MIRA INFORM REPORT

Report Date :

17.02.2007

IDENTIFICATION DETAILS

Name :	SYNGENE - BIOCON LIMITED
Registered Office :	20^th KM, Hosur Main Road, Hebbagodi, Bangalore – 561229, Karnataka
Country :	India
Financials (as on) :	31-03-2006
Date of Incorporation :	20.11.1978
Com. Reg. No.:	08-3417
CIN No.: [Company Identification No.]	U00309KA1978PLC003417
TAN No.: (Tax Deduction & Collection Account No.)	BLRB00214E
PAN No.: (Permanent Account No.)	45-152-CT-
Legal Form :	Subject is a public limited liability company. The company’s shares are listed on the stock exchanges.
Line of Business :	Manufacturers, Exporters and Importers of all kinds of Enzymes, Oleoresins, Catalytic Preparations, Organic Chemicals and Organic and Bio-Chemicals, etc.

RATING & COMMENTS

MIRA’s Rating :

A

RATING		STATUS	PROPOSED CREDIT LINE
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

Maximum Credit Limit :	USD 32000000
Status :	Good
Payment Behaviour :	Good
Litigation :	Clear
Comments :	Subject is a well established company engaged in manufacturing and marketing of Biochemicals, Enzymes and Pharmeceuticals. The company’s track are fine and is making very good progress in its turnover and profits. It has also plans to expand further. The company’s trade relations are reported as fair. Payments are usually correct and as per commitments. The company can be considered good for normal business dealings.

LOCATIONS

Registered Office/Factory :	20^th KM, Hosur Main Road, Hebbagodi, Bangalore – 561229, Karnataka, India
Tel. No.:	91-80-28422169/28523434
Fax No.:	91-80-28422623/25531662/28523423
E-Mail :	1. info@biocon.com 2. contact.us@bioconindia.com
Website :	http://www.biocon.com
Area :	15000 sq.fts.
Location :	Owned
Plant Location :	Plot No 113/C2, Bommasandra Industrial Area, Bommasandra, Bangalore – 560099 Plot No 2,3,4 & 5, Bommasandra – Jigani Link Road, Bangalore - 560099
Overseas office:	1406, Woodbridge, Commons Iselin, NJ   08830, USA
Tel. No.:	91-732 636 2950
Fax No.:	91-732 636 2951
Branches :	Located at:- 210 A, Gokul Arcade, Sahar Road, Garware Chowk, Vile Parle (E), Mumbai - 400 057, Maharashtra Tel. No. 91-22-56919760/61/62 No.15, Narmada Apartments, Alaknanda, New Delhi - 110 019 Tel. No. 91-11-26449819 No. 49/1, Rastra Guru Avenue, Nagar Bazar, Dum Dum, Kolkata - 700 028, West Bengal Tel. No. 91-33-25501299

DIRECTORS

Name :	Mrs. Kiran Mazumdar
Designation :	Chairperson and Managing Director
Address :	874/1, 7^th Cross III Block, Koramangala, Bangalore - 560 034, Karnataka, India
Date of Birth/Age :	20.11.1978
Qualification :	B.Sc. (Hons.), PG Diploma in Malting & Brewing
Experience :	53 Years
Date Of Appointment :	01.12.1978
Previous Employment:	Jupiter Breweries, Kolkata, West Bengal (Consultants)
Name :	Mr.J. M. M. Shaw
Designation :	Whole- time Director
Address :	874/1, 7^th Cross III Block, Koramangala, Bangalore - 560 034, Karnataka, India
Date of Birth/Age :	12/04/1949
Date of Appointment :	29/09/1998
Name :	Dr. Neville Bain
Designation :	Director
Address :	High Trees, Cavendish Road, Waybridge, Surrey KT 13, OJX, UK
Date of Birth/Age :	17/04/1955
Date of Appointment :	08/08/2000
Name :	Prof. Ravi Mazumdar
Designation :	Director
Address :	706, Carrolton Boulevard, West Lafayeete, IN - 47906, USA
Date of Birth/Age :	14/07/1940
Date of Appointment :	08/08/2000
Name :	Prof. Charles L. Cooney
Designation :	Director
Address :	14/09/1961
Date of Birth/Age :	35, Chestnut Palace, Brookline MA , USA
Date of Appointment :	27/07/2001
Name :	Dr. Bala Manian
Designation :	Mr. Catherine Rosenberg
Name :	Mr. Suresh Talwar
Designation :	Director
Name :	Prof Catherine Rosenberg
Designation :	Alternate Director
Name :	Mr. John Shaw
Designation :	Director
Name :	Mr. Anthony Allison
Designation :	Director

