MIRA INFORM REPORT

Report Date :

15.03.2013

IDENTIFICATION DETAILS

Name :	XL LABORATORIES PRIVATE LIMITED
Registered Office :	DSM 430-431, DLF Tower, Shivaji Marg, New Delhi – 110 015
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	16.03.2000
Com. Reg. No.:	55-104513
Capital Investment / Paid-up Capital :	Rs.25.000 millions
CIN No.: [Company Identification No.]	U24239DL2000PTC104513
TAN No.: [Tax Deduction & Collection Account No.]	DELX00109E
PAN No.: [Permanent Account No.]	AAACX0157E
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer and Exporter of Pharmaceutical Products which includes Antacid, Anti Psychotic, Antibiotic, Anti HIV, Anti Tubercular, Nasal Congestion, Pro-biotic, Antiviral, Anti Fungal.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (45)

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

Maximum Credit Limit :	USD 596000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is an established company having a satisfactory track record. Trade relations are reported to be fair. Business is active. Payments are reported to be usually correct and as per commitments. The company can be considered for normal business dealings at usual trade terms and conditions.

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List – 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	Cash Credit: BB+
Rating Explanation	Having moderate risk of default regarding timely servicing of financial obligation.
Date	March, 2012

RBI DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2012.

LOCATIONS

Registered Office :	DSM 430-431, DLF Tower, Shivaji Marg, New Delhi – 110 015, India
Tel. No.:	Not Available
Fax No.:	Not Available
E-Mail :	corporatexlrem@vsnl.net xlrem@ndb.vsnl.net.in ahmedfca@gmail.com
Website :	http://www.xlrem.com
Corporate Office :	I-14, Shivlok House - I, Karampura Commercial Complex, Shivaji Marg, New Delhi – 110 015, India
Tel. No.:	work91-11-25920680, 81, 82
Fax No.:	91-11-25920683
Factory :	E-1223/22, Phase-I, Extension (Ghatal) RIICO Industrial Area, Bhiwadi – 301 019, Rajasthan, India

DIRECTORS

As on 29.09.2012

Name :	Mr. Ashok Kumar Bhargava
Designation :	Director
Address :	H-21, Kirti Nagar, New Delhi – 110 015, India
Date of Birth/Age :	10.05.1951
Date of Appointment :	11.02.2002
DIN No.:	00077697
Name :	Mr. Rahul Bhargava
Designation :	Director
Address :	H-21, Kirti Nagar, New Delhi – 110 015, India
Date of Birth/Age :	12.07.1981
Date of Appointment :	16.03.2002
DIN No.:	00089795

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 29.09.2012

Names of Shareholders	No. of Shares
Rita Bhargava	1056200
Rahul Bhargava	109600
A.K. Bhargava	1323300
A.K. Bhargava (HUF)	10100
Alpana Bhargava	100
Geeta Bhargava	100
Harikant Bhargava	200
Neelam Bhargava	200
Sarla Bhargava	200
Total	2500000

As on 08.10.2012

Names of Allottees	No. of Shares
Rita Bhargava	211240
Rahul Bhargava	21920
Ashok Kumar Bhargava	264660
Ashok Kumar Bhargava (HUF)	2020
Alpana Bhargava	20
Geeta Bhargava	20
Harikant Bhargava	40
Neelam Bhargava	40
Sarla Bhargava	40
Total	500000

As on 29.09.2012

Equity Share Breakup	Percentage of Holding
Category
Directors or relatives of directors	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer and Exporter of Pharmaceutical Products which includes Antacid, Anti Psychotic, Antibiotic, Anti HIV, Anti Tubercular, Nasal Congestion, Pro-biotic, Antiviral, Anti Fungal.

Products :

Item Code No. (ITC Code)	300490
Product Description	Pharmaceutical Products

• Antacid
• Antibiotics
• Antiepileptic
• Anti psychotic
• Vasoprotectives
• Antidiabetic
• Anti emetic
• Antihyperlipidemic
• Anti fungal
• Anthelmintics
• Anti histamine
• Musculoskeletal Disorder
• Anti HIV
• Cold and Cough
• Analgesic, Antipyretic
• Anti Depressants
• Antitubercular
• Antiprotozoal / Antiamoebic
• Anticonstipative
• Antiarthritic
• Anti Malarial
• Anti flatulent
• Antiseptic
• Anti platelet
• Anti spasmodic
• Anti ulcerative
• Antiviral
• Apetite stimulant
• Antihypertensive
• Antiasthmatic
• CNS Stimulant
• Chronic Alcoholism
• Diuretic
• Erectile dysfunction
• Nasal Congestion
• Prostate Hyperplasia
• Sedatives
• Multivitamins and Minerals
• Hepato Biliary
• Anti H-pylori Kit
• Probiotic
• Anti Parkinsonism

