MIRA INFORM REPORT

Report No. :	312503
Report Date :	08.07.2015

IDENTIFICATION DETAILS

Name :	KANAK MEDICOSE
Registered Office :	Savra House, 177-118, 1^st Floor, Shrinath Plaza, Hospital Road, Udaipur-313001, Rajasthan
Tel. No.:	91-294-2417688
Country :	India
Financials (as on) :	31.03.2015 (Provisional)
Year of Establishment :	2006
Capital Investment :	Rs. 1.906 Million (Provisional)
TIN No.:	08084003553
TAN No.: [Tax Deduction & Collection Account No.]	Not Available
PAN No.: [Permanent Account No.]	ADNPR4567R
Legal Form :	Sole Proprietary Concern
Line of Business :	Dealer and Trader of Allopathic Medicines.
No. of Employees :	12 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (30)

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

Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is proprietorship concern established in the year 2006 and is having moderate track record. Mr. Rajendra Kumar Rao, proprietor has provided all the information to us. Subject is engaged into dealing and trading of allopathic medicines. Concern only undertakes local trading of pharma products and it does not have any import and export activities. Rating are constrained on concern small scale of business operations, low profitability margin and huge external borrowings. Rating further constrained on risk associated in fluctuating margin of the pharma product and highly competitive pharma industry. Trade relation are fair. Business is active. Payment reported to be slow but correct. The concern can be considered for the 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 – March 31, 2015

Country Name	Previous Rating (31.12.2014)	Current Rating (31.03.2015)
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

NOT AVAILABLE

RBI DEFAILTERS’ LIST STATUS

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

EPF (Employee Provident Fund) DEFAILTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2013.

INFORMATION PARTED BY

Name :	Mr. Rajendra Kumar Rao
Designation :	Proprietor
Contact No.:	91-9829241819
Date :	07.07.2015

Name :	Mr. Ambalal
Designation :	Chartered Accountant
Contact No.:	91-9829563367
Date :	07.07.2015

LOCATIONS

Registered Office :	Savra House, 177-118, 1^st Floor, Shrinath Plaza, Hospital Road, Udaipur-313001, Rajasthan, India
Tel. No.:	91-294-2417688
Mobile No.:	91-9829241819 (Mr. Rajinder Kumar Rao)
Fax No.:	Not Available
E-Mail :	kanakmedicoseudr@gmai.com
Branch Office :	LG-9, Unique Shardul, Chetak Marg, Jaipur – 313004, Rajasthan, India

SOLE PROPRIETOR

Name :	Mr. Rajendra Kumar Rao
Designation :	Proprietor
Address :	117-118, Shrinath Plaza, Hospital Road, Opposite General Hospital, Udaipur – 313001, Rajasthan, India
Date of Birth/Age :	05.07.1967
Experience :	30 Years
PAN No.:	ADNPR4567R

KEY EXECUTIVES

Name :	Mr. Ambalal
Designation :	Chartered Accountant

BUSINESS DETAILS

Line of Business :	Dealer and Trader of Allopathic Medicines.
Products/ Services :	Allopathic Medicines
Brand Names :	--
Agencies Held :	--
Exports :	--
Imports :	--
Terms :
Selling :	Cash and Cheque
Purchasing :	Cash and Cheque

GENERAL INFORMATION

Suppliers :

Reference:	Glaxosmithl Pharmaceutical Limited
Name of the Person (Designation):	Mr. Mayank Khanna (Area Business Manager)
Contact Number:	91-9929277766
Since how long known:	9 Years
Maximum limit dealt:	Rs. 60.000 Million (Per Annum)
Experience:	Payment Behaviour: Excellent Market Goodwill: Excellent Overall: Excellent
Remark	Mr. Mayank informed that they are fully satisfied with their payment behaviour and also he informed that it’s a good customer in rajasthan.

