MIRA INFORM REPORT

Report Date :

25.04.2007

IDENTIFICATION DETAILS

Name :	BIOSERVE CLINICAL RESEARCH PRIVATE LIMITED
Registered Office :	07-01-58, Amrutha Business Complex, Ameerpet, Hyderabad-500016, Andhra Pradesh
Country :	India
Financials (as on) :	31.03.2006
Date of Incorporation :	20.12.2004
Com. Reg. No.:	01-44908
CIN No.: [Company Identification No.]	U85110AP2004PTC044908
TAN No.: [Tax Deduction & Collection Account No.]	HYDB02172C
Legal Form :	Private Limited Liability Company
Line of Business :	Engaged in Clinical Research and Development Activities

RATING & COMMENTS

MIRA’s Rating :

B

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average/normal.	Small

Maximum Credit Limit :	USD 86000
Status :	Moderate
Payment Behaviour :	Slow
Litigation :	Clear
Comments :	Subject is an established company having moderate track records. Company’s profitability is under severe pressure. It has some accumulated losses. Payments are reported as slow but correct. The company can be considered normal for small business dealings at usual trade terms and conditions with slight caution

LOCATIONS

Registered Office :	07-01-58, Amrutha Business Complex, Ameerpet, Hyderabad-500016, Andhra Pradesh, India
E-Mail :	suneil@bioserve.co.in, accounts@bioserve.co.in
Website :	http://www.bioserve.co.in
Head Office :	6-56/ 6 / 1A, Opposite IDPL Factory, Balanagar, Hyderabad-500037, Andhra Pradesh, India
Tel. No.:	91-40/23770873/ 74
Area :	suneil@bioserve.co.in, info@bioserve.co.in / accounts@bioserve.co.in

DIRECTORS

Name :	Mr. K Sunil Chandra
Designation :	Director
Address :	809, Nagarjuna Hills, Punjagutta, Hyderabad-500082, Andhra Pradesh
Date of Birth/Age :	20.07.1975
Date of Appointment :	20.12.2004
Name :	Mr. S Surendernath Reddy
Designation :	Director
Address :	809, Nagarjuna Hills, Punjagutta, Hyderabad-500082, Andhra Pradesh
Date of Birth/Age :	29.10.1948
Date of Appointment :	20.12.2004
Name :	Mr. Comandur Parthasarthy
Designation :	Director
Address :	Plot No.848, Road No.34, Jubilee Hills, Hyderabad-500033, Andhra Pradesh, India
Date of Birth/Age :	07.07.1955
Name :	Mr. S Suneil Reddy
Designation :	Managing Director
Qualification :	Graduate in Biomedical Engineering from Osmania University, Hyderabad and Graduate in Electronics Engineering
Name :	Ms B Vishny Priya
Designation :	Director
Name :	Ms. Kokila Parthasarathy
Designation :	Director

KEY EXECUTIVES

Name :	Mr. V V S Shiv Prasad
Designation :	Vice President (Operations)
Qualification :	Post Graduate Degree in Analytical Chemistry
Name :	Mr. C V Satyendranath
Designation :	Head (Bioanalytical at Bioserve)
Qualification :	M. Sc. (Organic chemistry)
Experience :	17 years
Name :	Mr. P P S Kishore
Designation :	Head (QA)
Qualification :	M.Sc., PG Diploma in TQM, ISO9001, ISO14000, Diploma in ICCE
Name :	Mr. S V Krishna Prasad
Designation :	Head (Project Management and Study Coordination)
Address :	Bachelor of Commerce, diploma in Materials Management and Diploma in Journalism, Commerical Advertisement and Public Relations.
Experience :	25 years
Name :	Mr. Mohanlal Siva Prasad Sayana
Designation :	Clinical Investigator
Qualification :	MBBS
Experience :	15 years
Name :	Dr. Saikrishna
Designation :	Co-investigator
Qualification :	MBBS, PG Diploma in Geriatric Care
Experience :	10 years
Name :	Dr. Sangeeta Sahu
Designation :	Co-investigator
Qualification :	MBBS, PG Diploma in Clinical Research from institute of Clinical Research, India
Name :	Dr. Dwarkanath
Designation :	Co-Investigator
Qualification :	MBBS
Name :	Dr. Jayarami Reddy
Designation :	Co-investigator
Qualification :	MBBS and Diploma in Hospital Administration
Experience :	30 years

