MIRA INFORM REPORT

Report Date :

26.11.2014

IDENTIFICATION DETAILS

Name :	HIKAL LIMITED
Registered Office :	717/718, Maker Chambers V, 7^th Floor, Nariman Point, Mumbai – 400021, Maharashtra
Country :	India
Financials (as on) :	31.03.2014
Date of Incorporation :	08.07.1988
Com. Reg. No.:	11–048028
Capital Investment / Paid-up Capital :	Rs.164.401 Millions
CIN No.: [Company Identification No.]	L24200MH1988PTC048028
TIN No.:	Not Available
IEC No.:	Not Available
TAN No.: [Tax Deduction & Collection Account No.]	MUMH07537F / BRDH00497A
PAN No.: [Permanent Account No.]	AAACH0383A
Legal Form :	A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges.
Line of Business :	The Company is engaged in the manufacturing of various chemical intermediates, specialty chemicals, active pharma ingredients and contract research activities.
No. of Employees :	1101 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (50)

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

Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Exist
Comments :	Subject is an established company having satisfactory track. The company possesses a favorable financial profile marked by adequate networth base along with modest working capital intensive operations. Management has witnessed a decent revenue as well as higher profitability and cash accruals leading to improvement in debt protection metrics during FY 2014. Trade relations are fair. Business is active. Payment terms are reported as usually correct. The company can be considered for 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.

INDIAN ECONOMIC OVERVIEW

N E W S

Verdict Implications: Apex court order may alter coal import dynamics. Traders go slowly 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 Limited 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	Long Term Rating = BBB
Rating Explanation	Moderate degree of safety and moderate credit risk
Date	July 2014

Rating Agency Name	ICRA
Rating	Short Term Rating = A2
Rating Explanation	Strong degree of safety and low credit risk
Date	July 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.: 91-22-22301801)

LOCATIONS

Registered Office / Corporate Office :	717/718, Maker Chambers V, 7^th Floor, Nariman Point, Mumbai – 400 021, Maharashtra, India
Tel. No.:	91-22-22301801
Fax No.:	91-22-22833913
E-Mail :	hikal@giasbm01.vsnl.net.in info@hikal.com media@hikal.com pharma@hikal.com argo@hikal.com md@hikal.com ir@hikal.com info@hikal.com hr@hikal.com
Website :	http://www.hikal.com
Head Office :	6, Nawab Building, 327, Dr. D. N. Road, Fort, Mumbai – 400 001, Maharashtra, India.
Tel. No.:	91-22-22301801
Fax No.:	91-22-22833913
Administrative Office :	Great Eastern Chambers, 6th Flore, Sector 11, CBD – Belapur, Navi Mumbai – 400 614, Maharashtra, India
Tel. No.:	91-22-27574276 / 27574336 / 27574991 / 30973100
Fax No.:	91-22-27574277
Email :	customsolutions@hikal.com
Plant Location :	· Taloja T-21, M.I.D.C., Taloja, District Raigad - 410 208, Maharashtra, India Tel No. : 91-22-3099 0100 · Mahad A-18, M.I.D.C., Mahad, District Raigad - 402 301, Maharashtra, India Tel No. : 91-2145-232 791 / 573 · Panoli 629/630, G.I.D.C, Panoli - 394 116, District Bharuch, Gujarat, India Tel No. : 91-2646-302 100 · Bangalore 82/A, K.I.A.D.B., Jigani, Anekal Taluk, Bangalore - 562 106, Karnataka, India Tel No. : 91-80-3986 1100 · R and D Centre, Bangalore 32/1, Kalena Agrahara, Bannerghatta, Bangalore - 560 076, Karnataka, India Tel No. : 91-80-3023 6100 · Pune Acoris Research Limited, 3A, International Biotech Park, Hinjewadi, Pune - 411 057, Maharashtra, India Tel No. : 91-20-4200 4200 · MIDC, Taloja, District Raigad, Maharashtra · MIDC, Mahad, District Raigad, Maharashtra · GIDC, Panoli, District Bharuch, Gujarat · KIADB, Jigani, Bangalore, Karnataka · Bannerghatta, Bangalore, Karnataka · MIDC, Dombivli, Maharashtra
Overseas Office	Located at · Japan · USA

DIRECTORS

As on 31.03.2014

Name :	Mr. Jai Hiremath
Designation :	Chairman and Managing Director
Name :	Mr. Sameer J. Hiremath
Designation :	President and Joint Managing Director
Name :	Mr. Baba N. Kalyani
Designation :	Director
Name :	Dr. Peter Pollak
Designation :	Director
Name :	Dr. Axel Kleemann
Designation :	Director
Name :	Mr. Wolfgang Welter
Designation :	Director
Name :	Mr. Prakash V. Mehta
Designation :	Director
Name :	Mr. Shivkumar M. Kheny
Designation :	Director
Name :	Mrs. Sugandha J. Hiremath
Designation :	Director
Name :	Mr. Amit Kalyani
Designation :	Director

KEY EXECUTIVES

Name :	Mr. Sham. V. Wahalekar
Designation :	Company Secretary
Audit Committee :	· Kannan Unni · Prakash Mehta · Sugandha Hiremath · Shivkumar Kheny

