MIRA INFORM REPORT

Report Date :

13.03.2013

IDENTIFICATION DETAILS

Name :	G N R C LIMITED GNRC INSTITUTE OF MEDICAL SCIENCE (A UNIT OF G N R C LIMITED)
Registered Office :	G N R C Complex, Super Market, Dispur, Guwahati - 781006, Assam
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	17.10.1985
Com. Reg. No.:	02-002447
Capital Investment / Paid-up Capital :	Rs. 105.180 Millions
CIN No.: [Company Identification No.]	U85110AS1985PLC002447
PAN No.: [Permanent Account No.]	AAACG7527P
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Providing Medical Services.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

B (36)

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

Maximum Credit Limit :	USD 1270000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having a moderate track record. The company is reported to be susceptible to risks associated with project implementation, and geographical concentration. There appears some dip in the turnover and profits during 2012. However, trade relations are reported as fair. Business is active. Payment terms are slow but correct. The company 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 – June 30, 2012

Country Name	Previous Rating (31.03.2012)	Current Rating (30.06.2012)
India	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

INDIAN ECONOMIC OVERVIEW

India is developing into an open-market economy, yet traces of its past autarkic policies remain. Economic liberalization, including industrial deregulation, privatization of state-owned enterprises, and reduced controls on foreign trade and investment, began in the early 1990s and has served to accelerate the country's growth, which has averaged more than 7% per year since 1997. India's diverse economy encompasses traditional village farming, modern agriculture, handicrafts, a wide range of modern industries, and a multitude of services. Slightly more than half of the work force is in agriculture, but services are the major source of economic growth, accounting for more than half of India's output, with only one-third of its labor force. India has capitalized on its large educated English-speaking population to become a major exporter of information technology services and software workers. In 2010, the Indian economy rebounded robustly from the global financial crisis - in large part because of strong domestic demand - and growth exceeded 8% year-on-year in real terms. However, India's economic growth in 2011 slowed because of persistently high inflation and interest rates and little progress on economic reforms. High international crude prices have exacerbated the government's fuel subsidy expenditures contributing to a higher fiscal deficit, and a worsening current account deficit. Little economic reform took place in 2011 largely due to corruption scandals that have slowed legislative work. India's medium-term growth outlook is positive due to a young population and corresponding low dependency ratio, healthy savings and investment rates, and increasing integration into the global economy. India has many long-term challenges that it has not yet fully addressed, including widespread poverty, inadequate physical and social infrastructure, limited non-agricultural employment opportunities, scarce access to quality basic and higher education, and accommodating rural-to-urban migration.

Source : CIA

EXTERNAL AGENCY RATING

Rating Agency Name	CRISIL
Rating	Long term rating : B+
Rating Explanation	High risk of default
Date	February 1, 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 :	G N R C Complex, Super Market, Dispur, Guwahati - 781006, Assam, India
Tel. No.:	91-361-2227700-04
Fax No.:	91-361-2227711/ 2231825
E-Mail :	biswajit.ghy4@gmail.com gnrcltd@gnrc.in
Website :	www.gnrc.in
Site Address :	Sila Grant, Mouza Sila, Sendurighopa, North Guwahati, Assam, India

