MIRA INFORM REPORT

Report Date :

08.10.2013

IDENTIFICATION DETAILS

Name :	VITAL HEALTHCARE PRIVATE LIMITED (w.e.f.09.10.1995)
Formerly Known As :	VITAL INJECTA PRIVATE LIMITED
Registered Office :	5/6, Shreyas, 2^nd Hasnabad Lane, Santacruz (West), Mumbai - 400054, Maharashtra
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	22.10.1992
Com. Reg. No.:	11-069190
Capital Investment / Paid-up Capital :	Rs. 2.500 Millions
CIN No.: [Company Identification No.]	U24240MH1992PTC069190
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Pharmaceuticals and Medicines.
No. of Employees :	Not Divulged

RATING & COMMENTS

MIRA’s Rating :

B (29)

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

Maximum Credit Limit :	USD 110000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having a moderate track record. There appear huge external borrowings recorded by the company which seems to be increasing over years. However, trade relations are reported as fair. Business is active. Payments are reported to be 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 – 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 DECLINED

MANAGEMENT NON-COOPERATIVE [91-22-26054875]

LOCATIONS

Registered Office :	5/6, Shreyas, 2^nd Hasnabad Lane, Santacruz (West), Mumbai - 400054, Maharashtra, India
Tel. No.:	91-22-26490352/ 26490353/ 26490841/ 26054875-76
Fax No.:	91-22-26491424/ 26461308/ 26054874
E-Mail :	vitalheathcarepvtltd@yahoo.co.in vitalaccounts@yahoo.com vital@eurekacanda.com
Factory :	Plot No. H/10, MIDC, Satpur, Nashik - 422007, Maharashtra, India
Tel. No.:	91-253-2354076/ 77
Fax No.:	91-253-2354074

DIRECTORS

AS ON 28.09.2012

Name :

Mr. Sachin Chandrakant Gandhi

Designation :

Director

Address :

4, Palm Spring Premises CHS Limited, Adj. Chandan Cinema, Iris Park, Juhu Road, Juhu, Mumbai - 400049, Maharashtra, India

Date of Birth/Age :

02.05.1959

Date of Appointment :

22.10.1992

DIN No.:

00227773

Other Directorship :

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Company/ LLP Status	Defaulting status
1	U99999MH1986PTC039769	MAGNA LABORATORIES (GUJARAT) PRIVATE LIMITED	Managing director	08/05/1986	08/05/1986	Active	NO
2	U24240MH1992PTC069190	VITAL HEALTHCARE PRIVATE LIMITED	Director	22/10/1992	22/10/1992	Active	NO

Name :

Mrs. Meera Sachin Gandhi

Designation :

Managing director

Address :

4, Palm Spring Premises CHS Limited, Adj. Chandan Cinema, Iris Park, Juhu Road, Juhu, Mumbai - 400049, Maharashtra, India

Date of Birth/Age :

09.11.1962

Date of Appointment :

22.10.1992

DIN No.:

00227872

Other Directorship :

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Company/ LLP Status	Defaulting status
1	U99999MH1986PTC039769	MAGNA LABORATORIES (GUJARAT) PRIVATE LIMITED	Director	04/02/1992	04/02/1992	Active	NO
2	U24240MH1992PTC069190	VITAL HEALTHCARE PRIVATE LIMITED	Managing director	22/10/1992	22/10/1992	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 28.09.2012

Names of Shareholders	No. of Shares
Meera Sachin Gandhi	23750
Sachin Chandrakant Gandhi	1250
Total	25000

AS ON 03.12.2012

Names of Allottees	No. of Shares
Sachin Chandrakant Gandhi	110000
Meera Sachin Gandhi	2090000
Total	2200000

AS ON 28.09.2012

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

BUSINESS DETAILS

Line of Business :

Manufacturer of Pharmaceuticals and Medicines.

PRODUCTION STATUS (AS ON 31.03.2011)

Particulars	Actual Production	Installed Capacity on Annual Basis
Class of Products
Liquid Inject	5,177,350	Vial- 5,89,05,600 per one shift a day Ampoules -13,17,88,800 per one shift a day
Dry Poweder In	748,380	Vials- 1,79,71,200 per one shift a day
Aerosols	NIL	NIL
Liquids Opthalr	NIL	Drops-5,89,05,600 per one shift a day
Creams and Oir	NIL	Drops-5,89,05,600 per one shift a day

Notes: As certified by the Director and accepted by the auditors.

