MIRA INFORM REPORT

Report Date :

04.02.2014

IDENTIFICATION DETAILS

Name :	NEON (INDIA) MEDICAL AGENCY
Registered Office :	01, Basement Navkar Apartment, Near Dr. Ashutosh Shah’s Hospital, Ahmedebad – 380 007, Gujarat
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation/ Year of Establishment :	01.04.2011
Capital Investment / Paid-up Capital :	Rs.5.319 Millions
Legal Form :	Partnership Concern with an unlimited liability of the partners
Line of Business :	Trader of Pharma Products.
No. of Employees :	6 (Approximately)

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 21000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established partnership concern having moderate track record. Profitability of the concern appears to be low. However, trade relations are fair. Business active. Payments are unknown. The concern can be considered for business dealing 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 – December 1, 2013

Country Name	Previous Rating (30.09.2013)	Current Rating (01.12.2013)
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

The services sector, the largest contributor to India’s GDP, contracted for the sixth consecutive month in December, as orders dipped. However, hiring has risen.  Direct tax collections rose 12.3 % during the April – December period of the current financial year.  The government has decided to retain 100 per cent foreign direct investment in both greenfield (new) and brown field (existing) pharmaceutical companies, despite concerns over genetic drugs going out of production, if multi-national companies take over domestic ones. In M&A deals, a non compete clause would not be allowed, except in special circumstances. The Department of Industrial Policy and Promotion plans to release the next edition of its consolidated foreign direct investment policy document on March 31, incorporating changes made in the past year. DIPP compiles all policies related to India’s FDI regime into a single document to make it easy for investors to understand. 185 million estimated number of mobile internet users in India by June 2014, according to a report by the Internet & Mobile Association of India and IMRB International.  India had 110 million mobile internet users with 25 million in rural areas. $3.77 tn estimated global IT spending in 2014, according to research firm Gartner Inc. The growth forecast for this year is cut to 3.1 %from the earlier estimate of 3.5 %. The spending growth forecast for telecom services – a segment that accounts for more than 40 % at total IT spending – from 1.9 per cent to 1.2 per cent is the main reason for this overall IT cut. A Reserve Bank of India committee has recommended setting up a special category of lenders who would cater to small businesses and households, to expand the number of customers with access to banking services. These banks would focus onproviding payment services and deposit products.  Indian banks want the free use of automated teller machines to be capped at five transactions in a month including that of the bank in which the account is active. This follows state government order to banks to install security guards at ATM booths after a woman banker was assaulted in Bangalore. The government is likely to present a vote on Account in mid-February. The annual Economic Survey will be tabled later in Parliament along with the full Budget. A full Budget for 2014/15 is likely to be present in July by the new government formed after the General Election. The government will soon launch an internet spy system, called Netra, to detect malafide messages. Security agency will deploy the system to capture dubious voice traffic on applications such as Skype and Google Talk, as well as tweeters.

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. Satyajeet Bhatt
Designation :	Partner
Contact No.:	91-9374073077
Date :	03.02.2014

LOCATIONS

Registered Office :	01, Basement Navkar Apartment, Near Dr. Ashutosh Shah’s Hospital, Ahmedebad – 380 007, Gujarat, India
Tel. No.:	Not Available
Mobile No.:	91-9374073077 (Mr. Satyajeet Singh)
Fax No.:	Not Available
E-Mail :	neonindiamedical2012@gmail.com
Area :	980 Sq. Ft.
Location :	Owned

PARTNERS

Name :	Mr. Satyajeet Bhatt
Designation :	Partner
Date of Birth/Age :	43 Years
Qualification :	B.Sc.
Name :	Mrs. Anju Patel
Designation :	Partner
Date of Birth/Age :	61 Years
Qualification :	B.A.

