MIRA INFORM REPORT

Report Date :

30.03.2013

IDENTIFICATION DETAILS

Name :	POLYDRUG LABORATORIES PRIVATE LIMITED
Formerly Known As :	POLYDRUG LABORATORIES INDIA PRIVATE LIMITED
Registered Office :	A-201/202, Nav Bharat Estate, Zakaria Bunder Road, Sewri (West), Mumbai – 400015, Maharashtra
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	28.07.2004
Com. Reg. No.:	11-147729
Capital Investment / Paid-up Capital :	Rs. 86.995 Millions
CIN No.: [Company Identification No.]	U24231MH2004PTC147729
TAN No.: [Tax Deduction & Collection Account No.]	MUMP18857G
PAN No.: [Permanent Account No.]	AADCP3618H
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer and Exporter of Pharmaceutical Bulk Drugs.
No. of Employees :	200 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (46)

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

Maximum Credit Limit :	USD 880000
Status :	Satisfactory
Payment Behaviour :	Usually 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 usually correct and as per commitments. The company can be considered normal for 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

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 :	A-201/202, Nav Bharat Estate, Zakaria Bunder Road, Sewri (West), Mumbai – 400015, Maharashtra, India
Tel. No.:	91-22-24106001
Fax No.:	91-22-24106008
E-Mail :	accounts@dharmesh@polydrug.com accounts@gemini-exports.com dharmesh@polydrug.com
Website :	http://www.polydrug.com
Area :	3000 Sq. ft.
Location :	Owned
Factory :	Plot No. 37, Anand Nagar, Ambernath Industrial Area, MIDC, Ambernath – 421506, Maharashtra, India
Tel. No.:	91-1251-262166
E-Mail :	polydrug@polydrug.com

DIRECTORS

AS ON 28.09.2012

Name :	Mr. Chunilal Kalidas Thakrar
Designation :	Director
Address :	513/A, Arun Building, College Road, Matunga, Mumbai – 400019, Maharashtra, India
Date of Birth/Age :	21.05.1933
Date of Appointment :	28.07.2004
PAN No.:	AABPT1625P
DIN No.:	00351566
Name :	Mr. Punit Chunilal Thakrar
Designation :	Director
Address :	513/A, Arun Building, College Road, Matunga, Mumbai – 400019, Maharashtra, India
Date of Birth/Age :	17.06.1967
Date of Appointment :	28.07.2004
PAN No.:	AACPT2730Q
DIN No.:	00351619
Name :	Mrs. Bina Punit Thakrar
Designation :	Director
Address :	513/A, Arun Building, College Road, Matunga, Mumbai – 400019, Maharashtra, India
Date of Birth/Age :	14.11.1970
Date of Appointment :	01.12.2010
PAN No.:	AACPT2725K
DIN No.:	00351627

KEY EXECUTIVES

Name :	Mr. Nagesh
Designation :	Accounts Assistant

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 28.09.2012

Names of Equity Shareholders	No. of Shares
Thakrar K. Chunilal	520000
Thakrar C. Chandrika	232500
Thakrar C. Punit	1820500
Thakrar P. Bina	922500
Karina Punit Thakrar (Guardian Punit C. Thakrar)	1000
Mrs. Varsha Kumari	1000
Thakrar C. Punit / Thakrar P. Bina	500000
Hema Dilip Lakhani / Kajal Dilip Lakhani	2500
TOTAL	4000000

Names of Preference Shareholders	No. of Shares
Openplus SA., Belgrano	1832000
M/s. Far East Century Private Limited, Singapore	954360
Openplus SA., Belgrano	1913145
TOTAL	4699505

AS ON 28.09.2012

Equity Share Breakup	Percentage of Holding
Category
Directors or relatives of directors	99.93
Other top fifty shareholders	0.07
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer and Exporter of Pharmaceutical Bulk Drugs.

