MIRA INFORM REPORT

Report Date :

28.08.2014

IDENTIFICATION DETAILS

Name :	ELECTROLAB (INDIA) PRIVATE LIMITED
Registered Office :	401, Tirupati Industrial Estate, I.B. Patel Road, Off. Western Express Highway, Goregaon (East), Mumbai – 400 063, Maharashtra
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	06.08.2002
Com. Reg. No.:	11-136735
Capital Investment / Paid-up Capital :	Rs.20.000 Millions
CIN No.: [Company Identification No.]	U33110MH2002PTC136735
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer and Exporter of Pharmaceutical Testing Equipments.
No. of Employees :	190 (Approximately)

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 910000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well-established company having fine track record. The rating reflects company’s healthy financial risk profile marked by adequate liquidity position and decent profitability levels of the company. Trade relations are reported as fair. Business is active. Payments are reported to be regular and as per commitment. The company can be considered good for normal 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 1, 2014

Country Name	Previous Rating (31.03.2014)	Current Rating (01.06.2014)
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

N E W S

As per the latest IMF study, the total weigh of emerging markets in the GDP of the world on a purchasing power parity basis has seen a sizeable shift. It highlights how as against 51 % in 2005, the emerging economies now account for close to 56 % of the global purchasing power GDP as per the latest survey. And with the emerging economies growing at a faster rate than their developed counterparts, there are every possibility that the their share goes up further in the coming years.  China may surpass the US over the next few years.

Politics and economics are very intricately connected. They tend to influence each other in ways that could be very complex and far-reaching. The prospects of the India’s economy have been seriously compromised due to political corruption. High inflation, poor standard of living are to a great extent a result of rampant corruption in the country. China on the other hand, seems to be facing diametrically opposite challenge. American hedge fund manager Jim Chanos has been keenly following the political and economic development in the dragon economy and has figured out something that is quite worrying. He is of the view that the Chinese economy could be heading toward trouble on account of new Chinese President Xi Jingping’s very aggressive anti-corruption drive. Chanos believes tat many things such as apartment sales, luxury products, etc. were largely bought with dirty money. And it is now beginning to impact consumption. This may indeed be bad news for an economy that is struggling to transition from an investment-driven export-oriented economy to a domestic consumption-driven economy.

A study published by Firstpost has revealed that asset classes like real estate and equities were the biggest beneficiaries of the liberalization policies.  A firm called Ciane Analytics studied returns from assets including equities, gold, fixed deposits, G-Secs and real estate since 1991. Real estate outperformed every other asset classes during the 23-year period with an annualized return of 20 % ! Equities came in second with annualized return of 15.5 % ! However, while these returns may seem mouthwatering, the fact is that the return from equities adjusted for inflation came down to just 7.1 %.

Some brief news are as under

. R-Power to buy Jaypee’s hydro assets

. Investors await justice in NSEL case

. India seeks MFN status from Pakistan ahead of meeting

. Ukrain’s clashes with rebels hinder MH17 crash investigation

. India exploring merger of state-owned hydro PSUs

..Higher costs weigh down profit growth to slowest in 9 quarters

..Wal-Mart to expand wholesale business in India

. GMR group moves to strengthen balance sheet

. Central Bank to sell 4 % stake to Life Insurance Corporation

. Tata Chemicals plans to raise up to Rs 10000 mn.

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 31-03-2014.

INFORMATION PARTED BY (GENERAL DETAILS)

Name :	Mr. Vraj
Designation :	Sales
Contact No.:	91-22-40413131
Date :	22.08.2014

LOCATIONS

Registered Office/ Factory 1 :	401, Tirupati Industrial Estate, I.B. Patel Road, Off. Western Express Highway, Goregaon (East), Mumbai – 400 063, Maharashtra, India
Tel. No.:	91-22-40413131
Mobile No.:	91-9322403322 (Mrs. Usha) 91-9821040280 (Mr. Amit Marfatiya)
Fax No.:	91-22-26863727/ 40413199
E-Mail :	finance@electrolabindia.com sales@electrolabindia.com admin@electrolabindia.com amitm@electolabindia.com
Website :	http://www.electrolabindia.com
Area :	10000 sq. ft.
Location :	Owned
Factory 2 :	EL23/24, T.T.C. Electronic Zone, M.I.D.C., Mahape, Navi Mumbai – 400 710, Maharashtra, India
Tel. No.:	91-22-65296783/ 41613131
Fax No.:	91-22-41613199
Area :	35000 sq. ft.
Location :	Owned
USA Branch :	Pharma Alliance Group Located at: · USA
Tel. No.:	+ 1(202) 5365489
E-Mail :	usa@electrolabindia.com