DIRECTORS

AS ON 22.09.2012

Name :	Mr. Nomal Chandra Borah
Designation :	Chairman cum Managing director
Address :	GNRC Limited, Dispur, Guwahati -781006, Assam, India
Date of Birth/Age :	01.02.1954
Qualification :	MBBS
Date of Appointment :	17.10.1985
PAN No.:	AETPB8997C
DIN No.:	00965988
Name :	Mr. Jatin Hazarika
Designation :	Director
Address :	Jivagiri, Sarania Hills, Ulubari, Guwahati - 781007, Assam, India
Date of Birth/Age :	01.06.1929
Qualification :	IAS
Date of Appointment :	05.01.1998
PAN No.:	AAKPH5322A
DIN No.:	00546175
Name :	Mrs. Priyanka Borah
Designation :	Whole-time director
Address :	GNRC Limited, Near Sports Complex, Dispur, Guwahati - 781006, Assam, India
Date of Birth/Age :	11.11.1982
Qualification :	Management Graduate
Date of Appointment :	10.02.2006
PAN No.:	AKQPB3589H
DIN No.:	00966063
Name :	Mrs. Anupama Das
Designation :	Director
Address :	A.T. Road, Maligaon, Guwahati - 781011, Assam, India
Date of Birth/Age :	08.09.1933
Qualification :	Social Activist
Date of Appointment :	09.07.1999
DIN No.:	01404804
Name :	Jayanta Madhab
Designation :	Director
Address :	Kharghuli, Guwahati – 781004 , Assam, India
Date of Birth/Age :	01.03.1932
Qualification :	Economist
Date of Appointment :	29.03.2008
DIN No.:	02114242
Name :	Mr. Deepak Kumar Goswami
Designation :	Nominee director
Address :	South Sarania, Guwahati - 781007, Assam, India
Date of Birth/Age :	25.01.1961
Qualification :	BE, MBA
Date of Appointment :	20.05.2009
DIN No.:	00679551
Name :	Senthilarumugam Thiruvadi
Designation :	Nominee director
Address :	A3, 313 Sneha Apartment, Godavari Block, National Games Village, Karamangala, Bangalore - 560047, Karnataka, India
Date of Birth/Age :	23.03.1956
Date of Appointment :	22.05.2012
DIN No.:	03431263

KEY EXECUTIVES

Name :	Mr. Biswajit Das
Designation :	Company Secretary
PAN No.:	ATIPD5021D

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

SHAREHOLDING DETAILS FILE ATTACHED

AS ON 22.09.2012

Equity Share Breakup	Percentage of Holding
Category
Government companies	2.71
Venture capital	29.70
Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others]	1.95
Bodies corporate	52.62
Directors or relatives of directors	10.22
Other top fifty shareholders	1.49
Others	1.31
Total	100.00

BUSINESS DETAILS

Line of Business :

Providing Medical Services.

Products :

ITC Code	Product Descriptions
99931210	General Medical Services

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

Ø Industrial Development Bank of India Limited, IDBI Tower WTC Complex, Cuffe Parade, Mumbai - 400005, Maharashtra, India

Ø State Bank of India, Commercial Branch, Bee Kay Tower, 2nd Floor, Ganeshguri, Guwahati - 781006, Assam, India

Ø State Bank of India, SME City Credit Centre, Girish Mansion, M.R. Dewan Road, Guwahati - 781021, Assam, India

Facilities :

Secured Loans	31.03.2012	31.03.2011
	(Rs. In Millions)
Rupee term loans from banks	177.582	121.975
Rupee term loans from others	4.118	8.577
Working capital loans from banks	62.180	60.126
Total	243.880	190.678
Note: Hypothecation of plant and machinery to be purchased out of finance, Hypothecation of immovable and moveable assets (Medical equipment, plant and machineries, furnitures and fixtures) and personal guarantee of directors Hypothecation of immovable and moveable assets (Medical equipment, plant and machineries, furnitures and fixtures) and personal guarantee of directors, Hypothecation of plant and machinery to be purchased out of finance Hypothecation of plant and machinery to be purchased out of finance, Hypothecation of immovable and moveable assets (Medical equipment, plant and machineries, furnitures and fixtures) and personal guarantee of directors Hypothecation of immovable and moveable assets (Medical equipment, plant and machineries, furnitures and fixtures) and personal guarantee of directors, Hypothecation of plant and machinery to be purchased out of finance

