MIRA INFORM REPORT

Report No. :	312307
Report Date :	12.05.2015

IDENTIFICATION DETAILS

Name :	VARDHMAN SPECIALITIES
Registered Office :	2nd Floor, D#28-2-58, Fashion Silk House Up Stairs, Jagadamba Junction, Vishakapatnam – 530020, Andhra Pradesh
Tel. No.:	91-891-6671897
Country :	India
Financials (as on) :	31.03.2014
Date of Incorporation/ Year of Establishment :	08.08.2000
Capital Investment / Paid-up Capital :	Rs. 6.576 Million
TIN No.:	37460200581
TAN No.: [Tax Deduction & Collection Account No.]	Not Available
PAN No.: [Permanent Account No.]	ADFPJ6662D
Legal Form :	Sole Proprietary Concern
Line of Business :	Trader, Dealer and Distributor of Pharma Products.
No. of Employees :	12 [ Office=7 + Branch= 5] (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (46)

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

Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is an established proprietary concern having satisfactory track record. It has fair profit margin and good liquidity position during FY 2014. Trade relations are fair. Business is active. Payment terms are reported to be usually correct. The concern can be considered 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 – 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

Rating Agency Name	Not Available
Rating	Not Available
Rating Explanation	Not Available
Date	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. Nikesh Jain
Designation :	Proprietor
Contact No.:	91-9849185987
Date :	08.05.2015

LOCATIONS

Registered Office :	2nd Floor, D#28-2-58, Fashion Silk House Up Stairs, Jagadamba Junction, Vishakapatnam – 530020, Andhra Pradesh, India
Tel. No.:	91-891-6665897 / 6671897
Mobile No.:	91-9849185987 (Mr. Nikesh Jain)
Fax No.:	91-891-2510120
E-Mail :	vardhmanvizag@gmail.com nikeshjain@vardhmanspecialities.com
Area :	1200 Sq. ft.
Location :	Rented
Branch:	11-16-1/1, Singaraju Vari Street, One Town, Vijayawada – 520001, Andhra Pradesh, India
Tel. No.:	91-866-6643905 / 6660575 / 6666905
Fax No.:	91-866-6660575
Area :	1100 Sq. ft.
Location :	Rented

SOLE PROPRIETOR

Name :	Mr. Nikesh Kumar Jain
Designation :	Proprietor
Address :	Flat No.301, 4^th Floor, Venkatadri Towers, Maharanipeth, KGH UP Road, Vishakapatnam – 530020, Andhra Pradesh, India
Date of Birth/Age :	13.10.1980
Qualification :	H.S.C.
Experience :	15 Years
PAN No.:	ADFPJ6662D

BUSINESS DETAILS

Line of Business :	Trader, Dealer and Distributor of Pharma Products.
Products :	Not Available
Brand Names :	Not Available
Agencies Held :	Not Available
Exports :	Not Available
Imports :	Not Available
Terms :
Selling :	Credit (60 days / 90 days )
Purchasing :	Credit (30 days / 60 days)

GENERAL INFORMATION

Suppliers :

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

Customers :

Wholesalers, Retailers and End Users

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

No. of Employees :

12 [ Office=7 + Branch= 5] (Approximately)

Bankers :

Bank Name	City Union Bank
Branch	Dwarkanagar Branch, Vishakapatnam, Andhra Pradesh, India
Person Name (With Designation)	K K Srinivasa Prasad [Branch Manager]
Contact Number	91-9393123185 91-891-2575772 / 2750885
Name of Account Holder	Vardhman Specialities Address : 28-2-58, Fashion Silk House Up Stairs, Jagadamba Junction, Vishakapatnam – 530020, Andhra Pradesh, India
Account Number	106120000148504
Account Since (Date/Year of Account Opening)	25.05.2011
Average Balance Maintained (If Possible)	---
Credit Facilities Enjoyed (If any)	OLCC : Rs.150.000 Million
Account Operation	Satisfactory
Remarks (If any)	Since 29.11.2002 Vardhman Health Specialities was banking with us, later on the concern name has been changed as Vardhman Specialities from 25.05.2011, enjoying CC facilities with our Bank and Account operations are satisfactory.

