MIRA INFORM REPORT

Report No. :	312346
Report Date :	07.05.2015

IDENTIFICATION DETAILS

Name :	ROYAL PHARMA
Registered Office :	3, Keshergarh Compound, J.L.N. Marg, Opposite J.K. Loan Hospital, Jaipur – 302004, Rajasthan
Tel. No.:	91-141-5105187
Country :	India
Financials (as on) :	31.03.2014
Date of Establishment :	11.01.2007
Capital Investment :	Rs. 1.925 Million
IEC No.:	Not Available
TIN No.:	08131611651
PAN No.: [Permanent Account No.]	AAJFR4246A
Legal Form :	Partnership Concern with an Unlimited Liability of the Partners
Line of Business :	Trader and Dealer of Pharma Products.
No. of Employees :	6 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (29)

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 an established proprietary concern having moderate track record. The concern has performance below average during 2014 and topline growth of the concern has declined by 26.19%. Profitability of the concern is low at 0.44%. Rating further constrained on account of concern’s moderate financial risk profile and huge external borrowings taken by the concern. However, trade relations are reported as fair. Payments are slow but correct. In view of leverage financial profile, the concern 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

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

Name :	Mr. Rohit Bawri
Designation :	Partner
Contact No.:	91-9214074935
Date :	06.05.2015

LOCATIONS

Registered Office :	3, Keshergarh Compound, J.L.N. Marg, Opposite J.K. Loan Hospital, Jaipur – 302004, Rajasthan, India
Tel. No.:	91-141-5105187
Mobile No.:	91-9214074935 [Mr. Rohit Bawri] 91-9887249796 [Mr. Vinod]
Fax No.:	Not Available
E-Mail :	rohit_bawri@yahoo.com
Area :	3000 Sq. ft.
Location :	Leased

PARTNERS

Name :	Mr. Subhash Kumar Bawri
Designation :	Partner
Address :	2-CH, 36, Jawahar Nagar, Jaipur, Rajasthan, India
Date of Birth/Age :	26.11.1957
Qualification :	12th
Experience :	36 Years
PAN No.:	AAOPB4765B
Name :	Mr. Rohit Bawri
Designation :	Partner
Address :	2-CH, 36, Jawahar Nagar, Jaipur, Rajasthan, India
Date of Birth/Age :	11.03.1985
Qualification :	M. Com
Experience :	10 Years
PAN No.:	AKKPB5232H

KEY EXECUTIVES

Name :	Mr. Vinod
Designation :	Operation Head

BUSINESS DETAILS

Line of Business :	Trader and Dealer of Pharma Products.
Brand Names :	--
Agencies Held :	--
Exports :
Products :	--
Countries :	--
Imports :
Products :	--
Countries :	--
Terms :
Selling :	Credit [30 Days]
Purchasing :	Credit [30 Days]

GENERAL INFORMATION

Suppliers :

Reference:	Mahaveer Medicare, Delhi
Name of the Person (Designation):	Mr. Mahesh Bari [Billing Department]
Contact Number:	91-11-47036945
Since how long known:	4 Years
Maximum limit dealt:	Rs. 7.000 Million
Experience:	Product Quality = Excellent Delivery Behaviour = Excellent Overall = Good
Remark	Mr. Mahesh informed that they are satisfied with their payment behaviour. Overall it is a good company.

Customers :

Wholesalers, Retailers and Pharmacy

Reference:	Medicure – Jaipur
Name of the Person (Designation):	Mr. Praveen (Partner)
Contact Number:	91-9829013316
Since how long known:	8 Years
Maximum limit dealt:	No Limits
Experience:	Product Quality = Excellent Delivery Behaviour = Excellent Overall = Excellent
Remark	Mr. Praveen informed that they are satisfied with their product quality and delivery behaviour.

