IRA INFORM REPORT

Report No. :	318435
Report Date :	24.04.2015

IDENTIFICATION DETAILS

Name :	MOREPEN LABORATORIES LIMITED
Registered Office :	Morepen Village, Nalagarh Road, Near Baddi, District Solan - 173205, Himachal Pradesh
Tel. No.:	91-1795-276201-03
Country :	India
Financials (as on) :	31.03.2014
Date of Incorporation :	01.12.1984
Com. Reg. No.:	06-006028
Capital Investment / Paid-up Capital :	Rs.2096.100 Million
CIN No.: [Company Identification No.]	L24231HP1984PLC006028
TAN No.: [Tax Deduction & Collection Account No.]	PTLM11889D
PAN No.: [Permanent Account No.]	AABCM1083B
Legal Form :	A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges.
Line of Business :	Manufacture of API, Formulations and OTC Products.
No. of Employees :	Not Divulged

RATING & COMMENTS

MIRA’s Rating :

B (33)

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

Maximum Credit Limit :	USD 9265000
Status :	Moderate
Payment Behaviour :	Slow
Litigation :	Exist
Comments :	Subject is an established company having moderate track record. The company possesses a likely to be moderate financial profile marked by deteriorating networth base as a result of consecutive losses, slightly mitigated by comfortable gearing and improving cash conversion cycle, although incurred losses due to uncontrollable expenses. Moreover, the industry is facing a trend where in the topline in satisfactorily growing whereas the bottomline is hampered for which everybody is switching products, eliminating the less profitable products, which has also been reflected herein as well. Further, the management has reported a decent revenue base, which is expected to increase in future, in relation to receiving US approvals for Loratidine (an allergy drug) which makes the subject the first generic company to get approval. Subsequently, we would like to draw your attention to many defaults of payments from the part of subject in cases of various banks and unit trust of India in and before the FY2006-07 which are been notified. However, trade relations seems to be fair. Business is active. Payments are reported as slow. In view of the aforesaid, which has also being backed by its prevailing modest share price on the stock markets, 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 – December 31, 2014

Country Name	Previous Rating (30.09.2014)	Current Rating (31.12.2014)
India	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

EXTERNAL AGENCY RATING

Rating Agency Name	Not Available
Rating	Not Available
Rating Explanation	Not Available
Date	Not Available

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 (91-11-23324443)

LOCATIONS

Registered Office :	Morepen Village, Nalagarh Road, Near Baddi, District Solan - 173205, Himachal Pradesh, India
Tel. No.:	91-1795-276201-03
Fax No.:	91-1795-276204
E-Mail :	investors@morepen.com plants@morepen.com
Website :	http://www.morepen.com
Corporate Office :	409, 4^th Floor, Antriksh Bhawan, 22 Kasturba Gandhi Marg, New Delhi - 110001, India
Tel. No.:	91-11-23324443/ 23712025
Fax No.:	91-11-23722422
E-Mail :	corporate@morepen.com
Factory 1 :	Located at Masulkhanna, Himachal Pradesh, India Village Masulkhana, District Solan, Himachal Pradesh
Tel. No.:	91-1792-233284
Fax No.:	91-1792-232606
Factory 2 :	Located at Baddi, Himachal Pradesh, India
Tel. No.:	91-1795-246408/03
Fax No.:	91-1795-244591
Factory 3 :	Sector-2, Parwanoo, District Solan, Himachal Pradesh, India
USA Office :	666, Plainsboro Road, Suite 222, Plainsboro, New Jersey-08536
Tel. No.:	609 716 6300
Fax No.:	609 716 6301
E-Mail :	ussales@morepen.com

DIRECTORS

As on 31.03.2014

Name :	Mr. Sushil Suri
Designation :	Chairman and Managing Director
Name :	Dr. Arun Kumar Sinha
Designation :	Director
Name :	Mr. Manoj Joshi
Designation :	Director
Name :	Mr. Bhupender Raj Wadhwa
Designation :	Director
Name :	Mr. Sukhcharan Singh
Designation :	Director
Date of Birth/Age :	07.09.1942
Qualification :	B.A., Retired Inspector General of Police
Date of Appointment :	15.06.2005

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 31.12.2014

Category of Shareholder	Total No. of Shares	Total Shareholding as a % of Total No. of Shares
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	41241750	9.17
Bodies Corporate	114129838	25.37
Sub Total	155371588	34.54
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	155371588	34.54
(B) Public Shareholding
(1) Institutions
Financial Institutions / Banks	6367940	1.42
Insurance Companies	22484570	5.00
Foreign Institutional Investors	48897500	10.87
Sub Total	77750010	17.28
(2) Non-Institutions
Bodies Corporate	17891095	3.98
Individuals
Individual shareholders holding nominal share capital up to Rs.0.100 Million	149568841	33.25
Individual shareholders holding nominal share capital in excess of Rs. 0.100 Million	31420271	6.98
Any Others (Specify)	17824398	3.96
NRIs/OCBs	13923984	3.10
Clearing Members	3627784	0.81
Trusts	272630	0.06
Sub Total	216704605	48.18
Total Public shareholding (B)	294454615	65.46
Total (A)+(B)	449826203	100.00
(C) Shares held by Custodians and against which Depository Receipts have been issued
(1) Promoter and Promoter Group	0	0.00
(2) Public	0	0.00
Sub Total	0	0.00
Total (A)+(B)+(C)	449826203	100.00