GENERAL INFORMATION

No. of Employees :

Not Divulged

Bankers :

· Central Bank of India, Churchgate Branch, Kasturi Building, Mumbai - 400020, Maharashtra, India

· Standard Chartered Bank, SME Credit, 23-25, M G Road, Fort, Mumbai - 400001, Maharashtra, India

Facilities :

SECURED LOANS	31.03.2012 (Rs. In Millions)	31.03.2011 (Rs. In Millions)
LONG-TERM BORROWINGS
Term Loans
From Central Bank of India (Secured by Plant and Machinery and guarantee of Directors)	0.000	0.983
SHORT TERM BORROWINGS
Loan Repayable on Demand
From Central Bank of India - CC A/c (Secured Against inventories, Debtors and personal guarantee of directors)	79.629	21.892
Total	79.629	22.875
Note: LONG-TERM BORROWINGS Terms of Repayment The Term Loan from Central Bank of India is repayable by October'2012. The Rate of Inters! on the said loan is BPLR plus 1% and monthly principal installment is of Rs. 1,35,500/-The amount payable is shown as Other Current Liabilities. 1. The Company has borrowed Interest-free Unsecured Loans from Shareholders and Directors. 2. These Loans are repayable on demand. 3. The Lenders have not demanded the repayment of these Loans till the date of this Balance Sheet and the management is of the opinion that repayment of these Loans will not be demanded within next year and hence these loans are considered as long term.

Banking Relations :	--
Auditors :
Name :	C. Maneklal and Company Chartered Accountants
Address :	3-D/1, 3rd Floor, Kakad House, A Wing, Hospital Street, 11 S.J. Thackeray Marg, New Marine Lines, Mumbai – 400020, Maharashtra, India
Income-tax PAN of auditor or auditor's firm :	AABPK8473H
Associates/Subsidiaries :	Magna Laboratories (G) Private Limited

CAPITAL STRUCTURE

AFTER 28.09.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
2,300,000	Equity Shares	Rs. 100/- each	Rs. 230.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
2,225,000	Equity Shares	Rs. 100/- each	Rs. 222.500 Millions

AS ON 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
300,000	Equity Shares	Rs. 100/- each	Rs. 30.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
25,000	Equity Shares	Rs. 100/- each	Rs. 2.500 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	2.500	2.500
(b) Reserves & Surplus	25.058	19.543
(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)	27.558	22.043
(3) Non-Current Liabilities
(a) long-term borrowings	62.972	61.979
(b) Deferred tax liabilities (Net)	6.136	5.901
(c) Other long term liabilities	0.000	0.000
(d) long-term provisions	0.000	0.000
Total Non-current Liabilities (3)	69.108	67.880
(4) Current Liabilities
(a) Short term borrowings	79.629	21.892
(b) Trade payables	79.017	64.731
(c) Other current liabilities	16.082	15.653
(d) Short-term provisions	1.365	0.287
Total Current Liabilities (4)	176.093	102.563
TOTAL	272.759	192.486
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	62.676	63.331
(ii) Intangible Assets	0.000	0.000
(iii) Capital work-in-progress	0.000	0.000
(iv) Intangible assets under development	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	62.676	63.331
(2) Current assets
(a) Current investments	0.000	0.000
(b) Inventories	50.795	37.953
(c) Trade receivables	125.543	65.857
(d) Cash and cash equivalents	18.404	16.644
(e) Short-term loans and advances	15.341	8.701
(f) Other current assets	0.000	0.000
Total Current Assets	210.083	129.155
TOTAL	272.759	192.486

SOURCES OF FUNDS		31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		2.500
2] Share Application Money		0.000
3] Reserves & Surplus		15.016
4] (Accumulated Losses)		0.000
NETWORTH		17.516
LOAN FUNDS
1] Secured Loans		26.396
2] Unsecured Loans		54.628
TOTAL BORROWING		81.024
DEFERRED TAX LIABILITIES		5.288
TOTAL		103.828
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		63.827
Capital work-in-progress		0.000
INVESTMENT		0.000
DEFERRED TAX ASSETS		0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	22.840
	Sundry Debtors	40.817
	Cash & Bank Balances	15.056
	Other Current Assets	0.000
	Loans & Advances	5.985
Total Current Assets		84.698
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	41.309
	Other Current Liabilities	3.388
	Provisions	0.000
Total Current Liabilities		44.697
Net Current Assets		40.001
MISCELLANEOUS EXPENSES		0.000
TOTAL		103.828