SHAREHOLDING PATTERN

As on 30.09.2014

Category of Shareholder	No. of Shares	Percentage of Holding
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	1572680	9.57
Bodies Corporate	9623022	58.53
Any Others (Specify)	110000	0.67
Trusts	110000	0.67
Sub Total	11305702	68.77
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	11305702	68.77
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	1534985	9.34
Financial Institutions / Banks	8201	0.05
Insurance Companies	20100	0.12
Foreign Institutional Investors	763680	4.65
Sub Total	2326966	14.15
(2) Non-Institutions
Bodies Corporate	154875	0.94
Individuals
Individual shareholders holding nominal share capital up to Rs.0.100 million	1006786	6.12
Individual shareholders holding nominal share capital in excess of Rs.0.100 million	184525	1.12
Any Others (Specify)	1461246	8.89
Clearing Members	19811	0.12
Foreign Nationals	24310	0.15
Foreign Corporate Bodies	1360000	8.27
NRIs/OCBs	57125	0.35
Sub Total	2807432	17.08
Total Public shareholding (B)	5134398	31.23
Total (A)+(B)	16440100	100.00
(C) Shares held by Custodians and against which Depository Receipts have been issued	0	0.00
(1) Promoter and Promoter Group	0	0.00
(2) Public	0	0.00
Sub Total	0	0.00
Total (A)+(B)+(C)	16440100	100.00

Shareholding of securities (including shares, warrants, convertible securities) of persons belonging to the category Promoter and Promoter Group

Name of Shareholder	No. of Shares	Percentage of Holding
Anish Dilip Swadi	1,000	0.01
Jai Hiremath	1,77,500	1.08
Pallavi Hiremath	50,800	0.31
Pooja Hiremath	1,000	0.01
Sameer J Hiremath	52,130	0.32
Sugandha Hiremath	12,89,000	7.84
Vijay Hiremath	1,250	0.01
BF Investment Limited	4,36,450	2.65
Decent Electronics Private Limited	6,600	0.04
Ekdant Investments Private Limited	52,507	0.32
Kalyani Investment Company Limited	51,55,650	31.36
Karad Engineering Consulting Private Limited	8,500	0.05
Shri Badrinath Investment Private Limited	26,55,315	16.15
Shri Rameshwara Investment Private Limited	13,08,000	7.96
Pallavi Trust	25,000	0.15
Sameer Trust	25,000	0.15
Sumer Trust	10,000	0.06
Nihal Trust	10,000	0.06
Anika Trust	10,000	0.06
Rhea Trust	10,000	0.06
Pooja Trust	10,000	0.06
Anish Trust	10,000	0.06
Total	1,13,05,702	68.77

Shareholding of securities (including shares, warrants, convertible securities) of persons belonging to the category Public and holding more than 1% of the total number of shares

Name of Shareholder	No. of Shares	Percentage of Holding
Reliance Capital Trustee Company Limited A/c Reliance Growth Fund	1255748	7.64
Government Pension Fund Limited	315000	1.92
International Finance Corporation	1360000	8.27
Danske Invest Management Company S.A. A/C Danske Invest Sicav-Sif-Emerging and Frontier Markets Smid	434337	2.64
SBI Magnum Balanced Fund	198980	1.21
Total	3564065	21.68

Shareholding of securities (including shares, warrants, convertible securities) of persons (together with PAC) belonging to the category “Public” and holding more than 5% of the total number of shares of the company

Name of Shareholder	No. of Shares	Percentage of Holding
Reliance Capital Trustee Company Limited A/c Reliance Growth Fund	1255748	7.64
International Finance Corporation	1360000	8.27
Total	2615748	15.91

BUSINESS DETAILS

Line of Business :	The Company is engaged in the manufacturing of various chemical intermediates, specialty chemicals, active pharma ingredients and contract research activities.
Products :	--
Brand Names :	--
Agencies Held :	--
Exports :	Not Divulged
Imports :	Not Divulged
Terms :
Selling :	Not Divulged
Purchasing :	Not Divulged

PRODUCTION STATUS – NOT AVAILABLE

GENERAL INFORMATION

Suppliers :

Not Divulged

Customers :

Not Divulged

No. of Employees :

1101 (Approximately)

Bankers :

· Axis Bank Limited

· Bank of Baroda

· Central Bank of India

· CITI Bank N.A.

· DBS Bank Limited

· Export Import Bank of India

· HDFC Bank Limited

· International Finance Corporation

· ICICI Bank Limited

· IDBI Bank Limited

· Kotak Mahindra Bank Limited

· State Bank of India

· Standard Chartered Bank

· Union Bank of India

· Yes Bank Limited

· Aditya Birla Finance Limited

Facilities :

SECURED LOANS	31.03.2014 Rs. In Millions	31.03.2013 Rs. In Millions
LONG TERM BORROWINGS
Term loans
From banks	1236.270	1021.600
From financial institutions	1245.850	1089.860
Vehicle Loan & Other loans	11.190	4.230
Finance lease obligations	9.750	18.610
SHORT TERM BORROWINGS
Loans repayable on demand
Working capital loan from banks	1984.030	2097.880
Total	4487.090	4232.180

Long Term Borrowings

Nature of Security

i) Terms loans from banks and financial institutions are secured by hypothecation of plant & machinery, first charge on the immovable properties and second charge on current assets situated at Taloja, Panoli and Bangalore

ii) Deferred payment liability relates to certain vehicles and other equipments and is secured by way of first charge on the said assets.

