MIRA INFORM REPORT

Report Date :

05.10.2013

IDENTIFICATION DETAILS

Name :	SANCE LABORATORIES PRIVATE LIMITED
Registered Office :	15/173, Manjushaspalai P.O., Kottayam – 686 575, Kerala
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	20.09.2001
Com. Reg. No.:	09-014957
Capital Investment / Paid-up Capital :	Rs. 39.600 Millions
CIN No.: [Company Identification No.]	U24231KL2001PTC014957
TAN No.: [Tax Deduction & Collection Account No.]	TVDS01165D
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer and Exporter a wide spectrum of Pharmaceutical Products including Capsules, Dry Syrups, Tablets and Dry Powder Injections.
No. of Employees :	100 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ca (14)

RATING		STATUS	PROPOSED CREDIT LINE
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

Status :	Moderate
Payment Behaviour :	Slow
Litigation :	Clear
Comments :	Subject is an established company having a moderate track record. There appear huge accumulated losses during 2012, due to which the net worth of the company has been eroded. External borrowing of the company seems to be huge. However, the company has achieved profit in the year 2012. Trade relations reported to be fair. Business is active. Payment terms are reported to be slow. The company can be considered for business dealing on a safe and secured 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 – 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

INDIAN ECONOMIC OVERVIEW

We are living in a world where volatility and uncertainty have become the New Normal. We saw a change of government in countries like Tunisia, Egypt, Libya and Vietnam. Once powerful countries in Europe are now fighting for bankruptcy. We have taken growth in the developing part of the world for granted but economic growth in China and India has begun to slow. Companies that were synonymous with their product categories just a few years ago are now no longer in existence. Kodak, the inventor of the digital camera had to wind up its operations, HMV, the British entertainment retailing company and Borders, once the second largest bookstore have shut down due to their inability to evolve their business models with the changing time. Readers’ Digest, Thomson Register are no more !

There is another megatrend happening. The World order is changing as economic power shifts from West to East. According to McKinsey study, it took Britain more than 100 years to double its economic output per person during its industrial revolution and the US later took more than 50 years to do the same. More than a century later, China and India have doubled their GDP per capital in 12 and 18 years respectively. By 2020, emerging Asia will become the world’s largest consuming block, overtaking North America.

The years after the outbreak of the global financial crisis, the world economy continues to remain fragile. The Indian economy demonstrated remarkable resilience in the initial years of the contagion but finally lost ground last year. GDP growth slowed down. Currency has been weakening. There is a marked deceleration in agriculture, industry and services. Dampening sentiment led to a cut-back in investment as well as private consumption expenditure.  Inflation remained at high levels fuelled by the pressure from the food and fuel sectors. The large fiscal and current account deficit s continued to cause grave concern. It is imperative that India regains its growth trajectory of 8-9 % sooner than later. This is crucially important given the need to create gainful livelihood opportunities for the millions living in poverty as also the large contingent of young people joining the job market every year.

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.

INFORMATION PARTED BY

Name :	Mr. Manoj Shankar
Designation :	Marketing Executive
Contact No.:	91-9400055136
Date :	03.10.2013

LOCATIONS

Registered Office :	15/173, Manjushaspalai P.O., Kottayam – 686 575, Kerala, India
Tel. No.:	Not Available
Mobile No.:	91-9400055136 (Mr. Manoj Shankar)
Fax No.:	Not Available
E-Mail :	info@sancepharma.com
Website :	www.sancepharma.com
Location :	Owned
Factory :	P.B. No: 2, Kozhuvanal - 686 523, Pala, Kottayam, Kerala, India
Tel. No.:	91-4822-268877, 267799
Fax No.:	91-4822-269406

