MIRA INFORM REPORT

Report No. :	332438
Report Date :	16.07.2015

IDENTIFICATION DETAILS

Name :	COVALENT LABORATORIES PRIVATE LIMITED
Registered Office :	D No. 8-3-677/18, S.K.D. Nagar, Yellareddyguda, Hyderabad – 500073, Andhra Pradesh
Tel. No.:	91-40-49483333
Country :	India
Financials (as on) :	31.03.2014
Date of Incorporation :	13.09.2002
Com. Reg. No.:	01-039606
Capital Investment / Paid-up Capital :	Rs.60.000 Million
CIN No.: [Company Identification No.]	U24230TG2002PTC039606
IEC No.:	Not Available
TAN No.: [Tax Deduction & Collection Account No.]	Not Available
PAN No.: [Permanent Account No.]	AABCC954R
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer and Exporter of Bulk Drugs and Drug Intermediates.
No. of Employees :	450 (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

Maximum Credit Limit :	USD 3800000
Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track record. The rating reflects company sound financial risk profile marked by healthy reserves position and fair profitability of the company. Trade relations are reported as fair. Business is active. Payments terms are reported to be usually correct. The company can be considered normal 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.

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

Rating Agency Name	ICRA
Rating	Fund Based Limits (BBB+)
Rating Explanation	Moderate degree of safety. It carry moderate credit risk.
Date	August 2014

Rating Agency Name	ICRA
Rating	Short Term Non Fund Based Limits (A2)
Rating Explanation	Strong degree of safety and low credit risk.
Date	August 2014

RBI DEFAULTERS’ LIST STATUS

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

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

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

INFORMATION PARTED BY

Name :	Mr. Rajshekhar Reddy
Designation :	AGM Finance
Contact No.:	91-40-49483333

LOCATIONS

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

DIRECTORS

AS ON 30.08.2014

Name :

Mr. Madireddy Narayana Reddy

Designation :

Managing Director

Address :

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

Date of Birth/Age :

20.02.1951

PAN No.:

AABPR4603F

Date of Appointment :

13.09.2002

Din No.:

00123201

Other Directorship:

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U24230TG2002PTC039606	COVALENT LABORATORIES PRIVATE LIMITED	Managing director	13/09/2002	13/09/2002	-	Active	NO
2	U74999TG2007PLC052432	SV'S REMEDIES LIMITED	Managing director	01/07/2013	16/05/2012	-	Amalgamated	NO

Name :

Mr. Madireddty Vijay Kiran

Designation :

Whole Time Director

Address :

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

Date of Birth/Age :

12.09.1981

Date of Appointment :

01.01.2007

PAN No.:

ACKPV1863G

Din No.:

01095484

Other Directorship:

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U24230TG2002PTC039606	COVALENT LABORATORIES PRIVATE LIMITED	Whole-time director	01/01/2007	13/09/2002	-	Active	NO
2	U24232TG2011PTC073729	LONSDALE LIFE SCIENCES PRIVATE LIMITED	Director	06/04/2011	06/04/2011	07/11/2011	Active	NO

Name :

Mr. Nandigala Prasanth

Designation :

Director

Address :

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

Date of Birth/Age :

14.04.1972

Date of Appointment :

15.05.2003

Din No.:

01740471

Other Directorship:

S.NO.	CIN/LLPIN	NAME OF THE COMPANY/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U24232TG1982PLC003368	VIRCHOW LABORATORES LIMITED.	Director	25/10/1999	25/10/1999	-	Active	NO
2	U74210TG1974PTC001733	IMEX ENGINEERING CO PVT LTD	Director	18/10/2001	18/10/2001	-	Active	YES
3	U24230TG2002PTC039606	COVALENT LABORATORIES PRIVATE LIMITED	Director	15/05/2003	15/05/2003	-	Active	NO
4	U24116TG1991PLC012314	ANDHRA ORGANICS LIMITED	Whole-time director	01/04/2011	08/09/2004	-	Active	NO
5	U24239TG2004PLC042949	VIRCHOW DRUGS LIMITED	Director	12/09/2007	12/09/2007	-	Active	NO
6	U74999TG2007PLC052432	SV'S REMEDIES LIMITED	Director	29/09/2012	16/05/2012	-	Amalgamated	NO
7	U23209TG2003PTC041101	VIRCHOW PETROCHEMICAL PRIVATE LIMITED	Additional director	14/03/2014	14/03/2014	-	Active	NO
8	U85195TG1988PLC008172	SARACA LABORATORIES LIMITED	Additional director	04/11/2014	04/11/2014	-	Active	NO