Products :

ITC Code	Product Descriptions
29051490	Chlorobutanol Anhydrus
29051490	Chlorobutonal
29241900	Carisoprodol USP
29171940	Ferrous Fumarate
29021900	Fluconazole
29153990	Losartan Potassium
29181310	Metoprolol Base
29181310	Metoprolol Succinate
29181310	Metoprolol Tartrate

GENERAL INFORMATION

Suppliers :

Ø Aarti Industries

Customers :

End Users

Ø Cipla Limited

No. of Employees :

200 (Approximately)

Bankers :

Tamilnad Mercantile Bank Limited, Hemprakash Building, Ground Floor, 92, Kazi Syed Street, Mandvi, Mumbai – 400003, Maharashtra, India

Facilities :

CC/ OD/ TL – Rs. 300.000 Millions

Secured Loans	31.03.2012	31.03.2011
	(Rs. In Millions)
Term loans from banks	15.455	20.745
Working capital loans from banks	172.934	162.281
Total	188.389	183.026

Banking Relations :	--
Auditors :
Name :	Lakhani and Company Chartered Accountants
Address :	Hemsharsaka, 19, Gola Lane, Mumbai – 400001, Maharashtra, India
Income-tax PAN of auditor or auditor's firm :	AAAFL1302L
Related Party :	Gemini Exports

CAPITAL STRUCTURE

AS ON 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
4,000,000	Equity Shares	Rs. 10/- each	Rs. 40.000 Millions
6,000,000	Preference Shares	Rs. 10/- each	Rs. 60.000 Millions
	Total		Rs. 100.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
4,000,000	Equity Shares	Rs. 10/- each	Rs. 40.000 Millions
4,699,505	Preference Shares	Rs. 10/- each	Rs. 46.995 Millions
	Total		Rs. 86.995 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		86.995	86.995	92.175
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		133.902	88.030	52.178
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		220.897	175.025	144.353
LOAN FUNDS
1] Secured Loans		188.389	183.026	218.246
2] Unsecured Loans		84.064	84.485	42.763
TOTAL BORROWING		272.453	267.511	261.009
DEFERRED TAX LIABILITIES		17.214	16.361	16.074
TOTAL		510.564	458.897	421.436
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		214.670	219.136	230.832
Capital work-in-progress		10.017	0.053	0.000
INVESTMENT		0.000	0.000	0.000
DEFERRED TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	111.232	90.891	59.413
	Sundry Debtors	269.934	232.303	198.138
	Cash & Bank Balances	4.945	4.949	14.471
	Other Current Assets	0.236	0.125	18.794
	Loans & Advances	33.668	34.026	10.596
Total Current Assets		420.015	362.294	301.412
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	89.599	75.544	82.297
	Other Current Liabilities	28.514	37.289	22.974
	Provisions	16.025	9.753	5.537
Total Current Liabilities		134.138	122.586	110.808
Net Current Assets		285.877	239.708	190.604
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		510.564	458.897	421.436

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	771.400 (Approximately)	719.600 (Approximately)
		Other Income
		TOTAL	N.A.	N.A.	709.301
Less	EXPENSES
		Office Expenses
		Administrative Expenses
		Advertising Expenses
		TOTAL	N.A.	N.A.	660.032
	PROFIT BEFORE TAX		N.A.	N.A.	49.269
Less	TAX		N.A.	N.A.	15.642
	PROFIT AFTER TAX		45.873	35.851	33.627
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	691.130	538.977	609.864
	IMPORTS
		Raw Materials	N.A.	N.A.	67.681
	Earnings Per Share (Rs.)		5.27	8.96	8.41

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	N.A.	N.A.	4.74
Return on Total Assets (PBT/Total Assets}	(%)	N.A.	N.A.	9.26
Return on Investment (ROI) (PBT/Networth)		N.A.	N.A.	0.34
Debt Equity Ratio (Total Debt/Networth)		1.23	1.53	1.81
Current Ratio (Current Asset/Current Liability)		3.13	2.96	2.72