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

• State Bank of India, SME Branch, 23, Najafgarh Road, New Delhi – 110 015, India
• HDFC Bank Limited
• Axis Bank Limited

Facilities :

Secured Loans	31.03.2012 (Rs. in Millions)	31.03.2011 (Rs. in Millions)
LONG TERM BORROWINGS
State Bank of India	0.000	0.000
FCNR	20.710	41.630
LIC	0.000	1.791
Loan Against Vehicle	0.000	0.000
HDFC	0.064	0.339
Axis Bank	1.691	0.000
SBI - lnnova	0.367	0.000
SBI - Maruti	0.485	0.000
State Bank of India	0.000	2.108
BMW Financial Services Private Limited	1.560	2.345
Loans from State Bank of India are secured against the first charge of Land and Building, Plant and Machinery of factory and all present and future fixed assets situated at factory and personal guarantee of Directors. Loans against vehicles are secured against the respective vehicles
SHORT TERM BORROWINGS
State Bank of India
Cash Credit	2.119	6.135
EPC	35.691	22.367
Loans from State Bank of India are secured against hypothecation of stocks and debtors and the first charge of Land and Building, Plant and Machinery of factory and all present and future fined assets situated at factory and personal guarantee of Directors
Total	62.687	76.715

Banking Relations :	--
Auditors :
Name :	Ahmad Shukla Jain and Associates Chartered Accountants
Address :	203, 1/926, IInd Floor, Naiwala, Karol Bagh, New Delhi – 110 005, India
Tel. No.:	91-11-28752817
Mobile No.:	91-9810121215
E-Mail :	ahmedfca@gmail.com ca.asja@gmail.com
Income-tax PAN of auditor or auditor's firm :	AAFFA5572Q

CAPITAL STRUCTURE

After 29.09.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
3000000	Equity Shares	Rs.10/- each	Rs.30.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
3000000	Equity Shares	Rs.10/- each	Rs.30.000 millions

As on 29.09.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
3000000	Equity Shares	Rs.10/- each	Rs.30.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
2500000	Equity Shares	Rs.10/- each	Rs.25.000 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		25.000	30.000	30.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		124.087	98.258	70.215
4] (Accumulated Losses)		0.000	0.0000	0.000
NETWORTH		149.087	128.258	100.215
LOAN FUNDS
1] Secured Loans		62.687	76.715	51.175
2] Unsecured Loans		27.234	22.719	18.239
TOTAL BORROWING		89.921	99.434	69.414
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		239.008	227.692	169.629
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		180.170	189.875	130.966
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.500	0.000	0.000
DEFERRED TAX ASSETS		1.397	1.108	0.841
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	37.833	41.737	34.507
	Sundry Debtors	21.104	22.647	17.340
	Cash & Bank Balances	45.364	20.276	1.321
	Other Current Assets	0.888	1.242	9.089
	Loans & Advances	40.743	37.267	33.253
Total Current Assets		145.932	123.169	95.510
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	35.362	26.900	35.934
	Other Current Liabilities	31.328	45.329	13.852
	Provisions	22.301	14.231	12.248
Total Current Liabilities		88.991	86.460	62.034
Net Current Assets		56.941	36.709	33.476
MISCELLANEOUS EXPENSES		0.000	0.000	4.346
TOTAL		239.008	227.692	169.629

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	NA	390.784	331.235
		Other Income	NA	1.882	2.030
		TOTAL	NA	392.666	333.265
Less	EXPENSES
		Increase/Decrease in Stock	NA	(0.472)	(6.081)
		Material Consumed	NA	221.170	198.139
		Manufacturing Expenses	NA	18.090	13.164
		Personnel Expenses	NA	40.259	32.191
		Excise Duty	NA	0.674	0.735
		Administrative & Other Overheads	NA	47.807	40.629
		TOTAL	NA	327.528	278.777
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION		NA	65.138	54.488
Less	INTEREST		NA	6.248	3.933
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION		87.739	58.890	50.555
Less/ Add	DEPRECIATION/ AMORTISATION		19.893	16.853	16.389
	PROFIT BEFORE PRIOR PERIOD EXPENSES & TAX		67.845	42.037	34.166
Less	PRIOR PERIOD EXPENSES		NA	0.028	0.017
	PROFIT BEFORE TAX		NA	42.009	34.149
Less	TAX		NA	13.966	11.608
	PROFIT AFTER TAX		NA	28.043	22.541
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		95.657	67.614	45.073
	BALANCE CARRIED TO THE B/S		NA	95.657	67.614
	EARNINGS IN FOREIGN CURRENCY
		FOB Value of Exports	384.049	311.724	289.368
	TOTAL EARNINGS		384.049	311.724	289.368
	Earnings Per Share (Rs.)		NA	9.35	7.51