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Revenue from operations	207.005	117.370	51.828
		Other Income	2.460	1.066	8.964
		TOTAL (A)	209.465	118.436	60.792
Less	EXPENSES
		Cost of material consumed	101.467	72.273
		Purchase of intermediates and finished goods	32.094	0.000
		Changes in inventories of finished goods, stock in process and stock in trade	(5.251)	(13.428)
		Employee benefit Expenses	20.317	12.104
		Other Expenses	41.385	33.540
		TOTAL (B)	190.012	104.489	55.606
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		19.453	13.947	[Including Financial and Depreciation]
Less	FINANCIAL EXPENSES (D)		7.127	4.311
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		12.326	9.636
Less/ Add	DEPRECIATION/ AMORTISATION (F)		3.444	3.446
	PROFIT BEFORE TAX (E-F) (G)		8.882	6.190	5.186
Less	TAX (H)		3.367	1.663	2.361
	PROFIT AFTER TAX (G-H) (I)		5.515	4.527	2.825
	EARNINGS IN FOREIGN CURRENCY
		Export of Goods (FOB Basis)	80.923	35.605	13.098
		Other/ Freight and Insurance	5.295	2.533	0.395
	TOTAL EARNINGS		86.218	38.138	13.493
	IMPORTS
		Raw Materials	0.885	9.213	10.547
		Packing Materials	6.860	0.499	0.000
		Capital Goods	0.000	0.957	0.000
	TOTAL IMPORTS		7.745	10.669	10.547
	Earnings Per Share (Rs.)		220.62	181.06	207.44

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	2.63	3.82	4.65
Net Profit Margin (PBT/Sales)	(%)	4.29	5.27	10.01
Return on Total Assets (PBT/Total Assets}	(%)	3.26	3.22	3.49
Return on Investment (ROI) (PBT/Networth)		0.32	0.28	0.30
Debt Equity Ratio (Total Debt/Networth)		5.17	3.80	4.63
Current Ratio (Current Asset/Current Liability)		1.19	1.26	1.89

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	No
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	No

INDEX OF CHARGES

S.NO.	CHARGE ID	DATE OF CHARGE CREATION/MODIFICATION	CHARGE AMOUNT SECURED	CHARGE HOLDER	ADDRESS	SERVICE REQUEST NUMBER (SRN)
1	90353175	15/04/2013 *	165,000,000.00	CENTRAL BANK OF INDIA	CHURCHGATE BRANCH, KASTURI BUILDING, MUMBAI - 400020, MAHARASHTRA, INDIA	B76900539

* Date of charge modification

UNSECURED LOANS

UNSECURED LOANS	31.03.2012 (Rs. In Millions)	31.03.2011 (Rs. In Millions)
LONG-TERM BORROWINGS
From Directors and Relatives	62.511	60.375
From HDFC Bank – Car Loan (Secured against the Car)	0.461	0.621
Total	62.972	60.996

CONTINGENT LIABILITIES:

1. Personal Guarantees given by the Directors to secure the Term Loans and cash credit facility sanctioned to the company by the bank: Rs 125.000 Millions

2. On Account of Guarantee Rs. 20.084 Millions, comprises of Inland Rs.16.130 Millions and foreign Rs. 3.954 Millions.

3. Claims against the Company not acknowledged as Debt made by VHB Life Sciences Limited. For an amount of Rs. 0.901 Million. An Arbitration matter (pursuant to order of the Bombay High Court dated 16^Ih September, 2010) between VHB Life Sciences and the assessee is pending. Hence in view of the matter the claim amount of Rs. 0.901 Million is considered to be liability of contingent nature. Further interest / penalty that may accrue on original demands are not ascertainable at present. The Company has taken necessary steps to project itself with regard

FIXED ASSETS:

· Land

· Buildings

· Equipments

· Fax Machine

· Mobile

· Plant and Machinery

· Xerox Machine

· Air Conditioner

· Furniture and Fixture

· Vehicles

· Computers

· ERP Software

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. 61.78
UK Pound	1	Rs. 99.06
Euro	1	Rs. 83.84

INFORMATION DETAILS

Information Gathered by :	SVA
Report Prepared by :	BVA

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	4
--CREDIT LINES	1~10	3
--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		29

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.