	US $ in Mio	Rs. In millions	Repayment Terms	Interest Rate
a	6.67	460.840	Repayable Quarterly -11 instalments of US $ 0.70 Mio each starting from 14.04.2014	Libor +300 Bps
b	-	66.680	Repayable quarterly - 2 instalments of Rs.33.33 Mio each starting from 20.05.2015	BBR Plus 300 Bps
c	-	300.000	Repayable quarterly - 12 instalments of Rs.25.00 Mio starting from 15.07.2014	BBR Plus 205 Bps
d	-	213.210	Repayable monthly - 48 instalments of Rs.4.44 Mio starting from 21.04.2013	13.75%
e	-	600.000	Repayable quarterly - 20 instalments of Rs.30.00 Mio starting from 25.06.2014	12.50%
a	10.00	601.100	Repayable half yearly - 10 instalments of US $ 1 Mio each starting from 15.07.2014	Libor +300 Bps
b	8.00	480.880	Repayable half yearly - 8 instalments of US $ 1 Mio each starting from 15.07.2015	Libor +300 Bps
c	-	108.330	Repayable quarterly - 2 instalments of Rs.54.17 Mio starting from 20.04.2015	12.80%
d	-	275.00	Repayable quarterly - 11 instalments of Rs.25.00 Mio starting from 20.06.2014	LTMLR Plus 275 Bps
a	-	3.130	Repayable monthly EMI of Rs.0.155 Mio 9.61%	9.61%
b	-	1.160	Repayable monthly EMI of Rs.0.025 Mio 10.49%	10.49%
c	-	6.130	Repayable monthly EMI of Rs.0.075 Mio 9.87%	9.87%
d	-	1.660	Repayable monthly EMI of Rs.0.039 Mio 10.25%	10.25%
e	-	3.050	Repayable monthly EMI of Rs.0.069 Mio 10.74%	10.74%
f	-	0.960	Repayable quarterly EMI of Rs.0.054 Mio Rs.0.13 Mio 12.75%	12.75%
g	-	20.930	Repayable monthly 18 instalments of Rs.1.295 Mio 14.00%	14.00%
h	-	1.970	Repayable quarterly 11 instalments of Rs.0.191 Mio	14.00%
a	-	150.830	Repayable monthly 21 instalments of Rs.7.18 Mio starting from 01.04.2014	14%
a	-	3.710	Repayable yearly in 5 equal installment, starting after 10 years from the year of accrual	Nil

Short Term Borrowings

Nature of Security and terms of repayment for secured/unsecured borrowings

Working Capital Loans from banks are secured by hypothecation of present and future stock of raw materials, stock-in-process, finished and semi finished goods, stores, spares and book debts and second charge on properties situated at Taloja, Mahad, Panoli Bangalore and Pune	Working capital loans are repayable on demand and carry interest ranging from 5% to 14.50 % p.a
Inter Corporate Deposits	Repayable on demand and carries interest 13.50 % to 16% p.a

Banking Relations :

--

Auditors :

Name :

BSR and Company

Chartered Accountants

Legal Advisor :

Malvi Ranchoddas and Company

Memberships :

--

Collaborators :

--

Subsidiary Companies :

· Hikal International B.V. (“HIBV”)

· Acoris Research Limited (“ARL”)

Enterprises over which key management personnel and their relatives exercise significant influence :

· Decent Electronics Private Limited (”DEPL”)

· Marigold Investments Private Limited (”MIPL”)

· Iris Investments Private Limited (”IIPL”)

· Karad Engineering Consultancy Private Limited (”KECPL”)

· Ekdant Investment Private Limited (”EIPL”)

· Shri Rameshwara Investment Private Limited (“RIPL”)

· Shri Badrinath Investment Private Limited (“BIPL”)

· Rushabh Capital Services Private Limited ( “RCSPL”)

CAPITAL STRUCTURE

As on 31.03.2014

Authorised Capital :

No. of Shares	Type	Value	Amount
25000000	Equity Share	Rs.10/- Each	Rs.250.000 Millions
5000000	Cumulative Redeemable Preference shares	Rs.100/- Each	Rs.500.000 Millions
	Total		Rs.750.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
16440100	Equity Shares	Rs.10/- Each	Rs.164.401 Millions

Reconciliation of the shares outstanding at the beginning and at the end of the reporting period

Equity Shares	Number in Millions	Rs. In Millions
At the beginning of the year	16.440	164.400
Outstanding at the end of the year	16.440	164.400

Terms/rights attached to equity shares

The company has only one class of equity shares having a par value of Rs.10/- per share. Each holder of equity shares is entitled to one vote per share. The company declares and pays dividends in Indian Rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

