MIRA INFORM REPORT

Report Date :

26.06.2013

IDENTIFICATION DETAILS

Name :	AVON ORGANICS LIMITED
Registered Office :	Survey No. 18, Yawapur Village, Sadashivpet Mandal, Medak District – 502291, Andhra Pradesh
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	03.08.1993
Com. Reg. No.:	016112
Capital Investment / Paid-up Capital :	Rs.225.000 Millions
CIN No.: [Company Identification No.]	L24110AP1993PLC016112
TAN No.: [Tax Deduction & Collection Account No.]	HYDA01193D HYDA01216F
PAN No.: [Permanent Account No.]	AABCA7422Q
Legal Form :	A Public Limited Liability Company. The Company's Shares are Listed on the Stock Exchanges.
Line of Business :	Manufacturing of Bulk Drugs and Chemicals.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

B (32)

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

Maximum Credit Limit :	USD 2750000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Exists
Comments :	Subject is a subsidiary of Arch Pharmalabs Limited. It is an established company having a moderate track record. The performance of the company is fair during 2012. The rating also take into consideration the delays in servicing of debt obligations by its parent company rated “D” which owns 63.60% stake in the subject company. Subject is indulged into relatively small size of operations and offers limited products in this intense competition scenario which is a drawback. However, trade relations are reported as fair. Business is active. Payment terms are slow but correct. In view of experienced promoters, the subject 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

EXTERNAL AGENCY RATING

Rating Agency Name	CARE
Rating	B [Long Term Loans]
Rating Explanation	High risk of default
Date	19.04.2013

Rating Agency Name	CARE
Rating	A4 [Short Term Loans]
Rating Explanation	Minimal degree of safety and very high credit risk.
Date	19.04.2013

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/ Factory 1 :	Survey No. 18, Yawapur Village, Sadashivpet Mandal, Medak District – 502 291, Andhra Pradesh, India
Tel. No.:	91-8455-252290
Fax No.:	91-8455-251536
E-Mail :	avon@avonorganicltd.com cs_1@avonorganicsltd.com rmnayak306@hotmail.com
Website :	www.avonorganicsltd.com
Corporate Office 1:	6-3-865, 4th Floor, Madhupala Towers, Opposite Greenland Apartments, Ameerpet – 500016, Hyderabad, India
Tel. No.:	91-40-23414432/ 23405042/ 23411918/ 30906500/ 01
Fax No.:	91-40-23404438
E-Mail :	cs_1@avonorganicsltd.com sales@avonorganicsltd.com
Corporate Office 2 :	H. Wing, 4^th Floor, Tex Centre, off Sakivihar Road, Chandivali, Andheri (East), Mumbai – 400072, Maharashtra, India
Tel. No.:	91-22-40756789
Fax No.:	91-22-28471234/ 1002
Factory 2 :	Diketene Division: Survey No. 18, Yawapur, Sadasivpet (M), Medak District, Andhra Pradesh, India
Tel. No.:	91-9498-28083/ 28084
Factory 3 :	Bio-Tech Division: Plot No. E-2, Chincholi Industrial Area Solapur, Maharashtra, India
Tel. No.:	91-217- 2357338/ 2357339
Fax No.:	91-127- 2357738/ 2357339
Branch Office :	541-A, Arch House, Marol Maroshi Road, Marol, Andheri (East), Mumbai-400059, Maharashtra, India

DIRECTORS

AS ON 31.03.2012

Name :

Mr. Ajit Annu Kamath

Designation :

Chairman and Managing Director

Address :

404, IIa Apartment, sector 4, RDP 7, Charkop, Kandivali (West), Mumbai – 400067, Maharashtra, India

Date of Birth/Age :

12.12.1969

Date of Appointment :

01.08.2009

DIN No.:

00032799

Other Directorship :

