MIRA INFORM REPORT

Report No. :	301006
Report Date :	09.01.2015

IDENTIFICATION DETAILS

Name :	SREEPATHI PHARMACEUTICALS LIMITED (w.e.f.13.05.1992)
Formerly Known As :	SREEPATHI PHARMACEUTICALS PRIVATE LIMITED
Registered Office :	Plot No. 22B, H. No. 8-2-293/82/A/22/B, Road No.2, Jubilee Hills, Hyderabad – 500033, Telangana
Country :	India
Financials (as on) :	31.03.2014
Date of Incorporation :	29.12.1983
Com. Reg. No.:	36-004356
Capital Investment / Paid-up Capital :	Rs.36.964 Millions
CIN No.: [Company Identification No.]	U24239AP1983PLC004356
TAN No.: [Tax Deduction & Collection Account No.]	HYDS01929E HYDS03528A
PAN No.: [Permanent Account No.]	AAOCS4051R
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacture of Bulk Drugs.
No. of Employees :	Not Divulged

RATING & COMMENTS

MIRA’s Rating :

Ba (48)

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

Maximum Credit Limit :	USD 900000
Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track record. The rating reflect the extensive experience of its promoters in the bulk drugs business supported by sound financial base and adequate liquidity profile of the company. Trade relations are fair. Business is active. Payment terms are reported to be usually correct. The company can be considered for business dealings at usual trade terms condition.

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 – September 30, 2014

Country Name	Previous Rating (30.06.2014)	Current Rating (30.09.2014)
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	CRISIL
Rating	BBB- (Long Term Rating)
Rating Explanation	Moderate degree of safety and moderate credit risk.
Date	July 23, 2014

Rating Agency Name	CRISIL
Rating	A3 (Short Term Rating)
Rating Explanation	Moderate degree of safety and high credit risk.
Date	July 23, 2014

RBI DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2014.

INFORMATION DECLINED

Management non co-operative (91-40-23423250)

LOCATIONS

Registered Office :	Plot No. 22B, H. No. 8-2-293/82/A/22/B, Road No.2, Jubilee Hills, Hyderabad – 500033, Telangana, India
Tel. No.:	91-40-23423250/ 51/ 2354
Fax No.:	91-40-23553139
E-Mail :	info@sreepathi.com mail@theambience.com finance@sreepati.com sales@sreepati.com
Website :	http://www.sreepathi.com
Factory :	Plot No.163, Phase – V, IDA, Jeedimetla, Hyderabad – 500055, Andhra Pradesh, India
Tel No.:	91-40-28812987/ 23812056/ 23447211/ 12
Fax. No.:	91-40-23096821
Location :	Owned

DIRECTORS

As on: 29.09.2014

Name :

Mr. Srinivas Isola

Designation :

Managing Director

Address :

Plot No.5, Road No.76, Jubilee Hills, Hyderabad – 500033, Telangana, India

Date of Birth/Age :

12.02.1954

Date of Appointment :

09.03.2006

PAN No.:

ABMPS7058K

DIN No :

00413104

Name :

Mrs. Syamala Isola

Designation :

Whole-time director

Address :

Plot No.5, Road No.76, Jubilee Hills, Hyderabad – 500033, Telangana, India

Date of Birth/Age :

05.05.1967

Date of Appointment :

01.04.2009

PAN No.:

AAIPI7216G

DIN No :

01962414

Other Directorship :

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U24239AP1983PLC004356	SREEPATHI PHARMACEUTICALS LIMITED	Whole-time director	01/04/2009	08/04/2006	-	Active	NO
2	U27203TG1995PTC021575	WHITE STAR ALUMS PRIVATE LIMITED	Director	01/10/2008	01/10/2008	-	Amalgamated	NO
3	U24100TG2011PTC072751	WHITESTAR DRUGS AND CHEMICALS PRIVATE LIMITED	Director	21/02/2011	21/02/2011	-	Active	NO
4	U24232TG2011PTC073991	SREEPATHI LIFECARE PRIVATE LIMITED	Director	20/04/2011	20/04/2011	27/04/2011	Active	NO
5	U24233AP2008PTC061809	Azico Biophore India Private Limited	Additional director	28/04/2011	28/04/2011	24/03/2012	Active	NO

Name :

Mr. Satya Akhil Isola

Designation :

Director

Address :

Plot No.5, Road No.76, Jubilee Hills, Hyderabad – 500033, Telangana, India

Date of Birth/Age :

20.08.1988

Date of Appointment :

27.08.2009

PAN No.:

ABMPI1952M

DIN No :

02791231

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on: 29.09.2014

Names of Shareholders	No. of Shares
Srinivas Isola	184820
Shyamala Isola	92410
Satya Akhil Isola	46202
Karthik Chandra Isola	46201
Aruna	1
K. Kamala	1
G Sujatha	1
G Shilpa	1
Rani Isola	1
Ch. V.S.S. Rama Krishna Rao	1
Total	369639

Equity Share Break up (Percentage of Total Equity)

As on: 29.09.2014

Category	Percentage
Directors or relatives of directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacture of Bulk Drugs.

