MIRA INFORM REPORT

Report Date :

24.11.2014

IDENTIFICATION DETAILS

Name :	COVALENT LABORATORIES PRIVATE LIMITED
Registered Office :	D No. 8-3-677/18, S.K.D. Nagar, Yellareddyguda, Hyderabad-500073, Andhra Pradesh
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	13.09.2002
Com. Reg. No.:	01-39606
Capital Investment / Paid-up Capital :	Rs.60.000 Millions
CIN No.: [Company Identification No.]	U24230TG2002PTC039606
IEC No.:	Not Available
TAN No.: [Tax Deduction & Collection Account No.]	Not Available
PAN No.: [Permanent Account No.]	AABCC954R
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Bulk Drugs and Drug Intermediates.
No. of Employees :	Not Divulged

RATING & COMMENTS

MIRA’s Rating :

Ba (44)

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

Maximum Credit Limit :	USD 3100000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track record. As per registrar of companies the date of balance sheet (i.e financial filed) is shown as 31.03.2014 but the documents related to the financial of 2014 are not available from any source. As per financial of 2013, there is a dip in profit of the company. However, liquidity position of the company is sound and healthy. Trade relations are reported to be fair. Business is active. Payments are reported to be usually correct. The company can be considered for business dealing 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

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	ICRA
Rating	Letter of Credit: A2+
Rating Explanation	Strong degree of safety and low credit risk.
Date	August 2014

Rating Agency Name	ICRA
Rating	Term Loan: BBB+
Rating Explanation	Moderate degree of safety and moderate credit risk.
Date	August 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 DECLINED BY

Management non co-operative (91-40-23738492)

LOCATIONS

Registered/ Corporate Office :	D No. 8-3-677/18, S.K.D. Nagar, Yellareddyguda, Hyderabad-500073, Andhra Pradesh, India
Tel. No.:	91-40-49483333/ 3300/ 23738492/ 93/ 94/
Fax No.:	91-40-23738496/ 49483396
E-Mail :	finance@covalentlab.com enquiry@covalentlab.com covalentlabs@rediffmail.com covalent_accts@rediffmail.com
Website :	http://www.covalentlab.com
Factory :	Survey No. 374, Gundla Machanoor Village, Hathnoor Mandal, Medak District, Andhra Pradesh, India
Tel. No.:	91-8455-233853/ 233935 91-40-49483211
Fax No.:	91-40-49483298

DIRECTORS

As on 30.08.2014

Name :

Mr. Madireddy Narayana Reddy

Designation :

Managing Director

Address :

D No. 8-3-677/18, S.K.D. Nagar, Yellareddyguda, Hyderabad-500073, Andhra Pradesh, India

Date of Birth/Age :

20.02.1951

PAN No.:

AABPR4603F

Date of Appointment :

13.09.2002

Din No.:

00123201

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	U24230TG2002PTC039606	COVALENT LABORATORIES PRIVATE LIMITED	Managing director	13/09/2002	13/09/2002	-	Active	NO
2	U74999TG2007PLC052432	SV'S REMEDIES LIMITED	Managing director	01/07/2013	16/05/2012	-	Amalgamated	NO

Name :

Mr. Madireddty Vijay Kiran

Designation :

Whole Time Director

Address :

D No. 8-3-677/18, S.K.D. Nagar, Yellareddyguda, Hyderabad-500073, Andhra Pradesh, India

Date of Birth/Age :

12.09.1981

Date of Appointment :

01.01.2007

PAN No.:

ACKPV1863G

Din No.:

01095484

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	U24230TG2002PTC039606	COVALENT LABORATORIES PRIVATE LIMITED	Whole-time director	01/01/2007	13/09/2002	-	Active	NO
2	U24232TG2011PTC073729	LONSDALE LIFE SCIENCES PRIVATE LIMITED	Director	06/04/2011	06/04/2011	07/11/2011	Active	NO

Name :

Mr. Nandigala Prasanth

Designation :

Director

Address :