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U67190MH1994PTC078769	ANHITA FINANCIAL SERVICES (BOMBAY) PRIVATE LIMITED	Director	06-06-94	06-06-94	26-03-06	Active	NO
2	U65993MH1997PTC107197	ARCH INVESTMENT PRIVATE LIMITED	Director	10-04-97	10-04-97	-	Active	NO
3	U24233MH2000PTC126987	ARCH HERBALS PRIVATE LIMITED	Director	05-06-00	05-06-00	-	Active	NO
4	U51900MH2000PTC127806	ARCH IMPEX PRIVATE LIMITED	Director	19-07-00	19-07-00	-	Active	NO
5	U15499MH2000PTC129255	ARCH PHYTOCHEMICALS PRIVATE LIMITED	Director	19-10-00	19-10-00	-	Active	NO
6	U24231MH2000PLC129882	ARCH PHARMACHEM LIMITED	Director	29-07-03	29-07-03	-	Active	NO
7	U24231MH1993PLC150891	ARCH PHARMALABS LIMITED	Managing director	01-11-08	01-11-03	-	Active	NO
8	U21000MH1996PTC103102	AVANT CAPITAL SERVICES PRIVATE LIMITED	Director	15-06-05	15-06-05	-	Active	NO
9	U45200AP2006PTC051039	MARM REALTY PRIVATE LIMITED	Director	01-09-06	01-09-06	-	Active	NO
10	U55204MH2007PTC166795	ACCENTURE HOSPITALITY PRIVATE LIMITED	Director	06-01-07	06-01-07	-	Strike off	NO
11	U24239AP2003PLC042232	ARCH LIFE SCIENCES LIMITED	Director	02-04-07	02-04-07	-	Active	NO
12	U65190MH2007PTC171972	A M R INVESTMENTS PRIVATE LIMITED	Director	25-06-07	25-06-07	-	Active	NO
13	U24100MH2000PLC125507	NIPRO TUBE GLASS LIMITED	Director	31-07-07	31-07-07	-	Active	NO
14	U24110AP1993PLC015533	ARCH FINECHEMICALS LIMITED	Director	29-09-07	22-08-07	-	Active	NO
15	U45200MH2007PLC175780	ARCH INFRA VENTURES LIMITED	Director	07-11-07	07-11-07	-	Active	NO
16	U24230MH2004PTC147388	BENZOCHEM LIFESCIENCES PRIVATE LIMITED	Director	10-07-08	10-07-08	12-03-10	Active	NO
17	U24233MH2008PTC186600	ARISTO HERBOFARM PRIVATE LIMITED	Director	09-09-08	09-09-08	05-03-09	Active	NO
18	U24233MH2008PTC186599	AIM HERBOFARM PRIVATE LIMITED	Director	09-09-08	09-09-08	05-03-09	Active	NO
19	L24110AP1993PLC016112	AVON ORGANICS LIMITED	Managing director	01-08-09	31-01-09	-	Active	NO
20	U24239MH2011PLC213956	AMRA REMEDIES LIMITED	Director	23-02-11	23-02-11	-	Active	NO
21	U01403MH2011PTC218636	ARCH AGROCHEMICALS PRIVATE LIMITED	Director	14-06-11	14-06-11	-	Active	NO
22	U24100MH2011PLC223168	AMRA RENAL CARE LIMITED	Director	17-10-11	17-10-11	-	Active	NO

Name :

Mr. Manoj Tejraj Jain

Designation :

Director

Address :

Flat No.4-A, Shefali, Mahim Makrand, Co-operative Housing Society Limited, 114, S.V.S. Marg, Mahim, Mumbai – 400016, Maharashtra, India

Date of Birth/Age :

20.03.1970

Date of Appointment :

29.09.2009

DIN No.:

00034727

Other Directorship :