BUSINESS DETAILS

Line of Business :	Manufacture of API, Formulations and OTC Products.
Products :	Not Available
Brand Names :	Not Available
Agencies Held :	Not Available
Exports :	Not Available
Imports :	Not Available
Terms :	Not Available

PRODUCTION STATUS : NOT AVAILABLE

GENERAL INFORMATION

Suppliers :

Reference :	Not Available
Name of the Person :	Not Available
Contact No.:	Not Available
Since How Long Known :	Not Available
Maximum Limit Dealt :	Not Available
Experience :	Not Available
Remark:	Not Available

Customers :

Reference :	Not Available
Name of the Person :	Not Available
Contact No.:	Not Available
Since How Long Known :	Not Available
Maximum Limit Dealt :	Not Available
Experience :	Not Available
Remark:	Not Available

No. of Employees :

Information declined by the management.

Bankers :

· The Karur Vysya Bank Limited, Central Processing Cell Represent Fort Mumbai Branch, Kamanwala Chambers, Sir P.M. Road, Fort, Mumbai - 400001, Maharashtra, India

· Export-Import Bank Of India, Floor 21, Centre One Building, World Trade Centre, Cuffe Parade, Mumbai - 400005, Maharashtra, India

· UCO Bank, Flagship Corporate Centre, 5, Parliament Street, New Delhi - 110001, India

· The Karur Vysya Bank Limited, B - 3, Lawrence Road, New Delhi - 110035, India

Facilities :

SECURED LOANS	31.03.2014 (Rs. In Million)	31.03.2013 (Rs. In Million)
LONG TERM BORROWINGS
Term Loans from Banks & Institutions
Restructured Debts -
Interest Bearing	301.800	453.100
Interest Free	444.100	491.000
Other Loans	0.600	0.800
SHORT TERM BORROWINGS
From banks
Buyer's credit facility	11.900	0.000
Total	758.400	944.900

Banking Relations :	--
Financial Institution :	The Oriental Insurance Company Limited, Oriental House, Post Bag No. 7037, A- 25/27, Asaf Ali Road, New Delhi - 110002, India
Auditors :
Name :	M. Kamal Mahajan and Company Chartered Accountants
Address :	SCO 61, Madhya Marg, Sector 26, Chandigarh, India
Overseas Company :	v MorepenMax Inc. v Morepen Inc. v Dr. Morepen Limited v Total Care Limited
Associates :	v Morepen Biotech Limited
Entities over which key management personnel/ or Relatives of key management personnel are able to exercise significant influence with which the company has any transactions during the year :	v Blue Coast Infrastructure Development Private Limited

CAPITAL STRUCTURE

As on 31.03.2014

Authorised Capital:

No. of Shares	Type	Value	Amount
450000000	Equity Shares	Rs.2/- each	Rs.900.000 Million
12000000	Preferences Shares	Rs.100/- each	Rs.1200.000 Million
	Total		Rs.2100.000 Million

Issued & Subscribed Capital:

No. of Shares	Type	Value	Amount
449826203	Equity Shares	Rs.2/- each	Rs.899.700 Million
9735201	0.01% Optionally Convertible Preference Share	Rs.100/- each	Rs.973.500 Million
1730000	0.01% Cumulative Redeemable Preference Shares	Rs.100/- each	Rs.173.000 Million
500000	9.75% Cumulative Redeemable Preference Shares	Rs.100/- each	Rs.50.000 Million
	Total		Rs.2096.200 Million

Issued, Subscribed & Paid-up Capital:

No. of Shares	Type	Value	Amount
449793203	Equity Shares	Rs.2/- each	Rs.899.600 Million
9735201	0.01% Optionally Convertible Preference Share	Rs.100/- each	Rs.973.500 Million
1730000	0.01% Cumulative Redeemable Preference Shares	Rs.100/- each	Rs.173.000 Million
500000	9.75% Cumulative Redeemable Preference Shares	Rs.100/- each	Rs.50.000 Million
	Total		Rs.2096.100 Million

NOTE:

Reconciliation of the numbers and amount of Equity shares.

Particulars	31.03.2014
	Nos.	Amount in Million
Outstanding at beginning of the year	449826203	899.700
Add : Shares issued during the year	--	--
Less : Shares bought back during the year	--	--
Outstanding at the end of year	449826203	899.700

Reconciliation of the numbers and amount of Preference shares –

Particulars	31.03.2014
	Nos.	Amount in Million
Outstanding at beginning of the year	11965201	1196.500
Add : Shares issued during the year	--	--
Less : Shares bought back during the year	--	--
Outstanding at the end of year	11965201	1196.500

Rights, preferences and restrictions attached to each class of Shares and terms of redemption

Rights, preferences and restrictions attached to each class of Shares and terms of redemption

a) i) The company has two classes of shares referred as equity shares and preference shares. The equity shares are having a par value of Rs. 2/- each whereas par value for each preference shares is Rs. 100/-. Every holder of equity shares is entitled to one vote per share in respect of all matters submitted to vote in the shareholders' meeting. Preference shareholders are entitled to one vote per share, in respect of every resolution placed before the company which directly affect the rights attached to their shares. However, a cumulative preference shareholder acquires voting rights at par with an equity shareholder if the dividend on preference shares has remained unpaid for a period of not less than two years.