Plot No. 550, Road No. 19, Jubilee Hills, Hyderabad-500033, Andhra Pradesh, India

Date of Birth/Age :

14.04.1972

Date of Appointment :

15.05.2003

Din No.:

01740471

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	U24232TG1982PLC003368	VIRCHOW LABORATORES LIMITED.	Director	25/10/1999	25/10/1999	-	Active	NO
2	U74210TG1974PTC001733	IMEX ENGINEERING CO PVT LTD	Director	18/10/2001	18/10/2001	-	Active	YES
3	U24230TG2002PTC039606	COVALENT LABORATORIES PRIVATE LIMITED	Director	15/05/2003	15/05/2003	-	Active	NO
4	U24116TG1991PLC012314	ANDHRA ORGANICS LIMITED	Whole-time director	01/04/2011	08/09/2004	-	Active	NO
5	U24239TG2004PLC042949	VIRCHOW DRUGS LIMITED	Director	12/09/2007	12/09/2007	-	Active	NO
6	U74999TG2007PLC052432	SV'S REMEDIES LIMITED	Director	29/09/2012	16/05/2012	-	Amalgamated	NO
7	U23209TG2003PTC041101	VIRCHOW PETROCHEMICAL PRIVATE LIMITED	Additional director	14/03/2014	14/03/2014	-	Active	NO
8	U85195TG1988PLC008172	SARACA LABORATORIES LIMITED	Additional director	04/11/2014	04/11/2014	-	Active	NO

Name :

Mr. Mundla Naryan Reddy

Designation :

Director

Address :

Plot No. 15-A, Road No. 2, Jubilee Hills, Hyderabad-500033, Andhra Pradesh, India

Date of Birth/Age :

01.06.1951

Date of Appointment :

15.05.2003

Din No.:

00064392

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	U24232TG1982PLC003368	VIRCHOW LABORATORES LIMITED.	Managing director	01/06/2011	20/01/1982	-	Active	NO
2	U24210TG2001PTC036520	VIRCHOW BIOTECH PRIVATE LIMITED	Director	04/04/2001	04/04/2001	-	Active	NO
3	U74210TG1974PTC001733	IMEX ENGINEERING CO PVT LTD	Director	18/10/2001	18/10/2001	-	Active	YES
4	U24230TG2002PTC039606	COVALENT LABORATORIES PRIVATE LIMITED	Director	15/05/2003	15/05/2003	-	Active	NO
5	U23209TG2003PTC041101	VIRCHOW PETROCHEMICAL PRIVATE LIMITED	Director	04/06/2003	04/06/2003	-	Active	NO
6	U24239TG2004PLC042949	VIRCHOW DRUGS LIMITED	Director	25/03/2004	25/03/2004	-	Active	NO
7	U24116TG1991PLC012314	ANDHRA ORGANICS LIMITED	Director	08/09/2004	08/09/2004	-	Active	NO
8	U24110TG2005PTC046609	EMMENNAR CHEM PRIVATE LIMITED	Director	22/06/2005	22/06/2005	-	Amalgamated	NO
9	U45200TG2005NPL045814	HYDERABAD PHARMA INFRASTRUCTURE AND TECHNOLOGIES	Director	21/12/2006	21/12/2006	17/01/2011	Active	NO
10	U24230MH2007PTC176048	VIRCHOW HEALTHCARE PRIVATE LIMITED	Director	20/11/2007	20/11/2007	-	Active	NO
11	U24299TG2002PTC039653	EMMENNAR PHARMA PRIVATE LIMITED	Director	10/03/2008	10/03/2008	01/10/2013	Active	NO
12	U74999TG2007PLC052432	SV'S REMEDIES LIMITED	Director	29/09/2012	16/05/2012	-	Amalgamated	NO

Name :

Mr. Lingareddy Venkata Subash

Designation :

Director

Address :

Plot No. 435/a, Road No. 20, Jubilee Hills, Hyderabad-500033, Andhra Pradesh, India

Date of Birth/Age :