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U67190MH1994PTC078769	ANHITA FINANCIAL SERVICES (BOMBAY) PRIVATE LIMITED	Director	06-06-94	06-06-94	26-03-06	Active	NO
2	U65993MH1997PTC107197	ARCH INVESTMENT PRIVATE LIMITED	Director	10-04-97	10-04-97	-	Active	NO
3	U24233MH2000PTC126987	ARCH HERBALS PRIVATE LIMITED	Director	05-06-00	05-06-00	-	Active	NO
4	U51900MH2000PTC127806	ARCH IMPEX PRIVATE LIMITED	Director	19-07-00	19-07-00	-	Active	NO
5	U15499MH2000PTC129255	ARCH PHYTOCHEMICALS PRIVATE LIMITED	Director	19-10-00	19-10-00	-	Active	NO
6	U24231MH2000PLC129882	ARCH PHARMACHEM LIMITED	Director	29-07-03	29-07-03	-	Active	NO
7	U24231MH1993PLC150891	ARCH PHARMALABS LIMITED	Whole-time director	01-11-08	01-11-03	-	Active	NO
8	U21000MH1996PTC103102	AVANT CAPITAL SERVICES PRIVATE LIMITED	Director	15-06-05	15-06-05	-	Active	NO
9	U55204MH2007PTC166795	ACCENTURE HOSPITALITY PRIVATE LIMITED	Director	06-01-07	06-01-07	-	Strike off	NO
10	U24239AP2003PLC042232	ARCH LIFE SCIENCES LIMITED	Director	02-04-07	02-04-07	-	Active	NO
11	U65190MH2007PTC171972	A M R INVESTMENTS PRIVATE LIMITED	Director	25-06-07	25-06-07	-	Active	NO
12	U24100MH2000PLC125507	NIPRO TUBE GLASS LIMITED	Managing director	28-06-10	31-07-07	01-10-11	Active	NO
13	U24110AP1993PLC015533	ARCH FINECHEMICALS LIMITED	Director	29-09-07	22-08-07	-	Active	NO
14	U45200MH2007PLC175780	ARCH INFRA VENTURES LIMITED	Director	07-11-07	07-11-07	-	Active	NO
15	U24230MH2004PTC147388	BENZOCHEM LIFESCIENCES PRIVATE LIMITED	Director	10-07-08	10-07-08	12-03-10	Active	NO
16	U24233MH2008PTC186600	ARISTO HERBOFARM PRIVATE LIMITED	Director	09-09-08	09-09-08	05-03-09	Active	NO
17	U24233MH2008PTC186599	AIM HERBOFARM PRIVATE LIMITED	Director	09-09-08	09-09-08	05-03-09	Active	NO
18	L24110AP1993PLC016112	AVON ORGANICS LIMITED	Director	29-09-09	31-01-09	-	Active	NO
19	U24239MH2011PLC213956	AMRA REMEDIES LIMITED	Director	23-02-11	23-02-11	-	Active	NO
20	U01403MH2011PTC218636	ARCH AGROCHEMICALS PRIVATE LIMITED	Director	14-06-11	14-06-11	-	Active	NO
21	U24100MH2011PLC223168	AMRA RENAL CARE LIMITED	Director	17-10-11	17-10-11	-	Active	NO

Name :

Mr. Sudhir Prabhakar Ghate

Designation :

Non- Executive Independent Director

Address :

Needam Behind S d M Law Collage, M G Road, Dakshina, Mangalore – 575003, India

Date of Birth/Age :

12.11.1957

Date of Appointment :

29.09.2009

DIN No.:

00035949

Other Directorship :

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	U74300KA1994PTC015706	MAGNUM INTERGRAFIKS PRIVATE LIMITED	Managing director	01-10-98	01-06-94	Active	NO
2	U72900KA1999PTC025156	MANGALORE INFOTECH SOLUTIONS PRIVATE LIMITED	Director	06-05-99	06-05-99	Active	NO
3	U85110KL1985PLC004204	TRICHUR HEART HOSPITAL LIMITED	Director	29-03-01	29-03-01	Active	NO
4	U60210KA1983PLC005247	VRL LOGISTICS LIMITED	Director	15-06-05	15-06-05	Active	NO
5	L24110AP1993PLC016112	AVON ORGANICS LIMITED	Director	29-09-09	01-08-09	Active	NO
6	U91990KA1940PLC001135	KANARA CHAMBER OF COMMERCE AND INDUSTRY	Director	28-07-11	28-07-11	Active	NO

Name :

Mr. Ashit Kishorkumar Shah

Designation :

Non- Executive Independent Director

Address :

11, Varsha, 17 Vallabh Baug Cross Lane, Extension, Ghatkopar East, Mumbai – 400077, Maharashtra, India

Date of Birth/Age :

15.05.1969

Date of Appointment :

29.09.2009

DIN No.:

00023944

Other Directorship :