ii) In the event of liquidation of the company, the holders of equity shares will be entitled to receive the remaining assets of the company after distribution of preferential amounts. The distribution will be in the proportion of the number of equity shares held by the shareholders.

iii) 1730000, 0.01% Redeemable Preference Shares of Rs. 100/- each and 500000, 9.75% Redeemable Preference Shares of Rs. 100/- each are cumulative. Dividend arrears on these shares as at 31.03.2014 are Rs. 58.600 Million (Previous year Rs. 53.700 Million).

b) i) Out of 97,35,201, 0.01% Optionally Convertible Preference Shares, Shares amounting to Rs. 704.000 Million fall due for redemption/conversion on May 4, 2014, shares amounting to Rs. 176.200 Million are due for redemption on May 31, 2014 whereas balance shares amounting to Rs. 93.300 Million are due for redemption/conversion on February 9, 2015. The conversion, if opted for, of preference shares into equity shares will be at price determined as per SEBI guidelines. Dividend arrears on above preference shares as at 31.03.2014 are Rs. 0.700 Million (Previous year Rs. 0.600 Million).

ii) Out of 17,30,000, 0.01% Cumulative Redeemable Preference Shares, 15,30,000 Shares amounting Rs. 153.000 Million are redeemable in two equal instalments, on May 4, 2016 and May 4, 2017. Balance 200000 Shares amounting Rs. 20.000 Million, had already become due for redemption in the financial year ending 31.03.2012, could not be redeemed because of unavailability of surplus.

iii) 5,00,000, 9.75% Cumulative redeemable Preference shares amounting to Rs. 50.000 Million had been due for redemption since March, 2004, however, could not be redeemed because of unavailability of surplus. The subscriber has filed a legal case against the company for the recovery of the sum invested as well as interest thereon. The company has contested the claim of the subscriber and have moved the jurisdictional appellant authorities against the said claim.

iv) Capital Redemption Reserve for redemption of Preference Shares could not be created during the year because of unavailability of surplus.

The company itself being ultimate holding company, therefore, disclosure requirements about its parent company are not applicable in the present case.

Shareholders holding more than 5% shares

i) Equity Shares

Name of Shareholder	31.03.2014
	No. of Shares	% of Holding
GL India Mauritius (III) Limited	38530000	8.57

ii) Preference Shares

a) 9735201, 0.01% Optionally Convertible Redeemable Shares -

Name of Shareholder	31.03.2014
	No. of Shares	% of Holding
Bank of Nova Scotia	1179000	12.11
Stressed Assets Stabilisation Fund (SASF)	961044	9.87
EXIM Bank	916333	9.41
SICOM	829463	8.52
Punjab National Bank	671522	6.90
Oriental Bank of Commerce	623828	6.41
Dena Bank	593936	6.10
UCO Bank	515900	5.30

b) 1730000, 0.01% Cumulative Redeemable Shares –

Name of Shareholder	31.03.2014
	No. of Shares	% of Holding
Oriental Bank of Commerce	1000000	57.80
Axis Bank Limited	500000	28.90
Blue Sky Securities Private Limited	200000	11.56

c) 500000, 9.75% Cumulative Redeemable Shares –

Name of Shareholder	31.03.2014
	No. of Shares	% of Holding
Jammu and Kashmir Bank Limited	500000	100

During last 5 years immediately preceding the balance sheet date, no Equity Share or Preference share has been

issued pursuant to any contract without payment being received in cash. Further the company has neither allotted

any share by way of bonus shares, nor it had bought back any Equity or Preference Share during aforesaid period of 5 years.

Disclosure about unpaid calls –

(Rs. In Million)

Unpaid Calls	31.03.2014
By Directors and Officers	--
By Others	0.100

No shares have been forfeited by the company during the year.

FINANCIAL DATA

[all figures are in Rupees Million]

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	2096.100	2096.100	2096.100
(b) Reserves & Surplus	1146.500	1208.100	1434.900
(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)	3242.600	3304.200	3531.000
(3) Non-Current Liabilities
(a) long-term borrowings	746.500	944.900	1138.900
(b) Deferred tax liabilities (Net)	0.000	0.000	0.000
(c) Other long term liabilities	20.500	20.900	24.300
(d) long-term provisions	73.500	67.800	56.000
Total Non-current Liabilities (3)	840.500	1033.600	1219.200
(4) Current Liabilities
(a) Short term borrowings	11.900	0.000	0.000
(b) Trade payables	667.500	549.000	635.900
(c) Other current liabilities	309.100	521.400	432.000
(d) Short-term provisions	7.300	6.800	9.000
Total Current Liabilities (4)	995.800	1077.200	1076.900
TOTAL	5078.900	5415.000	5827.100
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	2888.800	3305.900	3735.700
(ii) Intangible Assets	5.900	3.200	0.000
(iii) Capital work-in-progress	0.000	0.000	0.000
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	1179.400	1218.100	1218.100
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	17.500	15.800	15.500
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	4091.600	4543.000	4969.300
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	329.100	367.500	380.100
(c) Trade receivables	400.900	365.900	331.300
(d) Cash and cash equivalents	80.700	47.200	39.600
(e) Short-term loans and advances	140.700	60.100	84.200
(f) Other current assets	35.900	31.300	22.600
Total Current Assets	987.300	872.000	857.800
TOTAL	5078.900	5415.000	5827.100