09.12.1971

Date of Appointment :

15.05.2003

Din No.:

00125240

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	U72100TG2001PLC036378	OCIMUM BIO SOLUTIONS (INDIA) LIMITED	Whole-time director	01/12/2010	12/03/2001	-	Active	NO
2	U24232TG1982PLC003368	VIRCHOW LABORATORES LIMITED.	Director	14/03/2002	14/03/2002	-	Active	NO
3	U15419TG2002PTC038404	MUKUNDA DAIRY PRODUCTS PRIVATE LIMITED	Director	30/03/2002	30/03/2002	09/09/2011	Active	NO
4	U24129TG1976PTC002072	CORAMANDEL INFRASTRUCTURE PRIVATE LIMITED	Director	27/01/2003	27/01/2003	23/01/2008	Active	NO
5	U24230TG2002PTC039606	COVALENT LABORATORIES PRIVATE LIMITED	Director	15/05/2003	15/05/2003	-	Active	NO
6	U74999TG2007PTC052835	FICUS ENTERPRISES (INDIA) PRIVATE LIMITED	Director	19/02/2007	19/02/2007	-	Active	NO
7	U72300TG2007PTC055671	MAX INFRATECH (INDIA) PRIVATE LIMITED (PART IX)	Director	25/09/2007	25/09/2007	-	Amalgamated	NO
8	U14200TG2008PTC057527	CORAMANDEL MINING & EXPORTS PRIVATE LIMITED	Director	30/09/2010	19/10/2009	-	Active	NO
9	U45200TG1999PLC030861	MAX INFRA (I) LIMITED	Director	26/12/2009	24/12/2009	05/09/2011	Active	NO
10	U24232TG2012PLC079091	MAPMYGENOME INDIA LIMITED	Director	10/02/2012	10/02/2012	02/12/2013	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.08.2014

Names of Shareholders	No. of Shares
Madireddy Narayana Reddy	1886500
Maddireddy Vijay Kiran	323000
M. Sujatha	142000
M Varun	43500
K Prabhakar Reddy	5000
Mundla Narayana Reddy	180000
Lakshmi Prasana	180000
M Sudha	360000
M Mahavishnu	360000
Nandigala Prasanth	430000
Nandigala Hemanth	450000
L V Suinil	300000
L Sunitha	300000
P Gargi	90000
L V Subhash	300000
L V Subha Reddy	90000
N Ramasubba Reddy	120000
K Harimohan Reddy	77000
K Subhashini Reddy	43000
G Jayaprada	40000
P Ravindra	30000
P Rajini	30000
N V Reddy	110000
Teena	110000
Total	6000000

As on 30.08.2014

Equity Share Break up (Percentage of Total Equity)

Category	Percentage
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer of Bulk Drugs and Drug Intermediates.
Products :
Brand Names :	Not Available
Agencies Held :	Not Available
Exports :	Not Divulged
Imports :	Not Divulged
Terms :	Not Divulged

GENERAL INFORMATION

Suppliers :

Not Divulged

Customers :

Not Divulged

No. of Employees :

Not Divulged

Bankers :

Banker Name 1	State Bank of India
Branch Address	Industrial Finance Branch, Rajbhavan Road, Somajiguda, Hyderabad - 500082, Andhra Pradesh, India
Person Name (With Designation)	Not Divulged
Contact Number	Not Divulged
Name of Account Holder	Not Divulged
Account Number	Not Divulged
Account Since (Date/Year of Account Opening)	Not Divulged
Average Balance Maintained (If Possible)	Not Divulged
Credit Facilities Enjoyed (If any)	Not Divulged
Account Operation	Not Divulged
Remarks (If any)	--

Banker Name 2	State Bank of India
Branch Address	Balanagar, Hyderabad - 500037, Andhra Pradesh, India
Person Name (With Designation)	Not Divulged
Contact Number	Not Divulged
Name of Account Holder	Not Divulged
Account Number	Not Divulged
Account Since (Date/Year of Account Opening)	Not Divulged
Average Balance Maintained (If Possible)	Not Divulged
Credit Facilities Enjoyed (If any)	Not Divulged
Account Operation	Not Divulged
Remarks (If any)	--