Products :

Product Description	ITC code
Pharmaceutical Drug	29419030

Brand Names :

Not Available

Agencies Held :

Not Available

Exports :

Not Divulged

Imports :

Not Divulged

Terms :

Selling :

Not Divulged

Purchasing :

Not Divulged

GENERAL INFORMATION

Suppliers :

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

Customers :

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

No. of Employees :

Not Divulged

Bankers :

Banker Name :	Canara Bank
Branch Address :	M.G. Road Branch, Parklane, Secunderabad - 500003, Telangana, India
Facilities :	Not Divulged
Person Name :	Not Divulged
Contact No.:	Not Divulged
Report :	Not Divulged
Name of Account Holder	Not Divulged
Account Number	Not Divulged
Account Since (Date/Year of Account Opening)	Not Divulged
Average Balance Maintained (If Possible)	Not Divulged
Credit Facilities Enjoyed (If any)	Not Divulged
Account Operation	Not Divulged
Remarks (If any)	Not Divulged

Banker Name :	State Bank of Hyderabad
Branch Address :	Industrial Finance Branch, "Topaz", Amrutha Hills, Punjagutta, Hyderabad - 500082, Telangana, India
Facilities :	Not Divulged
Person Name :	Not Divulged
Contact No.:	Not Divulged
Report :	Not Divulged
Name of Account Holder	Not Divulged
Account Number	Not Divulged
Account Since (Date/Year of Account Opening)	Not Divulged
Average Balance Maintained (If Possible)	Not Divulged
Credit Facilities Enjoyed (If any)	Not Divulged
Account Operation	Not Divulged
Remarks (If any)	Not Divulged

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2014	As on 31.03.2013
LONG-TERM BORROWINGS
Rupee term loans from banks	0.000	3.125
SHORT-TERM BORROWINGS		0
Loans repayable on demand from banks	124.623	100.850
		0
Total	124.623	103.975

Auditors :
Name :	V. S. Ganesh and Associates Chartered Accountants
Address :	Shriven Towers 8-3-222/ 1/A/1, Flat No.101, Yousufguda Main Road, Madhuranagar, Hyderabad – 500038, Telangana, India
Tel No.:	91-40-23734233
Telefax. :	91-40-23734458
Qualification :	B.Com (Hons.), M.Com, L. L.B and F. C. A
Email :	vsg.associates5@gmail.com
PAN No.:	AAHPV9569Q
Memberships :	Not Available
Collaborators :	Not Available
Enterprises which are owned, or have significant influence of or are partners with Key management personnel and their relatives :	Sreepathi Life Sciences

CAPITAL STRUCTURE

As on: 29.09.2014

Authorised Capital :

No. of Shares	Type	Value	Amount
420000	Equity Shares	Rs.100/- each	Rs.42.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
369639	Equity Shares	Rs.100/- each	Rs.36.964 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2014	31.03.2013	31.03.2012
EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	36.964	36.964	36.964
(b) Reserves & Surplus	278.762	263.775	233.707
(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)	315.726	300.739	270.671
(3) Non-Current Liabilities
(a) long-term borrowings	29.299	37.488	29.170
(b) Deferred tax liabilities (Net)	24.677	22.063	18.294
(c) Other long term liabilities	0.000	0.848	0.000
(d) long-term provisions	0.934	1.113	0.958
Total Non-current Liabilities (3)	54.910	61.512	48.422
(4) Current Liabilities
(a) Short term borrowings	124.623	100.850	137.605
(b) Trade payables	111.707	56.509	141.285
(c) Other current liabilities	44.452	15.623	18.165
(d) Short-term provisions	0.835	1.611	2.013
Total Current Liabilities (4)	281.617	174.593	299.068
TOTAL	652.253	536.844	618.161
ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	163.714	171.964	162.644
(ii) Intangible Assets	60.079	60.079	60.079
(iii) Capital work-in-progress	36.522	36.522	31.481
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	0.123	0.123	0.123
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	4.907	4.754	2.942
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	265.345	273.442	257.269
(2) Current assets
(a) Current investments	0.000	0.000	0.200
(b) Inventories	127.078	67.726	120.975
(c) Trade receivables	191.618	125.590	189.388
(d) Cash and cash equivalents	21.796	23.820	17.508
(e) Short-term loans and advances	46.416	46.266	32.821
(f) Other current assets	0.000	0.000	0.000
Total Current Assets	386.908	263.402	360.892
TOTAL	652.253	536.844	618.161