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

Names of Shareholders	No. of Shares	Percentage of Holding
Directors and their relatives		100.00

BUSINESS DETAILS

Line of Business :

Engaged in Clinical Research and Development Activities

GENERAL INFORMATION

No. of Employees :	Around 50
Bankers :	State Bank of India, Balanagar Branch, Hyderabad-500037, Andhra Pradesh, India ICICI Bank UTI Bank

Banking Relations :	Satisfactory
Auditors :
Name :	Charles Prabhakar & Company Chartered Accountants
Address :	Flat # 113, Satya Sai Apartment, Srinivasa Nagar East, S R Nagar, Hyderabad-500038, Andhra Pradesh, India

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
250000	Equity Shares	Rs.100/- each	Rs.25.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
207500	Equity Shares	Rs.100/- each	Rs.20.750 millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2006	31.03.2005
SHAREHOLDERS FUNDS
1] Share Capital		20,697	4.083
2] Share Application Money		2.120	0.000
3] Reserves & Surplus		0.500	0.000
4] (Accumulated Losses)		(1.673)	(1.996)
NETWORTH		21.697	2.087
LOAN FUNDS
1] Secured Loans		31.042	2.173
2] Unsecured Loans		0.000	0.000
TOTAL BORROWING		31.042	2.173
DEFERRED TAX LIABILITIES		0.000	0.000
TOTAL		52.739	4.260
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		42.303	2.973
Capital work-in-progress		0.000	0.000
INVESTMENT		0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	2.580	0.000
	Sundry Debtors	4.112	0.000
	Cash & Bank Balances	1.027	1.258
	Other Current Assets	2.703	0.005
	Loans & Advances	2.171	0.591
Total Current Assets		12.593	1.854
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	2.316	0.567
	Provisions	0.233	0.000
Total Current Liabilities		2.549	0.567
Net Current Assets		10.044	1.287
MISCELLANEOUS EXPENSES		0.392	0.000
TOTAL		52.739	4.260

PROFIT & LOSS ACCOUNT

PARTICULARS			31.03.2006	31.03.2005
Sales Turnover			18.223	0.000
Other Income			0.000	0.000
Total Income			18.223	0.000
Profit/(Loss) Before Tax			(1.673)	0.000
Provision for Taxation			0.000	0.000
Profit/(Loss) After Tax			(1.673)	0.000
Export Value			17.221	0.000
Expenditures :
	Cost of Goods Sold
	Manufacturing Expenses
	Administrative Expenses
	Raw Material Consumed
	Purchases made for re-sale
	Consumption of stores and spares parts
	Increase/(Decrease) in Finished Goods
	Salaries, Wages, Bonus, etc.		19.289
	Managerial Remuneration
	Payment to Auditors
	Interest
	Insurance Expenses
	Power & Fuel
	Depreciation & Amortization
	Other Expenditure
Total Expenditure			19.289	0.000

KEY RATIOS

PARTICULARS		31.03.2006	31.03.2005
PAT / Total Income	(%)	(9.18)	----
Net Profit Margin (PBT/Sales)	(%)	(9.08)	----
Return on Total Assets (PBT/Total Assets}	(%)	(103.04)	---
Return on Investment (ROI) (PBT/Networth)		(0.07)	----
Debt Equity Ratio (Total Liability/Networth)		1.55	1.31
Current Ratio (Current Asset/Current Liability)		4.94	3.27

