company having a moderate track record. There appears huge loss recorded by the company during 2012. The reserves seems to be deteriorating. However, trade relations are reported to be fair. Business is active. Payments are reported to be slow. The company can be considered for business dealings with great 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 :	No.456, 1A and 1B, Industrial Area, Jigani, Bangalore-562106, Karnataka, India
Tel. No.:	91-8110-413800/ 413887
Fax No.:	91-8110-413803/ 906
E-Mail :	niranjan.p@avignapharma.com info@avignapharma.com
Website :	http://www.avignapharma.com

DIRECTORS

As on: 30.09.2011

Name :	Dr. Francis Joseph Pinto
Designation :	Director
Address :	6, Clarence Terrace, Regents Park, London – NWlRD, United Kingdom
Date of Birth/Age :	03.11.1942
Qualification :	Graduate
Date of Appointment :	23.08.2006
DIN No.:	01844138
Name :	Mr. Ramachandran Radhakrishnan
Designation :	Director
Address :	Block B1, Flat Number 1202 L and T, South city, Arakere Micolayout, Bangalore – 560076, Karnataka, India
Qualification :	Graduate
Date of Appointment :	23.08.2006
DIN No.:	00326368
Name :	Mrs. Anuradha Ramchandran
Designation :	Additional Director
Address :	Block B1, Flat Number 1202 L and T, South city, Arakere Micolayout, Bangalore – 560076, Karnataka, India
Qualification :	Graduate
Date of Appointment :	26.10.2010
DIN No.:	00326388

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on: 30.09.2011

Names of Shareholders	No. of Equity Shares	No. of Preference Shares
Avigna Chemitech Private Limited, India	365500	1370000
Venugopalan Nair	134500	--
Ramachandran Radhakrishnan	40	--
Anuradha Ramachandran	10	--
Aditi Ramachandran	10	--
Ashwini Ramachandran	10	--
K P Rema	200000	--
Vidhyasagaran C P	150000	--
Padikkaveetil Bhavdasan	150700	--
Total	1000770	1370000

Equity Share Break up (Percentage of Total Equity)

As on: 30.09.2011

Category	Percentage
Bodies corporate	37.00
Directors or relatives of directors	63.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Niche Pharmaceutical Products like Contrast Media Agents.

Products :

ITC Code	Products or Services
3006	Pharmaceutical
30061010	Miscellaneous Pharmaceutical Goods

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

· State Bank of India, J P Nagar, I Phase, Main Road, Banglore-560078, Karnataka, India

· IDBI Bank, Mumbai-400027, Maharashtra, India

· Centurion Bank of Punjab Limited

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2012	As on 31.03.2011
Rupee term loans from banks	92.000	115.992
Terms loan from bank	24.548	20.672
Other loans from advance	0.000	0.510
Total	116.548	137.174
Unsecured Loan	As on 31.03.2012	As on 31.03.2011
Loans and advance from related parties	258.964	146.826
Total	258.964	146.826

Banking Relations :	--
Auditors :
Name :	P Chandrasekar Chartered Accountant
Address :	S-616, Manipal Centre, No.47, Dickenson Road, Bangalore-560042, Karnataka, India
Tel. No.:	91-80-25585443
Fax No.:	91-80-25597494
E-Mail :	partner@pchandrasekar.com
PAN No.:	AABFP1536H
Holding Company:	Avigna Chemitech private limited, India

CAPITAL STRUCTURE

After: 30.09.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
1300000	Equity Shares	Rs.10/- each	Rs. 13.000 Millions
1370000	Preference Shares	Rs.100/- each	Rs.137.000 Millions
	Total		Rs.150.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1000770	Equity Shares	Rs.10/- each	Rs. 10.008 Millions
1370000	Preference Shares	Rs.100/- each	Rs.137.000 Millions
	Total		Rs.147.008 Millions