DIRECTORS

As on 30.09.2013

Name :

Mr. Amit Trikamlal Marfatia

Designation :

Whole Time Director

Address :

26/A, Walkeshwar Road, Mumbai – 400 006, Maharashtra, India

Date of Birth/Age :

15.08.1949

Date of Appointment :

01.04.2011

DIN No.:

00096827

Voter Id No.:

MT/04/024/0066453

Name :

Mr. Bharat Kanubhai Zaveri

Designation :

Whole Time Director

Address :

B-1, Queen’s View, 28/30, Walkeshwar Road, Mumbai – 400 006, Maharashtra, India

Date of Birth/Age :

12.03.1961

Date of Appointment :

01.04.2011

DIN No.:

00096935

Name :

Mr. Aditya Amit Marfatia

Designation :

Whole Time Director

Address :

26/A, Walkeshwar Road, Mumbai – 400 006, Maharashtra, India

Date of Birth/Age :

31.01.1979

Date of Appointment :

01.04.2011

DIN No.:

02907832

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	Date of cessation	Company/ LLP Status	Defaulting status
1	U33110MH2002PTC136735	ELECTROLAB (INDIA) PRIVATE LIMITED	Whole-time director	01/04/2011	20/01/2010	-	Active	NO
2	AAA-3671	ELECTROLABULTIMA (INDIA) LLP	Designated Partner	03/02/2011	03/02/2011	-	Active	NO

KEY EXECUTIVES

Name :	Mr. Vraj
Designation :	Sales

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2013

Names of Shareholders	No. of Shares
Amit Trikamlal Marfatia	25000
Bharat Kanubhai Zaveri	992500
Amita Amit Marfatia	470000
Parul Bharat Zaveri	7500
Ankit Amit Marfatia	5000
Aditya Amit Marfatia	500000
Total	2000000

Equity Share Break up (Percentage of Total Equity)

As on 30.09.2013

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

BUSINESS DETAILS

Line of Business :	Manufacturer and Exporter of Pharmaceutical Testing Equipments.
Products :	· Dissolution Testers · Dissolution Media Preparator · Disintegration Testers · Friability Testers · Tap Density Tester · Electromagnetic Sieve Shaker · Leak Tester · Peristaltic Pumps · Tablet Hardness Testers · Tablet Testers · Bottle Cap Torque Tester · Bottle Rotating Apparatus · Suppository Disintegration Tester · Glassware Washers · Cleaning Agents and Disinfectants · Double Cone Blender, · Multi-Mill · Vibro-Sifter · Planetary Mixer · Coating Pan · Powder Flow Testers · Centrifuges and Shakers
Brand Names :	ELECTROLAB
Exports :
Products :	Pharmaceutical Testing Equipments
Countries :	· Europe · Brazil · South Africa · Turkey · US · Pakistan · Arab Countries · China · Indonesia · Malaysia · Sri Lanka · Bangladesh
Imports :
Products :	Raw Material
Countries :	· Korea · China · Taiwan · US
Terms :
Selling :	Cash and Credit
Purchasing :	Cash and Credit

GENERAL INFORMATION

Customers :	End Users
No. of Employees :	190 (Approximately)
Bankers :	· CITI Bank, Dr. D.N. Road Branch, Andheri (East) · Bank of Baroda, Valkeshwar Branch · Kotak Mahindra Bank Limited

Banking Relations :	--
Auditors :
Name :	R.V. Patwa and Company Chartered Accountants
Address :	404, Seta Kutir, C.D. Barfiwala Marg, Andheri (West), Mumbai – 400 058, Maharashtra, India
Tel. No.:	91-22-26287681
Mobile No.:	91-9869636854
E-Mail :	rajeshpatwa@gmail.com
PAN No.:	AABPP5793N