Banking Relations :	--
Auditors :
Name :	Sanjoy K. Das and Company Chartered Accountants
Address :	D - 1, Chandralaya Apartments, Lamb Road, Ambari, Guwahati - 781001, Assam, India
Income-tax PAN of auditor or auditor's firm :	AEHPD8941A
Subsidiaries :	Ø GNRC Community Hospitals Limited [U85110AS2001PLC006621] Ø Brahmaputra Hospitals Limited [U85110MH1997PLC107360]
Associates :	Ø Millennium Marketing And Medical Services Private Limited [U51109AS1999PTC005931] Ø Blue Sky Medicals Private Limited [U51397AS1994PTC006655] Ø Brahmaputra Teak Plantations of Assam Private Limited [U01117AS1994PTC004199] Ø New Frontier Marketing And Medical Services Private Limited [U51109AS1999PTC005912] Ø GNRC Infotech Private Limited [U72200AS2001PTC006584] Ø GNRC Medishop Private Limited [U52310AS2012PTC010872] Ø GNRC Plastics Private Limited [U25209AS1998PTC005345] Ø Nezone Marketing And Medical Services Private Limited [U51109AS1999PTC005911] Ø Priyanka Health Care And Allied Products Private Limited [U85110AS1994PTC004300] Ø Satabdee Associates Private Limited [U85110AS1994PTC004301] Ø GNRC Engineering And Constructions Private Limited [U70101AS1998PTC005468]

CAPITAL STRUCTURE

AS ON 22.09.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
20000000	Equity Shares	Rs. 10/- each	Rs. 200.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
14962490	Equity Shares	Rs. 10/- each	Rs. 149.625 Millions

AS ON 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
20000000	Equity Shares	Rs. 10/- each	Rs. 200.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
10518045	Equity Shares	Rs. 10/- each	Rs. 105.180 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2012	31.03.2011	31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		105.180	101.890	101.890
2] Share Application Money		0.000	6.580	4.600
3] Reserves & Surplus		211.838	168.160	111.773
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		317.018	276.630	218.263
LOAN FUNDS
1] Secured Loans		243.880	190.678	361.174
2] Unsecured Loans		3.990	0.000	0.000
TOTAL BORROWING		247.870	190.678	361.174
DEFERRED TAX LIABILITIES		39.840	27.152	48.026
TOTAL		604.728	494.460	627.463
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		639.726	533.798	557.766
Capital work-in-progress		23.805	15.116	0.000
INVESTMENT		2.481	3.092	3.092
DEFERRED TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	44.346	64.853	63.835
	Sundry Debtors	38.413	29.241	22.781
	Cash & Bank Balances	15.306	15.397	5.384
	Other Current Assets	0.800	1.713	0.000
	Loans & Advances	45.393	52.091	66.414
Total Current Assets		144.258	163.295	158.414
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	74.475	52.585	52.667
	Other Current Liabilities	129.035	145.738	21.479
	Provisions	2.032	22.518	23.151
Total Current Liabilities		205.542	220.841	97.297
Net Current Assets		(61.284)	(57.546)	61.117
MISCELLANEOUS EXPENSES		0.000	0.000	5.488
TOTAL		604.728	494.460	627.463

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Revenue from operations	881.104	702.095	616.556
		Other Income	4.137	1.039	2.719
		TOTAL (A)	885.241	703.134	619.275
Less	EXPENSES
		Purchases of stock-in-trade	276.443	229.974
		Changes in inventories of finished goods, work-in-progress and stock-in-trade	20.508	(1.018)
		Employee benefit expense	194.808	134.074
		Other expenses	241.753	187.550
		TOTAL (B)	733.512	550.580	482.187
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		151.729	152.554	137.088
Less	FINANCIAL EXPENSES (D)		34.973	38.043	44.430
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		116.756	114.511	92.658
Less/ Add	DEPRECIATION/ AMORTISATION (F)		49.680	48.187	41.263
	PROFIT BEFORE TAX (E-F) (G)		67.076	66.324	51.395
Less	TAX (H)		26.688	4.273	15.876
	PROFIT AFTER TAX (G-H) (I)		40.388	70.597	35.519
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		150.470	97.083	77.107
Less	APPROPRIATIONS
		Transfer to General Reserve	N.A.	3.000	1.285
		Dividend		12.227	12.227
		Tax on Dividend		1.983	2.031
	BALANCE CARRIED TO THE B/S		N.A.	150.470	97.083
	Earnings Per Share (Rs.)		3.92	6.92	3.49

