MIRA INFORM REPORT

Report Date :

28.06.2013

IDENTIFICATION DETAILS

Name :	EVEREST ORGANICS LIMITED
Registered Office :	Aroor Village, Sadasivapet Mandal, Medak – 502 291, Andhra Pradesh
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	19.02.1993
Com. Reg. No.:	01-015426
Capital Investment / Paid-up Capital :	Rs.92.730 Millions
CIN No.: [Company Identification No.]	L24230AP1993PLC015426
TAN No.: [Tax Deduction & Collection Account No.]	HYDE00817F
PAN No.: [Permanent Account No.]	AAACE4400F
Legal Form :	Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges.
Line of Business :	Manufacturer and Exporter of Active Pharmaceutical Ingredients and its intermediates.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

B (26)

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

Maximum Credit Limit :	USD 131000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Exist
Comments :	Subject is an established company having a moderate track record. There appear huge accumulated losses recorded by the company. However, the company has shown some improvement in its performance during 2012. Trade relations are reported as fair. Business is active. Payments are reported to be slow but correct. The company can be considered for business dealings with some caution. Note: Share is not traded on BSE in last 30 days.

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/ Factory :	Aroor Village, Sadasivapet Mandal, Medak – 502 291, Andhra Pradesh, India
Tel. No.:	91-8455-250113/ 250114/ 250115
Fax No.:	91-8455-250114
E-Mail :	drsksraju@yahoo.co.in srihari_everest@rediffmail.com
Website :	http://www.everestorganicsltd.com
Corporate Office :	Plot No.127 and 128, Amar Co-Operative Society, Kaveri Hills, Madhapur, Hyderabad – 500 081, Andhra Pradesh, India
Tel. No.:	91-40-23115951/ 23115956
Fax No.:	91-40-66820511

DIRECTORS

As on 31.03.2012

Name :	Dr. S.K. Srihari Raju
Designation :	Managing Director
Name :	Mr. G. Raghunandhan
Designation :	Nominee Director of APIDC
Name :	Mr. V. Swaminathan
Designation :	Director
Name :	Mr. K. Rama Krishnam Raju
Designation :	Director
Name :	Dr. K. Easwer Reddy
Designation :	Director
Name :	Mr. Raju S. Kakarlapudi
Designation :	Director
Name :	Mr. A. Parvatisem
Designation :	Technical Director
Name :	Mr. M. Bangara Raju
Designation :	Director – HR
Name :	Mr. S.K. Hari Krishna
Designation :	Executive Director

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	974200	10.51
Bodies Corporate	1312800	14.16
Sub Total	2287000	24.66
(2) Foreign
Individuals (Non-Residents Individuals / Foreign Individuals)	628600	6.78
Sub Total	628600	6.78
Total shareholding of Promoter and Promoter Group (A)	2915600	31.44
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	1600	0.02
Financial Institutions / Banks	11150	0.12
Sub Total	12750	0.14
(2) Non-Institutions
Bodies Corporate	387439	4.18
Individuals
Individual shareholders holding nominal share capital up to Rs.0.100 million	3168911	34.17
Individual shareholders holding nominal share capital in excess of Rs.0.100 million	1479300	15.95
Any Others (Specify)	1309000	14.12
Clearing Members	400	0.00
Trusts	36200	0.39
Non Resident Indians	1272400	13.72
Sub Total	6344650	68.42
Total Public shareholding (B)	6357400	68.56
Total (A)+(B)	9273000	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)	9273000	0.00

BUSINESS DETAILS

Line of Business :

Manufacturer and Exporter of Active Pharmaceutical Ingredients and its intermediates.