No. of Employees :

6 (Approximately)

Bankers :

Bank Name:	Kotak Mahindra Bank Limited
Branch:	C. Scheme, Jaipur, Rajasthan, India
Person Name (with Designation):	Mr. Vikas Sharma [CSO]
Contact Number:	91-9782517540
Name of Account Holder:	Royal Pharma
Account Number:	539044012536
Account Since (Date/ Year of A/c Opening):	15.10.2011
Average Balance Maintained (Optional):	Not Divulged
Credit Facilities Enjoyed (CC/OD/Term Loan):	Rs. 10.000 Million
Account Operation:	Satisfactory
Remarks: --

· ICICI Bank Limited

· Axis Bank Limited

Facilities :

SECURED LOANS	31.03.2014 (Rs. In Million)	31.03.2013 (Rs. In Million)
From Kotak Mahindra Bank [CC]	10.819	11.362
From ICICI Bank [For Car Loan]	0.034	0.464
From Axis Bank [For Car Loan]	2.500	0.000
Total	13.353	11.826

Auditors :
Name :	K. Ganriwal and Company Chartered Accountants
Address :	402, Vikash Kunj, Vikash Puri, New Delhi, India
Memberships :	--
Collaborators :	--
Associates/Subsidiaries :	· Royal Chemist Address: Opposite J.K. Loan Hospital, J.L.N. Marg, Jaipur, Rajasthan, India Activity: Retail Shop

CAPITAL STRUCTURE

PARTNERS CAPITAL ACCOUNT AS ON 31.03.2014

MR. SUBHASH KUMAR BAWRI

(RS. IN MILLION)

PARTICULARS	31.03.2014
Opening Capital	0.783
Add: Profit for the year	0.135
	-------------
	0.918
Less: Drawings	0.249
	-------------
Total	0.669

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MR. ROHIT BAWRI

(RS. IN MILLION)

PARTICULARS	31.03.2014
Opening Capital	0.491
Add: Remuneration	0.700
Add: Profit for the year	0.403
	-------------
	1.594
Less: Drawings	0.338
	-------------
Total	1.256

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		31.03.2014	31.03.2013
SHAREHOLDERS FUNDS
1] Partners Capital		1.925	1.274
2] Share Application Money		0.000	0.000
3] Profit and Loss Account		0.000	0.000
4] (Accumulated Losses)		0.000	0.000
NETWORTH		1.925	1.274
LOAN FUNDS
1] Secured Loans		13.353	11.826
2] Unsecured Loans		12.398	13.891
TOTAL BORROWING		25.751	25.717
DEFERRED TAX LIABILITIES		0.000	0.000
TOTAL		27.676	26.991
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		5.009	2.330
Capital work-in-progress		0.000	0.000
INVESTMENT		0.000	0.000
DEFERRED TAX ASSETS		0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	11.091	21.746
	Sundry Debtors	17.613	16.279
	Cash & Bank Balances	2.372	2.098
	Other Current Assets	0.000	0.000
	Loans & Advances	0.586	0.411
Total Current Assets		31.662	40.534
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	8.902	15.516
	Other Current Liabilities	0.093	0.357
	Provisions	0.000	0.000
Total Current Liabilities		8.995	15.873
Net Current Assets		22.667	24.661
MISCELLANEOUS EXPENSES		0.000	0.000
TOTAL		27.676	26.991

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2014	31.03.2013
	SALES
		Sales	119.658	162.130
		Other Income	2.012	0.266
		TOTAL	121.670	162.396
Less	EXPENSES
		Cost of Goods sold	114.623	155.273
		Bank Interest	1.520	1.319
		Bank Charges Expenses	0.083	0.090
		Brokerage Expenses	0.303	0.265
		Conveyance	0.126	0.102
		Interest Expenses	1.696	1.907
		Postage and Courier Expenses	0.159	0.236
		Rent Expenses	0.111	0.100
		Salary Expenses	0.507	0.316
		Staff Welfare Expenses	0.083	0.081
		Sales Promotion	0.085	0.196
		Travelling Expenses	0.088	0.082
		Remuneration to Partners	0.700	0.650
		Other Expenses	0.478	0.599
		TOTAL	120.562	161.216
	PROFIT BEFORE DEPRECIATION AND AMORTISATION		1.108	1.180
Less/ Add	DEPRECIATION/ AMORTISATION		0.570	0.390
	NET PROFIT		0.538	0.790