Facilities :

(Rs. In Millions)

SECURED LOAN	As on 31.03.2013	As on 31.03.2012
Long Term Borrowing
Term loans from banks	428.655	216.678
Deferred payment for acquisition of fixed assets	0.429	1.676
Short Term Borrowing
Working capital loans from banks	941.668	600.188
Total	1370.752	818.542

Banking Relations :	---
Auditors :
Name :	M V Narayana Reddy And Company Chartered Accountant
Address :	8-3-941, Flat No. 504, Vijayasree Apartments, Behind Chermas, Atmeerpet, Hyderabad-500073, Andhra Pradesh, India
Tel. No.:	91-40-23743975/ 23744448
PAN No:	AADFM4830F
Memberships :	--
Collaborators :	--
Associates :	· Virchow Petro Chemicals Private Limited CIN.: U23209AP2003PTC041101 · ANDHRA ORGANICS LIMITED · CIN.: U24116AP1991PLC012314 · SV'S REMEDIES LIMITED · CIN.: U74999AP2007PLC052432

CAPITAL STRUCTURE

As on 30.08.2014

Authorised Capital :

No. of Shares	Type	Value	Amount
20000000	Equity Shares	Rs.10/- each	Rs. 200.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
6000000	Equity Shares	Rs.10/- each	Rs. 60.000 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	60.000	60.000	60.000
(b) Reserves & Surplus	1008.308	868.397	656.626
(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)	1068.308	928.397	716.626
(3) Non-Current Liabilities
(a) long-term borrowings	505.124	261.697	276.293
(b) Deferred tax liabilities (Net)	67.064	60.085	44.525
(c) Other long term liabilities	0.000	0.000	65.596
(d) long-term provisions	5.231	4.788	2.159
Total Non-current Liabilities (3)	577.418	326.570	388.573
(4) Current Liabilities
(a) Short term borrowings	958.084	684.754	635.778
(b) Trade payables	1468.830	1105.093	845.813
(c) Other current liabilities	254.800	223.026	149.292
(d) Short-term provisions	76.748	96.734	104.761
Total Current Liabilities (4)	2758.462	2109.607	1735.644
TOTAL	4404.188	3364.574	2840.843
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	906.251	892.277	716.192
(ii) Intangible Assets	0.000	0.000	0.000
(iii) Capital work-in-progress	323.826	9.234	73.898
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	13.805	0.000	0.000
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	21.955	14.222	0.000
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	1265.837	915.733	790.090
(2) Current assets
(a) Current investments	0.000	19.999	20.000
(b) Inventories	826.591	841.427	673.357
(c) Trade receivables	1703.208	1204.290	991.004
(d) Cash and cash equivalents	159.114	179.943	152.751
(e) Short-term loans and advances	208.601	36.966	60.405
(f) Other current assets	240.837	166.216	153.236
Total Current Assets	3138.351	2448.841	2050.753
TOTAL	4404.188	3364.574	2840.843

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013	31.03.2012	31.03.2011
	GROSS REVENUE		6202.962	4473.980	3969.054
Less	EXPENSES TOTAL		5740.526	3921.559	3498.505
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION		462.436	552.421	470.549
Less	FINANCIAL EXPENSES		123.049	128.031	69.534
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION		339.387	424.390	401.015
Less/ Add	DEPRECIATION/ AMORTISATION		126.878	109.143	102.641
	PROFIT BEFORE TAX		212.509	315.247	298.374
Less	TAX		72.597	103.475	98.801
	PROFIT AFTER TAX		139.912	211.772	199.573
	EARNINGS IN FOREIGN CURRENCY		1399.700	1225.153	1194.600
	IMPORTS
		Raw Materials	1651.504	1369.430	1776.838
		Capital Goods	73.077	6.682	4.700
	TOTAL IMPORTS		1724.581	1376.112	1781.538
	Earnings Per Share (Rs.)		35.42	52.54	49.729