Products :

Item Code No. (ITC Code)	29419003
Product Description	Ciprofloxacin
Item Code No. (ITC Code)	29420029
Product Description	Omeprazole
Item Code No. (ITC Code)	294420090
Product Description	Benzimedazole

PRODUCTION STATUS (AS ON 31.03.2012)

Annual Capacities: (as Certified by the management)

Name of the Product	Installed Capacity TPA	Operating Capacity TPA	% of Capacity Achieved
Ciprofloxacin Enrofloxacin	--	--	--
Omeprazole Op. Sulphide Op. Magnesium	180	112	94
Chloro Compound	200	152	76
Benzimidazole	180	110	61
Esomeprazole	25	23	93
Pantaprazole	50	22	45

Products	Production (Qty./MTs)
Omeprazole Powder	111.7
Benzimidazole	110.91
Chloro Compound	152.4
Op. Sulphide	154.6
Esomeprazole Magnesium	23.2
Pantaprazole	22.3
Ammonium Sulphate	464.7
Tetralone	95
Q-Acid	--
Others	--

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

· State Bank of Hyderabad

· Kotak Mahindra Bank Limited

Facilities :

Secured Loans	31.03.2012 (Rs. in Millions)	31.03.2011 (Rs. in Millions)
LONG-TERM BORROWINGS
- From banks - Kotak Mahindra Bank Limited
1. Term Loan - III Repayable in Financial Year 2013-14 of Rs.5.148 millions	5.148	0.000
2. Term Loan – IV Repayable in Financial Year 2013-14 of Rs.11.598 millions Repayable in Financial Year 2014-15 of Rs.3.187 millions	14.784	14.222
3. Working Capital Term Loan Repayable in Financial Year 2013-14 of Rs.3.716 millions Repayable in Financial Year 2014-15 of Rs.1.021 millions (Securities for above term loans 1,2 & 3 are as per note given below)	4.738	0.000
4. Kotak Prime Limited-Tata Indigo Manza Car Loan Repayable in Financial Year 2013-14 of Rs.0.263 million (Secured by the Hypothecation of Vehicle)	0.263	0.000
5. Magma Finance-Verna Car Loan Repayable in Financial Year 2013-14 of Rs.0.260 million Repayable in Financial Year 2014-15 of Rs.0.217 million (Secured by the Hypothecation of Vehicle)	0.478	0.000
SHORT TERM BORROWINGS
(a) Loans repayable on Demand
- From Banks - Kotak Mahindra Bank Limited
Overdraft	39.325	50.671
Bills Discounting (Domestic)	39.992	17.810
Bills Discounting (Exports)	3.497	2.752
Bills Discounting (LC Backed)	2.370	2.660
Buyers Credit	5.391	0.000
Discounting of Bills Backed by LCs	14.157	12.719
Total	130.143	100.834

Notes:

Long-Term Borrowings

1. The Term Loans D(a) 1, 2 and 3 above are secured by the first charge by way of equitable mortgage by deposit of Titles Deeds of the Company’s immovable properties of Land and Buildings admeasuring 32 Acres in Sy.No.38, 39, 40 situated at Aroor Village, Sadasivpet Mandal, Medak District, both present and future and Hypothecation/ pledge of Company’s movable properties both present and future, hypothecation of stocks, receivables and other current assets, and also by the personal guarantees of promoter directors, mortgage of the personal immovable property of the promoters mortgage of the personal immovable properties of the promoter directors.

2. There is no default in repayment of principal of term loan or interest thereon from Kotak Mahindra Bank Limited, stated above.

Banking Relations :	--
Auditors :
Name :	P.S.N. Ravishanker and Associates Chartered Accountants
Address :	Hyderabad, Andhra Pradesh, India

CAPITAL STRUCTURE

As on 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
10000000	Equity Shares	Rs.10/- each	Rs.100.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
9273000	Equity Shares	Rs.10/- each	Rs.92.730 Millions

Note: 1

No. of shares held by individuals/entities each holding more than 5% of total stake:

Particulars	No. of Shares	Percentage of holding
1. Veerat Finance and Investment Company Limited	1312800	14.16%
2. Dr. S.K. Srihari Rau	722000	(7.79%

Note: 2. There is no restriction on transferability of shares (presently the shares are delisted on the share market).