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	NA	7.14	6.76
Net Profit Margin (PBT/Sales)	(%)	NA	10.70	10.31
Return on Total Assets (PBT/Total Assets}	(%)	NA	13.42	15.08
Return on Investment (ROI) (PBT/Networth)		NA	0.33	0.34
Debt Equity Ratio (Total Debt/Networth)		0.60	0.78	0.69
Current Ratio (Current Asset/Current Liability)		1.64	1.42	1.54

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	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	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	--
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	Yes

Unsecured Loans	31.03.2012 (Rs. in Millions)	31.03.2011 (Rs. in Millions)
LONG TERM BORROWINGS
Unsecured Borrowings	27.234	22.719
Total	27.234	22.719

Note:

The registered office of the company has been shifted from I-14, Shivlok House - I, Karampura Commercial Complex, Shivaji Marg, New Delhi – 110 015 to the present address w.e.f. 01.09.2012.

CONTINGENT LIABILITIES (AS ON 31.03.2012):

a. Guarantees given by the bankers on behalf of company and outstanding amount to Rs.8.286 millions

b. Letter of Credits given by the bankers on behalf of company and outstanding amount to NIL

Bankers Charges Report as per Registry

Corporate identity number of the company	U24239DL2000PTC104513
Name of the company	XL LABORATORIES PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	I-14, Shivlok House - I, Karampura Commercial Complex, Shivaji Marg, New Delhi – 110 015, India E-Mail: ahmedfca@gmail.com
Type of charge	Immovable Property Any interest in immovable property Book Debts Movable Property (not being pledge) Others (All current and fixed assets of the company)
This form is for	Modification of charge
Charge identification number of the modified	10025118
Particular of charge holder	State Bank of India, SME Branch, 23, Najafgarh Road, New Delhi – 110 015, India E-Mail: rkarohini@yahoo.co.in
Nature of description of the instrument creating or modifying the charge	SME-1, Letter of Arrangement SME-2, Agreement of Loan cum Hypothecation SME-3, Guarantee Agreement SME-8, Confirmation Letter for Extension of Mortgage by Deposit of Title Deeds
Date of instrument Creating the charge	28.04.2012
Amount secured by the charge	Rs.42.600 millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest: On Term Loan and SME Car Loan as per Original Loan Agreements Terms of Repayment: As per Loan Agreement Margin: As per Loan Agreement Extent and Operation of the charge: 100%
Short particulars of the property charged	TL- First Charge over fixed assets of the company purchased to be purchased out of bank finance Equitable Mortgage of residential property situated at H-21, Kirti Nagar New Delhi measuring 200 sq. yds. Equitable Mortgage of factory land and building situated over a plot of 4186 sq. mtrs. at E-1223, Phase-1, RIICO Industrial Area, Ghatal Bhiwadi (Rajasthan). Equitable Mortgage of factory land and building situated over a plot of 3912 sq. mtrs. at E-1222, Phase-1, RIICO Industrial Area, Ghatal Bhiwadi (Rajasthan). Extension of charge over fixed assets of the company.
Whether any of the property or interest therein under reference is not registered in the name of the company If yes, in whose name it is registered	Yes A K Bhargava and Rita Bhargava
Date of latest modification prior to the present modification	15.04.2011
Particulars of the present modification	Term Loan Limit modified as below 1. Open Term Loan = Rs.20.000 millions 2. Term Loan-I = Rs.3.200 millions 3. Term Loan-II = Rs.8.900 millions 4. Term Loan-III = Rs.5.200 million 5. Open Term Loan = Rs.4.500 millions 6. SME Car Loan = Rs.0.800 million Total Term Loan = Rs.42.600 millions

FIXED ASSETS:

· Land

· DLF Estates

· DLF Commercial

· Factory Building

· Lift

· Pump Set

· Plant and Machinery

· Air Conditioners

· Air Dryer System

· Electric Installation

· Fire Extinguishers

· Generator Set

· Laboratory Equipment

· Miscellaneous Fixed Assets

· Dies and Punches

· Electricity Fitting

· Office Equipment

· Weighing Machine

· Cars

· Computer

· Motor Cycles and Scooters

· Cycles

· Furniture and Fixture

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.54.44
UK Pound	1	Rs.81.33
Euro	1	Rs.70.50

INFORMATION DETAILS

Report Prepared by :

SMN

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--CREDIT LINES	1~10	5
--MARGINS	-5~5	-
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	NO
--AFFILIATION	YES/NO	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		45

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.