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2014	31.03.2013	31.03.2012
	SALES
		Income	1095.078	956.217	1072.266
		Other Income	5.133	6.241	13.111
		TOTAL (A)	1100.211	962.458	1085.377
Less	EXPENSES
		Cost of materials consumed	662.120	653.238	657.615
		Purchases of stock-in-trade	273.258	26.613	243.907
		Changes in inventories of finished goods, work-in-progress and stock-in-trade	(15.477)	42.384	(40.965)
		Employee benefit expense	36.173	44.595	40.787
		Other expenses	89.873	115.360	101.156
		TOTAL (B)	1045.947	882.190	1002.500
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		54.264	80.268	82.877
Less	FINANCIAL EXPENSES (D)		20.795	24.842	16.347
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		33.469	55.426	66.530
Less/ Add	DEPRECIATION/ AMORTISATION (F)		11.243	10.798	10.234
	PROFIT BEFORE TAX (E-F) (G)		22.226	44.628	56.296
Less	TAX (H)		7.239	14.559	16.073
	PROFIT AFTER TAX (G-H) (I)		14.987	30.069	40.223
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		259.945	229.876	189.653
	BALANCE CARRIED TO THE B/S		274.932	259.945	229.876
Less	EARNINGS IN FOREIGN CURRENCY
	Export Earnings		89.013	119.979	81.517
	TOTAL EARNINGS		89.013	119.979	81.517
	IMPORTS
	Raw Materials		283.195	28.100	255.425
	Others		31.678	2.880	0.000
	TOTAL IMPORTS		314.873	30.980	255.425
	Earnings Per Share (Rs.)		40.54	81.35	108.82

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013	31.03.2012
Net Profit Margin (PAT/Sales)	(%)	1.37	3.14	3.75
Operating Profit Margin (PBDIT/Sales)	(%)	4.96	8.39	7.73
Return on Total Assets (PBT/Total Assets}	(%)	3.61	8.92	9.60
Return on Investment (ROI) (PBT/Networth)		0.07	0.15	0.21
Debt Equity Ratio (Total Debt/Networth)		0.49	0.46	0.62
Current Ratio (Current Asset/Current Liability)		1.37	1.51	1.21

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	36.964	36.964	36.964
Reserves & Surplus	233.707	263.775	278.762
Net worth	270.671	300.739	315.726
long-term borrowings	29.170	37.488	29.299
Short term borrowings	137.605	100.850	124.623
Total borrowings	166.775	138.338	153.922
Debt/Equity ratio	0.616	0.460	0.488

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	1072.266	956.217	1095.078
		(10.823)	14.522

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	1072.266	956.217	1095.078
Profit	40.223	30.069	14.987
	3.75%	3.14%	1.37%

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

NOTE:

The Registered Office of the company has been shifted from Plot No. 74 / A, 2^nd Floor, Central Bank Building, Kalyan Nagar, Hyderabad – 500 038, Andhra Pradesh to the present Address w.e.f. 04.08.2008.

UNSECURED LOAN

(Rs. In Millions)

Particular	As on 31.03.2014	As on 31.03.2013
LONG-TERM BORROWINGS
Deferred payment liabilities	8.005	13.070
Loans and advances from related parties	21.294	21.294
Total	29.299	34.364

INDEX OF CHARGES

S.No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	90127540	29/04/2013 *	320,500,000.00	CANARA BANK	M.G.ROAD BRANCH, PARKLANE, SECUNDERABAD, Andhra Pradesh - 500003, INDIA	B75845560

* Date of charge modification

FIXED ASSETS

Tangible Assets

• Land
• Buildings
• Plant and Equipment
• Factory Equipments
• Furniture and Fixtures
• Vehicles
• Office Equipment
• Computer Equipments

Intangible Assets

• Goodwill

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.63.38
UK Pound	1	Rs.96.72
Euro	1	Rs.75.79

INFORMATION DETAILS

Information Gathered by :	DPA
Analysis Done by :	KAR
Report Prepared by :	JYTK

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	5
--CREDIT LINES	1~10	5
--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	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		48

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.