MIRA INFORM REPORT

Report Date :

23.03.2013

IDENTIFICATION DETAILS

Name :	J P N PHARMA PRIVATE LIMITED
Registered Office :	D/10, Matru Ashish Building, Near Balbharati School, S V Road, Kandivali (West), Mumbai - 400067, Maharashtra
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	31.03.2004
Com. Reg. No.:	11-145446
Capital Investment / Paid-up Capital :	Rs. 12.872 Millions
CIN No.: [Company Identification No.]	U24230MH2004PTC145446
TAN No.: [Tax Deduction & Collection Account No.]	MUMJ10472A
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Active Pharmaceutical Ingredients (API’s) and Drug Intermediates (DI’s).
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (42)

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

Maximum Credit Limit :	USD 149000
Status :	Satisfactory
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track record. Trade relations are reported as fair. Business is active. Payments are reported to be slow but correct. The company can be considered normal for business dealings at usual trade term and condition.

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

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 :	D/10, Matru Ashish Building, Near Balbharati School, S V Road, Kandivali (West), Mumbai - 400067, Maharashtra, India
Tel. No.:	91-22-28643481/ 28072182/ 67141516
Fax No.:	91-22-28640377
E-Mail :	info@jpnpharma.net jpi@vsnl.com
Website :	www.jpnpharma.net
Location :	Owned
Plant 1 :	T-108/109, MIDC Tarapur, Taluka Palghar, Boisar, Thane - 401506, Maharashtra, India
Tel. No.:	91-2525-271296
Plant 2 :	T-11, MIDC, Tarapur, Taluka Palghar, Boisar, Thane - 401506, Maharashtra, India
Tel. No.:	91-2525-272446

DIRECTORS

AS ON 24.09.2012

Name :	Mr. Mukund Popatlal Shah
Designation :	Director
Address :	B 402, Godgrace CHS Limited, Off Marve Road, Malad (West), Mumbai – 400064, Maharashtra, India
Date of Birth/Age :	21.08.1961
Date of Appointment :	31.03.2004
DIN No.:	00288387
Name :	Mr. Jayesh Popatlal Shah
Designation :	Director
Address :	B-14, Alka Opposite N.L. High School, 19, S.V. Road, Malad (West), Mumbai – 400064, Maharashtra, India
Date of Birth/Age :	02.01.1968
Date of Appointment :	31.03.2004
DIN No.:	00288404

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 24.09.2012

Names of Shareholders	No. of Shares
Jayesh Shah	306470
Mukund Shah	656510
Popatlal Shah	100
Popatlal Shivlal Shah (HUF)	70600
Mukund Popatlal Shah (HUF)	76600
Pragna Mukund Shah	100
Jayesh Popatlal Shah (HUF)	75100
Bijal Jayesh Shah	90600
Jayaben Shah	11000
Ela Kothari	10
Induben Ghiya	10
Kashyap Kothari	10
Mahesh Kothari	10
Mamta Vasa	10
Pratapbhai Patel	10
Ramaben Patel	10
Urvashi Ghiya	10
Ketul Toliya	10
Nirav Kothari	10
Meena Kothari	10
Mukesh Kothari (HUF)	10
Mukesh Kothari	10
Shilpa V Patel	10
Bharti R Shah	10
Bhavna Praful Shah	10
Total	1287240

AS ON 24.09.2012

Equity Share Breakup	Percentage of Holding
Category
Directors or relatives of directors	82.72
Others	17.28
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Active Pharmaceutical Ingredients (API’s) and Drug Intermediates (DI’s).