LOCAL AGENCY FURTHER INFORMATION

Form 8 Particular for creation or modification of charges

Name of the company

Bioserve Clinical Research Private Limited

Presented By

Mr. Suneil Chandra, Director

1) Date and description of instrument creating the change

18.06.2005

Agreement of loan for overall limits

2) Amount secured by the charge/amount owing on the securities of charge

Term Loan	Rs.26 millions
Cash Credit	Rs.3.000 millions
Total	Rs.29.000 millions

3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given

Hypothecationof stock and receivabnels

Fisrt charge on the building/equipment aquired/ to be acquired with Bank Finance

Extension ofequitable mortgage of Ac.1.50 Gts. Of Factory land and building nbelonging to S S Reddy and K Suneil Chandra leased to Mr. Rama Sesha Salraw and builed Rice Mill

Extension of equitable mortgage of 919 Sq. Yards. Of vacant sits bnelonging to Mr. K Suneil Chandra leased to Mr. Ram Sesha Sairaw and builed Rice Mill

Personal Guarantee of S S Reddy and S S Sunil Chandra

Corporate Guarantee of Vijaya Diagnostic Center Private Limited

4) Gist of the terms and conditions and extent and operation of the charge.

Term Loan of Rs.26 millions repayable in 20 quarterly installments from June 2006 ROI 8.75%

Cash Credit Limit is Rs.3.000 millions ROI 8.75%

5) Name and Address and description of the person entitled to the charge.

State Bank of India

Balanagar Branch

Hyderabad-500037

6) Date and brief description of instrument modifying the charge

Dated 10.02.2006 supplememntalagreement of loan for increase in theoverall limit in fvavour of State Bank of Idnia for grating additional limit as under (Rs. In millions)

Particulars	Old Limits	New Limits
Term Loan	26.000	26.000
Working Capital
Fund Based
CC (Hypothecation)	3.000	3..000
Non fund Based
EPCG-BG	0.000	2.800
Total	29.000	31.800

7) Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification.

Particulars	Old Margins	New Margins
Term Loan	37%	37%
Raw Material/ Stores (Indegenious)	25%	25%
Receivables/ Book Debts (Cover 30 days)	35%	35%
FLC (Cash Margins to be kept in TDR/STDR)	25%	25%
BG	--	25%

Corporate Guaratee of Vijaya Diagnostic Center Private Limited increased from the Existin guarantee of Rs.29 millions to Rs.31.800 millions

Website Details :

Bioserve has highly experienced professionals in the field of clinical research. Our professional team seeks to provide a quality experience for all of our clients-both sponsor and volunteer alike and pride itself on meeting the challenges of research by providing solutions along with the flexibility and professionalism. Bioserve stands for quality that meets all of the requirements of its customers in a professional manner that is free of ethical, regulatory and scientific deficiencies.

Team

At Bioserve, we have the best of the brains working together to make a significant difference. These professionals with immense experience are committed to take clinical research to new heights of excellence. With strong and committed support from our highly charged team, we join hands with our clients and work as an extended arm, understanding our customers’ requirements thoroughly and contributing to the development of new and innovative products while adhering to the norms of ethical and regulatory compliance.

GENERAL MANAGEMENT

Mr.S.Suneil Reddy

Mr. S. Suneil Reddy is a qualified Electronics Engineering graduate from Florida State University, USA. He is also a graduate in Biomedical Engineering from Osmania University, Hyderabad, India and has been involved in the Healthcare industry for over 10 years as part of the management of, Vijaya Diagnostic Center (VDC), the pioneers in diagnostic medicare, in AP since 1981. VDC are an accredited clinical laboratory offering a complete range of services and also support the clinical trial needs of numerous large pharma sponsors. He has also been one of the promoters of an IT products company specializing in telecom product solutions. He is instrumental in promoting and in establishing Bioserve as a CRO offering services of the highest quality in compliance to the highest ethical standards and regulatory requirements. Bioserve is committed to ‘validating innovation’ and to enable our customers to bring innovative products to market in a timely manner.

