MIRA INFORM REPORT

Report Date :

27.05.2014

IDENTIFICATION DETAILS

Name :	WAXSEN LIFESCIENCE PRIVATE LIMITED
Registered Office :	411, Atlanta Estate, Near Virwani Industrial Estate, Western Express Highway, Goregaon (East), Mumbai – 400 063, Maharashtra
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	12.11.2009
Com. Reg. No.:	11-197046
Capital Investment / Paid-up Capital :	Rs.0.595 million
CIN No.: [Company Identification No.]	U24297MH2009PTC197046
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Active Pharmaceutical Ingredients (API) and Intermediates.
No. of Employees :	25 (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 39000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track record. Profitability of the company seems to be low during 2013. However, trade relations are reported to be fair. Business is active. Payment terms are reported to be slow but correct. The company can be considered for business dealing with some cautions.

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, 2014

Country Name	Previous Rating (31.12.2013)	Current Rating (31.03.2014)
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

US investment bank Goldman Sachs  has upgraded its outlook on Indian markets as it expects positive impact of the election cycle.

India’s economy may grow 4.7 % in the current financial year, lower than the official estimate of 4.9 %, Fitch Rating said. The global rating agency expects the economy to pick up in the next two financial years.

Global ratings agency Standard & Poor said increasing focus by India Inc on lowering debt is likely to improve their credit profiles.

Singapore (1.1 million Indian tourists in 2012), Thailand (one million), the United Arab Emirates ().98 million) and Malaysia ().82 million) emerged as the preferred holidays hotspots for Indians. The total figure is expected to increase to 1.93 million by 2017, according to the latest Eurmonitor international report.

There is a $29.34 bn outward foreign direct investment by domestic companies between April and January of 2013/14 which has seen some signs of recovery according to a Care Ratings report.

There are 264 number of new companies being set up every day on average during 2014. Most of them are registered in Mumbai. India had 1.38 million registered companies at the end of January, 2014.

Twitter like messaging service Weibo Corporation has filed to raise $ 500 million via a US initial public offering. Alibaba, which owns a stake in Weibo is expected to raise about $ 15 billion New York this year in the highest profile Internet IPO since Facebook’s in 2012.

Bharti Airtel has raised Rs.2,453.2 crore (350 million Swiss Francs) by selling six-year bonds at a coupon rate of three per cent and maturing in 2020. This is the largest ever bond offering by an Indian company in Swiss Francs. Bharat Petroleum Corporation raised 175 million Swiss Francs by selling five year bonds at 2.98 % coupon rate in February.

Indian Oil Corporation plans to invest Rs 7650 crore in setting up a petrochemical complex at its almost complete Paradip refinery in Odhisha in three to four years. The company board is set to consider the setting up of a 700000 tonne per annum polypropylene plant at an estimated cost at Rs.3150 crore.

Global chief information officers at gathering in Bangalore in April to meet Indian startups at an event called Tech50 Watchout for Little Eye Labs-Facebook type deals in the making.

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. Suresh Mandhana
Designation :	Director
Contact No.:	91-9820220524
Date :	27.05.2014

LOCATIONS

Registered Office :	411, Atlanta Estate, Near Virwani Industrial Estate, Western Express Highway, Goregaon (East), Mumbai – 400 063, Maharashtra, India
Tel. No.:	91-22-40238226/ 27721467
Mobile No.:	91-9820220524 (Mr. Suresh Mandhana)
Fax No.:	91-22-40238226
E-Mail :	mandhana_suresh@hotmail.com waxsenlifescience@gmail.com
Area :	625 sq. ft.
Location :	Owned
Factory :	Plot No.325/1 and 325/2, GIDC, Panoli, District Bharuch – 394 116, Gujarat, India
Area :	9927 sq. m.
Location :	Owned

DIRECTORS

AS ON 28.09.2013

Name :

Ms. Shilpi Mandhana

Designation :

Director

Address :

C-206, Crown, Vasant Marvel, Western Express Highway, Borivali (East) Mumbai – 400 066, Maharashtra, India

Date of Birth/Age :

02.04.1978

Date of Appointment :

09.08.2010

DIN No.:

03131387

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	U24297MH2009PTC197046	WAXSEN LIFESCIENCE PRIVATE LIMITED	Director	09-08-2010	09-08-2010	-	Active	NO
2	U24233MH2011PTC213660	A-MARK PHARMA PRIVATE LIMITED	Director	17-02-2011	17-02-2011	-	Active	NO

Name :

Mr. Suresh Chand Mandhana

Designation :

Director

Address :

C-206, Crown, Vasant Marvel, Western Express Highway, Near Magathane Telephone Exchange, Borivali (East), Mumbai – 400 066, Maharashtra, India

Date of Birth/Age :

05.07.1973

Date of Appointment :

17.02.2014

DIN No.:

06615411

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	U24100MH2009PTC191943	CHEMSERVES PHARMA PRIVATE LIMITED	Director	22-10-2013	22-10-2013	-	Active	NO
2	U24297MH2009PTC197046	WAXSEN LIFESCIENCE PRIVATE LIMITED	Director	17-02-2014	17-02-2014	-	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 28.09.2013

Names of Shareholders	No. of Shares	% of Holding
Jayaram Shetty	23800	40.00
Shaan Infraprojects Private Limited, India	17850	30.00
Shilpi Mandhana	17850	30.00
Total	59500	100.00

AS ON 28.09.2013

Equity Share Breakup	Percentage of Holding
Category
Bodies corporate	30.00
Directors or relatives of directors	70.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer of Active Pharmaceutical Ingredients (API) and Intermediates.
Products :	· API · Bulk Drug Intermediates · Capsules · Pharmaceutical Products · Tablets
Imports :
Products :	Raw Materials
Countries :	China
Terms :
Selling :	L/C, Cash and Credit
Purchasing :	L/C, Cash and Credit

GENERAL INFORMATION

Suppliers :

· Karan Monomers Private Limited, Mumbai

Customers :

Wholesalers and Retailers

· Survival Technologies Private Limited, Mumbai

No. of Employees :

25 (Approximately)

Bankers :

· Bank of Baroda, Bhulabhai Desai Road Branch, 47, Saraswati Sadan, Bhulabhai Desai Road, Mumbai – 400 026, Maharashtra, India

· HDFC Bank Limited, Building No.3, Wing G, Kandivali (East), Thakur Complex, Mumbai – 400 101, Maharashtra, India

Facilities :

Secured Loans	31.03.2013 (Rs. in Millions)	31.03.2012 (Rs. in Millions)
SHORT TERM BORROWINGS
Bank Overdraft-Bank of Baroda, Bhulabhai Desai Branch (Bank overdraft from Bank of Baroda, Bhulabhai Desai branch is secured against hypothecation of Stock and Book Debts of the Company.)	4.852	0.000
Total	4.852	0.000

Banking Relations :	--
Auditors :
Name :	Jhawar Mantri and Associates Chartered Accountants
Address :	217, Great Eastern Galleria, Plot No.20, Sector 4, Nerul, Navi Mumbai – 400 706, Maharashtra, India
Tel. No.:	91-22-27721467/ 27721557
Fax No.:	91-22-27721557
E-Mail :	jhawarmantrica@gmail.com
PAN No.:	AADFJ0157G
Associates/Subsidiaries (As confirmed by management) :	Chemserves Pharma Private Limited Address: 411, Atlanta Estate, Near Virwani Industrial Estate, Western Express Highway, Goregaon (East), Mumbai – 400 063, Maharashtra, India Lines of business: Manufacturer of Active Pharmaceutical Ingredients (API) and Intermediates.

CAPITAL STRUCTURE

AS ON 28.09.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
100000	Equity Shares	Rs.10/- each	Rs.1.000 million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
59500	Equity Shares	Rs.10/- each	Rs.0.595 million

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	0.595	0.595	0.595
(b) Reserves & Surplus	9.249	9.240	9.019
(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)	9.844	9.835	9.614
(3) Non-Current Liabilities
(a) Long-term borrowings	0.000	0.000	0.000
(b) Deferred tax liabilities (Net)	0.183	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)	0.183	0.000	0.000
(4) Current Liabilities
(a) Short term borrowings	24.587	9.746	2.962
(b) Trade payables	7.568	14.796	2.408
(c) Other current liabilities	2.778	1.738	0.224
(d) Short-term provisions	0.904	0.434	0.612
Total Current Liabilities (4)	35.837	26.714	6.206
TOTAL	45.864	36.549	15.820
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	13.724	2.899	1.875
(ii) Intangible Assets	0.000	0.000	0.000
(iii) Capital work-in-progress	6.667	14.841	5.560
(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)	0.000	0.012	0.047
(d) Long-term Loan and Advances	1.040	1.040	1.025
(e) Other Non-current assets	0.006	0.012	0.018
Total Non-Current Assets	21.437	18.804	8.525
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	16.927	10.215	0.162
(c) Trade receivables	0.254	2.734	4.212
(d) Cash and cash equivalents	0.097	0.108	0.038
(e) Short-term loans and advances	0.100	0.321	0.008
(f) Other current assets	7.049	4.367	2.875
Total Current Assets	24.427	17.745	7.295
TOTAL	45.864	36.549	15.820