During the year ended March 31, 2014 the amount of per share dividend recognized as distributions to equity shareholders was Rs.4.50/- (2013: Rs.2.50/-). In the event of liquidation of the company, the holders of equity shares will be entitled to receive remaining assets of the company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

Details of shareholders holding more than 5% shares in the company

Name of Shareholder	Number of Shares	% holding
Kalyani Investment Company Limited	5.160	31.36
Shri Badrinath Investment Private Limited	2.650	16.15
Shri Rameshwara Investment Private Limited	1.310	7.96
International Finance Corporation	1.360	8.27
Sugandha J Hiremath	1.290	7.84
Reliance Capital Trustee Company Limited	1.12	6.82

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2014	31.03.2013	31.03.2012
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	164.400	164.400	164.400
(b) Reserves & Surplus	4,894.650	4,348.080	4,433.780
(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)	5,059.050	4,512.480	4,598.180
(3) Non-Current Liabilities
(a) long-term borrowings	2,548.220	2,196.270	2,268.770
(b) Deferred tax liabilities (Net)	324.900	86.250	86.710
(c) Other long term liabilities	0.000	0.000	0.000
(d) long-term provisions	109.200	96.620	64.190
Total Non-current Liabilities (3)	2,982.320	2,379.140	2,419.670
(4) Current Liabilities
(a) Short term borrowings	2,155.480	2,602.830	2,054.670
(b) Trade payables	1,310.850	1,128.410	1,139.260
(c) Other current liabilities	1,001.910	1,236.280	1,062.460
(d) Short-term provisions	197.900	60.440	129.680
Total Current Liabilities (4)	4,666.140	5,027.960	4,386.070
TOTAL	12,707.510	11,919.580	11,403.920
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	6,441.410	6,607.570	5,783.960
(ii) Intangible Assets	0.000	0.000	0.000
(iii) Capital work-in-progress	611.670	485.430	747.560
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	31.270	31.270	181.670
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	677.190	704.160	1,236.000
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	7,761.540	7,828.430	7,949.190
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	3,112.930	2,570.330	1,918.530
(c) Trade receivables	887.370	846.290	987.340
(d) Cash and cash equivalents	276.880	154.050	59.190
(e) Short-term loans and advances	657.390	514.410	486.540
(f) Other current assets	11.400	6.070	3.130
Total Current Assets	4,945.970	4,091.150	3,454.730
TOTAL	12,707.510	11,919.580	11,403.920

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2014	31.03.2013	31.03.2012
	SALES
		Income	8,292.110	6,604.170	6,942.350
		Other Income	340.550	63.080	49.570
		TOTAL (A)	8,632.660	6,667.250	6,991.920
Less	EXPENSES
		Cost of materials consumed	3,878.100	2,725.980	2,945.770
		Changes in inventories of finished goods and work-in-progress	(119.840)	(115.480)	161.500
		Employee benefits expense	790.190	701.760	556.860
		Other expenses	1,691.610	1,447.980	1,444.040
		Exceptional Items	179.250	484.330	218.490
		TOTAL (B)	6,419.310	5,244.570	5,326.660
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		2,213.350	1,422.680	1,665.260
Less	FINANCIAL EXPENSES (D)		680.040	598.780	640.320
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		1,533.310	823.900	1,024.940
Less/ Add	DEPRECIATION/ AMORTISATION (F)		550.230	490.620	424.230
	PROFIT BEFORE TAX (E-F) (G)		983.080	333.280	600.710
Less	TAX (H)		342.270	78.240	59.910
	PROFIT AFTER TAX (G-H) (I)		640.810	255.040	540.800
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		2,123.120	1,946.170	1,620.010
Less	APPROPRIATIONS
		Interim Dividend on Equity Shares	32.880	0.000	0.000
		Proposed Dividend on Equity Shares	41.100	41.100	98.640
		Tax on proposed dividend	12.570	6.990	16.000
		Transfer to General Reserve	100.000	30.000	100.000
	BALANCE CARRIED TO THE B/S		2,577.380	2,123.120	1,946.170
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	7056.900	5818.080	5572.230
	TOTAL EARNINGS		7056.900	5818.080	5572.230
	IMPORTS
		Raw Materials	2302.350	1925.550	1698.750
		Capital Goods	13.710	14.310	35.590
		Stores & Spares	22.400	7.460	2.630
	TOTAL IMPORTS		2338.460	1947.320	1736.970
	Earnings Per Share (Rs.)		38.98	15.52	32.90

QUARTERLY RESULTS

Particulars	30.06.2014 (Unaudited)	30.09.2014 (Unaudited)
	1^st Quarter	2^nd Quarter
Net Sales	1903.900	2428.800
Total Expenditure	1541.100	1892.900
PBIDT (Excl OI)	362..800	535.900
Other Income	8.300	3.500
Operating Profit	371.100	539.400
Interest	141.800	179.600
Exceptional Items	0.000	0.000
PBDT	229.300	359.800
Depreciation	148.500	150.500
Profit Before Tax	80.800	209.300
Tax	23.800	56.800
Provisions and contingencies	0.000	0.000
Profit After Tax	57.000	152.500
Extraordinary Items	0.000	0.000
Prior Period Expenses	0.000	0.000
Other Adjustments	0.000	0.000
Net Profit	57.000	152.500

