MIRA INFORM REPORT

Report No. :	311959
Report Date :	28.03.2015

IDENTIFICATION DETAILS

Name :	MERIT ORGANICS LIMITED
Registered Office :	Shop No. 76, Whispering Palm, Lokhandwala Shopping Centre, Akurli Road, Kandivli (East), Mumbai – 400101, Maharashtra
Country :	India
Financials (as on) :	31.03.2014
Date of Incorporation :	22.05.1992
Com. Reg. No.:	11-066904
Capital Investment / Paid-up Capital :	Rs. 68.849 Millions
CIN No.: [Company Identification No.]	U24230MH1992PLC066904
TAN No.: [Tax Deduction & Collection Account No.]	MUMM08509E
PAN No.: [Permanent Account No.]	AAACM7899L
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer and Exporter of Capsules, Tablets, Liquid Serums, Ointment, Injectable and Veterinary Products.
No. of Employees :	Not Divulged

RATING & COMMENTS

MIRA’s Rating :

B (28)

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

Maximum Credit Limit :	USD 170000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track record. There is an accumulated loss recorded by the company during 2014. However, trade relations are fair. Business is active. Payment terms are reported to be slow but correct. The company can be considered for business dealing with some cautions.

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

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 PARTED BY (GENERAL DETAILS)

Name :	Mr. Vibhu Kejriwal
Designation :	Director
Contact No.:	91-22-66994836
Date :	20.03.2015

LOCATIONS

Registered Office :	Shop No. 76, Whispering Palm, Lokhandwala Shopping Centre, Akurli Road, Kandivli (East), Mumbai – 400101, Maharashtra, India
Tel. No. :	91-22-66994836/ 29655118/ 40166501
Fax No. :	91-22-29655118
E-Mail :	vaibhav@meritorganics.com vibhu@meritorganics.com merit123@vsnl.com scmassociates@gmail.com
Website :	http://www.meritorganics.com
Area :	200 Sq. ft.
Location :	Owned
Factory :	Plot No.2104/2/A G.I.D.C. Sarigam Bhilad, Valsad – 396155, Gujarat, India

DIRECTORS

AS ON 30.09.2014

Name :

Purshottam Atmaram Kejriwal

Designation :

Managing Director

Address :

3/C, 802, Whispering Palms, Lokhandwala Complex, Kandivali (East), Mumbai – 400101, Maharashtra, India

Date of Birth/Age :

10.04.1956

Qualification :

Graduate

Date of Appointment :

22.05.1992

DIN No. :

02476745

Name :

Shantanu Purushottam Kejriwal

Designation :

Whole Time Director

Address :

3/C 802, Whispering Palms, Lokhandwala Township

Kandivali East, Mumbai – 400101, Maharashtra, India

Date of Birth/Age :

27.11.1979

Qualification :

Graduate

Date of Appointment :

30.03.2013

DIN No. :

06479689

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	Company/ LLP Status	Defaulting status
1	U24230MH1992PLC066904	MERIT ORGANICS LIMITED	Whole-time director	30-03-2013	30-03-2013	Active	NO
2	U74999WB2012PTC174189	ARROWLINK POWER PRIVATE LIMITED	Director	01-05-2013	01-05-2013	Active	NO
3	U51109WB2006PTC111467	DULCET VYAPAAR PRIVATE LIMITED	Director	01-05-2013	01-05-2013	Active	NO
4	U74999WB2012PTC174176	HARDSOFT POWER PRIVATE LIMITED	Director	01-05-2013	01-05-2013	Active	NO

Name :

Udita Kostuv Kejriwal

Designation :

Director

Address :

3c/802, Whispering Palm, Lokhandwala, Akurli

Road, Kandivali East, Mumbai, 400101, Maharashtra, India

Date of Birth/Age :

30.12.1987

Qualification :

Graduate

Date of Appointment :

30.03.2013

DIN No. :

06560193

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 30.09.2014

Names of Shareholders	No. of Shares
Atmaram Kejriwal	42640
Basant Kumar Kejriwal	14536
Geeta Devi Kejriwal	6210
Manjushree Kejriwal	14610
Purusottam Lal Kejriwal	50610
Devendra Kumar Kejriwal	30910
Jyoti Devi Kejriwal	13810
Arun Kumar Kedia	500
Ansu Kumar Amar	5000
Aswini Kumar Sarawgi	10000
Amar Nath Mishra	10000
Ajit Kumar Chaurasia	1000
Balkrishna Mawandia	200
Vibhu Kumar Amar	8950
Brucke Pharma Private Limited	454200

AS ON 30.09.2014

Equity Share Break up (Percentage of Total Equity)

Category	Percentage of Holding
Bodies corporate	90.20
Directors or relatives of Directors	2.51
Other top fifty shareholders	7.29
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer and Exporter of Capsules, Tablets, Liquid Serums, Ointment, Injectable and Veterinary Products.

