MIRA INFORM REPORT

Report Date :

09.10.2013

IDENTIFICATION DETAILS

Name :	LAKE CHEMICALS PRIVATE LIMITED
Formerly Known As :	No.76, Old Tharagupet, Bangalore – 560 053, Karnataka
Registered Office :	India
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	02.12.1992
Com. Reg. No.:	08-013751
Capital Investment / Paid-up Capital :	Rs. 4.250 Millions
CIN No.: [Company Identification No.]	U85110KA1992PTC013751
TAN No.: [Tax Deduction & Collection Account No.]	BLRL00253B
PAN No.: [Permanent Account No.]	AAACL3683K
Legal Form :	Private Limited Liability Company
Line of Business :	The company is engaged in the manufacturing and selling of pharmaceutical products.
No. of Employees :	Information denied by management

RATING & COMMENTS

MIRA’s Rating :

Ba (52)

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

Maximum Credit Limit :	USD 570000
Status :	Satisfactory
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well established company having satisfactory track record. Profit margins of the company appear to be good. Net worth of the company seems to be sound and healthy. Trade relations are fair. Business is active. Payment terms are regular as per commitments. The company can be considered for business dealing with 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 – 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 DENIED

Management Non-Cooperative (Tel No.: 91-80-41379508)

LOCATIONS

Registered Office :	No.76, Old Tharagupet, Bangalore – 560 053, Karnataka, India
Tel. No.:	91-80-41379508/ 2861488
Fax No.:	91-80-22354057/ 2867734
E-Mail :	lakeindia@vsnl.net accounts@lakeindia.in
Website :	www.lakeindiaapi.com
Corporate Office :	5th Floor, Laxmi Narayan Complex, #10/1, Palace Road, Bangalore – 560 052, Karnataka, India
Tel. No.:	91-80-41379500 Extn - 513 and 521
Fax No.:	91-80-22354057/ 58
E-Mail :	lakeindia@vsnl.net
Factory :	21-M, Attibele Industrial Area, Anekal Taluk, Bangalore – 562 107, Karnataka, India

DIRECTORS

As on 29.09.2012

Name :	Mr. Manoj Palrecha
Designation :	Managing Director
Address :	Aman, 290/12, 36th Cross, 7th C Main, 4th Block, Jayanagar, Bangalore – 560041, Karnataka, India
Date of Birth/Age :	16.09.1960
Date of Appointment :	30.04.1994
DIN No.:	00429439
Name :	Mr. Kamlesh Surana
Designation :	Director
Address :	Flat No.7, C J Residency, 1/8/42 & 43, Bapu Bagh Colony, P G Road, Secunderabad – 500003, Andhra Pradesh, India
Date of Birth/Age :	05.07.1965
Date of Appointment :	06.03.1996
DIN No.:	00429537

MAJOR SHAREHOLDERS

As on 29.09.2012

Names of Equity Shareholders	No. of Shares
G.C. Surana (HUF)	30000
Dilip Surana (HUF)	30000
Anand Surana	37510
Bhawaribai Surana	10
Archana Surana	10
Manoj Palrecha	1000
Anitha Siroya	110
Harsha Siroya	15000
Hasumathi Siroya	10000
Suraya Pharmaceuticals	22600
D.B. Siroya	200000
C.M. Palrecha and Manoj Palrecha	25000
Prakash Palrecha and Anitha Palrecha	25000
Manoj Palrecha and Jyothna Palrecha	24800
Total	421040

Names of Preference Shareholders	No. of Shares
Anand Surana	99
Bhawaribai Surana	99
Archana Surana	99
Anitha Siroya	99
Total	396

Equity Share Break up (Percentage of Total Equity)

As on 29.09.2012

Category	Percentage
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	The company is engaged in the manufacturing and selling of pharmaceutical products.
Products :	Alprazolam Bromazepam Clobazam Clonazepam Dorzolamide HCL Flunitrazepam Flurazepam Di and Mono HCl Loperamide HCl Lorazepam Loprazolam Mesilate Midazolam Midazolam HCl Midazolam Maleate Nitrazepam Nordazepam Olanzapine Form 1 Pinazepam Zolpidem Tartrate

PRODUCTION STATUS (As on 31.03.2011)

Particulars	Unit	Licensed Capacity	Installed Capacity	Actual Production
Powder	Kg’s	NA	NA	10443.330

GENERAL INFORMATION

No. of Employees :

Information denied by management

Bankers :

• State Bank of Mysore, Ramanashree Arcade, No. 18, M.G. Road, Bangalore – 560001, Karnataka, India
• State bank of Mysore, Corporate Accounts Branch, No. 18, Ramanashree Arcade, Midford Gardens Road, M.G. Road, Bangalore – 560001, Karnataka, India

Facilities :

SECURED LOANS	31.03.2012 Rs. In Millions	31.03.2011 Rs. In Millions
Long Term Borrowings
From banks
State Bank of Mysore (Secured)	3.000	0.0000
Short Term Borrowings
From Banks
- Cash credit (secured)	7.511	6.647
Total	10.511	6.647

Note:

Long Term Borrowings

Term loan from State Bank of Mysore of Rs. 5.000 Millions was sanctioned for purchase of machinery and equipment for plant expansion during the year 2011-12 and repayable in 20 quarterly installments of Rs. 0.250 Million each starting from April 2011 and ending with January 2016. This term loan is secured by hypothecation of the concerned machinery and equipment. Further the term loan is secured by collateral securities and personal guarantees of directors and relatives of directors and carries interest rate of 12.25%. There were 16 installments of Rs. 0.250 Million each outstanding as at 31.03.2012.