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013	31.03.2012
Net Profit Margin (PAT/Sales)	(%)	7.73	3.86	7.79
Operating Profit Margin (PBIDT/Sales)	(%)	26.69	21.54	23.99
Return on Total Assets (PBT/Total Assets}	(%)	8.15	2.92	5.73
Return on Investment (ROI) (PBT/Networth)		0.19	0.07	0.13
Debt Equity Ratio (Total Debt /Networth)		0.93	1.06	0.94
Current Ratio (Current Asset/Current Liability)		1.06	0.81	0.79

FINANCIAL ANALYSIS

[all figures are in Rupees Millions]

DEBT EQUITY RATIO

Particular	31.03.2012	31.03.2013	31.03.2014
	Rs. In Millions	Rs. In Millions	Rs. In Millions
Share Capital	164.400	164.400	164.400
Reserves & Surplus	4433.780	4348.080	4894.650
Money received against share warrants	0.000	0.000	0.000
Share Application money pending allotment	0.000	0.000	0.000
Net worth	4598.180	4512.480	5059.050
long-term borrowings	2268.770	2196.270	2548.220
Short term borrowings	2054.670	2602.830	2155.480
Total borrowings	4323.440	4799.100	4703.700
Debt/Equity ratio	0.940	1.064	0.930

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2012	31.03.2013	31.03.2014
	Rs. In Millions	Rs. In Millions	Rs. In Millions
Sales	6,942.350	6,604.170	8,292.110
		(4.871)	25.559

NET PROFIT MARGIN

Net Profit Margin	31.03.2012	31.03.2013	31.03.2014
	Rs. In Millions	Rs. In Millions	Rs. In Millions
Sales	6,942.350	6,604.170	8,292.110
Profit	540.800	255.040	640.810
	7.79%	3.86%	7.73%

LOCAL AGENCY FURTHER INFORMATION

CURRENT MATURITIES OF LONG TERM DEBT DETAILS

Rs. In Millions

PARTICULARS	31.03.2014	31.03.2013	31.03.2012
Current maturities of long term debt	737.240	1024.520	NA
Total	737.240	1024.520	NA

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	Yes
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	Yes
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	No
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

LITIGATION DETAILS

Case Details
Bench:- Bombay
Presentation Date :			11/06/2013
Lodging No:-		ARPST/15731/2013	Failing Date:-			11/06/2013
Petitioner:-	M/S HIKAL LIMITED, IN THE MATTER OF M/S WYTEWATER TECH PRIVATE LIMITED			Respondent:-	HIKAL LIMITED
Petn.Adv:-	LAW GLOBAL (0)
District:-	MUMBAI
Bench:-	SINGLE
Status:-	Pre-Admission
Act. :	Arbitration and Conciliation Act 1996

UNSECURED LOAN:

Particulars	31.03.2014 Rs. In Millions	31.03.2014 Rs. In Millions
LONG TERM BORROWINGS
Term loans from banks & others	42.500	58.250
Deferred sales tax liability	2.660	3.720
SHORT TERM BORROWINGS
Inter corporate deposits
From related parties	36.450	59.45
From others	135.000	445.500
Total	216.610	566.920

BACKGROUND

The Coampyn was incorporated as a public limited Company on July 8, 1988 having its registered office at 717/718, Maker Chamber V, Nariman Point, Mumbai 400 021. The Company is engaged in the manufacturing of various chemical intermediates, specialty chemicals, active pharma ingredients and contract research activities.

The Company is operating in the crop protection and pharmaceuticals space.

COMPANY'S PERFORMANCE

A significant growth in revenues and profitability were seen in the FY 2013-14. Turnover of the company showed an upward trend of 26%. As compared to last year the Pharmaceutical business showed positive growth of 28% due to higher off take by the customers. The Crop Protection business continued its upward trend and grew by 23%. Despite a challenging global economic environment, EBITDA of the company increased by 8% to Rs.2062.000 millions from Rs.1907.000 millions. The profit after tax has surged to Rs.641.000 millions as against Rs.255.000 million last year, an increase of 151%. Finance costs for the year were higher by 13.5% at Rs.680.000 million compared to Rs.599.000 million in FY2013 on account of increase in interest cost. Finance cost for FY2014 also includes exchange loss on working capital borrowing of Rs.132.000 million as against Rs.76.000 million in FY2013.

Depreciation for FY2014 was higher at Rs.550million compared to Rs.491.000 million in FY2013 on account of increase in fixed assets of Pharmaceutical business. Increase in tax expenses from Rs.78 million in FY2013 to Rs.342.000 million in FY2014 was mainly on account of full absorption of carry forward losses and deferred tax.