Facilities :

Secured Loan	31.03.2014 (Rs. in Million)	31.03.2013 (Rs. in Million)
City Union Bank	7.087	5.067
Cub Home Loan	0.000	0.312
Total	7.087	5.379

Auditors :
Name :	D. V. S. Prakash Rao Chartered Accountant
Address :	D No.1-51-6, Sector – 1, MUP Colony, Vishakapatnam, Andhra Pradesh, India
Mobile No.:	91-9849532301
Memberships :	--
Collaborators :	--
Sister Concern :	Vimal Tex Address : Vijayawada – 520001, Andhra Pradesh, India Line of Business : Cloth Merchant

CAPITAL STRUCTURE

AS ON: 31.03.2014

CAPITAL INVESTMENT

PARTICULAR	Amount (Rs. In Million)
Nikesh Kumar Jain	3.839
Add : Profit	2.737
Total	6.576

FINANCIAL DATA

[all figures are in Rupees Million]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2014	31.03.2013
PROPRIETOR’S FUNDS
1] Proprietor Capital		6.576	4.696
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		6.576	4.696
LOAN FUNDS
1] Secured Loans		7.087	5.379
2] Unsecured Loans		7.035	6.315
TOTAL BORROWING		14.122	11.694
DEFERRED TAX LIABILITIES		0.000	0.000
TOTAL		20.698	16.390
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		3.949	3.987
Capital work-in-progress		0.000	0.000
INVESTMENT		0.543	0.770
DEFERREX TAX ASSETS		0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	2.502	4.653
	Sundry Debtors	32.258	18.493
	Cash & Bank Balances	1.209	0.894
	Other Current Assets	0.000	0.000
	Loans & Advances	0.000	0.000
Total Current Assets		35.969	24.040
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	19.664	12.185
	Other Current Liabilities	0.029	0.157
	Provisions	0.070	0.065
Total Current Liabilities		19.763	12.407
Net Current Assets		16.206	11.633
MISCELLANEOUS EXPENSES		0.000	0.000
TOTAL		20.698	16.390

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2014	31.03.2013
	SALES
		Income	153.020	127.372
		Other Income	0.038	0.067
		TOTAL	153.058	127.439
Less	EXPENSES
		Cost of goods sold	139.813	115.909
		Salaries and Wages	1.768	1.357
		Bonus	0.144	0.139
		Repairs and Maintenance	0.110	0.112
		Rent	0.335	0.258
		Travelling expenses	0.713	0.591
		Vehicle and car Maintenance	0.379	0.331
		Printer and Stationery	0.142	0.151
		Telephone Charges	0.174	0.156
		Electricity Charges	0.236	0.185
		Discount in sales	3.104	2.824
		Interest paid bank	0.820	0.922
		Interest paid investor	0.759	0.705
		Freight outward	0.237	0.228
		Staff welfare	0.158	0.056
		Software development	0.084	0.041
		Insurance	0.047	0.037
		Reg and renewal fees	0.028	0.027
		Audit fees	0.017	0.015
		Office expenses	0.296	0.244
		Bank charges	0.038	0.168
		Commission	0.014	0.193
		Sales promotion	0.391	0.409
		Advertisement	0.011	0.005
		Freight inward	0.027	0.001
		Books and periodical	0.031	0.001
		Computer Maintenance	0.067	0.038
		Generator Maintenance	0.109	0.000
		Professional Fees	0.005	0.000
		TOTAL	150.057	125.103
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION		3.001	2.336
Less/ Add	DEPRECIATION/ AMORTISATION		0.264	0.295
	NET PROFIT		2.737	2.041