Customers :

Retailers and End Users

Reference:	Udaipur Sahakari Upbhokta Thok Bhandar Limited
Name of the Person (Designation):	Mr. K. K. Parikh (Pharmacy Incharge)
Contact Number:	91-9549996999
Since how long known:	10 Years
Maximum limit dealt:	Rs. 0.300 Million (Per Month)
Experience:	Product Quality: Excellent Delivery Behaviour: Excellent Overall: Excellent
Remark	Mr. Parikh informed that they are satisfied with their product product quality and delivery behaviour and Mr. Parikh also informed that they providing best services in Rajasthan

No. of Employees :

12 (Approximately)

Bankers :

Bank Name:	Kotak Mahindra Bank
Branch:	Udaipur Branch, Rajasthan, India
Person Name (with Designation):	Mr. Shashant (Branch Operator)
Contact Number:	91-294-5106601
Name of Account Holder:	KANAK MEDICOSE
Account Number:	--
Account Since (Date/ Year of A/c Opening):	--
Average Balance Maintained (Optional):	--
Credit Facilities Enjoyed (CC/OD/Term Loan):	Cash Credit: Rs. 11.000 Million
Account Operation:	Satisfactory
Remarks: Mr. Shashant informed that they are satisfied with their payment behaviour, overall its good company.

Facilities :

SECURED LOANS	31.03.2015 (Projected) (Rs. In Million)
Sundry Loans	15.762
Total	15.762

Auditors :
Name :	Sagar Golechha and Company Chartered Accountants
Address :	10, Gulab Baag, Main Gate Road, Udaipur – 313001, Rajasthan, India
Tel. No.:	91-294-2416108/ 2424475
Mob. No.:	91-9829563367/ 9829401815/ 9314410590
E-Mail :	casagarit@yahoo.in
Memberships :	--
Collaborators :	--
Associates/Subsidiaries :	--

CAPITAL STRUCTURE

CAPITAL ACCOUNT

AS ON 31.03.2015 (PROVISIONAL)

PARTICULARS	AMOUNT (Rs. in Million)
Opening Balance	1.785
Add: Profit during the year	0.746 ---------
	2.531
Less: Drawing, LIC and Taxes	0.625 ---------
	1.906

FINANCIAL DATA

[all figures are in Rupees Million]

Note : Sole Proprietary and Partnership concerns are exempted from filing their financials with the Government Authorities or Registry.

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2015 (Provisional)	31.03.2014	31.03.2013
SHAREHOLDERS FUNDS
1] Proprietors Capital		1.906	1.785	1.925
2] Share Application Money		0.000	0.000	0.000
3] Profit and Loss Account		0.000	0.000	0.000
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		1.906	1.785	1.925
LOAN FUNDS
1] Secured Loans		15.762	17.875	11.492
2] Unsecured Loans		2.550	3.060	2.861
TOTAL BORROWING		18.312	20.935	14.353
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		20.218	22.720	16.278
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		3.647	3.963	2.704
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		2.250	2.046	0.484
DEFERRED TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	3.241	3.552	2.722
	Sundry Debtors	13.935	16.114	11.637
	Cash & Bank Balances	0.108	0.095	0.927
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	0.000	0.000	0.000
Total Current Assets		17.284	19.761	15.286
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	2.343	2.474	1.875
	Other Current Liabilities	0.000	0.000	0.000
	Provisions	0.620	0.576	0.321
Total Current Liabilities		2.963	3.050	2.196
Net Current Assets		14.321	16.711	13.090
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		20.218	22.720	16.278

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2015 (Provisional)	31.03.2014	31.03.2013
	SALES
		Income	51.266	40.375	31.754
		Other Income	0.023	0.018	0.119
		TOTAL	51.289	40.393	31.873
Less	EXPENSES
		Cost of Goods Sold	47.075	36.238	28.897
		Freight	0.023	0.019	0.016
		Audit and Legal Fee	0.025	0.025	0.025
		Electricity and Water Expenses	0.062	0.058	0.063
		Petrol and Diesel Expenses	0.082	0.080	0.104
		Repairing and Maint.	0.028	0.026	0.042
		Travelling and Conveyance	0.070	0.066	0.090
		Trunk and Telephone Expenses	0.073	0.069	0.098
		Salary to Staff	0.720	0.618	0.842
		Interest to Secured Loan	1.586	1.776	0.784
		Interest to Bank	0.000	0.000	0.014
		Accounting Charges	0.084	0.084	0.120
		Bank Charges	0.073	0.074	0.006
		Discount Allowed	0.019	0.017	0.002
		Loan Processing Fee	0.000	0.230	0.000
		Misc. Expenses	0.002	0.002	0.004
		Office Expenses	0.016	0.013	0.010
		Postage and Courier Expenses	0.023	0.021	0.024
		Printing and Stationery	0.016	0.016	0.024
		Shop Expenses	0.183	0.136	0.109
		Water Expense	0.012	0.010	0.000
		TOTAL	50.172	39.578	31.274
	PROFIT/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION		1.117	0.815	0.599
Less/ Add	DEPRECIATION/ AMORTISATION		0.372	0.372	0.168
	NET PROFIT/ (LOSS)		0.745	0.443	0.431