Total debt as on March 31, 2014 was Rs.4704.000 million compared to Rs.4799.000 million as on March 31, 2013. Debt/Equity ratio was 0.93 as on March 31, 2014 compared to 1.03 as on March 31, 2013. During the year, gross fixed assets increased by Rs.388.000 million mainly on account of increase in capital assets in Pharmaceutical business and capitalization of exchange loss on long term capital borrowing. Despite the challenging economic environment, the company has performed well and based on the results, the Board recommended a dividend of 45%.

STRATEGY AND FUTURE OUTLOOK

They have redefined their strategy to be a leading provider of contract development and commercial manufacturing services (CDMO) to the global pharmaceutical industry with a focus on drug products. They have the right ingredients to offer a breadth of services with a focus on drug products and APIs with a wide range of technologies. They are able to offer comprehensive end-to-end solutions to a broad spectrum of companies ranging from large pharmaceutical and biotech companies to specialty pharmaceutical companies, generics and emerging pharmaceutical companies. They are aligning ourselves with thier clients' longer-term strategies to offer real competitive advantages on competence, quality and cost. Their redefined strategy will yield results in the near future as we target new clients as well as new geographies. We are continuously feeding thier pipeline with new enquiries and projects to ensure that the revenue and profitability targets are met.

STATEMENT OF UNAUDITED RESULTS FOR THE QUARTER ENDED SEPTEMBER 30, 2014

(Rs. In Millions)

Particulars	Quarter Ended ( Unaudited)	Quarter Ended ( Unaudited)	Half Year Ended ( Unaudited)
	30.09.2014	30.06.2014	30.09.2014
Sales / income from operations	2441.500	1915.500	4357.100
Less: Excise duty	12.700	11.600	24.300
Net sales / income from operations	2428.800	1903.900	4332.800
Total expenditure
a) Cost of materials and utilities consumed	1439.500	1036.800	2476.300
b)Purchases of stock- in- trade	-	-	-
c) Change in inventories of finished goods and work in progress	12.900	127.500	140.400
d) Employee benefits expense	223.300	209.800	433.100
e) Depreciation and amortisation expenses	150.500	148.500	299.000
f) Other expenses	217.200	167.000	384.100
Total expenditure	2043.400	1689.600	3732.900
Profit from operations before other income, interest and impact of forward contracts	385.400	214.300	599.900
Other Income	3.500	8.300	11.700
Profit Before Interest and impact of forward contracts	388.900	222.600	611.600
Finance cost	179.600	141.800	321.400
Profit from ordinary activities before tax and impact of forward contracts	209.300	80.800	290.200
- Exchange loss	-	-	-
Profit from ordinary activities before tax	209.300	80.800	290.200
Provision for taxation
- Current taxes	65.600	26.400	92.000
- Minimum Alternatives Tax credit	-	-	-
- Deferred tax	(8.800)	(2.600)	(11.300)
Net Profit after tax	152.500	57.000	209.500
Paid-up equity share capital	164.400	164.400	164.400
Reserves excluding revaluation reserves
Earnings per share ( face value Rs. 10/-)
- Basic	9.28	3.47	12.74
- Diluted	9.28	3.47	12.74
- Cash	18.43	12.5	30.93
Public shareholding
- No of shares	51,34,398	51,34,398	51,34,398
- Percentage of       shareholding	31.23%	31.23%	31.23%
Promoters and promoter group shareholding
a) Pledged / Encumbered
- No of shares	-	-	-
- Percentage of shares (as a % of the total shareholding of promoters and promoter group	-	-	-
- Percentage of shares (as a % of the total share capital of the company)	-	-	-
b) Non-encumbered
- No of shares	1,13,05,702	1,13,05,702	1,13,05,702
- Percentage of shares (as a % of the total shareholding of promoters and promoter group	100.00%	100.00%	100.00%
- Percentage of shares (as a % of the total share capital of the company)	68.77%	68.77%	68.77%

B. Investor Complaints	30.09.2014
Pending at the beginning of the quarter	Nil
Receiving during the quarter	1
Disposed of during the quarter	1
Remaining unreserved at the end of the quarter	Nil

Notes:

1. The above results were reviewed by the Audit Committee and approved by the Board of Directors at their meeting on November 5, 2014

2. The management has reassessed useful life of its fixed assets as per Schedule II of the Companies Act, 2013. Accordingly, depreciation charge for the quarter and half year ended September 30, 2014 is higher by Rs.5.500 Millions and Rs.11.600 Millions respectively and Rs.27.300 Millions has been adjusted against opening reserves

3. The profit for September 2014 quarter and half year is after full provision for mark to market losses on swap contracts/exchange difference on outstanding short-term working capital loans. The corresponding amount for previous quarter and half year ended September 30, 2013 did not have provision for such mark to market losses of Rs.237.300 Millions. The same was matter of qualification by auditors in previous periods.

4. The results for the quarter ended September 30, 2014 have been subjected to a "Limited Review" by the statutory auditors of the Company. The limited review report does not contain any qualifications. The limited review report will be filed with the Stock Exchanges and will also be available on company's website.