CAPITAL STRUCTURE

As on 30.09.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
2000000	Equity Shares	Rs.10/- each	Rs.20.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
2000000	Equity Shares	Rs.10/- each	Rs.20.000 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2013	31.03.2012	31.03.2011
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	20.000	20.000	4.000
(b) Reserves & Surplus	209.015	75.234	29.520
(c) Money received against share warrants	0.000	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000	0.000
Total Shareholders’ Funds (1) + (2)	229.015	95.234	33.520
(3) Non-Current Liabilities
(a) long-term borrowings	0.272	0.000	0.000
(b) Deferred tax liabilities (Net)	0.000	0.000	0.000
(c) Other long term liabilities	0.000	0.000	0.000
(d) long-term provisions	0.000	0.000	0.000
Total Non-current Liabilities (3)	0.272	0.000	0.000
(4) Current Liabilities
(a) Short term borrowings	0.000	0.000	0.000
(b) Trade payables	17.289	32.673	23.313
(c) Other current liabilities	173.947	261.662	175.357
(d) Short-term provisions	95.106	27.707	12.955
Total Current Liabilities (4)	286.342	322.042	211.625
TOTAL	515.629	417.276	245.145
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	103.704	106.626	97.917
(ii) Intangible Assets	0.346	0.000	0.000
(iii) Capital work-in-progress	0.000	0.000	0.000
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	0.000	0.000	0.000
(c) Deferred tax assets (net)	0.111	0.265	0.222
(d) Long-term Loan and Advances	3.048	2.231	0.884
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	107.209	109.122	99.023
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	41.441	52.541	9.961
(c) Trade receivables	154.623	134.924	87.808
(d) Cash and cash equivalents	111.809	87.363	25.452
(e) Short-term loans and advances	98.070	29.952	18.349
(f) Other current assets	2.477	3.374	4.552
Total Current Assets	408.420	308.154	146.122
TOTAL	515.629	417.276	245.145

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013	31.03.2012	31.03.2011
	SALES
		Revenue from Operations	576.720	379.902	204.556
		Other Income	8.320	4.222	1.777
		TOTAL (A)	585.040	384.124	206.333
Less	EXPENSES
		Cost of material consumed		168.601	134.226
		Employee Benefit Expenses		41.762	13.865
		Manufacturing Expenses		11.055	5.168
		Administrative Expenses		41.989	17.820
		TOTAL (B)	350.736	263.407	171.079
Less	PROFIT / (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		234.304	120.717	35.254
Less	FINANCIAL EXPENSES (D)		25.152	31.264	0.216
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		209.152	89.453	35.038
Less/ Add	DEPRECIATION/ AMORTISATION (F)		6.253	6.042	4.843
	PROFIT / (LOSS) BEFORE TAX (E-F) (G)		202.899	83.411	30.195
Less	TAX (H)		69.117	26.564	9.076
	PROFIT / (LOSS) AFTER TAX (G-H) (I)		133.782	56.847	21.119
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		74.234	29.519	8.400
Less	APPROPRIATIONS
		Interim Dividend	--	10.000	0.000
		Tax on Interim Dividend	--	1.133	0.000
		Transfer to Reserves	--	1.000	0.000
	BALANCE CARRIED TO THE B/S		208.015	74.233	29.519
	EARNINGS IN FOREIGN CURRENCY
		Exports	142.129	96.793	13.299
		Commission Received	0.000	0.000	0.419
	TOTAL EARNINGS		142.129	96.793	13.718
	Earnings Per Share (Rs.)		06.70	28.42	52.99

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
PAT / Total Income	(%)	22.87	14.80	10.24
Net Profit Margin (PBT/Sales)	(%)	35.18	21.96	14.76
Return on Total Assets (PBT/Total Assets}	(%)	39.36	20.00	12.33
Return on Investment (ROI) (PBT/Networth)		0.89	0.88	0.90
Debt Equity Ratio (Total Debt/Networth)		0.00	0.00	0.00
Current Ratio (Current Asset/Current Liability)		1.43	0.96	0.69

FINANCIAL ANALYSIS

[all figures are in Rupees Millions]

DEBT EQUITY RATIO

Particular	31.03.2011	31.03.2012	31.03.2013
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Share Capital	4.000	20.000	20.000
Reserves & Surplus	29.520	75.234	209.015
Net worth	33.520	95.234	229.015
long-term borrowings	0.000	0.000	0.272
Short term borrowings	0.000	0.000	0.000
Total borrowings	0.000	0.000	0.272
Debt/Equity ratio	0.000	0.000	0.001

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2011	31.03.2012	31.03.2013
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Sales	204.556	379.902	576.720
		85.720	51.808

NET PROFIT MARGIN

Net Profit Margin	31.03.2011	31.03.2012	31.03.2013
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Sales	204.556	379.902	576.720
Profit	21.119	56.847	133.782
	10.32%	14.96%	23.20%

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	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	No
18]	Major customers	No
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	No
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	Yes
34]	External Agency Rating, if available	No

INDEX OF CHARGES: NO CHARGES EXIST FOR THE COMPANY

FIXED ASSETS:

Tangible Assets

· Leasehold Land

· Factory Building

· Computer

· Plant and Machinery

· Furniture and Fixtures

· Vehicles

Intangible Assets

Computer 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. 60.46
UK Pound	1	Rs.100.14
Euro	1	Rs. 79.65

INFORMATION DETAILS

Information Gathered by :	GYT
Analysis Done by :	KRN
Report Prepared by :	ASH

SCORE & RATING EXPLANATIONS

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