DIRECTORS

AS ON 29.09.2012

Name :	Mr. Manoj Joseph
Designation :	Managing Director
Address :	House No.15/ 173, Manhushas Thannipara House, Palai – 686 575, Kerala, India
Date of Birth/Age :	25.05.1965
Date of Appointment :	20.09.2001
DIN No.:	01203664
Name :	Mrs. Valsamma Joseph
Designation :	Director
Address :	House No.15/ 173, Manhushas Thannipara House, Palai – 686 575, Kerala, India
Date of Birth/Age :	10.01.1946
Date of Appointment :	20.09.2001
DIN No.:	01209952
Name :	Mr. Paul Thomas
Designation :	Director
Address :	Puthenpurayil House, Memury P.O. Kottayam Memury P.O. Kottayam – 686 617, Kerala, India
Date of Birth/Age :	08.09.1937
Date of Appointment :	20.09.2001
DIN No.:	01208952
Name :	Dr. Jatin Joseph
Designation :	Director
Address :	House No.15/ 173, Manhushas Thannipara House, Palai – 686 575, Kerala, India
Date of Birth/Age :	23.11.1968
Date of Appointment :	20.09.2001
DIN No.:	05162520

KEY EXECUTIVES

Name :	Mr. Manoj Shankar
Designation :	Marketing Executive

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 29.09.2012

Names of Shareholders	No. of Shares
Manoj Joseph	312168
Anil Paul	18760
Bindu Mathew	20000
Binoy Paul	20000
Binita Joby	43933
Cecil Punnen	410
Cyriac James	161430
Cyriac Maliekal	28830
T.C. Joseph	302309
Easo Kurian	26100
Gopal Menon	22980
Jatin Joseph	339349
Jessy Paul	68930
Jiji Thomas	84583
Joby Paul	70244
Jojy Mathew	36660
Jojymon Varghese	51000
Joseph Thekkeveettil	23330
Joshy John	54280
Joy Kuruvila	43370
Leena Manoj	105407
Manish J. Thoppil	26660
Manu Thoppil	15470
Mariamma Thekkeveettil	26160
Mary Antony	56630
Mathew M. Alex	34460
Nisha Joseph	71533
Paul Thomas	81720
Pushpa Thomas	21830
Rajeetha Jatin	217239
Robin Thomas	41210
Rose Vanissery	33330
Roy Mathew	9730
Sam V. Kurian	48933
Shanty Mol Thomas	56217
Sony Paul	116228
Sony V. Kurian and Manuel M.	89440
T.J. Joseph	73833
Tessy Sohan	263200
Thomas Paul	145028
Valsamma Joseph	253073
Valsamma Kurian	48000
Pentalabs Australia Pte. Limited, Singapore	396000
TOTAL	3959997

AS ON 29.09.2012

Equity Shares Break Up	Percentage of Holding
Foreign holdings( Foreign institutional investor(s), Foreign companie(s) Foreign financial institution(s), Non-resident Indian(s) or Overseas Corporate bodies or Others	10.00
Directors or relatives of Directors	90.00
TOTAL	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer and Exporter a wide spectrum of Pharmaceutical Products including Capsules, Dry Syrups, Tablets and Dry Powder Injections.
Products :	Capsules Dry Syrups Tablets Dry Powder Injections
Terms :
Selling :	Cash, Credit
Purchasing :	Cash, Credit

PRODUCTION STATUS (AS ON : 31.03.2012)

Particulars	Unit	Installed Capacity (Lakhs / Year)	Actual Production (Lakhs)
Tablets	Nos.	1050	91.93
Capsule	Nos.	450	115.26
Injections	Nos. of Vials	90	59.20
Dry Syrups	Sachet	5	1.41
Dry Syrups	No of Bottles	22.44	8.83

GENERAL INFORMATION

Suppliers :

• Aadithya Offset
• Alcan India Private Limited
• Associated Trades and Agencies
• Blue Dart Express Service Limited
• Covalent Laboratories Private Limited
• Dry Cool Innovation (India) Private Limited
• Flyjac Logistics Private Limited
• GK Engineering
• Global Biosystems
• Good Day Pest Control
• Gujarat Glass (Private) Limited

• Kerala Roadways Private Limited

Customers :

End Users

• Allied Pharma
• Ageis Limited
• Vintanova Pharma Private Limited
• Vexta Laboratories Private Limited
• Parabolic Drugs Limited
• Megasys Bliteck Private Limited
• Holden Medical Laboratories Private Limited
• Getwell Pharmaceuticals
• Sri Sai Pharma
• Pee Jay Pharma
• Wockadt Limited
• Indus Motors LCV Private Limited
• Spinco Laboratory Private Limited
• Voltas Limited