Short Term Borrowings

Short term borrowings from banks are secured by hypothecation of stock and book debts. This short term borrowings are further secured by collateral securities and personal guarantees of directors and relative of directors. The short term borrowings is repayable on demand and carries interest rate @ 11.50%

Banking Relations :	--
Auditors :
Name :	T.D. Jain And D.I. Sakaria Chartered Accountants
Address :	#34, Keshava Nivas, 3^rd Floor, First Main, Gandhinagar, Bangalore – 560009, Karnataka, India
PAN No.:	AAAFO2177L

CAPITAL STRUCTURE

As on 29.09.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
450000	Equity Shares	Rs. 10/- each	Rs. 4.500 Millions
5000	Preference Shares	Rs. 100/- each	Rs. 0.500 Million
	Total		Rs. 5.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
421040	Equity Shares	Rs. 10/- each	Rs. 4.210Millions
396	Preference Shares	Rs. 100/- each	Rs. 0.040 Million
	Total		Rs. 4.250 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	4.250	4.250
(b) Reserves & Surplus	138.018	100.528
(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)	142.268	104.778
(3) Non-Current Liabilities
(a) long-term borrowings	3.000	0.000
(b) Deferred tax liabilities (Net)	11.544	10.821
(c) Other long term liabilities	0.000	0.000
(d) long-term provisions	0.000	0.000
Total Non-current Liabilities (3)	14.544	10.821
(4) Current Liabilities
(a) Short term borrowings	7.511	6.647
(b) Trade payables	40.307	33.514
(c) Other current liabilities	21.265	14.437
(d) Short-term provisions	4.231	2.247
Total Current Liabilities (4)	73.314	56.845
TOTAL	230.126	172.444
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	64.435	65.421
(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	1.380	1.135
(e) Other Non-current assets	0.000	0.000
Total Non-Current Assets	65.815	66.556
(2) Current assets
(a) Current investments	79.705	38.534
(b) Inventories	10.004	9.453
(c) Trade receivables	61.720	50.273
(d) Cash and cash equivalents	0.880	1.598
(e) Short-term loans and advances	11.672	5.700
(f) Other current assets	0.330	0.330
Total Current Assets	164.311	105.888
TOTAL	230.126	172.444

SOURCES OF FUNDS		31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		4.250
2] Share Application Money		0.000
3] Reserves & Surplus		84.151
4] (Accumulated Losses)		0.000
NETWORTH		88.401
LOAN FUNDS
1] Secured Loans		10.288
2] Unsecured Loans		0.000
TOTAL BORROWING		10.288
DEFERRED TAX LIABILITIES		10.816
TOTAL		109.505
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		64.049
Capital work-in-progress		0.000
INVESTMENT		28.164
DEFERRED TAX ASSETS		0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	11.540
	Sundry Debtors	40.239
	Cash & Bank Balances	1.893
	Other Current Assets	0.000
	Loans & Advances	12.067
Total Current Assets		65.739
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	36.212
	Other Current Liabilities	6.282
	Provisions	5.953
Total Current Liabilities		48.447
Net Current Assets		17.292
MISCELLANEOUS EXPENSES		0.000
TOTAL		109.505

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income
		Other Income
		TOTAL	291.367	205.566	188.309
Less	EXPENSES		233.791	175.618	169.436
	PROFIT/(LOSS) BEFORE TAX		57.576	29.948	18.873
Less	TAX		20.085	13.572	5.910
	PROFIT/(LOSS) AFTER TAX		37.491	16.376	12.963
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		89.858	73.482	60.519
	BALANCE CARRIED TO THE B/S		127.349	89.858	73.482
	EARNINGS IN FOREIGN CURRENCY
		F.O.B. Value of Exports	210.093	149.351	139.626
	TOTAL EARNINGS		210.093	149.351	139.626
	IMPORTS
		Raw Materials	14.555	19.620	17.652
		Capital Goods	0.000	1.051	0.551
	TOTAL IMPORTS		14.555	20.671	18.203
	Earnings Per Share (Rs.)		89.04	38.90	30.79

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	12.87	7.97	6.88
Return on Total Assets (PBT/Total Assets}	(%)	34.75	27.98	14.54
Return on Investment (ROI) (PBT/Networth)		0.40	0.29	0.21
Debt Equity Ratio (Total Debt /Networth)		0.07	0.06	0.12
Current Ratio (Current Asset/Current Liability)		2.24	1.86	1.36

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	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

INDEX OF CHARGE:

Sr .No	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10362738	24/01/2011	5,000,000.00	STATE BANK OF MYSORE	RAMANASHREE ARCADE, NO.18 M.G.ROAD, BANGALORE, Karnataka - 560001, INDIA	B23154404
2	80024310	19/03/2010 *	49,500,000.00	STATE BANK OF MYSORE	CORPORATE ACCOUNTS BRANCH, NO. 18, RAMANASHREE ARCADE, MIDFORD GARDENS ROAD, M G ROAD, BANGALORE, Karnataka - 560001, INDIA	A83038331

* Date of modification charge

CORPORATE INFORMATION:

The company is a Private Limited company domiciled in India and incorporated under provisions of the Companies Act, 1956. The company is engaged in the manufacturing and selling of pharmaceutical products. The company caters to both domestic and international markets.

FIXED ASSETS:

• Land
• Flat
• Factory Building
• Plant and Machinery
• Electrical Installation
• Generators
• Laboratory Equipments
• Pollution Control Equipment
• Weighing Balance
• Fire Fighting Equipment
• Pumps
• Computers
• Office Equipment
• Furniture and Fixtures
• Vehicles
• Utilities
• Air Conditioner

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. 61.69
UK Pound	1	Rs. 99.20
Euro	1	Rs. 83.69

INFORMATION DETAILS

Information Gathered by :	NAY
Report Prepared by :	VNT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	7
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	7
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	7
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	6
--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		52

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.