MIRA INFORM REPORT

Report Date :

03.11.2014

IDENTIFICATION DETAILS

Name :	RENOWN PHARMACEUTICALS PRIVATE LIMITED (w.e.f.13.10.2009)
Formerly Known As :	RENOWN CERATEK PRIVATE LIMITED
Registered Office :	4, Nikunj Apartment, Behind Jaldhara Complex, Vasna Road, Vadodara – 390015, Gujarat
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	05.09.2005
Com. Reg. No.:	04-046714
Capital Investment / Paid-up Capital :	Rs. 41.553 Millions
CIN No.: [Company Identification No.]	U24230GJ2005PTC046714
TAN No.: [Tax Deduction & Collection Account No.]	BRDR01348E
PAN No.: [Permanent Account No.]	AADCR0916L
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer and Exporter of Soft Gelatin Capsules for Medicinal and Non-Medicinal Uses.
No. of Employees :	Information Declined By The Management

RATING & COMMENTS

MIRA’s Rating :

B (27)

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

Maximum Credit Limit :	USD 255000
Status :	Moderate
Payment Behaviour :	Slow But Correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track record. The company has incurred a loss from its operations during 2013. External borrowings of the company also seems to be huge. However, trade relations are fair. Business is active. Payment terms are 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 – 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

Verdict Implications : Apex court order may alter coal import dynamics. Traders go slow on talks over coal supply contracts, uncertainty over cancellation of blocks weigh on stocks.

Recent arrest of the Chennai head of the Registrar of Companies, the ministry of corporate affairs arm that ensures that companies file all the information required by the Companies Act is the latest manifestation of a messy fight between a father and his adopted son for the control of Rs 40000 mn business empire. The Central Bureau of Investigation arrested Manumeethi Cholan after he accepted Rs 10 lakhs as bribe from M A M Ramaswamy, a CBI official said.

Central Bureau of Investigation books Electrotherm for cheating Central Bank of Rs 4360 mn.

Infosys maintains revenue guidance. COO Rao says attrition still an area of concern and it would take a few more quarters to bring down levels to 13-15 %.

DHL  to invest Euro 100 mn in India over next 2 years. The firm has chosen India to pilot its e-commerce business model for the Asia-Pacific region.

Blackstone may buy stake in BlueRidge SEZ in line with the fund’s real estate strategy in India.

Kingfisher Airlines Ltd grounded in October 2012 under the weight of heavy debt and accumulated losses, recently approached the Delhi high court for relief in two separate cases. The airline challenged a notice by Punjab & National Bank alleging that It had wilfully defaulted on Rs 7700 mn of loans and sought more time to comply with the requirements under the listing agreements with the Stock Exchanges.

OnMobile likely to sack another 300 employees. The lay-offs follow a spate of senior-level exits over the past two years, starting with of its founder. The overall lay-offs could number around 600 and are driven by the need to cut costs, says a former employee.

EXTERNAL AGENCY RATING

Rating Agency Name	CARE
Rating	Long Term Bank Facilities : B
Rating Explanation	High risk of default
Date	07.04.2014

Rating Agency Name	CARE
Rating	Short Term Bank Facilities : A4
Rating Explanation	Have Minimal degree of safety and carry very high credit risk.
Date	07.04.2014

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 DENIED

Management non co – operative (Tel No. 91-2662-244131/132)

LOCATIONS

Registered Office :	4, Nikunj Apartment, Behind Jaldhara Complex, Vasna Road, Vadodara – 390015, Gujarat, India
Tel. No.:	91-265-2250511
Fax No.:	91-265-2250611
E-Mail :	info@renownpharma.com malaytrvedi@renownpharma.com marketing@renownpharma.com
Website :	http://renownpharma.com
Location :	Owned
Corporate and Manufacturing Unit :	Survey No. 143/A and B, Village Ranu, Taluka Padra, District Vadodara – 341445, Gujarat, India
Tel. No.:	91-2662-244131/ 32/ 33/ 34
Fax No.:	hr1@renownpharma.com jaswinderanand@renownpharma.com

DIRECTORS

As on: 30.09.2013

Name :	Mr. Ramesh Subhkaran Jatia
Designation :	Managing director
Address :	148/1, Near Visa Court Apartment, Sayed Vasana Road Vadodara – 390015, Gujarat, India
Date of Birth/Age :	04.10.1960
Date of Appointment :	31.12.2009
DIN No.:	00008298
Name :	Mr. Satish Duggappa Bangera
Designation :	Director
Address :	803, Gambs Tower, Near Good Shepards Church Four Bunglows, Juhu Link Road, Andheri West Mumbai – 400058, Maharashtra, India
Date of Birth/Age :	23.10.1959
Date of Appointment :	31.12.2009
DIN No.:	05177377
Name :	Mr. Katapady Raghuveer Katapady Gunduraya Bhat
Designation :	Director
Address :	8/8, Shivagi Nagar, Opposite Glaxo Labs, Dr. A B Road, Worli Mumbai – 400025, Maharashtra, India
Date of Birth/Age :	19.07.1940
Date of Appointment :	31.12.2009
DIN No.:	02902754
Name :	Mr. Atishay Ramesh Jatia
Designation :	Director
Address :	148/1, Near Visa Court Apartment, Sayed Vasana Road Vadodara – 390015, Gujarat, India
Date of Birth/Age :	18.09.1987
Date of Appointment :	28.09.2007
DIN No.:	02315891
Name :	Mrs. Smita Rameshkumar Jatia
Designation :	Director
Address :	148/1, Near Visa Court Apartment, Sayed Vasana Road Vadodara – 390015, Gujarat, India
Date of Birth/Age :	23.11.1963
Date of Appointment :	05.09.2005
DIN No.:	00510718