Note: 3

Reconciliation of number of shares outstanding at the beginning and end of the year

Particulars	31.03.2012 (Rs. in millions)
Shares issued and subscribed as on 01.04.2011 (9273000 Equity Shares of Rs.10/- each fully paid up)	92.730
Add: Issued during the year	--
	92.730
Less: Redemption/Buyback	--
Total Amount as per Balance Sheet (92,73,000 Equity Shares of Rs.10/- each fully paid up)	92.730

Note 4

a) There are no shares issued in last five years as fully paid up pursuant to contracts without payment being received in cash.

b) There are no shares issued in last five years as fully paid up by way of bonus shares.

c) There are no shares bought back in last five years.

d) There are no calls unpaid.

e) Out of the total unsecured loans received by the company during the earlier years an amount of Rs.31.119 millions has been transferred to Share Application Money as on 31-03-2012, which has been shown partly under Share Application Money and partly under Other Current Liabilities.

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	92.730	92.730
(b) Reserves & Surplus	(67.161)	(77.758)
(c) Money received against share warrants	0.000	0.000
(2) Share Application money pending allotment	7.270	7.270
Total Shareholders’ Funds (1) + (2)	32.839	22.242
(3) Non-Current Liabilities
(a) Long-term borrowings	51.290	41.080
(b) Deferred tax liabilities (Net)	0.000	0.000
(c) Other long term liabilities	0.078	0.078
(d) Long-term provisions	0.000	0.000
Total Non-current Liabilities (3)	51.368	41.158
(4) Current Liabilities
(a) Short term borrowings	109.644	126.731
(b) Trade payables	223.912	158.668
(c) Other current liabilities	94.185	52.067
(d) Short-term provisions	8.347	7.324
Total Current Liabilities (4)	436.088	344.790
TOTAL	520.295	408.190
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	204.136	169.280
(ii) Intangible Assets	0.000	0.000
(iii) Capital work-in-progress	2.499	8.957
(iv) Intangible assets under development	0.000	0.000
(b) Non-current Investments	0.845	0.845
(c) Deferred tax assets (net)	0.000	0.000
(d) Long-term Loan and Advances	2.671	2.518
(e) Other Non-current assets	1.932	3.109
Total Non-Current Assets	212.083	184.709
(2) Current assets
(a) Current investments	0.000	0.000
(b) Inventories	99.733	77.794
(c) Trade receivables	185.875	114.081
(d) Cash and cash equivalents	10.985	15.804
(e) Short-term loans and advances	9.687	12.539
(f) Other current assets	1.932	3.263
Total Current Assets	308.212	223.481
TOTAL	520.295	408.190

SOURCES OF FUNDS		31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		92.730
2] Share Application Money Pending Allotment		38.881
3] Reserves & Surplus		0.000
4] (Accumulated Losses)		(87.501)
NETWORTH		44.110
LOAN FUNDS
1] Secured Loans		70.021
2] Unsecured Loans		39.520
TOTAL BORROWING		109.541
DEFERRED TAX LIABILITIES		0.000
TOTAL		153.651
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		141.934
Capital work-in-progress		0.000
INVESTMENT		0.845
DEFERRED TAX ASSETS		0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	54.397
	Sundry Debtors	120.163
	Cash & Bank Balances	12.636
	Other Current Assets	0.806
	Loans & Advances	18.862
Total Current Assets		206.864
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	182.681
	Other Current Liabilities	7.743
	Provisions	5.568
Total Current Liabilities		195.992
Net Current Assets		10.872
MISCELLANEOUS EXPENSES		0.000
TOTAL		153.651

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Revenue from operations	610.517	537.422	406.836
		Other Income	1.058	1.114	5.981
		TOTAL (A)	611.575	538.536	412.817
Less	EXPENSES
		Cost of Materials Consumed	421.428	381.667	371.890
		Changes in Inventories of finished goods	8.009	(2.218)
		Work-in-progress	(21.810)	(7.891)
		Employee Benefits Expense	37.034	27.978
		Other Expenses	107.930	93.902
		Exceptional Items - Excess/(Short) Provision for Taxation	(0.004)	1.705
		TOTAL (B)	552.587	495.143	371.890
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		58.988	43.393	40.927
Less	FINANCIAL EXPENSES (D)		26.920	15.293	13.646
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		32.068	28.100	27.281
Less/ Add	DEPRECIATION/ AMORTISATION (F)		18.471	15.157	13.721
	PROFIT BEFORE TAX (E-F) (G)		13.597	12.943	13.560
Less	TAX (H)		3.000	3.200	2.000
	PROFIT AFTER TAX (G-H) (I)		10.597	9.743	11.560
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		(77.758)	(87.501)	(99.061)
	BALANCE CARRIED TO THE B/S		NA	(77.758)	(87.501)
	EARNINGS IN FOREIGN CURRENCY		82.663	102.492	40.900
	Earnings Per Share (Rs.)		1.14	1.05	1.25