KEY EXECUTIVES

Name :	Mr. Ajay Bhardwaj
Designation :	President – Group Marketing
Date of Birth/Age :	46 Years
Qualification :	M. S. [Chemical Engineering]
Experience :	22 Years
Date of Appointment :	01.01.1986
Last Employment :	Project Engineer Max India Limited, New Delhi
Name :	Dr. Chaitanya R. Divgi
Designation :	Chief Executive
Name :	Mr. J M M Shaw
Designation :	Vice Chairman
Date of Birth/Age :	57 Years
Qualification :	M. A [Hons]
Experience :	35 Years
Date of Appointment :	01.04.1999
Last Employment :	President – Berghaus International Fashion Group, Holland
Name :	Prof. Hans Wigzell
Designation :	Head [Centre for Medical Innovations]
Name :	Dr. Arun Chandavarkar
Designation :	President (Operations and Technology)
Date of Birth/Age :	45 Years
Qualification :	Ph. D. [Chemical Engineering]
Experience :	15 Years
Date of Appointment :	08.11.1990
Name :	Mr. Murali Krishnan
Designation :	President (Finance)
Date of Birth/Age :	50 Years
Qualification :	B. Com. CA
Experience :	24 Years
Date of Appointment :	09.11.1981
Name :	Mr. Rakesh Bamzai
Designation :	Vice President, Marketing
Date of Birth/Age :	45 Years
Qualification :	B. Sc. [Food and Fermentation Tech]
Experience :	17 Years
Date of Appointment :	19.04.1995
Last Employment :	Assistant General Manager – Marketing Advanced Biochemical’s Limited
Name :	Mr. Chinappa M. B.
Designation :	Vice President, Finance
Date of Birth/Age :	38 Years
Qualification :	B. Com. ACA
Experience :	13 Years
Date of Appointment :	12.07.1999
Last Employment :	Finance Manager ITC Limited, Calcutta
Name :	Mr. Shrikumar Suryanarayan
Designation :	President (Research & Development)
Date of Birth/Age :	46 Years
Qualification :	M. Tech [Chemicals Engineering]
Experience :	22 Years
Date of Appointment :	02.05.1984
Name :	Dr. Goutam Das
Designation :	Chief Operating Officer, Syngene
Name :	Mr. A. S. Arvind
Designation :	Chief Operating Officer, Clinigene
Name :	Dr. Sambasivam Ganesh
Designation :	Chief Scientific Officer
Name :	Dr. Subir Kumar Basak
Designation :	General Manager, Business Development
Name :	Mr. Ravindra K. C.
Designation :	General Manager, production
Name :	Dr. Harish V. Iyer
Designation :	General Manager, Research and Development
Name :	Dr. Tara Jayaram
Designation :	General Manager, Quality Assurance
Name :	Mr. Ramalingeswara Rao K.
Designation :	General Manager, Marketing
Name :	Mr. Akash S. Puranik
Designation :	General Manager, Marketing
Name :	Mr. Sandeep Rao
Designation :	General Manager, Marketing
Date of Birth/Age :	32 Years
Qualification :	M. Sc. PGDM
Experience :	7 Years
Date of Appointment :	15.06.1999
Name :	Mr. Gautam Reddy
Designation :	General Manager, Group HR
Name :	Mr. Sundaresh S. R.
Designation :	General Manager, Commercial
Name :	Mr. Anindya Sircar
Designation :	General Manager, IPR
Name :	Mr. Prasad B. S. V.
Designation :	General Manager, Productions

MAJOR SHAREHOLDERS

Names of Shareholders	No. of Shares	Percentage of Holding
Promoters' Holding
Promoters
Indian Promoters	39643782	39.64 %
Foreign Promoters	20470376	20.47 %
Persons acting in concert	780415	0.78 %
Non Promoters Holding
Institutional Investors
Mutual Funds and UTI	1263345	1.26 %
Banks, FIs, Insurance Companies	1206524	1.21 %
Foreign Institutional Investors	11511364	13.98 %
Others a) Private Corporate Bodies	1123419	1.12 %
b) Indian Public	15114337	15.11 %
c) NRIs	684507	0.68 %
d) Any other i) Trusts	6342492	6.34 %
ii) HUF	193884	0.19 %
iii) Clearing Members	69494	0.07 %
iv) Directors(s)	1174316	1.17 %
v) Foreign Nationals	420745	0.42 %
Total	100000000	100.00 %

BUSINESS DETAILS

Line of Business :

Manufacturers, Exporters and Importers of all kinds of Enzymes, Oleoresins, Catalytic Preparations, Organic Chemicals and Organic and Bio-Chemicals, etc.