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
Net Profit Margin (PAT/Sales)	(%)	2.26	4.73	5.03
Operating Profit Margin (PBDIT / Sales)	(%)	7.46	12.35	11.86
Return on Total Assets (PBT/Total Assets}	(%)	5.23	9.40	10.78
Return on Investment (ROI) (PBT/Networth)		0.20	0.34	0.42
Debt Equity Ratio (Total Debt /Networth)		1.37	1.02	1.27
Current Ratio (Current Asset/Current Liability)		1.14	1.16	1.18

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	60.000	60.000	60.000
Reserves & Surplus	656.626	868.397	1008.308
Net worth	716.626	928.397	1068.308
long-term borrowings	276.293	261.697	505.124
Short term borrowings	635.778	684.754	958.084
Total borrowings	912.071	946.451	1463.208
Debt/Equity ratio	1.273	1.019	1.370

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	3969.054	4473.980	6202.962
		12.722	38.645

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	3969.054	4473.980	6202.962
Profit	199.573	211.772	139.912
	5.03%	4.73%	2.26%

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	Yes
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	Yes
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	Yes

UNSECURED LOAN

(Rs. In Million)

Particulars	As on 31.03.2013	As on 31.03.2012
Long Term Borrowing
Loans and advances from related parties	76.040	43.340
Short Term Borrowing
Loans repayable on demand from banks	16.416	84.566
Total	92.456	127.906

INDEX OF CHARGES

S.No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10516286	27/06/2014	410,000,000.00	HDFC BANK LIMITED	1-10-60/3, 4TH FLOOR, SURYODAYA,, BEGUMPET, HYDERABAD, HYDERABAD, Telangana - 500016, INDIA	C17671587
2	10495631	29/03/2014	300,000,000.00	Citi Bank N.A.	163,ANNA SALAI, CHENNAI, Tamil Nadu - 600002, INDIA	C04747895
3	10348440	21/03/2012	225,000,000.00	CITI BANK N.A.	1st Floor, Queens Plaza,, Sardar Patel Road,, Hyd  erabad, Andhra Pradesh -500003, INDIA	B37213956
4	90126847	08/02/2013 *	2,558,300,000.00	STATE BANK OF INDIA	INDUSTRIAL FINANCE BRANCH, RAJBHAVAN ROAD, SOMAJIGUDA, HYDERABAD, Andhra Pradesh - 500082, INDIA	B69716793

* Date of charge modification

OPERATIONS AND BUSINESS PERFORMANCE

Despite the challenges of the global and domestic economy, the company's revenues for the year are at Rs. 6202.962 Millions as against Rs. 4473.980 Millions in the previous year, an increase of 38.64% over the previous year. The continuous efforts of the management resulted in the growth of revenue. However profit after tax decreased from Rs. 211.772 Millions to Rs. 139.911 Millions. Profitability affected due to the steep increase in Raw Material Cost. Raw Material consumption as a percentage of revenue constituted 80.5% as against 75.78% in the previous year. The steep increase in Raw Material Cost is due to depreciation in rupee value against the US $. Increase in Material Cost alone has an impact on the profitability by 500 basis points. During the year cost of power and fuel increased from Rs. 145.000 Millions to Rs. 251.400 Millions, as a percentage of revenue constituted 4.38% as agaisnt 3.43% in the previous year.

The Directors are optimistic of recovery of the global and domestic economy in the current year and your Directors are confident of achieving better results.

FIXED ASSETS

· Factory Building

· Plant and equipment

· Furniture and Fixtures

· Office Equipment

· Computer Equipments

· Vehicles

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. 61.85
UK Pound	1	Rs. 97.01
Euro	1	Rs. 77.62

INFORMATION DETAILS

Information Gathered by :	HTL
Analysis Done by :	SUM
Report Prepared by :	KLS

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	4
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--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		44

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.