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2014	31.03.2013	31.03.2012
	SALES
		Revenue from operations	3359.700	3033.500	2695.000
		Other Income	7.900	26.200	10.200
		TOTAL	3367.600	3059.700	2705.200
Less	EXPENSES
		Cost of Materials Consumed	1309.900	1314.700	1324.200
		Purchases of Stock-in-Trade	679.100	583.900	504.100
		Changes in inventories of finished goods, work-in-progress and Stock-in-Trade	16.100	15.700	(50.700)
		Employees benefits expense	396.800	349.700	326.500
		Other expenses	499.700	479.700	414.600
		Extraordinary Items - Income	(29.000)	(30.800)	(120.400)
		TOTAL	2872.600	2712.900	2398.300
	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION		495.000	346.800	306.900
Less	FINANCIAL EXPENSES		98.900	116.100	79.600
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION		396.100	230.700	227.300
Less/ Add	DEPRECIATION/ AMORTISATION		457.700	457.400	468.900
	PROFIT/ (LOSS) BEFORE TAX		(61.600)	(226.700)	(241.600)
Less	TAX		0.000	0.000	0.000
	PROFIT/ (LOSS) AFTER TAX		(61.600)	(226.700)	(241.600)
	EARNINGS IN FOREIGN CURRENCY
		Exports of Goods on F.O.B. basis	1089.800	986.000	815.000
	TOTAL EARNINGS		1089.800	986.000	815.000
	IMPORTS
		Raw Materials	469.100	518.100	326.600
		Stock -in -trade	17.100	50.500	63.700
		Capital Goods	0.000	6.300	2.400
	TOTAL IMPORTS		486.200	574.900	392.700
	Earnings / (Loss) Per Share (Rs.)		(0.15)	(0.49)	(0.55)

PARTICULARS (RS. IN MILLION )	31.12.2014	30.09.2014	30.06.2014
Audited / Unaudited	Unaudited	Unaudited	Unaudited
Net Sales	1023.100	911.800	914.100
Total Expenditure	873.000	808.300	772.600
PBIDT (Excl OI)	150.100	103.500	141.500
Other Income	1.600	1.900	1.900
Operating Profit	151.700	105.400	143.400
Interest	18.800	20.200	20.500
Exceptional Items	0.000	0.000	0.000
PBDT	132.900	85.200	122.900
Depreciation	95.800	81.400	110.000
Profit Before Tax	37.100	3.900	12.800
Tax	7.400	0.800	2.600
Provisions and contingencies	0.000	0.000	0.000
Profit After Tax	29.600	3.100	10.300
Extraordinary Items	0.000	0.000	0.000
Prior Period Expenses	0.000	0.000	0.000
Other Adjustments	0.000	0.000	0.000
Net Profit	29.600	3.100	10.300

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013	31.03.2012
Net Profit Margin (PAT / Sales)	(%)	(1.83)	(7.47)	(8.96)
Operating Profit Margin (PBIDT/Sales)	(%)	14.73	11.43	11.39
Return on Total Assets (PBT/Total Assets}	(%)	(1.58)	(5.40)	(5.24)
Return on Investment (ROI) (PBT/Networth)		(0.02)	(0.07)	(0.07)
Debt Equity Ratio (Total Debt/Networth)		0.23	0.29	0.32
Current Ratio (Current Asset/Current Liability)		0.99	0.81	0.80

FINANCIAL ANALYSIS

[all figures are in Rupees Million]

DEBT EQUITY RATIO

Particular	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Share Capital	2096.100	2096.100	2096.100
Reserves & Surplus	1434.900	1208.100	1146.500
Net worth	3531.000	3304.200	3242.600
long-term borrowings	1138.900	944.900	746.500
Short term borrowings	0.000	0.000	11.900
Total borrowings	1138.900	944.900	758.400
Debt/Equity ratio	0.323	0.286	0.234

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Sales	2695.000	3033.500	3359.700
		12.560	10.753

NET PROFIT MARGIN

Net Profit Margin	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Sales	2695.000	3033.500	3359.700
Profit / Loss	(241.600)	(226.700)	(61.600)
	(8.96%)	(7.47%)	(1.83%)

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

LITIGATION DETAILS

HIMACHAL PRADESH HIGH COURT

CASE SYSTEM INFORMATION SYSTEM

Case Status : Pending

Status of : CIVIL WRIT PETITION 4912 of 2012

HPSEB Vs. MOREPEN LABORATORIES LIMITED

Petn. Adv. : TRILOK JAMWAL

Resp. Adv. : O C SHARMA

Last Listed on : Thursday, August 30, 2012

Category : Against Administrative Action

Connected application (s)	Connected Matter (s)
No Connected application	No Connected Matter