Products :

Products Description	ITC Code
Enzymes for Pharmaceutical Use	350790
Organic and Inorganic Chemicals	280000 & 290000

Brand Names :

"BIOCON"

PRODUCTION STATUS

Particulars	Unit	Actual Production
Enzymes	Kg.	4021221
Pharmaceuticals	Kg.	6495665

GENERAL INFORMATION

No. of Employees :

250

Bankers :

Ø State Bank of India, Overseas Branch, M. G. Road, Bangalore, Karnataka

Ø Hongkong Bank, Manipal Centre, Dickenson Road, Bangalore - 560 042, Karnataka

Tel. No. 91-80-5585444

Fax No. 91-80-5584411

Facility - Charge dated 3^rd January, 2002 for Rs. 100.00 millions registered with the ROC

Ø Canara Bank, Vasanthanagar Branch, Bangalore - 560 052, Karnataka, India

Facilities :

Facility	31.03.2006
From Banks : -
Cash Credit, Packing Credit, etc	677.549

Cash credit, packing credit, etc

On May 10, 2004, the Company renewed its total rupee and foreign currency denominated fund based working capital facilities with State Bank of India ('SBI') of Rs 200.000 Millions. These facilities are repayable on demand, secured by a pari-passu first charge on current assets and carry an interest rate of 2 to 6 per cent per annum for foreign currency denominated loans and 7 to 13 per cent per annum for rupee loans. The Company has utilised Rs 130.007 Millions (March 31, 2005 -- Rs 41.567 Millions) as of March 31, 2006 inclusive of foreign currency loans of Rs 128.856 Millions (US$ 2.897) (March 31, 2005 -- Rs 41.245 Millions) (US$946) as of March 31, 2006.

On August 23, 2004, the Company renewed its fund and non fund based working capital facilities with Hongkong and Shanghai Banking Corporation ('HSBC') for Rs 545.000 Millions. These facilities are repayable on demand, secured by pari-passu first charge on current assets of the Company and carry an interest rate of 2 to 6 percent per annum for foreign currency denominated loans and 5 to 15 per cent per annum for rupee loans. The Company has utilised fund based limits of Rs 239.405 Millions (March 31,2005 -- Rs 305.340 Millions) inclusive of foreign currency denominated loans of Rs 218.419 Millions (US$ 4,910) [March 31, 2005 -- Rs 305.340 Millions (US$ 7,000)] as of March 31, 2006.

On August 26, 2004, the Company renewed its working capital facilities with Canara Bank ('CB') for Rs 200.000 Millions. These facilities are repayable on demand, secured by a pari-passu first charge on current assets of the Company and carry an interest rate of 2 to 6 per cent for foreign currency denominated loans and 7 to 12 per cent per annum for rupee loans. The Company has utilised Rs 114,586 (March 31, 2005 -- Rs 15.512 Millions) as of March 31, 2006 inclusive of foreign currency denominated loans of Rs 112,116 (US$ 2.521 ) [March 31, 2005 -- Rs 14.451 Millions (US$ 331)].

On March 7, 2005, the Company renewed its working capital facility with Export Import Bank ('EXIM Bank') for Rs 310.000 millions. These facilities are repayable on demand, secured by a pari-passu first charge on current assets of the Company and carry an interest rate of 2 to 4 per cent for foreign currency denominated loans and 7 to 12 per cent per annum for rupee loans. The Company has not drawn any amounts at March 31, 2006 and at March 31, 2005.

On November 5, 2004, the Company renewed its fund and non fund based working capital facility with ABN Amro Bank for Rs 230.000 Millions. These facilities are repayable on demand, secured by a pari passu second charge on the fixed assets of the Company and carry an interest rate of 2 to 6 per cent for foreign currency denominated loans and 7 to 12 per cent per annum for rupee loans. The Company has utilised Rs 193.551 Millions (March 31, 2005 - Rs 130.860 Millions) inclusive of foreign currency denominated loans of Rs192,262 (US$ 4,322) [March 31, 2005 -- Rs 130.860 Millions (US$3,000)] as of March 31, 2006.