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U85110MH2000PTC130055	SHAH ADVISORY SERVICES PRIVATE LIMITED	Director	16-02-02	16-02-02	01-04-09	Active	NO
2	L24110AP1993PLC016112	AVON ORGANICS LIMITED	Director	29-09-09	01-08-09	-	Active	NO
3	U67190MH1996PTC098770	PEARS FINANCIAL SERVICES PRIVATE LIMITED	Director	14-08-09	14-08-09	-	Active	NO

Name :

Mr. Upkar Singh Kohli

Designation :

Additional Director

Address :

J-170 Rajouri Garden, New Delhi – 110027, India

Date of Birth/Age :

18.08.1947

Date of Appointment :

29.07.2011

Email :

upkarkohli@yahoo.com

DIN No.:

02528045

Other Directorship :

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	U74900DL2007PLC167329	UV ASSET RECONSTRUCTION COMPANY LIMITED	Director	22-08-09	07-02-09	Active	NO
2	L31101MH1984PLC032773	BIRLA POWER SOLUTIONS LIMITED	Director	30-09-10	28-07-09	Active	NO
3	L27105MP1984PLC002521	STI INDIA LIMITED	Nominee director	26-05-10	26-05-10	Active	NO
4	U01110MH1980PLC022710	C AND M FARMING LIMITED	Nominee director	09-07-10	09-07-10	Active	YES
5	U74999MH2008PLC187077	BIRLA SURYA LIMITED	Director	31-03-11	06-08-10	Active	NO
6	L17110MH1941PLC003429	BIRLA COTSYN (INDIA) LIMITED	Director	20-09-10	10-08-10	Active	NO
7	U65923MH2009PTC198198	UNION KBC TRUSTEE COMPANY PRIVATE LIMITED	Director	25-05-11	03-09-10	Active	NO
8	L85100MH2008PLC184689	BIRLA PACIFIC MEDSPA LIMITED	Director	13-10-11	23-11-10	Active	NO
9	L24110AP1993PLC016112	AVON ORGANICS LIMITED	Director	29-07-11	22-01-11	Active	NO
10	L65990MH1985PLC037697	WEIZMANN FOREX LIMITED	Director	04-03-11	04-03-11	Active	NO
11	L31101MH2007PLC168823	KARMA ENERGY LIMITED	Additional director	09-11-11	09-11-11	Active	NO

KEY EXECUTIVES

Name :	Ms. Sunipa Ghosh
Designation :	Company Secretary

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 31.03.2013

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
Bodies Corporate	14309100	63.60
Sub Total	14309100	63.60
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	14309100	63.60
(B) Public Shareholding
(1) Institutions
Financial Institutions / Banks	157600	0.70
Sub Total	157600	0.70
(2) Non-Institutions
Bodies Corporate	826331	3.67
Individuals
Individual shareholders holding nominal share capital up to Rs.0.100 Million	3626108	16.12
Individual shareholders holding nominal share capital in excess of Rs.0.100 Million	3255641	14.47
Any Others (Specify)	325220	1.45
Non Resident Indians	102795	0.46
Clearing Members	222425	0.99
Sub Total	8033300	35.70
Total Public shareholding (B)	8190900	36.40
Total (A)+(B)	22500000	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)	22500000	0.00

BUSINESS DETAILS

Line of Business :

Manufacturing of Bulk Drugs and Chemicals.

Products :

Item Code No. (ITC Code)	291590
Product Description	Mono Methyl Aceto Acetamide

Item Code No. (ITC Code)	29241002
Product Description	Aceto Acetanilide (AAA)

Item Code No. (ITC Code)	30039089
Product Description	Ephedrine HCL

PRODUCTION STATUS [AS ON 31.03.2011]

Particulars	Unit	Licensed Capacity	Installed Capacity	Actual Production
Intermediates and APIs	TPA	--	2300	452.80

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

· Indian Overseas Bank, Arjun Towers, 1^st Floor, 25421662, Gokhale Road, Naupada, Thane – 400602, Maharashtra, India

· State Bank of India, Industrial Finance Branch, Raj Bhavan Road, Somajiguda, Hyderabad - 500082, Andhra Pradesh, India