Case Update on : no date mentioned

INDEX OF CHARGES

S.NO.	CHARGE ID	DATE OF CHARGE CREATION/MODIFICATION	CHARGE AMOUNT SECURED	CHARGE HOLDER	ADDRESS	SERVICE REQUEST NUMBER (SRN)
1	10485469	27/02/2012	950,000.00	THE KARUR VYSYA BANK LIMITED	B 3, LAWERENCE ROAD, DELHI, DELHI - 110035, INDIA	B39243274
2	10344030	10/02/2012	10,783,948.00	THE ORIENTAL INSURANCE COMPANY LIMITED	ORIENTAL HOUSE, POST BAG NO. 7037, A- 25/27, ASAF  ALI ROAD, NEW DELHI, DELHI - 110002, INDIA	B35754480
3	10345702	10/02/2012	113,134,000.00	THE KARUR VYSYA BANK LIMITED	CENTRAL PROCESSING CELL REPRESENT FORT MUMBAI BR,  KAMANWALA CHAMBERS,SIR P.M.ROAD,FORT, MUMBAI, MAH  ARASHTRA - 400001, INDIA	B36353001
4	10342382	10/02/2012	300,000,000.00	EXPORT-IMPORT BANK OF INDIA	FLOOR 21, CENTRE ONE BUILDING, WORLD TRADE CENTRE,  CUFFE PARADE, MUMBAI, MAHARASHTRA - 400005, INDI  A	B35095363
5	10342331	10/02/2012	464,310,000.00	UCO BANK	FLAGSHIP CORPORATE CENTRE, 5, PARLIAMENT STREET,  NEW DELHI, DELHI - 110001, INDIA	B35071026
6	80025870	10/01/2003	5,000,000.00	THE SARASWAT CO-OP. BANK LIMITED	WORLI BRANCH, MUMBAI, MAHARASHTRA - 400018, INDIA	-
7	80025869	08/01/2003	150,000,000.00	SICOM LIMITED	NIRMAL, FIRST FLOOR, NARIMAN POINT, MUMBAI, MAHAR  ASHTRA - 400021, INDIA	-
8	90169748	13/01/2003 *	150,000,000.00	SICOM LIMITED	NIRMAL 1ST FLOOR, NARIMAN POINT, MUMBAI, MAHARASH  TRA - 400021, INDIA	-
9	80025868	23/08/2002	150,000,000.00	THE KARUR VYSYA BANK LIMITED	KAMANWALA CHAMBERS, GROUND FLOOR, SIR P.M. ROAD,  FORT, MUMBAI, MAHARASHTRA - 400001, INDIA	-
10	80025875	24/07/2002	100,000,000.00	INDUSTRIAL INVESTMENT BANK OF INDIA LIMITED	19,, N.S. ROAD, CALCUTTA, WEST BENGAL - 700001, IN  DIA	-

* Date of charge modification

MANAGEMENT OVERVIEW

The company has recorded revenues of Rs. 3367.600 Million during the current financial year against last year revenues of Rs. 3059.700 Million, recording a growth of 10% over the previous year revenues. Operating revenue for the current year at Rs. 3359.700 Million has posted a growth of 10.8% over the last year. Sales revenues of the company are steadily improving over the past few years.

Better planning, improved productivity and the effective cost control have helped the company to substantially improve its operating margins in the current year.

Growth in Active Pharmaceutical Ingredients (API) business has been moderate, though export price realisation was better on account of weak Indian Rupee against US Dollar. Home Diagnostics and branded formulation business has shown significant improvement in their sales revenues recording a growth of 21% and 27% respectively.

Current year's operating surplus of Rs. 466.000 Million has translated into a growth of 48% against last year of Rs. 316.000 Million. Finance cost at Rs. 98.900 Million has come down by 15% against Rs. 116.100 Million incurred in the previous year.

Cash generated during the year stands at Rs. 367.100 Million against Rs. 199.900 Million generated during the last financial year. The management is committed towards profitable growth of all its business segments by improving their operating and financial performance. It is committed for the timely servicing of its financial obligations.

OPERATIONS

Current year sales revenues of Rs. 3220.600 Million have registered a growth of around 9% against last year revenues of Rs. 2957.800 Million. Home Diagnostics business has recorded a growth of 21% in its sales revenues. Active Pharmaceutical Ingredients (API) business and Finished Formulation business have recorded moderate growth of 6% and 5% respectively.

Continued focus on margin improvement, cost control and efficient utilization of resources has helped the company to significantly improve its operating margins over the preceding years. The operating surplus for the current year has improved to Rs. 466.000 Million from Rs. 316.000 Million in the previous year. Current year operating surplus has recorded 48% growth over the last financial year. After servicing the finance cost of Rs. 98.900 Million, current year net cash surplus is Rs. 367.100 Million against Rs. 199.900 Million generated in the previous year.

API export business registered a growth of around 11% whereas domestic API business recorded a dip of 6% over the last year. Atorvastatin and Fexofenadine business recorded handsome growth. Current year Loratadine revenues have not shown many variations against previous year revenues.

During the Current year 'Home Diagnostics' business has recorded revenue of Rs. 443.100 Million against Rs. 365.200 Million recorded in previous financial year. The handsome growth in revenues was made possible by expanding consumer base by tying up with online portals for sales and marketing of company's products.

Finished Formulation business has recorded sales revenues of Rs. 750.600 Million against Rs. 714.700 Million recorded in the previous year.

MANAGEMENT DISCUSSION AND ANALYSIS REPORT

GLOBAL PHARMACEUTICAL SCENARIO

Total global spending on medicines will exceed one trillion US Dollar for the first time in 2014 and is expected to touch $1.2 trillion by 2017. The global spending on prescription medicines will increase by $205-235 Bn till the year 2017. The level of increase is comparable to the $234 Bn by which spending increased in last five years. The mix of total global spending on medicines will shift towards generics in the coming years, rising from 27% to 36% of the total by 2017, even as brands will continue to account for more than two thirds of spending in developed world. The use of generics will be at its highest in pharmerging markets where 63% of the spending will go to generics products. The slowing growth in the coming years till 2017 reflects reduced spending in many developed markets facing continued austerity measures. Annual growth in spending levels having reached a low point in 2013 will be followed by increased growth particularly in developed markets. Medicines spending levels are also affected by launches of new products which are typically smaller, more specialty and niche products than in past whereas at the same time, patent expiries of many small molecules products have successfully contained spending growth for traditional medications in developed markets.