On August 10, 2005 all the above banks have entered into an inter-se agreement for operational convenience for the above working capital limits effecting the modification of the above charge and creation of a pari passu charge on the current assets of the Company in favour of all the above banks.

Banking Relations :	Satisfactory
Auditors :	Arthur Anderson Chartered Accountants Bangalore, Karnataka
Associates:	˜ Biocon Group ˜ Syngene International Private Limited Syngene International Private Limited is a 99.99% owned subsidiary of Biocon. It was incorporated on Novemvber 18, 1993. By way of a restructuring, 99.9% of the shares in Syngene held by Kiran Mazumdar Shaw, ICICI and a few other scientists were transferred to Biocon in consideration for the issue of shares by Biocon to the shareholders of Syngene on March 31, 2002. The paid-up capital of Syngene is Rs. 28.750 millions. ˜ Clinigene International Private Limited Clinigene International Private Limited is a 100% owned subsidiary of Biocon Limited. It was incorporated on August 4, 2000 with an authorised capital of Rs 5.000 millions. The paid-up capital of Clinigene is Rs. 0.500 million. v Biocon Biopharmaceuticals Private Limited (BBPL) BBPL is a Joint Venture company of Biocon in collaboration with CIMAB SA, Cuba. The equity participation by Biocon is 51%. The Joint Venture agreement was entered on February 22, 2002. The paid-up capital of BBPL is Rs. 8.800 millions.
Subsidiaries :	· Ciligene International Private Limited · Syngene International Private Limited · Biocon Biopharmaceuticals Private Limited
Joint venture:	· Syngene International Private Limited · Clinigene International Private Limited · Biocon Biopharmaceuticals Private Limited

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
120,000,000	Equity shares	Rs. 5/- each	Rs. 600.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
100,000,000	Equity shares	Rs. 5/- each	Rs. 500.000 millions

Notes :

(a) Of the above equity shares :

(i) 30,800 equity shares of Rs 100/- each were allotted as fully paid bonus shares by capitalisation of general reserve in the year ended March 31, 1997.

(ii) 23,471 equity shares of Rs 100/- each were allotted as fully paid-up shares in the year ended March 31, 2000 pursuant to a contract for consideration other than cash.

(iii) On October 8, 2001, the Company issued 12,153 equity shares of Rs 100/- each to the ESOP Trust under an Employee Stock Option Plan ('ESOP Plan') and the ESOP Trust 350 equity shares of Rs 100/- each from certain individuals.

(iv) On March 30, 2002, the Company acquired 99.9 per cent equity in Syngene through the issue of 202,780 equity shares of Rs 10/- each. The consideration was determined on the basis of a fair valuation, as approved by the statutory authorities in India. The related share premium at Rs 403.8 per equity share has been credited to share premium account.

(v) On May 9, 2002, the Company has further issued 15,870 equity shares of Rs 10/- each to the Trust under the ESOP Plan. The Trust on October 20, 2003 acquired 2,500 equity shares of Rs 10/- each from certain individuals. The total shares issued to the Trust were 7,023,100 equity shares of Rs 5/- each of which grants have been made for 3,822,039 equity shares of the Company under the ESOP Plan as at March 31, 2006. [Refer Note 19]

(vi) In March 2004, the Company made an IPO of 10,000,000 fresh equity shares of Rs 5 each at a price of Rs 315 per share.

(b) The shareholders at the Extraordinary General Meeting ('EGM') of the Company held on February 25, 2002, approved the subdivision of equity shares of face value of Rs 100/- each into ten equity shares of face value of Rs 10/- each. The Board of Directors in their meeting held on March 30, 2002 passed a resolution for effecting the sub-division. Subsequent to this sub-division, the authorized equity share capital of Rs 20.000 Millions has been divided into 2,000,000 equity shares of Rs 10/- each and the then issued, subscribed and paid-up capital of Rs 18.218 Millions as at March 31, 2002 was divided into 1,821,780 equity shares of Rs 10/- each.