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on: 30.09.2013

Names of Shareholders	No. of Shares
Smita Ramesh Jatia	2117000
Kamal K Sethia	2500
Satish Dugappa Bangera	55797
Addison Holding Limited, Dubai	1040739
Ramesh Subhkaran Jatia	390000
Atishay Ramesh Jatia	100000
Ankita Ramesh Jatia	75000
Ramesh Subhkaran Jatia (HUF)	374293
Total	4155329

As on: 30.11.2013

Names of Allottess (Equity)	No. of Shares
Ramesh Subhkaran Jatia	200000
Ramesh Subhkaran Jatia (HUF)	100000
Smita Ramesh Jatia	540
Addison Holdings Limited	217283
Atishay Ramesh Jatia	250000
Smita Ramesh Jatia	376848
Total	1144671

As on: 18.02.2014

Names of Allottess (Preference)	No. of Shares
Atishay Ramesh Jatia	25000
Ankita Ramesh Jatia	2500
Ramesh Subhkaran Jatia	122500
Ramesh Subhkaran Jatia (HUF)	55000
Smita Ramesh Jatia	45000
Total	250000

Equity Share Break up (Percentage of Total Equity)

As on: 30.09.2013

Category	Percentage
Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others]	25.00
Directors or relatives of directors	75.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer and Exporter of Soft Gelatin Capsules for Medicinal and Non-Medicinal Uses.
Products :	Diet Products Heart Health Nutritional Oils C – Vitamins E – Vitamins Herbal Products Multivitamins OTC Products

GENERAL INFORMATION

No. of Employees :

Information Declined By The Management

Bankers :

· State Bank of India, Mid Corporate Group Industrial Finance Branch, Marble Acrch, Race Course Circle, Vadodara - 390007, Gujarat, India

Facilities :

Secured Loan	As on 31.03.2013	As on 31.03.2012
	(Rs. In Millions)
LONG TERM BORROWINGS:
TERM LOANS :
From State Bank of India - Term Loan for New Project at Ranu	290.750	295.736
From Shree Vardhman Co-Op. Bank - Term Loan against Gas Engine {Repayable in 60 equated monthly installments of Rs. 1,60,000/- each including interest, starting from 18/11/2010.}	2.779	4.157
From HDFC Bank (Car Loan) {Repayable in 60 equated monthly installments of Rs. 12,610/- each including interest, starting from 19/12/2009.}	0.098	0.234
SHORT TERM BORROWINGS:
Working Capital Loan - From State Bank of India (Cash Credit)	39.022	1.968
Working Capital Loan - From State Bank of India (Export Packing Credit)	16.772	0.000
Total	349.421	302.095

Banking Relations :	--
Auditors :
Name :	Naresh and Company Chartered Accountants
Address :	201-203,City Enclave, Opposite Polo Ground, Bagikhana, Vadodara – 390001, Gujarat, India
PAN No.:	AACFM7595C

CAPITAL STRUCTURE

After: 30.09.2013

Authorized Capital: Rs. 115.000 Millions

Issued, Subscribed & Paid-up Capital: Rs. 105.000 Millions

As on: 31.03.2013

Authorized Capital:

No. of Shares	Type	Value	Amount
5000000	Equity Shares	Rs.10/- each	Rs. 50.000 Millions

Issued, Subscribed & Paid-up Capital:

No. of Shares	Type	Value	Amount
4155329	Equity Shares	Rs.10/- each	Rs. 41.553 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	41.553	40.000	28.663
(b) Reserves & Surplus	47.717	108.685	80.990
(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)	89.270	148.685	109.653
(3) Non-Current Liabilities
(a) long-term borrowings	423.930	345.439	88.818
(b) Deferred tax liabilities (Net)	31.861	20.476	1.813
(c) Other long term liabilities	2.106	2.106	2.106
(d) long-term provisions	0.560	0.253	0.054
Total Non-current Liabilities (3)	458.457	368.274	92.791
(4) Current Liabilities
(a) Short term borrowings	55.794	1.968	0.000
(b) Trade payables	23.970	6.228	2.146
(c) Other current liabilities	47.828	76.492	55.122
(d) Short-term provisions	0.385	0.243	0.651
Total Current Liabilities (4)	127.977	84.931	57.919
TOTAL	675.704	601.890	260.363
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	511.528	512.804	14.772
(ii) Intangible Assets	0.127	0.000	0.000
(iii) Capital work-in-progress	0.000	0.000	203.438
(iv) Intangible assets under development	0.000	0.127	0.000
(b) Non-current Investments	0.212	0.212	0.212
(c) Deferred tax assets (net)	31.861	20.476	0.000
(d) Long-term Loan and Advances	5.791	11.545	15.934
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	549.519	545.164	234.356
(2) Current assets
(a) Current investments	0.000	0.367	0.202
(b) Inventories	33.304	9.592	0.000
(c) Trade receivables	23.384	2.806	0.815
(d) Cash and cash equivalents	0.154	0.887	0.601
(e) Short-term loans and advances	59.035	43.047	24.389
(f) Other current assets	10.308	0.027	0.000
Total Current Assets	126.185	56.726	26.007
TOTAL	675.704	601.890	260.363