The role of medicines in improving health for hundreds of Million of people across the globe has never been more important. Many countries are moving towards Universal Health Coverage, ensuring access to medicines and other elements of health care for all. Since the beginning of the world's major economic slowdown in 2007, macroeconomic indicators are improving, though slowly than the previously forecasted. Austerity measures taken by some governments, especially in Europe, continue to be applied to healthcare spending especially medicines. Next five years see a continuing growth split between developed markets and pharmerging markets. The developed markets of North America, Europe and Japan will see very modest single-digit spending growth, due to a combination of economic and healthcare austerity measures and the saving realized from the growing availability of lower cost generic versions of brands following their patent expiry. Growth in developed markets will rebound from negative $3 Bn in 2012 to $20-25 Bn by 2017, even as the European economic recovery lags that of US and Japan. Growth in Pharmerging markets will increase from $26 Bn in 2012, to $30-50 Bn in 2017 primarily due to increased access to medicines as infrastructure and health systems evolve.

Across the major developed markets, uncertainty exists to an unusual extent. The last 5-6 years in Europe have seen greater adoption of generics and more restrictive policies that have made patients in European countries less likely to gain access to innovative medicines. Meanwhile US will also see the major impact of the implementation of its local drug legislations and how the structural changes will impact the medicine spending is difficult to predict with certainty. However, US will resume increased spending levels in 2014 after 2 years of reduction, due to expansion of healthcare access and lower patent expires. US, expected to grow at CAGR of 1 4% through' 2013-17, will have a smaller share of the global market through' 2017 but a constant share of developed markets. In Japan, the key variable driving different scenario is the successful establishment of effective generic drug market. Japan has targeted to achieve increasing generics markets share in its local market and achieve 60% share of its total generic and listed drugs by 2018. Medicine spending growth in pharmerging markets is highly influenced by the scenario emerging out of Chinese markets. It is the largest and one of the fastest growing emerging markets for the prescription drugs with the goal being universal healthcare coverage by 2020.

Innovation, the ultimate engine of growth for the global provision of medicines, will see a revival of activity through 2017, with increase in the number of global innovative launches since 2010.

MOREPEN'S STRATEGY

Morepen has been handling complex chemical manufacturing processes for quite a numbers of years. The company is working in the area of improved cost-beneficial chemical synthesis for various drug molecules. The process will provide a wide variety of bulk drugs both for domestic markets as well as export markets. Expanding range of generic products on account of more molecules coming off patent provide exciting opportunities to the company for the API as well for intermediates production. The company is looking forward to its future with great expectations. It expects significant gains in the business on the strength of its good in-house strength of handling complex chemical reaction, fully trained and experienced work force, increased spend on process improvements and emphasis on cost savings. The company is committed to expand its R and D efforts to enable it to file new process/polymorph patents for more and more products and also to enable it to enter newer countries.

In respect of its formulations and home diagnostic business segments, the company is slowly expanding its operations. On account of limited working capital finances it intends to continue its present strategy of conservative but profitable growth of these two business segments. Over the years the company has established a niche place for itself by delivering quality products at affordable prices and it expects its business and profits to grow healthy in the coming years. The company has established a brand name for its products across all business segments and the company hopes to leverage its position in the market. The company will continue to work on better products mix and markets with a view to improve its business and financial performance.

The company has been able to improve upon its operational and financial performance in the recent past and it hopes to carry forward its profitable growth in the coming years as well. All the business segments have shown better performance in the current year and are expected to record better performance for the coming years. The company continues to remain committed to offer value to its customers and maintain a cordial and healthy relationship with all its constituents. Towards the purpose of enhancement of API business and towards strengthening of its Intellectual properties five new patent applications were filed during the year.

CONTINGENT LIABILITIES:

PARTICULARS	31.03.2014 (Rs. In Million)	31.03.2013 (Rs. In Million)
Claim against the Company not acknowledged as debts	114.400	152.500
Guarantees	0.900	1.400
Other money for which company is contingently liable	147.700	127.400
Arrears of Fixed Cummulative Dividends on Preference Shares	59.300	54.300
Bills discounted with banks	12.600	13.400

FIXED ASSETS

œ Free hold Land

œ Leasehold Land

œ Buildings

œ Plant and Machinery

œ Furniture’s and Fixtures

œ Vehicles

œ Office Equipment’s

œ Computer Software

CHARGES :

Suit-filed accounts (Willful Defaulters) of Rs. 2.500 Million and above as on 24-Apr-2015
Borrowers details

Borrower name	MOREPEN LABORATORIES LIMITED
D&B D-U-N-S® Numbers
Address	MOREPEN VILLAGE, NALAGARH ROAD, NEAR BADDI, DIST. SOLAN, HIMACHAL PRADESH, PIN CODE 173 205

Name Of Directors Reported by Credit Grantors Filing the Suit:

Sr.No.