· Axis Bank Limited, Fort Branch, Universal Insurance Building, Fort, Mumbai - 400023, Maharashtra, India

· Punjab National Bank, Road No. 1, Banjara Hills, Hyderabad - 500034, Andhra Pradesh, India

· ING Vysya Bank Limited, 1-7-1, T. S. R. Complex, Sardar Patel Road, Secunderabad – 500003, Andhra Pradesh, India

· Canara Bank

· Karur Vysya Bank

Facilities :

Secured Loan	As on 31.03.2012 [Rs. in Millions]	As on 31.03.2011 [Rs. in Millions]
Long Term Borrowings
Term Loans From Banks	368.889	537.777
Short Term Borrowings
Working Capital Loan From Banks	473.627	478.359
Vehicles Loans under hire purchase	0.000	0.183
TOTAL	842.516	1016.319

Banking Relations :	--
Auditors :
Name :	Mukesh Mehta and Associates Chartered Accountants
Address :	3/4A, Hammersmith Industrial Premises,Narayan Pathare Marg, Off Sitladevi Temple Road, Mahim (West), Mumbai – 400016, Maharashtra, India
PAN No:	AALPM7276R
Holding Company :	Arch Pharmalabs Limited [U24231MH1993PLC150891]
Subsidiary Company :	Regal Pharma Pte. Limited

CAPITAL STRUCTURE

AS ON 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
25000000	Equity Shares	Rs.10/- each	Rs.250.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
22500000	Equity Shares	Rs.10/- each	Rs.225.000 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	225.000	225.000
(b) Reserves & Surplus	463.692	389.187
(c) Money received against share warrants	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000
Total Shareholders’ Funds (1) + (2)	688.692	614.187
(3) Non-Current Liabilities
(a) long-term borrowings	516.950	692.635
(b) Deferred tax liabilities (Net)	19.261	14.065
(c) Other long term liabilities	317.140	194.856
(d) long-term provisions	0.000	0.000
Total Non-current Liabilities (3)	853.351	901.556
(4) Current Liabilities
(a) Short term borrowings	473.627	478.542
(b) Trade payables	339.593	316.561
(c) Other current liabilities	189.340	142.428
(d) Short-term provisions	30.376	46.650
Total Current Liabilities (4)	1032.936	984.181
TOTAL	2574.979	2499.924
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	1001.686	1100.885
(ii) Intangible Assets	0.000	0.000
(iii) Capital work-in-progress	134.907	0.000
(iv) Intangible assets under development	0.000	0.000
(b) Non-current Investments	107.643	0.003
(c) Deferred tax assets (net)	0.000	0.000
(d) Long-term Loan and Advances	0.051	0.051
(e) Other Non-current assets	0.000	0.000
Total Non-Current Assets	1244.287	1100.939
(2) Current assets
(a) Current investments	0.000	0.000
(b) Inventories	443.465	493.259
(c) Trade receivables	655.127	633.893
(d) Cash and cash equivalents	78.718	24.936
(e) Short-term loans and advances	44.149	131.530
(f) Other current assets	109.233	115.367
Total Current Assets	1330.692	1398.985
TOTAL	2574.979	2499.923

SOURCES OF FUNDS		31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		225.000
2] Share Application Money		0.000
3] Reserves & Surplus		434.851
4] (Accumulated Losses)		(118.032)
NETWORTH		541.819
LOAN FUNDS
1] Secured Loans		1062.915
2] Unsecured Loans		346.354
TOTAL BORROWING		1409.269
DEFERRED TAX LIABILITIES		14.064
TOTAL		1965.152
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		568.998
Capital work-in-progress		298.056
INVESTMENT		0.019
DEFERREX TAX ASSETS		0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	616.812
	Sundry Debtors	609.613
	Cash & Bank Balances	122.400
	Other Current Assets	16.410
	Loans & Advances	205.432
Total Current Assets		1570.667
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	442.677
	Other Current Liabilities	3.174
	Provisions	26.737
Total Current Liabilities		472.588
Net Current Assets		1098.079
MISCELLANEOUS EXPENSES		0.000
TOTAL		1965.152