5. The figures for the previous period/year have been regrouped/reclassified wherever necessary.

INDEX OF CHARGE:

Sr. No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10518631	26/08/2014	400,000,000.00	THE RATNAKAR BANK LIMITED	Shahupuri,Kolhapur, Kolhapur, Maharashtra - 416 001, India	C19630920
2	10512641	31/07/2014	600,000,000.00	Standard Chartered Bank	112, Serenity, 3rd Floor, East Wing,, Oramangala Indl Area, 5th Block, Koramangala, Bangalore, Karnataka - 560095, India	C14868863
3	10460074	30/10/2013	200,000,000.00	ICICI Bank Limited	ICICI Bank Towers, Bandra Kurla Complex,, Mumbai, Maharashtra - 400051, India	B89482756
4	10458011	25/10/2013	250,000,000.00	KOTAK MAHINDRA BANK LIMITED	36-38a, Nariman Bhavan, 227,D, Nariman Point, Mumbai, Maharashtra - 400021, India	B88695663
5	10381047	25/09/2012	150,000,000.00	ADITYA BIRLA FINANCE LIMITED	Indian Rayon Compound,, Veraval, Gujarat - 362266, INDIA	B59900712
6	10345467	21/03/2013 *	300,000,000.00	ICICI Bank Limited	ICICI Bank Towers, Bandra Kurla Complex Bandra East, MUMBAI, Maharashtra - 400051, India	B72588262
7	10340869	21/03/2013 *	300,000,000.00	Export Import Bank of India	Centre One Building, World Trade Centre Complex, Cuffe Parade, Mumbai, Maharashtra - 400005, India	B72125412
8	10338703	27/02/2012	150,000,000.00	YES BANK LIMITED	9th Floor, Nehru Centre, Discovery Of India,, Dr. Annie Besant Road, Worli,, Mumbai, Maharashtra - 400018, India	B33491242
9	10335745	14/05/2012 *	100,000,000.00	ICICI Bank Limited	ICICI Bank Towers, Bandra Kurla Complex, Bandra East, Mumbai, Maharashtra - 400051, India	B40840910
10	10302778	30/07/2011	150,000,000.00	STATE BANK OF HYDERABAD	11-C, Mittal Tower, 210, Nariman Point, Mumbai, Maharashtra - 400021, India	B19024462
11	10251074	06/05/2011 *	400,000,000.00	IDBI Bank Limited	Mittal Court, 224, A Wing, 2nd Floor, Nariman Point, Mumbai, Maharashtra - 400021, India	B13402771
12	10244019	06/05/2011 *	506,000,000.00	STANDARD CHARTERED BANK	90, M.G. Road, Fort, Mumbai, Maharashtra - 400001, India	B13311709
13	10241620	06/05/2011 *	650,000,000.00	EXPORT IMPORT BANK OF INDIA	Centre One Building, Floor 21, World Trade Centre, Cuffe Parade, Mumbai, Maharashtra - 400005, India	B13449095
14	10211546	13/10/2010 *	400,000,000.00	IDBI Bank Limited	224-A, Mittal Court, A Wing, Nariman Point, Mumbai, Maharashtra - 400021, India	A97374912
15	10180962	25/09/2009	200,000,000.00	Standard Chartered Bank	90, M G Road,, Fort,, Mumbai, Maharashtra - 400001, India	A71040679
16	10168026	09/02/2010 *	250,000,000.00	EXPORT IMPORT BANK OF INDIA	Centre One Building, Floor 21, World Trade Centre, Cuffe Parade, Mumbai, Maharashtra - 400005, India	A79286142
17	10171450	09/02/2010 *	750,000,000.00	International Finance Corporation	2121 Pennsylvania N.W., Washington D.C. 20433, Washington, - 20433, United States Of America	A79646261
18	10092199	03/02/2010 *	550,000,000.00	EXPORT-IMPORT BANK OF INDIA	Centre One Building, 21st Floor,, World Trade Centre, Cuffe Parade,, Mumbai, Maharashtra - 400005, India	A79367470
19	10156028	17/12/2007	200,000,000.00	DBS BANK LIMITED	3rd Floor, Fort House, 221, DR. D.N.ROAD, Mumbai, Maharashtra - 400001, India	A52042850
20	10037491	23/09/2014 *	2,250,000,000.00	Axis Bank Limited	Axis House, 2nd Flr, Bombay Dyeing Mills Compound, Pandurang Budhkar Marg, Mumbai, Maharashtra - 400025, INDIA	C33267188
21	90236413	18/03/2005	300,000,000.00	UTI Bank Limited	131 Maker Tower, Mumbai, Maharashtra - 400005, India	-
22	90236401	01/03/2005	300,000,000.00	UTI Bank Limited	131 Maker Tower, Mumbai, Maharashtra - 400005, India	-
23	90218590	24/11/2004	5,430,000.00	Cooperative Centralle Raiffeisen Boernileen Bank B.A.	77 Robinson Road, Singapore, Singapore	-
24	80004309	12/05/2006 *	145,000,000.00	EXPORT-IMPORT BANK OF INDIA	Centre One Building, 21st Floor,, World Trade Centre, Cuffe Parade,, Mumbai, Maharashtra - 400005, India	-
25	90218543	21/10/2003	1,700,000.00	EXPORT-IMPORT BANK OF INDIA	Centre One Building, 21st Floor,, World Trade Centre, Cuffe Parade,, Mumbai, Maharashtra - 400005, India	-
26	90218449	22/08/2003 *	220,000,000.00	EXPORT-IMPORT BANK OF INDIA	Centre One Building, 21st Floor,, World Trade Centre, Cuffe Parade,, Mumbai, Maharashtra - 400005, India	-
27	90218366	29/08/2000	2,300,000.00	EXPORT-IMPORT BANK OF INDIA	Centre One Building, 21st Floor,, World Trade Centre, Cuffe Parade,, Mumbai, Maharashtra - 400005, India	-
28	90218359	24/03/2003 *	300,000,000.00	UTI BANK LIMITED	FORT BRNACH; SIR P.M. ROAD, FORT, MUMBAI, Maharashtra - 400001, INDIA	-
29	90218352	22/08/2003 *	75,000,000.00	EXPORT-IMPORT BANK OF INDIA	Centre One Building, 21st Floor,, World Trade Centre, Cuffe Parade,, Mumbai, Maharashtra - 400005, India	-
30	90218269	15/07/2000 *	110,000,000.00	EXPORT-IMPORT BANK OF INDIA	Centre One Building, 21st Floor, World Trade Centre, Cuffe Parade,, Mumbai, Maharashtra - 400005, India	-
31	90218259	03/06/1999	20,000,000.00	BANK OF BARODA	Fort Unversity Brnach, Agar Building; M.G. Road, Mumbai, Maharashtra - 400023, India	-
32	90218123	23/07/1998 *	150,000,000.00	ICICI LIMITED	Shangrila Gardens; Iii Rd Floor, Bund Garden Road, Pune, Maharashtra - 411001, India	-
33	90217848	25/11/1994	16,500,000.00	BANK OF BARODA	Fort Unversity Brnach, Agar Building; M.G. Road, Mumbai, Maharashtra - 400023, India	-
34	90193366	09/04/1988	990,000.00	CANARA BANK	D.E.G. Road, Bangalore, Karnataka, India	-
35	80066689	09/04/1988	340,000.00	Canara Bank	D.V.G Road, Banglore, Banglore, Karnataka - 560034, India	-