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

Bank of Baroda, IBB Branch, Mathru Ashish Building, S. V. Road Kandivali (West), Mumbai - 400067, Maharashtra, India

Facilities :

Secured Loans	31.03.2012	31.03.2011
	(Rs. In Millions)
Term loan
Bank of Baroda TL 374	2.550	2.530
Bank of Baroda TL 460	3.580	0.000
Bank of Baroda TL 487	1.606	0.000
On Cash Credit (Bank of Baroda)	20.702	10.412
On Export Bill Discounting (Bank of Baroda)	0.000	10.000
Bank of Baroda (Packing Credit)	6.997	0.000
Total	35.435	22.942
Notes: Bank of Baroda Term Loan 374 Secured by first charge by way of hypothecation of Factory Premises and Plant and Machinery in favour of bank. The Outstanding loan is repayable in balance 46 installments of Rs. 0.075 Million each with floating rate of Interest. (Base Rate + 3.50% i.e 14.25% p.a. on March, 2012) Bank of Baroda Term Loan-460 Secured by first charge by way of hypothecation of Factory Premises & Plant and Machinery in favour of bank. The Outstanding loan is repayable in 60 instalments of Rs. 0.075 Million each commencing from July 2012. i.e 14.25% The applicable Interest Rate is Base rate + 3.25% p.a. i.e 14.25% p.a. Bank of Baroda Term Loan - 487 Secured by first charge by way of hypothecation of Factory Premises & Plant and Machinery in favour of bank. The sanctioned loan is Rs. 17.500 Millions. The loan is repayable in 59 monthly instalments of Rs.0.292 Million each and last 60th instalment of Rs.0.272 Million commencing from March, 2013. The applicable Interest Rate is Base rate + 3.25% p.a. i.e 14.25% p.a. Cash Credit Secured by first charge by way of hypothecation of stock and book debts with margin 25% of Stock and 40% on Books Debts. Corporate Guarantee of JPN Pharma Private Limited to the extent of Fund Based Limit of Rs. 17.500 Millions. The Cash Credit Is repayable on demand and carries interest rate Base rate + 3.50% i.e. 14.25% p.a. Packing Credit / Foreign Bill Purchase Secured by first charge by way of hypothecation of stock and book debts with margin of 25% in case of Packing Credit Corporate Guarantee of JPN Pharma Private Limited to the extent of Fund Based Limit of Rs. 7.000 Private Limited The Credit Is repayable on demand and carries interest rate Base rate + 1.25% i.e. 12.00% p.a.

Banking Relations :	--
Auditors :
Name :	K. B. Mehta and Company Chartered Accountants
Address :	106, Unique Apartment, 1st Floor, S. V. Road, Irla, Vile-Parle (West), Mumbai – 400056, Maharashtra, India
Tel. No.:	91-22-65250201
Fax No.:	91-22-26711801
E-Mail :	Mahudi_kiran@rediffmail.com
Income-tax PAN of auditor or auditor's firm :	AABPM9871E

CAPITAL STRUCTURE

AS ON 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
1,500,000	Equity Shares	Rs. 10/- each	Rs. 15.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1,287,240	Equity Shares	Rs. 10/- each	Rs. 12.872 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		12.872	12.872	10.872
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		24.317	13.877	8.471
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		37.189	26.749	19.343
LOAN FUNDS
1] Secured Loans		35.435	22.942	15.497
2] Unsecured Loans		19.689	15.406	11.748
TOTAL BORROWING		55.124	38.348	27.245
DEFERRED TAX LIABILITIES		0.976	0.665	0.320
TOTAL		93.289	65.762	46.908
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		35.881	32.727	28.688
Capital work-in-progress		1.704	0.000	0.000
INVESTMENT		0.012	0.012	0.012
DEFERRED TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	16.199	14.487	11.320
	Sundry Debtors	50.734	48.851	37.969
	Cash & Bank Balances	2.735	0.162	0.173
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	16.718	8.215	9.641
Total Current Assets		86.386	71.715	59.103
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	21.635	25.402
	Other Current Liabilities	7.934	10.812	38.286
	Provisions	1.125	2.478	2.609
Total Current Liabilities		30.694	38.692	40.895
Net Current Assets		55.692	33.023	18.208
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		93.289	65.762	46.908

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income
		Other Income
		TOTAL	341.744	248.135	N.A.
Less	EXPENSES
		Office Expenses
		Administrative Expenses
		Advertising Expenses
		TOTAL	320.366	233.719	N.A.
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION		21.378	14.416
Less/ Add	DEPRECIATION/ AMORTISATION		4.338	3.648
	PROFIT BEFORE TAX		17.040	10.768	N.A.
Less	TAX		5.074	4.236	N.A.
	PROFIT AFTER TAX		11.966	6.532	N.A.
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	138.874	73.774	N.A.
	IMPORTS
		Raw and Packing Materials	11.033	N.A.	N.A.
	Earnings Per Share (Rs.)		9.30	5.07	N.A.