QUARTERLY RESULTS

PARTICULARS	30.06.2012 (1^st Quarter)	30.09.2012 (2^nd Quarter)	31.12.2012 (3^rd Quarter)	31.03.2013 (4^th Quarter)
Net Sales	183.200	204.500	208.400	200.200
Total Expenditure	168.200	187.800	193.200	192.700
PBIDT (Excl OI)	15.000	16.700	15.300	7.600
Other Income	0.200	0.100	0.000	1.300
Operating Profit	15.300	16.700	15.300	8.900
Interest	5.500	6.100	6.100	7.700
Exceptional Items	0.000	0.000	0.000	0.000
PBDT	9.700	10.600	9.200	1.100
Depreciation	5.100	5.100	5.200	5.900
Profit Before Tax	4.600	5.500	4.000	(4.700)
Tax	0.900	1.000	0.800	0.000
Provisions and contingencies	0.000	0.000	0.000	0.000
Profit After Tax	3.700	4.500	3.200	(4.700)
Extraordinary Items	0.000	0.000	0.000	0.000
Prior Period Expenses	0.000	0.000	0.000	0.000
Other Adjustments	0.000	0.000	0.000	0.000
Net Profit	3.700	4.500	3.200	(4.700)

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	1.73	1.81	2.80
Net Profit Margin (PBT/Sales)	(%)	2.23	2.41	3.33
Return on Total Assets (PBT/Total Assets}	(%)	2.63	3.25	3.89
Return on Investment (ROI) (PBT/Networth)		0.41	0.58	0.31
Debt Equity Ratio (Total Debt/Networth)		4.90	7.54	2.48
Current Ratio (Current Asset/Current Liability)		0.71	0.65	1.06

LOCAL AGENCY FURTHER INFORMATION

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	No
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	No
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	Yes
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	No

LITIGATION DETAILS:

CASE STATUS INFORMATION SYSTEM

CEA 47 / 2011			CEASR 2892 / 2008	CASE IS:PENDING
PETITIONER				RESPONDENT
THE COMMISSIONER OF CUSTOMS & CENTRAL EXCISE, HYD.			VS	EVEREST ORGANICS LIMITED, MEDAK DIST.,
PET.ADV. : RAJASHEKAR REDDY(SR SC FOR CB EXCISE)				RESP.ADV. :
SUBJECT: CENTRAL EXCISE APPEAL				DISTRICT:  VISAKHAPATNAM
	FILING DATE:  24-09-2008	POSTING STAGE :  FOR ADMISSION
	REG. DATE:   21-02-2011	LISTING DATE :  31-03-2011			STATUS   :  ADMIT
	HON'BLE JUDGE(S):	V.V.S.RAO			B.N.RAO NALLA

Unsecured Loans	31.03.2012 (Rs. in Millions)	31.03.2011 (Rs. in Millions)
LONG-TERM BORROWINGS
- Sales Tax Deferment Liability (Payable as per A.P. State Government 14 years sales tax deferment scheme - repayment commenced from 2009-10 and payable before the year 2022-23)	25.879	26.858
SHORT TERM BORROWINGS
(a) Loans repayable on Demand
- From Other Parties	4.912	40.119
Total	30.791	66.977

REVIEW OF OPERATIONS FOR THE FINANCIAL YEAR 2011-12

The operations have improved substantially during the year 2011-2012 by 13.50%. The turnover has increased from Rs.538.500 millions to Rs.611.600 millions. The improvement in business is mainly due to expanded capacities which will further improve in the next financial year. Effective use of manpower and machinery also contributed to the increase to a significant extent. The increase in salaries is about 25%.