Products :

Item Code No. (ITC Code)	Product Description
98041000	Drugs and Medicines

Brand Names :

--

Agencies Held :

--

Exports :

Products :

· Capsules

· Tablets

· Liquid Serums

· Ointment

· Injectable

· Veterinary Product, etc.

Countries :

· African Countries

· Sri Lanka

Imports :

Products :

Raw Material

Countries :

· China

· African Countries

Terms :

Selling :

Cash and Credit

Purchasing :

Cash and Credit

PRODUCTION STATUS: NOT AVAILABLE

GENERAL INFORMATION

Suppliers :

Reference:	Not Divulged
Name of the Person (with Designation):	Not Divulged
Contact Number:	Not Divulged
Since How Long Known:	Not Divulged
Maximum Limit Dealt:	Not Divulged
Experience :	Not Divulged
Remarks :	Not Divulged

Customers :

Wholesalers and Retailers

Reference:	Not Divulged
Name of the Person (with Designation):	Not Divulged
Contact Number:	Not Divulged
Since How Long Known:	Not Divulged
Maximum Limit Dealt:	Not Divulged
Experience :	Not Divulged
Remarks :	Not Divulged

No. of Employees :

Not Divulged

Bankers :

Bank Name:	Bank of Baroda
Branch:	Ashok Nagar, Kandivali East, Mumbai - 400101, Maharashtra, India
Name of the Person (with Designation):	Not Divulged
Contact Number:	Not Divulged
Name of Account Holder:	Not Divulged
Account Number:	Not Divulged
Account Since (Date/ Year of A/c Opening):	Not Divulged
Average Balance Maintained (Optional):	Not Divulged
Credit Facilities Enjoyed (CC/OD/Term Loan):	Not Divulged
Account Operation:	Not Divulged
Remarks: Not Divulged

· SIDBI, Vikas Deep, 22 Station Road, Lucknow - 226019, Uttar Pradesh, India

Banking Relations :	--
Auditors :
Name :	Chaubey Manoj Kumar Chartered Accountants
Address :	42, 1st Floor, Singh Industrial, Estate No. 3, Near Movie Star Cinema, Ram Mandir Road, Off. S. V Road, Gorgaon [West], Mumbai – 400104, Maharashtra, India
Income-tax PAN of auditor or auditor's firm :	ACCPC8514B
Memberships :	Pharmexcil
Associates/Subsidiaries :	Merit Healthcare Private limited

CAPITAL STRUCTURE

AS ON 30.09.2014

Authorised Capital :

No. of Shares	Type	Value	Amount
7,250,000	Equity Shares	Rs.10/- each	Rs. 72.500 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
6,884,851	Equity Shares	Rs.10/- each	Rs. 68.849 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2014	31.03.2013	31.03.2012
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	68.849	32.364	16.364
(b) Reserves & Surplus	(6.443)	(6.891)	(3.906)
(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)	62.406	25.473	12.458
(3) Non-Current Liabilities
(a) long-term borrowings	0.830	1.080	1.198
(b) Deferred tax liabilities (Net)	0.000	0.000	0.000
(c) Other long term liabilities	12.798	10.918	21.281
(d) long-term provisions	0.000	0.000	0.000
Total Non-current Liabilities (3)	13.628	11.998	22.479
(4) Current Liabilities
(a) Short term borrowings	0.000	0.000	0.000
(b) Trade payables	16.278	10.074	9.661
(c) Other current liabilities	1.137	38.313	37.336
(d) Short-term provisions	1.249	1.983	4.773
Total Current Liabilities (4)	18.664	50.370	51.770
TOTAL	94.698	87.841	86.707
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	29.507	30.629	23.659
(ii) Intangible Assets	0.000	0.000	0.000
(iii) Capital work-in-progress	31.057	0.000	0.000
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	2.000	2.000	0.000
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	0.971	1.011	0.563
(e) Other Non-current assets	0.430	0.000	0.000
Total Non-Current Assets	63.965	33.640	24.222
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	10.750	9.421	20.543
(c) Trade receivables	6.359	19.409	23.072
(d) Cash and cash equivalents	0.282	0.272	0.059
(e) Short-term loans and advances	13.340	25.099	18.811
(f) Other current assets	0.000	0.000	0.000
Total Current Assets	30.731	54.201	62.485
TOTAL	94.696	87.841	86.707