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	Yes
5]	Type of Business	Yes
6]	Line of Business	Yes
7]	Promoter's background	Yes
8]	No. of employees	Yes
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	Yes
18]	Major customers	Yes
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	No

UNSECURED LOANS

Unsecured Loans	31.03.2012	31.03.2011
	(Rs. In Millions)
Working capital loans from banks	0.000	10.015
Loans repayable on demand from others	84.064	74.470
Total	84.064	84.485

BANKERS CHARGES REPORT AS PER REGISTRY

Corporate identity number of the company	U24231MH2004PTC147729
Name of the company	POLYDRUG LABORATORIES PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	A-201/202, Nav Bharat Estate, Zakaria Bunder Road, Sewri (West), Mumbai – 400015, Maharashtra, India Email: dharmesh@polydrug.com
This form is for	Modification of charge
Charge identification number of the modified	10053481
Type of charge	Immovable property Book debts Floating charge Others [Lien over bill of lading / airway bills]
Particular of charge holder	Tamilnad Mercantile Bank Limited, Hemprakash Building, Ground Floor, 92, Kazi Syed Street, Mandvi, Mumbai – 400003, Maharashtra, India Email: mumbai_mandvi@tnmbonline.com
Nature of description of the instrument creating or modifying the charge	(1) Mortgage Extension Letter (2) Revival Letter, both dated 27th October 2012
Date of instrument Creating the charge	27.10.2012
Amount secured by the charge	Rs. 700.000 Millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of interest FBP, FBD, AAEBSC - base rate +0.5% - 2.00% (present base rate is 11.00% p.a.) rates valid till 31.12.2012 thereafter as per credit ratings, commission on forward contract - Rs. 0.001 Million per contract Terms of repayment Credit facility is valid upto 23.08.2013 Margin FBP, FBD, AAEBSC directly sent to bank- 10% AAFBSC (for export bills directly dispatched to buyers) - 25% forward contract - nil Extent and operation of the charge Extension of charge created earlier on the assets of the company, as provided hereinafter, to secure the repayment of the credit facilities granted by the bank as per the terms of the sanction letter dated 29.08.2012
Short particulars of the property charged	1. Lien over bill of lading / airway bills covering the export of goods and accepted bills of exchanges 2. Hypothecation of export receivables Extension of Equitable Mortgage of Factory Land at Plot No.N-37, Additional Ambarnath Industrial Area, Anand Nagar, MIDC, Village Jambivali, Ambernath (East) 421506, Admeasuring 24558 Square Meters. Extension of Equitable Mortgage of Factory Building Constructed on Land At Plot No.N-37, Additional Ambarnath Industrial Area, Anand Nagar, Midc, Village Jambivali, Ambernath (East) 421506 Admeasuring 6887.01 Sq. Mtr. Built Up Area.
Date of Modification	22.12.2011
Particulars of the present modification	The credit facility is renewed now and accordingly under the present modification charges created earlier are now extended to the renewed credit facilities.

TRADE REFERENCES:

Ø Cipla Limited

Ø Aarti Industries

FIXED ASSETS

Ø Leasehold Premises

Ø Factory Building

Ø Plant and Machinery

Ø D and G Set

Ø Elevators

Ø Fire Equipments

Ø Air Handling Unit

Ø Hosts and Cranes

Ø Lab Equipments

Ø Sewing Machine

Ø Transformer

Ø Wrapping Machine

Ø HVAC Equipments

Ø Air Condition

Ø Computers

Ø Elect Fitting

Ø Fridge

Ø Furniture

Ø Motor Cycle

Ø Telephone Instruments

Ø Vaccum Cleaner

Ø Water Filter

Ø Xerox Machine

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. 54.39
UK Pound	1	Rs. 82.32
Euro	1	Rs. 69.54

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	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	6
--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	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		46

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.