MANAGEMENT DISCUSSION AND ANALYSIS REPORT

GENERAL PHARMA INDUSTRIAL SCENARIO:

The Pharma industry in India is growing at a rate of 15% year on year basis. The global events in the western world have given impetus to further growing to the Pharma Industry in India, both on the domestic front and export front, in the next 5 years, the Global Pharma giants will look more and more towards India for their requirements of API and its advanced intermediates.

OUTLOOK FOR FINANICAL YEAR 2012-13:

The company has been making constant steady, but slow progress in terms of turnover, margins and addition of new products.

In this Financial Year 2012-2013, the Management is confident of achieving a turnover of about Rs.900.000 to 1000.000 millions with higher margins. The capital expenditure is envisaged to the extent of Rs.70.000 millions to 80.000 millions in terms of expanding the volume of existing products and adding newer products to augment the bottom line. In this regard the company has approached the Kotak Mahindra Bank Limited for term loan of Rs.5.crores for which the Kotak Bank has sanctioned Rs.20.000 millions, which is dispersed in second quarter of FR 2011-2012. The capital expenditure would involve solvent recovery system, expanding the volume of Omeprazole production to 20 MT per month and also expanding the capacity of Pantoprazole. The management also proposes to augment the utilities and services as well as further capital investment on effluent treatment along with augmentation of quality control equipment.

In a nutshell the management is confident of showing a minimum growth of 25 -30% year on year basis from the FY 2012-13.

CONTINGENT LIABILITIES NOT PROVIDED FOR: (AS ON 31.03.2012)

a) Letters of Credit established by the Kotak Mahindra Bank on behalf of the Company Rs.43.242 millions.

b) Bank Guarantees issued by the Kotak Mahindra Bank in favour of Pollution Control Board for Rs.1.000 million.

UNAUDITED FINANCIAL RESULTS FOR THE QUARTER ENDED 31^ST DECEMBER, 2012

(Rs. in millions)

Sl. No.	Particulars	Three months Ended
		31.12.2012
		(Un-Audited)
1	Income from Operations :
	(a) Net Sales / Income from Operations (Net of Excise Duty)	208.441
	(b)Other Operating Income	--
	Total Income From operations (net)	208.441
2	Expenses :
	a) Cost of Material Consumed	143.232
	b) Purchases of stock in trade	--
	c) Changes in inventories of finished goods Work-in-progress and stock-in-goods	(3.466)
	d) Employee benefits expense	12.642
	e) Depreciation and amortisation expense	5.175
	f) Power And Fuel	15.101
	g) Freight and Forwarding Expenses	1.291
	h) Other Expenses	24.368
	Total Expenses	198.343
3	Profit/(Loss) from operations before other Income and Finance costs (1-2)	10.098
4	Other Income	0.021
5	Profit/(Loss) From ordinary activities before finance Cost (3+/(-)4)	10.118
6	Finance cost	6.086
7	Profit/(Loss) from ordinary activities before Tax (5+/(-)6)	4.032
8	Tax expenses	0.800
9	Net profit/(loss) for the period (7+/(-)8)	3.232
10	Minority interest	--
11	Net Profit/(Loss) after Taxes and minority interest (9+/(-)10)	3.232
12	Paid up Equity Share Capital (Face value of Rs.10 /- per share)	92.730
13	Reserves excluding Revaluation Reserve as per balance sheet at year end	--
14	Earnings Per Share (of Rs.10/- each) (not annualised)
	a) Basic	0.35
	b) diluted	0.35

Part II

Select Information for the Quarter and year Ended 31.12.2012

S. No.	Particulars	Three months Ended
		31.12.2012
		(Un-Audited)
1	Public Shareholding
	- Number of shares (000s)	6357400
	- Percentage of Shareholding	68.58%
2	Promoter and Promoter group Shareholding (Excluding GDRS)
	a) Pledged/Encumbered
	- Number of Shares (000s)	--
	- Percentage of shares (As a % of total shareholding of Promoter and promoter group	--
	- Percentage of shares (As a % of total share Capital of the Company	--
	b) Non-Encumbered
	- Number of Shares (000s)	9273000
	- Percentage of shares (As a % of total shareholding of Promoter and promoter group	31.42%
	- Percentage of shares (As a % of total share Capital of the Company	100.00%