Directors Reported by Credit Grantors

BANK OF BAHRAIN & KUWAIT B.S.C.

6	MANOJ JOSHI
1	ARUN SURI - @
3	J.S.PAL - @
4	JUJHAR SINGH - IND
5	KANTA SURI - @
2	DEEPAK GUPTA - NOMINEE
7	N.H.BHATTER - @
8	P.S.PRITAM
9	R.D.DAMLE - NOMINEE
10	SUNIL GULATI
11	SUSHIL SURI

List Of Credit Grantors to which MOREPEN LABORATORIES LIMITED is a defaulter:

Names of Credit Grantors	Branch		Amount  (Rs. in Million)
BANK OF BAHRAIN & KUWAIT B.S.C.		MUMBAI	143.600
		Total	143.600

2.

Borrower name	MOREPEN LABORATORIES LIMITED
D&B D-U-N-S® Numbers
Address	MOREPEN VILLAGE, NALAGARH ROAD, NEAR BADDI, DIST. SOLAN, HIMACHAL PRADESH, PIN CODE 173 205

Name Of Directors Reported by Credit Grantors Filing the Suit:

Sr.No.

Directors Reported by Credit Grantors

BANK OF BAHRAIN & KUWAIT B.S.C.

6	MANOJ JOSHI
1	ARUN SURI - (@)
3	J.S.PAL - (@)
4	JUJHAR SINGH - INDEPENDENT
5	KANTA SURI - (@)
2	DEEPAK GUPTA - NOMINEE
7	N.H.BHATTER - (@)
8	P.S.PRITAM
9	R.D.DAMLE - NOMINEE
10	SUNIL GULATI
11	SUSHIL SURI

List Of Credit Grantors to which MOREPEN LABORATORIES LIMITED is a defaulter:

Names of Credit Grantors	Branch		Amount  (Rs. in Million)
BANK OF BAHRAIN & KUWAIT B.S.C.		MUMBAI	151.800
		Total	151.800

3.

Borrower name	Morepen Laboratories Limited
D&B D-U-N-S® Numbers
Address	Morepen Village, Nalagarh Road, Near Baddi, District Solan, Himachal Pradesh-173205

Name Of Directors Reported by Credit Grantors Filing the Suit:

Sr.No.	Directors Reported by Credit Grantors
BANK OF BAHRAIN & KUWAIT B.S.C.
1	Sushil Suri

List Of Credit Grantors to which Morepen Laboratories Limited is a defaulter:

Names of Credit Grantors	Branch		Amount  (Rs. in Million)
BANK OF BAHRAIN & KUWAIT B.S.C.		MUMBAI	97.079
		Total	97.079

4.

Borrower name	MOREPEN LABORATORIES LIMITED
D&B D-U-N-S® Numbers
Address	4TH FLOOR,ANTRIKSH BHAWAN, 22 K.G.MARG, NEW DELHI, 110 001

Name Of Directors Reported by Credit Grantors Filing the Suit:

Sr.No.

Directors Reported by Credit Grantors

BANK OF BARODA

1	ARUN SURI
2	J.S.PAL
3	JUJHAR SINGH
4	KANTA SURI
5	N.H.BALTER
6	P.S.PRITAM
7	SUSHIL SURI
8	V.K.SAXENA

List Of Credit Grantors to which MOREPEN LABORATORIES LIMITED is a defaulter:

Names of Credit Grantors		Branch	Amount  (Rs. in Million)
BANK OF BARODA	CBB NEW DELH		555.800
	Total		555.800

5.

Borrower name	MOREPEN LABORATORIES LIMITED
D&B D-U-N-S® Numbers
Address	4TH FLOOR,ANTRIKSH BHAWAN, 22 K.G.MARG, NEW DELHI, 110 001

Name Of Directors Reported by Credit Grantors Filing the Suit:

Sr.No.

Directors Reported by Credit Grantors

BANK OF BARODA

List Of Credit Grantors to which MOREPEN LABORATORIES LIMITED is a defaulter:

Names of Credit Grantors

Branch

Amount  (Rs. in Million)

BANK OF BARODA	CFS, NEW DELHI	473.700
	Total	473.700

6.

Borrower name	MOREPEN LABORATORIES LIMITED
D&B D-U-N-S® Numbers
Address	4TH FLOOR,ANTRIKSH BHAWAN, 22 K.G.MARG, NEW DELHI, 110 001

Name Of Directors Reported by Credit Grantors Filing the Suit:

Sr.No.

Directors Reported by Credit Grantors

BANK OF BARODA

1	ARUN SURI
2	J.S.PAL
3	JUJHAR SINGH
4	KANTA SURI
5	N.H.BALTER
6	P.S.PRITAM
7	SUSHIL SURI
8	V.K.SAXENA

List Of Credit Grantors to which MOREPEN LABORATORIES LIMITED is a defaulter:

Names of Credit Grantors

Branch

Amount  (Rs. in Million)

BANK OF BARODA	CFS, NEW DELHI	473.800
	Total	473.800

7.

Borrower name	MOREPEN LABORATORIES LIMITED
D&B D-U-N-S® Numbers
Address	MOREPEN VILLAGE, NALAGARH ROAD,NEAR BADDI,SOLAN DIST.HIMACHAL PRADESH-173205

Name Of Directors Reported by Credit Grantors Filing the Suit:

Sr.No.