KEY RATIOS

PARTICULARS		31.03.2015 (Provisional)	31.03.2014	31.03.2013
Net Profit Margin (PAT / Sales)	(%)	1.10	1.36	1.10
Return on Total Assets (PBT/Total Assets}	(%)	3.56	1.87	2.40
Return on Investment (ROI) (PBT/Networth)		0.39	0.25	0.22
Debt Equity Ratio (Total Liability/Networth)		9.61	11.73	7.46
Current Ratio (Current Asset/Current Liability)		5.83	6.48	6.96

FINANCIAL ANALYSIS

[all figures are in Rupees Million]

DEBT EQUITY RATIO

Particular	31.03.2013	31.03.2014	31.03.2015 (Provisional)
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Proprietors Capital	1.925	1.785	1.906
Profit and Loss Account	0.000	0.000	0.000
Money received against share warrants	0.000	0.000	0.000
Share Application money pending allotment	0.000	0.000	0.000
Net worth	1.925	1.785	1.906
Long-term borrowings	11.492	17.875	15.762
Short term borrowings	2.861	3.060	2.550
Total borrowings	14.353	20.935	18.312
Debt/Equity ratio	7.456	11.728	9.608

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2013	31.03.2014	31.03.2015 (Provisional)
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Sales	31.754	40.375	51.266
		27.149	26.975

NET PROFIT MARGIN

Net Profit Margin	31.03.2013	31.03.2014	31.03.2015 (Provisional)
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Sales	31.754	40.375	51.266
Profit	0.431	0.443	0.745
	1.36%	1.10%	1.45%

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	Check list by info agents	Available in Report (Yes/No)
1	Year of establishment	Yes
2	Constitution of the entity -Incorporation details	Yes
3	Locality of the entity	Yes
4	Premises details	No
5	Buyer visit details	--
6	Contact numbers	Yes
7	Name of the person contacted	Yes
8	Designation of contact person	Yes
9	Promoter’s background	Yes
10	Date of Birth of Proprietor / Partners / Directors	Yes
11	Pan Card No. of Proprietor / Partners	Yes
12	Voter Id Card No. of Proprietor / Partners	No
13	Type of business	Yes
14	Line of Business	Yes
15	Export/import details (if applicable)	No
16	No. of employees	Yes
17	Details of sister concerns	No
18	Major suppliers	Yes
19	Major customers	Yes
20	Banking Details	Yes
21	Banking facility details	Yes
22	Conduct of the banking account	Yes
23	Financials, if provided	Yes
24	Capital in the business	Yes
25	Last accounts filed at ROC, if applicable	No
26	Turnover of firm for last three years	Yes
27	Reasons for variation <> 20%	--
28	Estimation for coming financial year	Yes
29	Profitability for last three years	Yes
30	Major shareholders, if available	No
31	External Agency Rating, if available	No
32	Litigations that the firm/promoter involved in	--
33	Market information	--
34	Payments terms	Yes
35	Negative Reporting by Auditors in the Annual Report	No

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UNSECURED LOANS

(RS. IN MILLION)

UNSECURED LOANS	31.03.2015 (Projected) (Rs. In Million)
Sundry Loans	2.550
Total	2.550

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PROJECTED BALANCE SHEET AS ON 31.03.2016

(RS. IN MILLION)