Name :

Mr. Mundla Naryan Reddy

Designation :

Director

Address :

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

Date of Birth/Age :

01.06.1951

Date of Appointment :

15.05.2003

Din No.:

00064392

Other Directorship:

S.NO.	CIN/LLPIN	NAME OF THE COMPANY/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U24232TG1982PLC003368	VIRCHOW LABORATORES LIMITED.	Managing director	01/06/2011	20/01/1982	-	Active	NO
2	U24210TG2001PTC036520	VIRCHOW BIOTECH PRIVATE LIMITED	Director	04/04/2001	04/04/2001	-	Active	NO
3	U74210TG1974PTC001733	IMEX ENGINEERING CO PVT LIMITED	Director	18/10/2001	18/10/2001	-	Active	YES
4	U24230TG2002PTC039606	COVALENT LABORATORIES PRIVATE LIMITED	Director	15/05/2003	15/05/2003	-	Active	NO
5	U23209TG2003PTC041101	VIRCHOW PETROCHEMICAL PRIVATE LIMITED	Director	04/06/2003	04/06/2003	-	Active	NO
6	U24239TG2004PLC042949	VIRCHOW DRUGS LIMITED	Director	25/03/2004	25/03/2004	-	Active	NO
7	U24116TG1991PLC012314	ANDHRA ORGANICS LIMITED	Director	08/09/2004	08/09/2004	-	Active	NO
8	U24110TG2005PTC046609	EMMENNAR CHEM PRIVATE LIMITED	Director	22/06/2005	22/06/2005	-	Amalgamated	NO
9	U45200TG2005NPL045814	HYDERABAD PHARMA INFRASTRUCTURE AND TECHNOLOGIES	Director	21/12/2006	21/12/2006	17/01/2011	Active	NO
10	U24230MH2007PTC176048	VIRCHOW HEALTHCARE PRIVATE LIMITED	Director	20/11/2007	20/11/2007	-	Active	NO
11	U24299TG2002PTC039653	EMMENNAR PHARMA PRIVATE LIMITED	Director	10/03/2008	10/03/2008	01/10/2013	Active	NO
12	U74999TG2007PLC052432	SV'S REMEDIES LIMITED	Director	29/09/2012	16/05/2012	-	Amalgamated	NO

Name :

Mr. Lingareddy Venkata Subash

Designation :

Director

Address :

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

Date of Birth/Age :

09.12.1971

Date of Appointment :

15.05.2003

Din No.:

00125240

Other Directorship:

S.NO.	CIN/LLPIN	NAME OF THE COMPANY/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U72100TG2001PLC036378	OCIMUM BIO SOLUTIONS (INDIA) LIMITED	Whole-time director	01/12/2010	12/03/2001	-	Active	NO
2	U24232TG1982PLC003368	VIRCHOW LABORATORES LIMITED.	Director	14/03/2002	14/03/2002	-	Active	NO
3	U15419TG2002PTC038404	MUKUNDA DAIRY PRODUCTS PRIVATE LIMITED	Director	30/03/2002	30/03/2002	09/09/2011	Active	NO
4	U24129TG1976PTC002072	CORAMANDEL INFRASTRUCTURE PRIVATE LIMITED	Director	27/01/2003	27/01/2003	23/01/2008	Active	NO
5	U24230TG2002PTC039606	COVALENT LABORATORIES PRIVATE LIMITED	Director	15/05/2003	15/05/2003	-	Active	NO
6	U74999TG2007PTC052835	FICUS ENTERPRISES (INDIA) PRIVATE LIMITED	Director	19/02/2007	19/02/2007	-	Active	NO
7	U72300TG2007PTC055671	MAX INFRATECH (INDIA) PRIVATE LIMITED (PART IX)	Director	25/09/2007	25/09/2007	-	Amalgamated	NO
8	U14200TG2008PTC057527	CORAMANDEL MINING & EXPORTS PRIVATE LIMITED	Director	30/09/2010	19/10/2009	-	Active	NO
9	U45200TG1999PLC030861	MAX INFRA (I) LIMITED	Director	26/12/2009	24/12/2009	05/09/2011	Active	NO
10	U24232TG2012PLC079091	MAPMYGENOME INDIA LIMITED	Director	10/02/2012	10/02/2012	02/12/2013	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.08.2014

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

As on 30.08.2014

Equity Share Break up (Percentage of Total Equity)

Category	Percentage
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer and Exporter of Bulk Drugs and Drug Intermediates.

Products :

Product Description	Item Code No. (ITC Code)
Cefpodoxime Proxetil	2941
Cefdinir	2941
Cefuroxime Axetil	2941
Cefuroxime Axetil	2941

Brand Names :

Not Divulged

Agencies Held :

Not Divulged

Exports :

Products :

• Bulk Drugs
• Drug Intermediates

Countries :

• Pakistan
• Bangladesh
• Hongkong
• Singapore
• Turkey
• Vietnam
• Iran

Imports :

Countries :

• China
• Europe

Terms :

Selling :

Cash, Advance Payment

Purchasing :

Cash, Advance Payment

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 :

450 (Approximately)

Bankers :

Banker Name	State Bank of India
Branch Address	Industrial Finance Branch, Rajbhavan Road, Somajiguda, Hyderabad - 500082, Andhra Pradesh, India
Person Name (With Designation)	Not Divulged
Contact Number	Not Divulged
Name of Account Holder	Not Divulged
Account Number	Not Divulged
Account Since (Date/Year of Account Opening)	Not Divulged
Average Balance Maintained (If Possible)	Not Divulged
Credit Facilities Enjoyed (If any)	WC/ TL= Rs.950.000 Million
Account Operation	Not Divulged
Remarks (If any)	Not Divulged

Banker Name	Citi Bank
Branch Address	Secunderabad
Person Name (With Designation)	Not Divulged
Contact Number	Not Divulged
Name of Account Holder	Not Divulged
Account Number	Not Divulged
Account Since (Date/Year of Account Opening)	Not Divulged
Average Balance Maintained (If Possible)	Not Divulged
Credit Facilities Enjoyed (If any)	CC= Rs.300.000 Million
Account Operation	Not Divulged
Remarks (If any)	Not Divulged

· State Bank of India, Balanagar, Hyderabad - 500037, Andhra Pradesh, India

Facilities :

(Rs. In Million)

SECURED LOAN	As on 31.03.2014	As on 31.03.2013
Long Term Borrowing
Term loans from banks	300.974	428.654
Loans taken for other fixed assets	0.000	0.430
Short Term Borrowing
Working capital loans from banks	809.985	958.084
Total	1110.959	1387.168

Auditors :
Name :	M V Narayana Reddy And Company Chartered Accountant
Address :	8-3-941, Flat No. 504, Vijayasree Apartments, Behind Chermas, Atmeerpet, Hyderabad – 500073, Andhra Pradesh, India
Tel. No.:	91-40-23743975/ 23744448
PAN No:	AADFM4830F
Memberships :	Not Available
Collaborators :	Not Available
Associates :	Virchow PetroChemicals Private Limited, India CIN.: U23209AP2003PTC041101 Virchow Laboratores Limited, India CIN.: U24232TG1982PLC00336 Andhra Organics Limited, India CIN.: U24116AP1991PLC012314