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013
Net Profit Margin (PAT/Sales)	(%)	0.45	0.49
Return on Total Assets (PBT/Total Assets}	(%)	1.47	1.84
Return on Investment (ROI) (PBT/Networth)		0.28	0.62
Debt Equity Ratio (Total Debt/Networth)		13.38	20.19
Current Ratio (Current Asset/Current Liability)		3.52	2.55

FINANCIAL ANALYSIS

[all figures are in Rupees Million]

DEBT EQUITY RATIO

Particulars	31.03.2013	31.03.2014
	(Rs. In Million)	(Rs. In Million)
Partners Capital	1.274	1.925
Profit and Loss Account	0.000	0.000
Net worth	1.274	1.925
Secured Loans	11.826	13.353
Unsecured Loans	13.891	12.398
Total borrowings	25.717	25.751
Debt/Equity ratio	20.186	13.377

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2013	31.03.2014
	(Rs. In Million)	(Rs. In Million)
Sales	162.130	119.658
		-26.196

NET PROFIT MARGIN

Net Profit Margin	31.03.2013	31.03.2014
	(Rs. In Million)	(Rs. In Million)
Sales	162.130	119.658
Profit	0.790	0.538
	0.49%	0.45%

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 two years	Yes
12]	Profitability for last two 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	Yes
18]	Major customers	Yes
19]	Payments terms	Yes
20]	Export / Import details (if applicable)	No
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	Yes
26]	Buyer visit details	--
27]	Financials, if provided	Yes
28]	Incorporation details, if applicable	No
29]	Last accounts filed at ROC	No
30]	Major Shareholders, if available	No
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	No

------------------------------------------------------------------------------------------------------------------------------

UNSECURED LOANS

(RS. IN MILLION)

PARTICULARS	31.03.2014	31.03.2013
Loans and Deposits	12.398	13.891
Total	12.398	13.891

------------------------------------------------------------------------------------------------------------------------------

ROYAL PHARMA

COMPUTATION OF TOTAL INCOME

(RS. IN MILLION)

PARTICULARS	31.03.2014
INCOME FROM BUSINESS OR PROFESSION [CHAPTER IV D] [Maximum Salary Rs. 0.833 Million]			0.538
Profit as per Profit and Loss Account		0.538
Add: Depreciation debited in Profit and Loss Account		0.570
Remuneration paid to Partners		0.700
		------------
Total		1.808
Less: Depreciation as per Chart u/s 32	0.570	0.570
		------------
		1.238
Profit before Remuneration		1.238
Remuneration Allowable		0.700
		------------
		0.538
Gross Total Income			0.538
			------------
Total Income			0.538
Round u/s 288 A Deduction u/s 10AA, 80H to 80RRB (except sec. 80P) not claimed hence AMT not applicable			0.538
Tax Due		0.161
Educational Cess		0.005
		------------
		0.166
TDS		0.014
		------------
		0.152
Advance Tax		0.160
		------------
		(0.008)
Interest u/s 234 A/B/C		0.000
		------------
		(0.008)
Refundable (Round off u/s 288B)		0.008

------------------------------------------------------------------------------------------------------------------------------

FIXED ASSETS

· Air Conditioner

· Vehicles

· Computer

· Electrical Fittings

· Furniture and Fixture

· Printer

· Generator Set

· Office Equipments

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. 63.64
UK Pound	1	Rs. 96.81
Euro	1	Rs. 71.51

INFORMATION DETAILS

Information Gathered by :	GYT
Analysis Done by :	KAR
Report Prepared by :	BVA

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	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	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		29

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.