SOURCES OF FUNDS		31.03.2016 (Projected)
SHAREHOLDERS FUNDS
1] Proprietors Capital		2.587
2] Share Application Money		0.000
3] Profit and Loss Account		0.000
4] (Accumulated Losses)		0.000
NETWORTH		2.587
LOAN FUNDS
1] Secured Loans		14.250
2] Unsecured Loans		2.000
TOTAL BORROWING		16.250
DEFERRED TAX LIABILITIES		0.000
TOTAL		18.837
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		3.379
Capital work-in-progress		0.000
INVESTMENT		1.750
DEFERRED TAX ASSETS		0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	4.250
	Sundry Debtors	11.950
	Cash & Bank Balances	0.208
	Other Current Assets	0.000
	Loans & Advances	0.000
Total Current Assets		16.408
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	2.200
	Other Current Liabilities	0.000
	Provisions	0.500
Total Current Liabilities		2.700
Net Current Assets		13.708
MISCELLANEOUS EXPENSES		0.000
TOTAL		18.837

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PROJECTED PROFIT AND LOSS ACCOUNT AS ON 31.03.2016

(RS. IN MILLION)

	PARTICULARS		31.03.2016 (Projected)
	SALES
		Income	61.000
		Other Income	0.025
		TOTAL	61.025
Less	EXPENSES
		Cost of Goods Sold	56.541
		Freight	0.033
		Audit and Legal Fee	0.025
		Electricity and Water Expenses	0.072
		Petrol and Diesel Expenses	0.095
		Repairing and Maint.	0.032
		Travelling and Conveyance	0.085
		Trunk and Telephone Expenses	0.089
		Salary to Staff	0.840
		Interest to Secured Loan	1.345
		Accounting Charges	0.084
		Bank Charges	0.075
		Misc. Expenses	0.007
		Office Expenses	0.022
		Postage and Courier Expenses	0.016
		Printing and Stationery	0.017
		Shop Expenses	0.225
		Water Expense	0.022
		TOTAL	59.625
	PROFIT/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION		1.400
Less/ Add	DEPRECIATION/ AMORTISATION		0.268
	NET PROFIT/ (LOSS)		1.132

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NETWORTH STATEMENT

MR. RAJENDRA KUMAR RAO

(RS. IN MILLIONS)

(AS ON 30.05.2015)

SR. NO.	PARTICULARS	ADDRESS	ESTIMATED MARKET VALUE AS ON 30.05.2015
1.	Immovable Assets
	1. Residential House Plot Area 925 Sqr. Feet Const. – 2000 Sqr. Feet	3-Tha-17, Prabhat Nagar, Sec-5, Udaipur	5.000
	2. Shop Building Area 408 Sqr. Feet	117-118, Shreenath Plaza, Hospital Road, Udaipur	8.500
	3. Residential Plots Area 5000 Sqr. Feet	Debari, Udaipur	4.000
		Total	17.500
2.	Movable Assets
	1. Investment in the business (Net) [Excluding book value of Column No. 1, 2 & 3 of Immovable Assets]	M/s. Kanak Medicose Proprietorship Concern	6.250
	2. Investment in the business (Net)	M/s. Nidhi Enterprises Partnership Concern	0.353
	3. Gold and Silver Jewellary Gold – 200 Gm Silver – 500 Gm	Inherits and gifted from parents	0.595
	4. Investment and Deposits	LIC, RD and Others	0.222
	5. Cash and Bank Balances	--	0.112
		Total	7.532
3.	Total Current Assets (1+2)		25.032
4.	Liabilities		0.000
5.	Value of Net Worth (3-4)		25.032

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FIXED ASSETS

· Air Conditioner

· Car Verna

· Computer

· Cycle

· Mobile

· Motor Cycle [Splendor]

· Refrigerator

· Furniture

· Shop at Shreenath Plaza

· XUV

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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. 63.37
UK Pound	1	Rs. 98.86
Euro	1	Rs. 69.97

INFORMATION DETAILS

Information Gathered by :	GYT
Analysis Done by :	KAS
Report Prepared by :	MRI

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--PROFITABILITY	1~10	3
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	3
--CREDIT LINES	1~10	3
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	NO
--AFFILIATION	YES/NO	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		30

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.