CAPITAL STRUCTURE

As on 30.08.2014

Authorised Capital :

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

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
6000000	Equity Shares	Rs.10/- each	Rs.60.000 Million

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	60.000	60.000	60.000
(b) Reserves & Surplus	1279.208	1008.308	868.397
(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)	1339.208	1068.308	928.397
(3) Non-Current Liabilities
(a) long-term borrowings	374.789	505.124	261.697
(b) Deferred tax liabilities (Net)	93.547	67.064	60.085
(c) Other long term liabilities	0.000	0.000	0.000
(d) long-term provisions	7.963	5.231	4.788
Total Non-current Liabilities (3)	476.299	577.418	326.570
(4) Current Liabilities
(a) Short term borrowings	809.985	958.084	684.754
(b) Trade payables	1769.962	1468.830	1105.093
(c) Other current liabilities	338.921	254.800	223.026
(d) Short-term provisions	97.472	76.748	96.734
Total Current Liabilities (4)	3016.340	2758.462	2109.607
TOTAL	4831.847	4404.188	3364.574
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	1466.941	906.251	892.277
(ii) Intangible Assets		0.000	0.000
(iii) Capital work-in-progress	46.676	323.826	9.234
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	0.000	13.805	0.000
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	23.016	21.955	14.222
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	1536.633	1265.837	915.733
(2) Current assets
(a) Current investments	0.000	0.000	19.999
(b) Inventories	745.281	826.591	841.427
(c) Trade receivables	2022.409	1703.208	1204.290
(d) Cash and cash equivalents	172.178	159.114	179.943
(e) Short-term loans and advances	69.966	208.601	36.966
(f) Other current assets	285.380	240.837	166.216
Total Current Assets	3295.214	3138.351	2448.841
TOTAL	4831.847	4404.188	3364.574

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2014	31.03.2013	31.03.2012
	GROSS REVENUE		7551.700	6203.000	4473.980
Less	EXPENSES TOTAL		6934.000	5740.600	3921.559
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION		617.700	462.400	552.421
Less	FINANCIAL EXPENSES		143.200	123.000	128.031
	PROFIT/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION		474.500	339.400	424.390
Less	DEPRECIATION/ AMORTISATION		148.300	126.900	109.143
	PROFIT/ (LOSS) BEFORE TAX		326.200	212.500	315.247
Less	TAX		112.000	72.600	103.475
	PROFIT/ (LOSS) AFTER TAX		214.200	139.900	211.772
	EARNINGS IN FOREIGN CURRENCY		1697.711	1225.153	1194.600
	IMPORTS
		Raw Materials	2070.925	1369.430	1776.838
		Capital Goods	10.943	6.682	4.700
	TOTAL IMPORTS		2081.868	1376.112	1781.538
	Earnings Per Share (Rs.)		35.70	23.32	35.30

CURRENT MATURITIES OF LONG TERM DEBT DETAILS

Particulars	31.03.2014	31.03.2013	31.03.2012
Current Maturities of Long term debt	174.247	104.625	108.000
Cash generated from operations	NA	NA	NA
Net cash flow from (used in) operations	852.377	197.436	608.565

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013	31.03.2012
Return on Total Assets (PBT/Total Assets)	(%)	6.82	5.23	9.40
Return on Investment (ROI) (PBT/Networth)		0.24	0.20	0.34
Debt Equity Ratio (Total Debt /Networth)		1.01	1.47	1.14
Current Ratio (Current Asset/Current Liability)		1.09	1.14	1.16

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	60.000	60.000	60.000
Reserves & Surplus	868.397	1008.308	1279.208
Net worth	928.397	1068.308	1339.208
long-term borrowings	261.697	505.124	374.789
Short term borrowings	684.754	958.084	809.985
Current Maturities of Long term debt	108.000	104.625	174.247
Total borrowings	1054.451	1567.833	1359.021
Debt/Equity ratio	1.136	1.468	1.015