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	1670.333	1621.207	1504.549
		Other Income	2.331	2.484	2.935
		TOTAL (A)	1672.664	1623.691	1507.484
Less	EXPENSES
		Cost of Materials Consumed	851.477	1063.885
		Power and Fuel	117.985	124.092
		Payments and Benefits to Employees	130.537	103.215	1242.951
		Other Manufacturing Expenses	46.589	63.379
		Administrative and Selling Expenses	41.503	33.887
		Increase/ Decrease in Stocks	67.004	(59.330)
		TOTAL (B)	1255.095	1329.128	1242.951
Less	PROFIT / (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		417.569	294.563	264.533
Less	FINANCIAL EXPENSES (D)		195.432	134.794	116.940
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		222.137	159.769	147.593
Less/ Add	DEPRECIATION/ AMORTISATION (F)		108.609	61.164	58.510
	PROFIT / (LOSS) BEFORE TAX (E-F) (G)		113.528	98.605	89.083
Less	TAX (H)		12.873	0.000	0.063
	PROFIT / (LOSS) AFTER TAX (G-H) (I)		100.655	98.605	89.020
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		NA	NA	(180.729)
Less	APPROPRIATIONS
		Proposed Dividend	NA	NA	22.500
		Dividend Distributed Tax	NA	NA	3.824
	BALANCE CARRIED TO THE B/S		NA	NA	(118.033)
	EARNINGS IN FOREIGN CURRENCY		520.226	422.365	508.130
	IMPORTS
		Raw Materials	124.864	155.308	168.918
	Earnings / (Loss) Per Share (Rs.)		4.47	4.38	3.96

QUARTERLY 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	425.600	445.800	423.600	406.600
Total Expenditure	327.300	349.800	323.800	343.100
PBIDT (Excl OI)	98.300	96.000	99.800	63.500
Other Income	00.500	00.500	00.300	00.900
Operating Profit	98.700	96.400	100.200	64.300
Interest	48.300	47.500	46.000	30.300
PBDT	50.500	48.900	54.200	34.000
Depreciation	25.400	23.800	24.800	25.700
Profit Before Tax	25.100	25.100	29.400	08.400
Profit After Tax	25.100	25.100	29.400	08.400
Net Profit	25.100	25.100	29.400	08.400

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	6.02	6.07	5.91
Net Profit Margin (PBT/Sales)	(%)	6.80	6.08	5.92
Return on Total Assets (PBT/Total Assets}	(%)	4.87	3.94	4.16
Return on Investment (ROI) (PBT/Networth)		0.16	0.16	0.16
Debt Equity Ratio (Total Debt/Networth)		1.44	1.91	2.60
Current Ratio (Current Asset/Current Liability)		1.52	2.00	3.32

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	Yes
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]	PAN of Proprietor/Partner/Director, if available	No
32]	Date of Birth 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

CASE STATUS

ITTA 691/2006 ITTASR 443/2006 CASE IS: PENDING

PETITIONER RESPONDENT

COMMISSIONER OF INCOME TAX VS AVON ORGANICS LIMITED

PET.ADV: PRASAD (SC FOR INCOME TAX) RESP.ADV. : MURALI KRISHNA

SUBJECT: U/Sec. 143 Assessment DISTRICT:  HYDERABAD

FILING DATE:  20-02-2006 POSTING STAGE :  FOR ADMISSION

REG. DATE    :   11-12-0006 LISTING DATE :  08-02-2007

HON'BLE JUDGE(S): JUSTICE BILAL NAZKI     NOOTY RAMAMOHANA RAO

Unsecured Loan	As on 31.03.2012 [Rs. in Millions]	As on 31.03.2011 [Rs. in Millions]
Long Term Borrowings
Deferred sales tax loan from state government	148.061	154.858
TOTAL	148.061	154.858

YEAR IN RETROSPECT

During the year, the Company has achieved Net Sales and Operational income of Rs.1670.334 Millions as against Rs. 1621.207 Millions in the previous year, registering an increase in sales by 3.03%. During the year the Company has achieved a Net profit of Rs.100.655 Millions as against Rs.98.605 Millions, during the corresponding period in the previous year.