Mr Reddy is the Managing Director of Bioserve

Mr. V. V. S. Shiv Prasad

Mr. V. V. S. Shiv Prasad is a qualified pharmaceutical industry veteran. Mr Prasad has a post graduate degree in Analytical Chemistry and has wide experience in the pharmaceutical industry in Quality Assurance & Quality Control and has been a part of the team for over 30 regulatory audits from MHRA-UK, USFDA, ANVISA-BRAZIL, MCC-SOUTH AFRICA,TGA-AUSTRALIA etc. He has worked with leading players in the Indian pharmaceutical space. His interests include Total Quality Management (TQM), Six Sigma, Process Analytics and other quality systems.

He is overseeing the overall operations of the CRO.

Mr.Shiv Prasad  is the Vice President-Operations at Bioserve

BIO ANALYTICAL

Mr.C.V.Satyendranath

Mr.Sathyendranath is a M.Sc (Organic chemistry). He has over 17 years experience in the pharmaceutical industry in establishing and managing GLP compliant analytical laboratory environments. He has worked with leading players in the Indian Pharmaceutical sector. He has the regulatory experience of having faced numerous regulatory audits by USFDA, UKMHRA, TGA, ISO9000, ISO14000.

Mr.Sathyendranath  is the Prinicipal Investigator at Bioserve

QUALITY ASSURANCE

Mr. P. P. S. Kishore

Mr. P. P. S. Kishore is a M. Sc., PG Diploma in TQM, ISO9001, ISO14000, Diploma in ICCE. Participation in more than 10 regulatory audits such as USFDA, KFDA, EDQM, MCC, WHO, ISO9000 and other customer audits. He has vast experience in pharmaceutical industry in the areas of QC, QA & RA. overlooking audit review and report archival system in areas of CU, BA, and Pharmacokinetic & Statistics and in QMS. He has worked for reputed Indian Pharmaceutical organizations.

Mr. Kishore  is Head-QA at Bioserve

PROJECT MANAGEMENT& STUDY COORDINATION

Mr. S. V. Krishna Prasad

Mr. S. V. Krishna Prasad is a Bachelor of Commerce, with a diploma in Materials Management and Diploma in Journalism, Commercial Advertisement & Public Relations. He has over 25 years experience in the project management related works in reputed pharmaceutical organizations He has also been a key team member for over 30 audits of ISO9000, ISO14000,USFDA, TGA, WHO, KFDA in these organizations. At NPIL's VFCD, Thane facility he was among the select few for the Managerial Grid Seminar, Grid International, USA.

Mr. Krishna Prasad is the Head-Project Management and Study Co-ordination at Bioserve.

CLINICAL TEAM

Dr.Saikrishna

Dr. S. Saikrishna is an MBBS, PG Diploma in Geriatric Care. He has over 10 years experience in the medical field. He had worked in the department of Health and Family Welfare in the State Government of Orissa. He has served in NIMS and in Indo-American Cancer hospital, Hyderabad where he has conducted multiple Phase III clinical trials in the therapeutic area of Oncology. Has completed the Clinical Research Professional Development Program on Clinical Trial Monitoring & Research Site Coordination, The ICH and GCP Guidelines from Kriger Research Center, Toronto, Canada.

Dr. Saikrishna is the Clinical Investigator at Bioserve.

Mr.Raghunatha Reddy

Mr. Raghunatha Reddy a M.Sc (Analytical chemistry). He has over 13 years experience in the pharmaceutical industry in establishing and managing GLP compliant analytical laboratory environments. He has worked with leading players in the Indian Pharmaceutical sector. He has the regulatory experience of having faced numerous regulatory audits by USFDA, TGA, ISO 9000.

Mr. Raghunath Reddy  is the Manager-Bioanalytical at Bioserve

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 records 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.41.64
UK Pound	1	Rs.83.11
Euro	1	Rs.56.46

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	1
--LIQUIDITY	1~10	4
--LEVERAGE	1~10	4
--RESERVES	1~10	2
--CREDIT LINES	1~10	2
--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
TOTAL		27

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	Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average/normal.	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
NR		In view of the lack of information, we have no basis upon which to recommend credit dealings	No Rating

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