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	4.56	10.04	5.74
Net Profit Margin (PBT/Sales)	(%)	7.61	9.45	8.34
Return on Total Assets (PBT/Total Assets}	(%)	8.56	9.51	7.18
Return on Investment (ROI) (PBT/Networth)		0.21	0.24	0.24
Debt Equity Ratio (Total Debt/Networth)		0.78	0.69	1.65
Current Ratio (Current Asset/Current Liability)		0.70	0.74	1.63

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	Yes
29]	Last accounts filed at ROC	Yes
30]	Major Shareholders, if available	Yes
31]	Date of Birth of Proprietor/Partner/Director, if available	Yes
32]	PAN of Proprietor/Partner/Director, if available	Yes
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	Yes

UNSECURED LOANS

Unsecured Loans	31.03.2012	31.03.2011
	(Rs. In Millions)
Intercorporate borrowings	1.915	0.000
Loans and advances from related parties	2.075	0.000
Total	3.990	0.000

BANKERS CHARGES REPORT AS PER REGISTRY

Corporate identity number of the company	U85110AS1985PLC002447
Name of the company	G N R C LIMITED
Address of the registered office or of the principal place of business in India of the company	G N R C Complex, Super Market, Dispur, Guwahati - 781006, Assam, India Email: biswajit.ghy4@gmail.com
This form is for	Modification of charge
Charge identification number of the modified	90266388
Type of charge	Immovable property Book debts Floating charge
Particular of charge holder	State Bank of India, Commercial Branch, Bee Kay Tower, 2nd Floor, Ganeshguri, Guwahati - 781006, Assam, India Email: sbi.04418@sbi.co.in
Nature of description of the instrument creating or modifying the charge	Letter of Intimation from the bank dtd : 09.07.12 regarding the present limit enjoyed by the Company
Date of instrument Creating the charge	09.07.2012
Amount secured by the charge	Rs. 97.500 Millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest Same as Earlier Terms of Repayment Repayment of Term Loan, CC limit and Cash Credit is same as earlier Margin Same as earlier Extent and Operation of the charge The charge will operate against the property charged for repayment of overall limit Rs. 97.500 Millions and interest thereon. Secured by hypothecation of fixed assets acquired out of the bank loan. Hypothecation of current assets of Dispur hospital and Medishop for CC limit. Collateral security of a combined plot of land at Sarumatoria under Beltola mouza and buildings thereon. Others Description of Land : 01 B-03 K-10 Lecha Dag No: 170/115 Patta No : 27
Short particulars of the property charged	Hypothecation of stocks of medicines, consumable, receivables and other current assets of the company situated at the GNRC Hospitals, Dispur Hypothecation of stocks of medicines, consumable, receivables and other current assets of the company situated at the GNRC Hospitals, Dispur Hypothecation of Medical equipment and other movable fixed assets of the company purchased out of bank finance Equitable mortgage of a combined plot of land in Dag no. 170/115 Patta no. 27 total land of 01 B-03K-10L situated at village- Sarumotoria in Beltola Mouza in Kamrup District, Assam Equitable mortgage of Multi-storied building situated at the above said land in the name of the company.
Date of Modification	22.10.2010
Particulars of the present modification	The Present overall limit enjoyed by the Company with regard to the previous loan from SBI has been decreased (upon repayment from time to time) to Rs. 97.500 Millions. Currently the Accounts are maintained in SBI Commercial Branch

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. 54.34
UK Pound	1	Rs. 80.90
Euro	1	Rs. 70.73

INFORMATION DETAILS

Report Prepared by :

BVA

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	3
--CREDIT LINES	1~10	4
--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	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTERS
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		36

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.