The total sales of the Company includes export sales of Rs.520.226 Millions during the year as against Rs.422.365 Millions, during the previous year and account for approximately 31.15% of the total sales in the current year as against 26.05% in the previous corresponding period.

MANAGEMENT DISCUSSION AND ANALYSIS REPORT

GLOBAL PHARMACEUTICAL MARKET

The global pharmaceutical market is changing rapidly and growing more complex. Annual global spending on medicines is expected to rise from $956 billion in 2011 to nearly $1.2 trillion in 2016, representing a compound annual growth rate of 3-6 per cent, as per the IMS Institute for Healthcare Informatics' report, The Global Use of Medicines: Outlook through 2016.

This growth in annual global spending is mainly driven by volume increases in the emerging markets and an uptick in spending in developed nations.

Following several years of slowing growth, the global market for medicines is poised to rebound from an expected low point of 3-4 per cent growth in 2012 to 5-7 per cent in 2016, according to a new forecast issued by the IMS Institute for Healthcare Informatics.

Health systems in emerging markets will nearly double their medicine spending in five years. The increase will be driven by rising incomes, continued low cost for drugs, and government-sponsored programmes designed to increase access to treatments - by limiting patients' exposure to costs and encouraging greater use of medicines. Generics and other products, including over-the-counter medicines, diagnostics and non-therapeutics, will account for approximately 83% of such increase.

Global generic spending is expected to increase from $242 billion in 2011 to$400-430 billion by 2016, fuelled by volume growth in emerging markets and the ongoing transition to generics in developed nations.

Branded formulations could experience a dip pursuant to a peak expiry of patents in 2012 and as well as increased cost-containment actions by payers. The impact of patent expiries primarily will be felt in the US. In Europe, limited savings from expiring patents are prompting policy shifts to encourage greater use of generics and lower reimbursement for these products.

INDIAN PHARMACEUTICAL MARKET

The recent spate of turbulence experienced in the Indian market has resulted in high inflation levels, volatile industrial output and escalated interest rates and have collectively caused a downward revision in the GDP growth rates from 8% to 6.9%.

Even though, the outlook for the pharmaceuticals sector in the country remains positive, the Indian Pharmaceuticals market valued at around US $ 12.3 billion (IMS March MAT 2012) is a highly fragmented market with a large number of players spread across therapy segments.

Regarded as one of the fastest-growing pharma market globally, primarily driven by a large population, evolving patient demographics, increasing health care expenditure, growing urbanisation, rising life expectancy, and active private-sector participation, Indian companies are today regarded as collaborators demonstrating capabilities that match global expectations.

India ranks third in terms of manufacturing pharma products by volume. India's Pharmaceutical industry is gaining its position as a global leader clearly topping the charts among the Indian science based industries with significant expertise in the complex field of drug manufacture and technology. India's pharmaceutical market has registered a strong growth of 16% in 2012.

The Indian pharmaceuticals sector is poised to reach US$ 55 billion by 2020, from US$ 12.6 billion in 2009 {Source: Mckinsey, India Pharma 2020: Propelling access and acceptance realising true potential, 2010).India tops in exporting generic medicines. The Indian pharma industry produces around 20% to 24% of the global generic drugs. Around 40% of the total pharmaceutical produce is exported (55% formulation and 45% APIs). The Indian pharmaceutical market is expected to witness rapid and significant growth on the back of greater acceptance and penetration of generics, enhanced export opportunities, increasing global demand, and a large share of off-patent drugs in the future.

OUTLOOK

India's pharmaceutical industry is at an advantageous position compared to other emerging countries. With the advantage of being a highly organized sector, the Indian pharmaceutical companies are growing at the rate of 8-9% annually.

FIXED ASSETS:

· Land and Site Development

· Buildings

· Non-Factory

· Factory

· Plant and Machinery

· Electrical Installation

· Furniture

· Office Equipment

· Computers

· 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 records 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.59.70
UK Pound	1	Rs.92.25
Euro	1	Rs.78.38

INFORMATION DETAILS

Report Prepared by :

TPT

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	3
--LEVERAGE	1~10	3
--RESERVES	1~10	3
--CREDIT LINES	1~10	3
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	YES
--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
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		32

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.