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013	31.03.2012	31.03.2011
	SALES
		Revenue from operations	23.097	21.256	18.634
		Other Income	2.696	0.011	0.000
		TOTAL (A)	25.793	21.267	18.634
Less	EXPENSES
		Cost of materials consumed	21.485	26.295	12.270
		Changes in inventories of finished goods, work-in-progress and stock-in-trade	(6.712)	(10.053)	(0.162)
		Employee benefit expense	4.039	1.675	1.745
		Other expenses	5.005	2.717	3.187
		TOTAL (B)	23.817	20.634	17.040
Less	PROFIT / (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		1.976	0.633	1.594
Less	FINANCIAL EXPENSES (D)		0.945	0.147	0.183
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		1.031	0.486	1.411
Less/ Add	DEPRECIATION/ AMORTISATION (F)		0.700	0.229	0.200
	PROFIT / (LOSS) BEFORE TAX (E-F) (G)		0.331	0.257	1.211
Less	TAX (H)		0.322	0.036	0.635
	PROFIT / (LOSS) AFTER TAX (G-H) (I)		0.009	0.221	0.576
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		(0.165)	(0.386)	(0.962)
	BALANCE CARRIED TO THE B/S		(0.156)	(0.165)	(0.386)
	Earnings / (Loss) Per Share (Rs.)		0.16	3.71	9.67

Particulars	31.03.2014
Sales Turnover (Approximately)	30.000

Expected Sales (2014-2015): Rs.200.000 millions (Previously they were only doing jobwork for different companies, from this year they have started manufacturing for own + jobwork)

The above information has been parted by Mr. Suresh Mandhana (Director).

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
PAT / Total Income	(%)	0.03	1.04	3.09
Net Profit Margin (PBT/Sales)	(%)	1.43	1.21	6.50
Return on Total Assets (PBT/Total Assets}	(%)	0.84	1.18	11.86
Return on Investment (ROI) (PBT/Networth)		0.03	0.03	0.13
Debt Equity Ratio (Total Debt/Networth)		2.50	0.99	0.31
Current Ratio (Current Asset/Current Liability)		0.68	0.66	1.18

FINANCIAL ANALYSIS

[all figures are in Rupees Millions]

DEBT EQUITY RATIO

Particular	31.03.2011	31.03.2012	31.03.2013
	(INR in Mlns.)	(INR in Mlns.)	(INR in Mlns.)
Share Capital	0.595	0.595	0.595
Reserves & Surplus	9.019	9.240	9.249
Share Application money pending allotment	0.000	0.000	0.000
Net worth	9.614	9.835	9.844
Long-term borrowings	0.000	0.000	0.000
Short term borrowings	2.962	9.746	24.587
Total borrowings	2.962	9.746	24.587
Debt/Equity ratio	0.308	0.991	2.498

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2011	31.03.2012	31.03.2013
	(INR in Mlns)	(INR in Mlns)	(INR in Mlns)
Revenue from operations	18.634	21.256	23.097
		14.071	8.661

NET PROFIT MARGIN

Net Profit Margin	31.03.2011	31.03.2012	31.03.2013
	(INR in Mlns)	(INR in Mlns)	(INR in Mlns)
Revenue from operations	18.634	21.256	23.097
Profit	0.576	0.221	0.009
	3.09%	1.04%	0.04%

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%	Yes
14]	Estimation for coming financial year	Yes
15]	Capital in the business	Yes
16]	Details of sister concerns	Yes
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]	PAN of Proprietor/Partner/Director, if available	No
32]	Date of Birth of Proprietor/Partner/Director, if available	Yes
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	10374431	17/09/2013 *	4,800,000.00	BANK OF BARODA	BHULABHAI DESAI ROAD BRANCH, 47, SARASWATI SADAN , BHULABHAI DESAI ROAD, MUMBAI, MAHARASHTRA - 400 026, INDIA	B85396554

* Date of charge modification

Unsecured Loans	31.03.2013 (Rs. in Millions)	31.03.2012 (Rs. in Millions)
SHORT TERM BORROWINGS
Loans and advances from related parties (There is no default in repayment of loan and interest as on Balance Sheet date)	17.528	7.639
Inter-corporate Loans (There is no default in repayment of loan and interest as on Balance Sheet date)	2.207	2.107
Total	19.735	9.746

Note:

The registered office of the company has been shifted from B-1/14, Sundarnagar, S.V. Road, Malad (West), Mumbai – 400 064, Maharashtra to the present address w.e.f. 25.03.2014.

OPERATIONS:

The Business of the Company consists of manufacturing various pharmaceutical and chemical products. During the year the Company has entered into long term lease arrangement for manufacturing various products with a company having existing manufacturing facilities at GIDC, Panoli Ankleshwar, Gujarat. The said facilities were upgraded and refurbished, additional plant and machineries were installed, balancing of equipment was carried out so as to utilise the facilities in an optimum manner.

FIXED ASSETS:

· Plant and Equipment

· Furniture and Fixtures

· Electrical Installation

· Computer

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.58.59
UK Pound	1	Rs.98.66
Euro	1	Rs.79.81

INFORMATION DETAILS

Information Gathered by :	HNA
Analysis Done by :	RAS
Report Prepared by :	SMN

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILIRY	1~10	4
--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
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.