Directors Reported by Credit Grantors

UNIT TRUST OF INDIA LTD

1	DEEPAK GUPTA - NOMINEE
2	MANOJ JOSHI
3	P.S.PRITAM
4	R.D.DAMLE - NOMINEE
5	SUNIL GULATI
6	SUSHIL SURI - CHAIRMAN & MANAGING DIRECTOR

List Of Credit Grantors to which MOREPEN LABORATORIES LIMITED is a defaulter:

Names of Credit Grantors

Branch

Amount  (Rs. in Million)

UNIT TRUST OF INDIA LTD	MAIN OFFICE	45.000
	Total	45.000

UNAUDITED RESULTS FOR THE QUARTER AND NINE MONTHS ENDED ON 31.12.2014

(Rs. In Million)

		Particulars	Quarter Ended	Quarter Ended	Nine Months ended
			31.12.2014	30.09.2014	31.12.2014
			Unaudited	Unaudited	Unaudited
1	Income from Operations
	a) Net Sales/Income from Operations (net of excise duty)		981.591	874.017	2719.982
	b) Other Operating Income		41.503	37.798	129.063
	Total Income from Operations (Net)		1023.094	911.815	2849.045
2	Expenses
	a)	Cost of Materials consumed	396.695	363.654	1114.279
	b)	Purchase of stock in-trade	230.798	221.851	636.707
	c)	Changes in inventories of finished goods, work-in-progress and stock-in-trade	3.775	(4.537)	11.422
	d)	Employee benefit expenses	110.115	109.492	319.792
	e)	Depreciation and amortization expense	95.820	81.362	287.209
	f)	Power & Fuel	17.873	20.029	59.334
	g)	Travelling Expenses	13.209	13.847	41.618
	h)	Selling and Distribution Expenses	37.589	31.275	112.856
	i)	Other expenses	62.924	52.720	157.945
	Total Expenses		968.798	889.693	2741.161
3		Profit /(Loss) from operations before other income, finance costs and exceptional items (1-2)	54.296	22.123	107.884
4	Other Income		1.589	1.930	5.370
5		Profit /(Loss) from ordinary activities before finance costs and exceptional items (3+4)	55.885	24.053	113.254
6	Finance Costs		18.836	20.178	59.500
7		Profit /(Loss) from ordinary activities after finance costs but before exceptional items (5-6)	37.049	3.675	53.754
8	Exceptional Items		--	--	--
9	Profit /(Loss) from ordinary activities before tax		37.049	3.675	53.754
10	Tax Expense		7.436	0.775	10.778
11	Net Profit /(Loss) from ordinary activities after tax (9-10)		29.613	3.100	42.976
12	Extraordinary items (net of tax expense)		--	--	--
13	Net Profit /(Loss) for the period (11-12)		29.613	3.100	42.976
14	Paid up equity share capital (Eq. shares of Rs.10/- each)		899.586	899.58	899.586
15	Reserve excluding revaluation reserves
16		Earnings per share (before/after extraordinary items) of Rs.10/- each
		Basic	0.06	0.004	0.09
		Diluted	0.06	0.004	0.09
A		PARTICULARS OF SHAREHOLDING
1		Public Shareholding
		- No. of Shares	294454615	294454615	294454615
		- Percentage of Shareholding	65.46	65.46	65.46
2		Promoters and promoter group shareholding
		a) Pledged/Encumbered
		- Number of shares	610000	610000	610000
		- Percentage of shares ( as a % of the total shareholding of the promoter and promoter group)	0.39	0.39	0.39
		- Percentage of shares (as a % of the total share capital of the Company)	0.14	0.14	0.14
		b) Non- encumbered
		- Number of shares	154761588	154761588	154761588
		- Percentage of shares ( as a % of the total shareholding of the promoter and promoter group)	99.61	99.61	99.61
		- Percentage of shares (as a % of the total share capital of the Company)	34.40	34.40	34.40

	Particulars		Quarter ended 31.12.2014
B		Investor Complaints
		Pending at the beginning of the quarter	Nil
		Received during the quarter	6
		Disposed during the quarter	6
		Remaining unresolved at the end of the quarter	Nil

NOTE:

1. The above results have been reviewed by the Audit Committee and approved by the Board of Directors at their meeting held on 11th February 2015. A Limited review of the same had been carried out by the statutory auditors.

2. The Company is exclusively engaged in the Pharmaceutical Business Segment.

3. Consolidated Income from Operations, Net Profit, EPS for the quarter ended 31st Dec, 2014 stands at Rs. 11052.85 Lacs, Rs.388.22 Lacs, & Rs.0.08 respectively.

4. During the current year, the Company has revised depreciation rates on certain fixed assets as per the useful life specified in the Companies Act, 2013 or as re-assessed by the company. Based on current assessment, depreciation of Rs. 1196.09 Lacs on the assets whose useful life is already exhausted as on 01/04/2014 have been adjusted to General Reserve. Had there not been any change in useful life of assets, depreciation for the quarter and nine months ended would have been higher by Rs. 81.76 Lacs and Rs. 243.95 lacs respectively.

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.63.19
UK Pound	1	Rs.94.94
Euro	1	Rs.67.66

INFORMATION DETAILS

Information Gathered by :	GYT
Analysis Done by :	SUB
Report Prepared by :	SNT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	2
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	4
--RESERVES	1~10	3
--CREDIT LINES	1~10	2
--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		33

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.