No. of Employees :

100 (Approximately)

Bankers :

• Canara Bank, 16/3, F.K.C. Sebastian Buildings, Lalan Bridge Junction Pala-Eratthupetta Road, Pala – 686 575, Kerala, India
• Axis Bank, Pala
• State Bank of Travancore
• South Indian Bank

Facilities :

Secured Loan	Rs. In Millions 31.03.2012	Rs. In Millions 31.03.2011
Long Term Borrowings
Term Loan
Term Loans from Canara Bank (Secured by hypothecation of Land and Building, Plant and Machinery and collateral security of directors)	18.779	63.841
Loan Canara Bank (Car)	0.799	0.000
740FCLR112360001 (WCDL)	14.232	0.000
740FCLR112360002 (Loan 320)	32.544	0.000
740FCLR112360003 (Loan 5827)	5.563	0.000
Short Term Borrowings
From Banks
OD/CC Account with Canara Bank – 5102 (Secured by hypothecation of stock of raw materials, finished goods, semi finished goods, consumables etc)	32.467	43.004
Overdrawal in Current Account – Axis Bank, Pala	0.000	1.391
Overdrawal in Current Account – Canara Bank 520	1.487	0.961
Packing Credit (Secured by hypothecation of stock)	20.016	2.873
TOTAL	125.887	112.070

Banking Relations :	--
Auditors :
Name :	N. Unnikrishnan and Associates Chartered Accountants
Address :	25, Carmel Building, Banerji Road, Kochi – 682 018, Kerala, India
PAN No.:	AABPU8342A

CAPITAL STRUCTURE

AS ON 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
4000000	Equity Shares	Rs.10/- each	Rs. 40.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
3959997	Equity Shares	Rs.10/- each	Rs. 39.600 Millions

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	39.600	39.600
(b) Reserves & Surplus	(68.604)	(87.094)
(c) Money received against share warrants	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000
Total Shareholders’ Funds (1) + (2)	(29.004)	(47.494)
(3) Non-Current Liabilities
(a) long-term borrowings	104.394	101.402
(b) Deferred tax liabilities (Net)	0.000	0.000
(c) Other long term liabilities	0.000	0.000
(d) long-term provisions	0.487	0.268
Total Non-current Liabilities (3)	104.881	101.670
(4) Current Liabilities
(a) Short term borrowings	53.970	48.439
(b) Trade payables	60.132	25.954
(c) Other current liabilities	6.245	10.835
(d) Short-term provisions	0.000	0.000
Total Current Liabilities (4)	120.347	85.228
TOTAL	196.224	139.404
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	83.058	84.729
(ii) Intangible Assets	0.000	0.000
(iii) Capital work-in-progress	0.000	0.000
(b) Non-current Investments	0.000	0.000
(c) Deferred tax assets (net)	0.000	0.000
(d) Long-term Loan and Advances	0.000	0.000
(e) Other Non-current assets	0.000	0.000
Total Non-Current Assets	83.058	84.729
(2) Current assets
(a) Current investments	1.347	0.867
(b) Inventories	53.072	25.805
(c) Trade receivables	33.701	14.961
(d) Cash and cash equivalents	1.643	0.591
(e) Short-term loans and advances	3.850	3.120
(f) Other current assets	19.553	9.331
Total Current Assets	113.166	54.675
TOTAL	196.224	139.404

SOURCES OF FUNDS		31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		39.600
2] Share Application Money		0.000
3] Reserves & Surplus-Share Premium		43.500
4] (Accumulated Losses)		(128.754)
5] Investment Subsidy (DIC Subsidy)		0.500
NETWORTH		(45.154)
LOAN FUNDS
1] Secured Loans		104.844
2] Unsecured Loans		39.437
TOTAL BORROWING		144.281
DEFERRED TAX LIABILITIES		0.000
TOTAL		99.127
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		94.353
Capital work-in-progress		0.000
INVESTMENT		0.000
DEFERREX TAX ASSETS		0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	20.294
	Sundry Debtors	11.488
	Cash & Bank Balances	0.459
	Other Current Assets	6.898
	Loans & Advances	4.437
Total Current Assets		43.576
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	0.765
	Other Current Liabilities	38.037
	Provisions	0.000
Total Current Liabilities		38.802
Net Current Assets		4.774
MISCELLANEOUS EXPENSES		0.000
TOTAL		99.127