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
Gross Revenue	4473.980	6203.000	7551.700
		38.646	21.743

NET PROFIT MARGIN

Net Profit Margin	31.03.2012	31.03.2013	31.03.2014
	Rs. In Million	Rs. In Million	Rs. In Million
Gross Revenue	4473.980	6203.000	7551.700
Profit	211.772	139.900	214.200
	4.73%	2.26%	2.84%

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)	Yes
16	No. of employees	Yes
17	Details of sister concerns	Yes
18	Major suppliers	No
19	Major customers	No
20	Banking Details	Yes
21	Banking facility details	Yes
22	Conduct of the banking account	--
23	Financials, if provided	Yes
24	Capital in the business	Yes
25	Last accounts filed at ROC, if applicable	Yes
26	Turnover of firm for last three years	Yes
27	Reasons for variation <> 20%	--
28	Estimation for coming financial year	No
29	Profitability for last three years	Yes
30	Major shareholders, if available	Yes
31	External Agency Rating, if available	Yes
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

UNSECURED LOAN

(Rs. In Million)

Particulars	As on 31.03.2014	As on 31.03.2013
Long Term Borrowing
Loans and advances from related parties	73.815	76.040
Total	73.815	76.040

INDEX OF CHARGES

S.No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	CHARGE HOLDER	ADDRESS	Service Request Number (SRN)
1	10516286	27/06/2014	410,000,000.00	HDFC BANK LIMITED	1-10-60/3, 4TH FLOOR, SURYODAYA, BEGUMPET, HYDERABAD, HYDERABAD, TELANGANA - 500016, INDIA	C17671587
2	10495631	29/03/2014	300,000,000.00	CITI BANK N.A.	163,ANNA SALAI, CHENNAI, TAMIL NADU - 600002, INDIA	C04747895
3	10348440	21/03/2012	225,000,000.00	CITI BANK N.A.	1ST FLOOR, QUEENS PLAZA, SARDAR PATEL ROAD, HYDERABAD, ANDHRA PRADESH -500003, INDIA	B37213956
4	90126847	08/02/2013 *	2,558,300,000.00	STATE BANK OF INDIA	INDUSTRIAL FINANCE BRANCH, RAJBHAVAN ROAD, SOMAJIGUDA, HYDERABAD, ANDHRA PRADESH - 500082, INDIA	B69716793

* Date of charge modification

OPERATIONS AND BUSINESS PERFORMANCE

During the year, the company has clocked a revenue of Rs. 7551.700 Million as against 6203.000 Million in the previous year registering an increase of 21.74%. The continuous efforts of the management resulted in the growth of revenues. Profit after tax increased from Rs. 139.900 Million to Rs. 214.200 Million with an increase of 53.11%. The Directors are confident of achieving better results in the ensuing years.

FIXED ASSETS

· Factory Building

· Plant and equipment

· Furniture and Fixtures

· Office Equipment

· Computer Equipments

· Vehicles

CMT REPORT (Corruption, Money Laundering & Terrorism]

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

1] INFORMATION ON DESIGNATED PARTY

No exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

2] Court Declaration :

No exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

3] Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

4] Record on Financial Crime :

Charges or conviction registered against subject: None

5] Records on Violation of Anti-Corruption Laws :

Charges or investigation registered against subject: None

6] Records on Int’l Anti-Money Laundering Laws/Standards :

Charges or investigation registered against subject: None

7] Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

8] Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

9] Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

10] Press Report :

No press reports / filings exists on the subject.

CORPORATE GOVERNANCE

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

CONTRAVENTION

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.63.38
UK Pound	1	Rs.99.13
Euro	1	Rs.69.69

INFORMATION DETAILS

Information Gathered by :	SVA
Analysis Done by :	DIV
Report Prepared by :	NKT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILITY	1~10	5
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	7
--CREDIT LINES	1~10	5
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO
--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	YES
--LISTED	YES/NO	NO
--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.