	Particulars	The Months ended 31.12.2012
B	INVESTOR COMPLAINTS
	Pending at the beginning of the quarter	NIL
	Received during the quarter	NIL
	Disposed of during the quarter	NIL
	Remaining unresolved at the end of the quarter	NIL
Resolved Subsequently		N.A.

Notes:

1. The above results were reviewed by the Audit Committee of Directors and taken on record by the Board of Directors at their meeting held on 11.02.2013.

2. The Accounting Standard 17 relating to Segment wise reporting is not applicable to the company.

3. There were no complaints from investors outstanding at the beginning of the Quarter ended 31^st December, 2012 and the Company has not received any complaints during the quarter ended 31^st December, 2012

4. Previous period / year figures have been regrouped wherever necessary.

FIXED ASSETS

Tangible Assets

· Land and Site Development

· Buildings

· Plant and Machinery and Utilities

· Office Equipment

· Computers

· Furniture and Fittings

· Vehicles

WEBITES DETAILS:

PROFILE:

The company was incorporated on 19.02.1993 to carry on the business of manufacturing of bulk drugs viz. Omeprazole, Ciprofloxacin, Dichloroflurobenzene, Benzimadizole, etc., having its factory at Sadasivpet Medak District Hyderabad. The construction activities have started in the year 1994 and the commercial production of the company has started in 1996. During the Year 1995 the company went into public issue and the shares of the company have been Over-subscribed by 39.632 times. With full swing the company started its production and got a good market share for their products.

The Company is headed by Dr. S.K. Srihari Raju who is a NRI and also a Doctor by profession. He brings in his rich and varied experience of more than 25 years in the field of Medical Science to develop Products and enhance marketablity by focusing on Therapeutic areas which are of strategic importance and growth.

The Company's Factory has a total area of 32 acres with 23 acres of green belt and 9 acres covered under buildings and roads. A massive plantation has been done in and around the process plants. There are totally 2000 plants and 2036 trees in the Company factory premises. These trees and plants include different varieties like Subabul, Neem, Gulmohar etc., Beautiful lawns between the buildings give a pleasant view for the unit that relieves the stress of the workers.

SERVICES

They are one of the Major Manufacturers and Exporters of Active Pharmaceutical Ingredients and its intermediates in India. They are an ISO 9001-2008 certified company. Their facilities comply to GMP standards and is certified by the Drug Control Authority of the Government of Andhra Pradesh, India. Their Products have been well accepted in the Global Market. They supply their products to major multinational companies abroad, prominent well established formulation companies in India, Europe, USA, Far East and the Middle East, and also to Latin / Central / South American Countries. They also provide adequate technical and documentary support for their products. Their products comply to various pharmacopial standards like BP, USP, EP and IP Standards as desired by the customer. They also have their own in house specifications. If required, they can provide Drug Master Files (DMF) and Common Technical Documents (CTD) for their products. They have also achieved a high degree of purity standards consistently for all their products and their documentation support is extensive as they have been dealing with these products since 1996.

Their standard Packing is in 25kg HDPE Drums, Validity of their offer is normally one week from the date of mailing. Payment terms are Negotiable and normal delivery terms are three to four weeks from the date of receipt of confirmed order.

The activities of the Company are executed by a team of professionals with expertise in the areas of production, planning, inventory and quality control. This team of professionals brings in there experience and expertise developed in the pharmaceutical industry. This helps in achieving world class products at very competitive prices and excellent proven quality, which is of utmost importance in a critical industry like healthcare.

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.60.59
UK Pound	1	Rs.92.92
Euro	1	Rs.78.94

INFORMATION DETAILS

Report Prepared by :

SMN

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	--
--CREDIT LINES	1~10	2
--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	NO
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTERS
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		26

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.