BUSINESS DETAILS

Line of Business :	Trader of Pharma Products.
Terms :
Selling :	Credit
Purchasing :	Credit

GENERAL INFORMATION

Suppliers :	Kanchan Pharma Private Limited
Customers :	Wholesalers, Retailers, Others - Hospital / Doctor IKDRC – Its Institute of Kidney Diseases
No. of Employees :	6 (Approximately)
Bankers :	State Bank of Patiala, Mani Nagar Branch, Ahmedabad, Gujarat, India
Facilities :	Cash Credit Rs.6.000 Millions (From State Bank of Patiala)

Banking Relations :	--
Auditors :
Name :	Parin P. Shah and Company Chartered Accountants

CAPITAL STRUCTURE

AS ON 31.03.2013

Capital Investment :
Owned :	Rs.5.319 Millions (Estimated)
Borrowed :	--
Total :	Rs.5.319 Millions (Estimated)

FINANCIAL DATA

[all figures are in Rupees Millions]

SOURCES OF FUNDS		31.03.2013
SHAREHOLDERS FUNDS
1] Share Capital		5.319
2] Share Application Money		0.000
3] Reserves & Surplus		0.000
4] (Accumulated Losses)		0.000
NETWORTH		5.319
LOAN FUNDS
1] Secured Loans		3.829
2] Unsecured Loans		0.000
TOTAL BORROWING		3.829
DEFERRED TAX LIABILITIES		0.000
TOTAL		9.148
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		1.417
Capital work-in-progress		0.000
INVESTMENT		0.050
DEFERRED TAX ASSETS		0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	7.817
	Sundry Debtors	4.975
	Cash & Bank Balances	0.279
	Other Current Assets	0.015
	Loans & Advances	0.258
Total Current Assets		13.344
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	5.663
	Other Current Liabilities	0.000
	Provisions	0.000
Total Current Liabilities		5.663
Net Current Assets		7.681
MISCELLANEOUS EXPENSES		0.000
TOTAL		9.148

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013
	SALES
		Income	30.744
		Other Income	0.120
		TOTAL	30.864
Less	EXPENSES
		Cost of Goods Sold	27.746
		Account Charges	0.013
		Audit Fees	0.020
		Bad Debts	0.015
		Bank Charges	0.005
		Bonus Expenses	0.022
		Courier Charges	0.007
		Donation Expenses	0.025
		Electricity Bill	0.033
		Incentive Charges	0.101
		Insurance Expenses	0.033
		Interest on Loan	0.036
		Interest on OD	0.435
		Interest on Term Loan A/C	0.058
		Interest to Partners	0.620
		Interest Charges	0.009
		Labour Charges	0.015
		Legal Fees	0.041
		Miscellaneous Expenses	0.051
		Mobile Bill 9374073077	0.009
		Mobile Bill 9601137912	0.003
		Municipal Tax	0.019
		Office Expenses	0.040
		Office Rent	0.013
		Packaging and Forwarding Expenses	0.012
		Penalty Charges	0.002
		Petrol Expenses	0.095
		Processing Charges	0.075
		Professional Fees	0.015
		Remuneration to Partners	0.509
		Repairing Charges	0.006
		Salary Expenses	0.305
		Software Maintenance Expenses	0.003
		Staff Welfare Expenses	0.052
		Stationery and Printing Expenses	0.011
		Tea Expenses	0.013
		Telephone Bill 65451456	0.003
		Vehicle Expenses	0.009
		TOTAL	30.479
	PROFIT/(LOSS) BEFORE DEPRECIATION		0.385
Less	DEPRECIATION		0.177
	NET PROFIT		0.208

Particulars	31.03.2012
Sales Turnover (Approximately)	14.100

Expected Sales (2013-2014): Rs.50.000 Millions

The above information has been parted by Mr. Satyajeet Bhatt (Partner)

Note: Sole Proprietary and Partnership concerns are exempted from filing their financials with the Government Authorities or Registry.

KEY RATIOS

PARTICULARS		31.03.2013
PAT / Total Income	(%)	0.67
Net Profit Margin (PBT/Sales)	(%)	0.68
Return on Total Assets (PBT/Total Assets}	(%)	1.41
Return on Investment (ROI) (PBT/Networth)		0.04
Debt Equity Ratio (Total Debt /Networth)		0.72
Current Ratio (Current Asset/Current Liability)		2.36

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	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 two years	Yes
12]	Profitability for last one year	Yes
13]	Reasons for variation <> 20%	--
14]	Estimation for coming financial year	Yes
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)	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	No
29]	Last accounts filed at ROC	No
30]	Major Shareholders, if available	No
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

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 records 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.62.69
UK Pound	1	Rs.102.97
Euro	1	Rs.84.58

INFORMATION DETAILS

Information Gathered by :	HTL
Report Prepared by :	NKT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	3
--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	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--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.