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2014	31.03.2013	31.03.2012
	SALES
		Income	34.944	72.116	144.205
		Other Income	9.957	15.518	(0.518)
		TOTAL (A)	44.901	87.634	143.687
Less	EXPENSES
		Cost of Materials Consumed	26.006	51.762	121.072
		Purchases of Stock-in-Trade
		Changes in inventories of finished goods, work-in-progress and Stock-in-Trade	(1.330)	11.122	(5.516)
		Employees benefits expense	8.161	8.141	13.627
		Other expenses	10.419	12.534	13.226
		TOTAL (B)	43.256	83.559	142.409
	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		1.645	4.075	1.278
Less	FINANCIAL EXPENSES (D)		0.034	0.046	0.067
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		1.611	4.029	1.211
Less/ Add	DEPRECIATION/ AMORTISATION (F)		1.122	3.690	3.609
	PROFIT/ (LOSS) BEFORE TAX (E-F) (G)		0.489	0.339	(2.398)
Less	TAX (H)		0.042	0.118	0.000
	PROFIT/ (LOSS) AFTER TAX (G-H) (I)		0.447	0.221	(2.398)
	Earnings / (Loss) Per Share (Rs.)		0.06	0.13	(0.85)

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013	31.03.2012
Net Profit Margin (PAT/Sales)	(%)	1.28	0.31	(1.66)
Operating Profit Margin (PBDIT/Sales)	(%)	4.71	5.65	0.89
Return on Total Assets (PBT/Total Assets}	(%)	0.79	0.39	(2.77)
Return on Investment (ROI) (PBT/Networth)		0.01	0.01	(0.19)
Debt Equity Ratio (Total Debt/Networth)		0.01	0.04	0.10
Current Ratio (Current Asset/Current Liability)		1.65	1.08	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	16.364	32.364	68.849
Reserves & Surplus	(3.906)	(6.891)	(6.443)
Net worth	12.458	25.473	62.406
long-term borrowings	1.198	1.080	0.830
Short term borrowings	0.000	0.000	0.000
Total borrowings	1.198	1.080	0.830
Debt/Equity ratio	0.096	0.042	0.013

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	144.205	72.116	34.944
		(49.991)	(51.545)

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	144.205	72.116	34.944
Profit / (Loss)	(2.398)	0.221	0.447
	(1.66%)	0.31%	1.28%

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	Yes
5]	Type of Business	Yes
6]	Line of Business	Yes
7]	Promoter's background	Yes
8]	No. of employees	Yes
9]	Name of person contacted	Yes
10]	Designation of contact person	Yes
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	Yes
20]	Export / Import details (if applicable)	Yes
21]	Market information	-----
22]	Litigations that the firm / promoter involved in	-----
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

INDEX OF CHARGES

S.NO.	CHARGE ID	DATE OF CHARGE CREATION/MODIFICATION	CHARGE AMOUNT SECURED	CHARGE HOLDER	ADDRESS	SERVICE REQUEST NUMBER (SRN)
1	10513724	15/07/2014	8,000,000.00	BANK OF BARODA	HIRAMANI ENCLAVE, ASHOK NAGAR ROAD NO. 3, NEAR EAST-WEST FLYOVER, KANDIVALI(EAST), MUMBAI, MAHARA SHTRA - 400101, INDIA	C15532484

UNSECURED LOANS

PARTICULARS	31.03.2014 (Rs. In Millions)	31.03.2013 (Rs. In Millions)
LONG TERM BORROWINGS
Loans and Advances from Related Parties	0.830	1.080
Total	0.830	1.080

OPERATIONS

The Turnover of the company during the year 2013-2014 is decreased to Rs. 34.943 Millions from 72.116 Millions in the previous year as factory was shut down due to flood, Factory Repairing and Machinery upgradation work. As a result there was a substantial decrease in turnover and the company has achieved operational profit i.e. cash before depreciation profit of Rs. 1.611 Millions.

FIXED ASSETS

· Land and Machinery

· Building

· Plant and Equipment

· Furniture and Fixture

· Vehicle

· Computer

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.62.61
UK Pound	1	Rs.92.95
Euro	1	Rs.68.15

INFORMATION DETAILS

Information Gathered by :	REK
Analysis Done by :	RAS
Report Prepared by :	ARC

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--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	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		28

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.