As on: 31.03.2012

No. of Shares	Type	Value	Amount
85000000	Equity Shares	Rs.10/- each	Rs.850.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1000770	Equity Shares	Rs.10/- each	Rs. 10.008 Millions
1370000	Preference Shares	Rs.100/- each	Rs.137.000 Millions
	Total		Rs.147.008 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	147.008	147.008
(b) Reserves & Surplus	298.202	411.188
(c) Money received against share warrants	0.000	0.000
(2) Share Application money pending allotment	0.000	1.292
(3) Non-current liabilities
(a) long-term borrowings	350.964	262.818
(b) Deferred tax liabilities (Net)	95.188	57.545
(c) Other long term liabilities	47.644	56.083
(d) long-term provisions	2.048	1.441
(4) Current liabilities
(a) Short term borrowings	24.548	21.182
(b) Trade payables	58.898	70.766
(c) Other current liabilities	32.237	24.584
(d) Short-term provisions	3.003	2.430
TOTAL	1059.740	1056.337
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	893.136	906.893
(ii) Intangible Assets	32.615	15.236
(iii) Capital work-in-progress	0.386	0.976
(iv) Intangible assets under development	0.000	0.000
(b) Non-current Investments	0.000	0.000
(c) Deferred tax assets (net)	0.000	0.000
(d) Long-term Loan and Advances	3.314	2.938
(e) Other Non-current assets	0.000	0.000
(2) Current assets
(a) Current investments	0.000	0.000
(b) Inventories	55.359	39.436
(c) Trade receivables	57.594	72.071
(d) Cash and cash equivalents	3.119	4.329
(e) Short-term loans and advances	12.816	13.401
(f) Other current assets	1.401	1.057
TOTAL	1059.740	1056.337

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		72.008
2] Share Application Money		1.292
3] Reserves & Surplus		1.500
4] (Accumulated Losses)		(64.849)
NETWORTH		9.951
LOAN FUNDS
1] Secured Loans		165.497
2] Unsecured Loans		194.459
TOTAL BORROWING		359.956
DEFERRED TAX LIABILITIES		0.000
TOTAL		369.907
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		163.971
Capital work-in-progress		171.444
PRE-OPERATIVE PENDING CAPITALISATION		14.329
INVESTMENT		0.000
DEFERREX TAX ASSETS		0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	28.905
	Sundry Debtors	30.319
	Cash & Bank Balances	3.003
	Other Current Assets	0.000
	Loans & Advances	16.359
Total Current Assets		78.586
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	54.720
	Other Current Liabilities	3.353
	Provisions	0.350
Total Current Liabilities		58.423
Net Current Assets		20.163
MISCELLANEOUS EXPENSES		0.000
TOTAL		369.907

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010
	SALES
		Sales	163.099	71.211
		Other Income	1.221	0.654
		TOTAL (A)	164.320	71.865
Less	EXPENSES
		Materials Cost	113.492	35.543
		Personnel Expenses	16.131	17.198
		Manufacturing, Administrative and Selling Expenses	28.122	20.229
		Increase / (Decrease) in Stock	(6.805)	(4.425)
		TOTAL (B)	150.940	68.545
Less	PROFIT / (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		13.380	3.320
Less	FINANCIAL EXPENSES (D)		9.676	2.721
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		3.704	0.599
Less/ Add	DEPRECIATION/ AMORTISATION (F)		14.330	10.559
	PROFIT / (LOSS)BEFORE TAX (E-F) (G)		(10.626)	(9.960)
Less	TAX (H)		0.000	0.000
	PROFIT / (LOSS) AFTER TAX (G-H) (I)		(10.626)	(9.960)
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		(64.848)	(54.888)
	BALANCE CARRIED TO THE B/S		(75.474)	(64.848)
	Earnings / (Loss) Per Share (Rs.)		(4.48)	(9.95)

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	NA	(6.47)	(13.86)
Net Profit Margin (PBT/Sales)	(%)	NA	(6.52)	(13.99)
Return on Total Assets (PBT/Total Assets}	(%)	NA	(1.01)	(4.11)
Return on Investment (ROI) (PBT/Networth)		NA	(0.01)	(1.00)
Debt Equity Ratio (Total Debt/Networth)		0.84	0.51	36.17
Current Ratio (Current Asset/Current Liability)		1.10	1.10	1.35

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 two years	Yes
12]	Profitability for last two 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

FIXED ASSETS:

· Land

· Building

· Plant and Machinery

· Office Equipments

· Computers

· Furniture and Fixtures

· Technical Knwohow

· Motor Vehicles

CMT REPORT (Corruption, Money Laundering & Terrorism]

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

1] INFORMATION ON DESIGNATED PARTY

No exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

2] Court Declaration :

No exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

3] Asset Declaration :

No 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. 57.74
UK Pound	1	Rs. 90.64
Euro	1	Rs. 77.02

INFORMATION DETAILS

Report Prepared by :

DPH

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	3
--CREDIT LINES	1~10	3
--MARGINS	-5~5	-
DEMERIT POINTS
--BANK CHARGES	YES/NO	NO
--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	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		27

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.