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	3.50	2.63	N.A.
Return on Total Assets (PBT/Total Assets}	(%)	13.94	10.31	N.A.
Return on Investment (ROI) (PBT/Networth)		0.46	0.40	N.A.
Debt Equity Ratio (Total Debt/Networth)		1.48	1.43	1.41
Current Ratio (Current Asset/Current Liability)		2.81	1.85	1.45

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	Check List by Info Agents	Available in Report (Yes / No)
1]	Year of Establishment	Yes
2]	Locality of the firm	Yes
3]	Constitutions of the firm	Yes
4]	Premises details	No
5]	Type of Business	Yes
6]	Line of Business	Yes
7]	Promoter's background	Yes
8]	No. of employees	No
9]	Name of person contacted	No
10]	Designation of contact person	No
11]	Turnover of firm for last two years	Yes
12]	Profitability for last two years	Yes
13]	Reasons for variation <> 20%	--
14]	Estimation for coming financial year	No
15]	Capital in the business	Yes
16]	Details of sister concerns	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	No

UNSECURED LOANS

Unsecured Loans	31.03.2012	31.03.2011
	(Rs. In Millions)
Loans and Advances from Related parties	13.477	8.036
Local Bill Discounting	6.212	7.370
Total	19.689	15.406

BANKERS CHARGES REPORT AS PER REGISTRY

Corporate identity number of the company	U24230MH2004PTC145446
Name of the company	J P N PHARMA PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	D/10, Matru Ashish Building, Near Balbharati School, S V Road, Kandivali (West), Mumbai - 400067, Maharashtra, India Email: jpi@vsnl.com
This form is for	Modification of charge
Charge identification number of the modified	10022639
Type of charge	Immovable property Book debts Movable property (not being pledge)
Particular of charge holder	Bank of Baroda, IBB Branch, Mathru Ashish Building, S. V. Road Kandivali (West), Mumbai - 400067, Maharashtra, India Email: intmum@bankofbaroda.com
Nature of description of the instrument creating or modifying the charge	Supplemental composite agreement of hypothecation of goods, bookdebts, moveable machinery and vehicles and supplemental memorandum of entry
Date of instrument Creating the charge	15.02.2012
Amount secured by the charge	Rs. 50.325 Millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest Cash Credit limit at the rate of 3.5% above Base rate, PC / FBP / UBP at the rate of 1.25% above Base rate, Term Loan at the rate of 3.5% above Base rate, p.a. presently with monthly rest Terms of Repayment As Per Sanction Letter Margin 25% on stocks 40% on book-debts 25% on moveable machinery 30% on civil work and machinery Extent and Operation of the charge As Per Agreement
Short particulars of the property charged	Borrower's stocks of raw materials, stock in process, finished goods, consumable spares and packing materials, all the book - debts, machinery, vehicles, stocks and all the stores and spare parts. And in Immovable Property Plot no: T-108 and T-109 containing by adm.1000 sq. mtrs. or thereabouts and factory building adm. 321.67 sq. mtrs. and 225 sq mts respectively in the Tarapur Industrial Area of MIDC, within the village limits of Pamtembhi and outside the Municipal Limits in rural area, Taluka and Registration Sub-District Palghar District and Registration District Thane.
Particulars of the present modification	Limit enhanced from Rs.32.825 Millions to Rs.50.325 Millions Cash credit is Rs.17.500 Millions Term loans is Rs.8.325 Millions Pc/fbp/fbd is Rs.7.000 Millions Fresh term loan is Rs.17.500 Millions

FIXED ASSETS:

Ø Land

Ø Factory Premises

Ø Plant and Machinery

Ø Electrical Installation

Ø Laboratory Equipment

Ø Office Equipment

Ø Furniture and Fixtures

Ø Computer

Ø Vehicle

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. 82.56
Euro	1	Rs. 70.10

INFORMATION DETAILS

Report Prepared by :

BVA

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	4
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--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	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTERS
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		42

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.