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	230.326	130.198	80.908
		Other Income
		TOTAL	230.326	130.198	80.908
Less	EXPENSES
		Cost of Material Consumed	NA	NA	NA
		Purchase of Stock In Trade
		Employee benefits expenses
		TOTAL	NA	NA	NA
	NET PROFIT		18.489	(2.341)	(38.025)
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	118.578	66.183	NA
	TOTAL EARNINGS		118.578	66.183	NA
	IMPORTS
		Raw Materials	29.475	NA	NA
		Capital Goods	1.247	NA	NA
	TOTAL IMPORTS		30.722	NA	NA
	Earnings / (Loss) Per Share (Rs.)		--	--	--

KEY RATIOS

PARTICULARS	31.03.2012	31.03.2011	31.03.2010
Debt Equity Ratio (Total Debt /Networth)	(5.46)	(3.15)	(3.20)
Current Ratio (Current Asset/Current Liability)	0.94	0.64	1.12

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	Yes
9]	Name of person contacted	Yes
10]	Designation of contact person	Yes
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	Yes
18]	Major customers	Yes
19]	Payments terms	Yes
20]	Export / Import details (if applicable)	Yes
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 Loan	Rs. In Millions 31.03.2012	Rs. In Millions 31.03.2011
Long Term Borrowings
Loan from Directors and Shareholders
A T Varkey	0.004	0.004
Binta Joby	0.115	0.284
Cyriac James	0.433	0.451
Dr. T C Joseph	0.077	0.305
Jatin Joseph	7.323	9.750
Jessy Paul	0.553	0.566
Jiji Thomas	1.309	1.309
Joby Paul	0.230	0.543
Joy Kuruvila	0.012	0.012
Leena Manoj	0.319	0.339
Manoj Joseph	3.185	3.597
Nisha Joseph	0.161	0.189
Paul Thomas	0.541	0.428
Rajeetha Jatin	5.560	5.620
Sam V Kurian	0.505	1.014
Shantimol Thomas	1.241	1.241
Sony Paul	5.022	5.966
T J Joseph	0.038	0.057
Thomas Paul	5.849	5.849
Valsamma Joseph	0.000	0.036
Short Term Borrowings
From Others
Sance Parenterals Private Limited	0.000	0.211
TOTAL	32.477	37.771

VIEW INDEX OF CHARGES

S. No	Charge ID	Date of Charge Creation /Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN
1	90019246	21/08/2012 *	183,636,000.00	Canara Bank	F K C Sebastian Buildings, Lalam Bridge Junction, Pala-Erattupetta Road, Pala, Kerala - 686575, India	B57901415
* Date of charge modification

FINANCIAL RESULTS

For the year, the company has earned Net Profit of Rs. 18.489 Millions on total income of Rs. 230.326 Millions against a net loss of Rs. 2.341 Millions on total income of Rs. 130.198 Millions in the previous year. The cash profit of the year is Rs. 29.460 Millions against Rs. 9.323 Millions in the previous year. The above income includes revenue derived from production under loan licenses and third party manufacturing form reputed manufacturers.

FIXED ASSETS

• Land and Land Development
• Buildings
• Furniture and Fittings
• Plant and Machinery
• Electrical Fittings
• Production Machineries
• Utility Machineries
• Vehicles
• Computer and Accessories
• Office Equipments
• Books
• Tools
• Plant and Machinery – Insulation
• Blister Packing 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. 61.40
UK Pound	1	Rs. 99.28
Euro	1	Rs. 83.67

INFORMATION DETAILS

Information Gathered by :	PLK
Report Prepared by :	DPT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	2
PAID-UP CAPITAL	1~10	2
OPERATING SCALE	1~10	2
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	2
--PROFITABILIRY	1~10	2
--LIQUIDITY	1~10	2
--LEVERAGE	1~10	2
--RESERVES	1~10	--
--CREDIT LINES	1~10	--
--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	YES
--AFFILIATION	YES/NO	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		14

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.