FIXED ASSETS:

· Land

· Building

· Plant and Machinery

· Computer

· Vehicles

· Furniture and Fixture

NEWS:

HIKAL PHARMA RECEIVES US FDA APPROVAL

Hikal Limited has informed BSE regarding "Hikal's Pharmaceutical Manufacturing Site in Gujarat, India received US FDA Approval". Hikal's Pharmaceutical received US FDA Approval for its pharmaceutical intermediates and active pharma ingredients manufacturing site located in Jigani, Bengaluru in Karnataka state.

HIKAL COMPLETES EDQM AUDIT AT ITS BANGALORE FACILITY

Hikal Limited has informed BSE regarding "Hikal Completed successful EDQM Audit of its Bangalore facility". Hikal has successfully completed an EDQM inspection at its manufacturing facility at Bangalore, India, recently.

PRESS RELEASE

HIKAL SETS UP NEW PILOT PLANT, API MANUFACTURING UNIT AND A KILO LAB

- July 26, 2006

Mumbai, July 26, 2006: Hikal Limited, has announced the commissioning of a new Pilot Plant at Taloja, a new API manufacturing unit at Bangalore and a cGMP kilo lab at Jigani.  The facilities, set up at a cost of Rs. 50 crore, will help Hikal significantly enhance its capabilities to become the preferred outsourcing partner for the global life sciences companies.

A new pilot plant at Taloja has been set up to manufacture an agrochemical product for a global chemicals company. The pilot plant will start operations in August 2006 and a full-scale multi-purpose agrochemical plant is expected to be commissioned by 2008.

Hikal has set up a new API manufacturing unit in Bangalore that will manufacture a new veterinary drug for a global pharmaceutical company. The multi-product API plant is expected to start full-scale production by end-2007.

The company has set a new cGMP Kilo Lab at Jigani in Bangalore.  The new facilities will enable Hikal to offer the complete range of outsourcing services to global life science companies through various stages of the product development cycle.

Jai Hiremath, Vice Chairman and Managing Director, Hikal said, “In the last few years, the need to outsource for the global life science majors has increased considerably, and outsourcing is moving from being just a tactical option to a more strategic one. Hikal will continue to expand and strengthen our capabilities to garner a larger pie of the multi-billion dollar opportunity.”

Mumbai headquartered Hikal Limited has a 2005-2006 turnover of Rs 2417.000 Millions with a 24 percent growth. Net profit for the year stood at Rs.414.000 Millions, a 21.4 percent growth from Rs 341.000 Millions in 2004-2005. Revenues from the pharmaceutical division stood at Rs.834.000 Millions, growing at 68 percent while the agrochemical division had revenues of Rs.1470.000 Millions, showing a 7 percent growth.

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

INFORMATION DETAILS

Information Gathered by :	SVA
Analysis Done by :	SUB
Report Prepared by :	VNT

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	5
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	6
--CREDIT LINES	1~10	6
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	YES
--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	YES
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		50

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.