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013
Net Profit Margin (PAT / Sales)	(%)	1.79	1.60
Operating Profit Margin (PBIDT/Sales)	(%)	1.96	1.83
Return on Total Assets (PBT/Total Assets}	(%)	6.84	7.28
Return on Investment (ROI) (PBT/Networth)		0.42	0.43
Debt Equity Ratio (Total Debt/Networth)		2.15	2.49
Current Ratio (Current Asset/Current Liability)		1.82	1.94

FINANCIAL ANALYSIS

[all figures are in Rupees Million]

DEBT EQUITY RATIO

Particular	31.03.2013	31.03.2014
	(Rs. In Million)	(Rs. In Million)
Proprietor Capital	4.696	6.576
Profit and Loss Account	0.000	0.000
Net worth	4.696	6.576
Secured Loans	5.379	7.087
Unsecured Loans	6.315	7.035
Total borrowings	11.694	14.122
Debt/Equity ratio	2.490	2.148

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2013	31.03.2014
	(Rs. In Million)	(Rs. In Million)
Sales	127.372	153.020
		20.136

NET PROFIT MARGIN

Net Profit Margin	31.03.2013	31.03.2014
	(Rs. In Million)	(Rs. In Million)
Sales	127.372	153.020
Profit	2.041	2.737
	1.60%	1.79%

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	--
26]	Buyer visit details	--
27]	Financials, if provided	Yes
28]	Incorporation details, if applicable	Yes
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 LOAN

PARTICULARS	31.03.2014 (Rs. in Million)	31.03.2013 (Rs. in Million)
Term Loans
Varsha Jain	0.611	0.552
Vimal Textiles	3.123	2.818
Jugraj Phoolchand	0.400	0.400
Bhamridevi Jugraj	0.100	0.100
Isha Jain	2.801	2.445
Total	7.035	6.315

PROFILE:

They take this opportunity to introduce their self as the leading suppliers of, Oncology, Nephrology, Antiretroviral, Virology, Vaccines and Life saving medicines. They are one of the pharmaceuticals wholesalers in Andhra to have the specialized Cold Storage / distribution facilities for critical care, highly sensitive cold chain and high value products to the patients needs directly round the clock.

In addition, the office has a large walk-in cooler to maintain 2 to 8 degrees for the required injectables, infusions and also for life saving medicines. The entire office is under surveillance through a closed circuit television. Their entire premise is centrally air-conditioned to maintain within 25 degree Celsius temperature, ideal for medicines. It also assists an employee to increase their efficiency.

Only wholesaler who with Warmth and care, value its customers and pays much importance in retaining the long-lasting relationship built over the last 15 years

CURRENTLY DEALING WITH:

• Roche Products India Private Limited
• Johnson & Johnson Limited
• Bristol-Myers Squibb India Private Limited
• Novartis India Limited
• Mylan Pharmaceuticals Limited
• Panacea Biotec Limited
• Merck Specialities Limited
• Fresenius Kabi Oncology Limited
• Pfizer Limited
• Cipla Limited
• Dr. Reddys Lab
• Genx Limited
• Alniche Life Sciences
• Auxiliare Heath Care,
• Abbott Health Care Limited
• Intas Pharmaceuticals Limited
• Emcure Pharmaceuticals
• Gennova Biopharmaceuticals Limited
• Sun Pharma
• Glaxo Smith
• Steadfast Medisheild
• Ranbaxy Laboratories Limited
• Biocon Limited
• La Renon Health Care,
• Abbott India Limited
• L. G life sciences
• Sanofi Aventis, etc.

FIXED ASSETS

• Vehicle
• Furniture
• Computer
• Generator
• Flat
• Electronics

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. 63.85
UK Pound	1	Rs. 98.47
Euro	1	Rs. 71.51

INFORMATION DETAILS

Information Gathered by :	PPT
Analysis done by :	SUM
Report Prepared by :	SNT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
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	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		46

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.