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013	31.03.2012	31.03.2011
	SALES
		Income	119.549	5.824	9.048
		Other Income	NA	1.879	1.679
		TOTAL (A)	NA	7.703	10.727
Less	EXPENSES (B)		NA	26.460	5.420
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		(4.350)	(18.757)	5.307
Less	FINANCIAL EXPENSES (D)		51.290	5.792	0.856
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		(55.640)	(24.549)	4.451
Less/ Add	DEPRECIATION/ AMORTISATION (F)		23.191	3.153	1.069
	PROFIT / (LOSS) BEFORE TAX (E-F) (G)		(78.831)	(9.812)	3.382
Less	TAX (H)		0.000	1.812	0.827
	PROFIT / (LOSS) AFTER TAX (G-H) (I)		(78.831)	(7.999)	2.556
	IMPORTS
		Capital Goods	1.231	4.142	16.680
	TOTAL IMPORTS		1.231	4.142	16.680
	Earnings / (Loss) Per Share (Rs.)		(15.77)	(2.62)	1.25

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
Net Profit Margin (PAT / Sales)	(%)	(65.94)	(137.35)	28.25
Operating Profit Margin (PBDIT / Sales)	(%)	1812.21	(127.38)	31.53
Return on Total Assets (PBT/Total Assets}	(%)	(12.25)	(1.69)	0.58
Return on Investment (ROI) (PBT/Networth)		(0.88)	(0.07)	0.02
Debt Equity Ratio (Total Debt/Networth)		5.37	2.34	2.34
Current Ratio (Current Asset/Current Liability)		0.99	0.67	0.67

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	40.000	40.000	41.553
Reserves & Surplus	108.685	108.684	47.717
Net worth	148.685	148.684	89.270
long-term borrowings	345.439	345.439	423.930
Short term borrowings	1.968	1.968	55.794
Total borrowings	347.407	347.407	479.724
Debt/Equity ratio	2.337	2.337	5.374

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	9.048	5.824	119.549
		(35.632)	1,952.696

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	9.048	5.824	119.549
Profit	2.556	(7.999)	(78.831)
	28.25%	(137.35%)	(65.94%)

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	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	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	Yes

Note: The Registered Office of the company has been shifted from 1/148, Vasna Road, Off Old Padre Road, Baroda – 390015, Gujarat, India to the present address w.e.f. 07.09.2009.

UNSECURED LOAN

Particulars	As on 31.03.2013	As on 31.03.2012
	(Rs. In Millions)
LONG TERM BORROWINGS:
EXTERNAL COMMERCIAL BORROWING IN FOREIGN CURRENCY
From Foreign Equity Holder - Addison Holding Limited	29.642	0.000
LOANS FROM RELATED PARTIES
Inter Corporate Deposits	3.724	5.761
From Directors	30.798	12.963
From Members & Relatives	10.839	6.588
OTHERS :
Inter Corporate Deposits	55.300	20.000
Total	130.303	45.312

INDEX OF CHARGES:

S.No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10305281	08/10/2013 *	418,000,000.00	STATE BANK OF INDIA	MID CORPORATE GROUP INDUSTRIAL FINANCE BRANCH, MARBLE ACRCH, RACE COURSE CIRCLE, VADODARA, GUJARAT  - 390007, INDIA	B87105227
2	10300543	28/10/2010	7,000,000.00	SHREE VARDHAMAN SAHAKARI BANK LIMITED	NEAR TARKESHWAR MAHADEV,, RAOPURA,, BARODA, GUJARAT - 390001, INDIA	B08626947
3	10248102	08/10/2013 *	418,000,000.00	STATE BANK OF INDIA	MID CORPORATE GROUP INDUSTRIAL FINANCE BRANCH, MARBLE ACRCH, RACE COURSE CIRCLE, VADODARA, GUJARAT  - 390007, INDIA	B90663386

FIXED ASSETS:

· Gas Engine

· Land

· Building

· Furniture and Fixtures

· Vehicle

· Equipment’s

· Other Equipment’s

· Computer

· Plant and Machinery

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 judgment 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 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.61.41
UK Pound	1	Rs.98.06
Euro	1	Rs.77.19

INFORMATION DETAILS

Information Gathered by :	PRT
Analysis Done by :	RAS
Report Prepared by :	JAY

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--PROFITABILIRY	1~10	2
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	2
--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	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		27

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.