(c) The shareholders at the EGM of the Company held on November 11, 2003, approved the sub-division of equity shares of face value of Rs 10/- each into 2/- equity shares of Rs 5/- each and increase in authorised capital from Rs 20.000 Millions to Rs 600.000 Millions. Subsequent to this sub-division, the authorised equity share capital of Rs 20.000 Millions has been divided into 4,000,000 equity shares of Rs 5/- each and the issued, subscribed and paid -up capital of Rs 18.377 Millions, has been divided into 3,675,300 shares of Rs 5/- each.

(d) Further, the shareholders at the EGM of the Company held on November 11, 2003 approved the allotment of 86,324,700 equity shares of Rs 5/- each as bonus shares in the ratio of 1 : 23.4877958 to the shareholders existing as on November 11, 2003, which was the approved record date for this purpose, by capitalisation of the balance in the profit and loss account of Rs 431.624 Millions.

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2006	31.03.2005	31.03.2004
SHAREHOLDERS FUNDS
1] Share Capital		500.000	500.000	500.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		7530.435	6459.384	4916.314
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		8030.435	6959.384	5416.314
LOAN FUNDS
1] Secured Loans		677.549	493.279	472.255
2] Unsecured Loans		372.927	270.136	174.657
TOTAL BORROWING		1050.476	763.415	646.912
DEFERRED TAX LIABILITIES		279.738	219.597	176.680
TOTAL		9360.649	7942.396	6239.906
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		2278.123	2048.296	1441.090
Capital work-in-progress		4564.301	3100.026	543.125
INVESTMENT		1390.554	2237.345	89.329
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	1053.083	712.922	839.521
	Sundry Debtors	2060.369	1728.842	1159.635
	Cash & Bank Balances	20.035	34.201	3175.114
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	212.135	362.845	267.203
Total Current Assets		3345.622	2838.810	5441.473
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	2217.951	2282.081	1275.111
	Provisions
Total Current Liabilities		2217.951	2282.081	1275.111
Net Current Assets		1127.671	556.729	4166.362
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		9360.649	7942.396	6239.906

PROFIT & LOSS ACCOUNT

PARTICULARS	31.03.2006	31.03.2005	31.03.2004
Sales Turnover [including other income]	6931.835	6621.611	5034.462
Profit/(Loss) Before Tax	1608.734	1885.095	1474.802
Provision for Taxation	273.904	141.215	228.076
Profit/(Loss) After Tax	1334.830	1743.880	1246.726
Export Value	3577.231	3761.484	2999.826
Import Value	2833.239	2816.353	2111.684
Total Expenditure	5094.605	4555.601	3421.130

QUARTERLY RESULTS

PARTICULARS	30.06.2006	30.09.2006	31.12.2006
Type	1^st Quarter	2^nd Quarter	3^rd Quarter
Sales Turnover	1837.000	2191.100	2140.800
Other Income	14.300	10.500	22.700
Total Income	1851.300	2201.600	2163.500
Total Expenditure	1429.300	1651.400	1471.900
Operating Profit	422.000	550.200	691.600
Interest	16.600	18.500	19.300
Gross Profit	405.400	531.700	672.300
Depreciation	90.200	156.500	161.000
Tax	42.100	-03.900	14.500
Reported PAT	275.700	359.700	475.100

Notes:

200606 Quarter 1 –

Expenditure Includes (Increase)/Decrease in Stock in Trade Rs (45.40) million Consumption of Raw Materials Rs 1054.90 million Power Cost Rs 101.80 million Employee Cost Rs 117.10 million Other Expenses Rs 200.90 million Tax Includes Provision for Current Tax (including fringe benefit tax) Rs 42.10 million Deferred Tax Rs (2.60) million Status of Investor Complaints for the quarter ended June 31, 2006 Complaints Pending at the beginning of the quarter Nil Complaints Received during the quarter 16 Complaints disposed off during the quarter 16 Complaints unresolved at the end of the quarter Nil EPS is Basic 1. The earnings considered in ascertaining the Companys earnings per share comprise of the net profit after tax. The number of shares used in computing the basic earnings per share is the weighted average number of shares outstanding during the period / year. The number of shares used in computing diluted earnings per share comprises the weighted average share considered for deriving basic earnings per share, and also the weighted average number of shares, if any which would have been issued on the conversion of all dilutive potential equity shares. In accordance with the revised SEBI (Employee Stock Option Scheme and Employee Stock Purchase Scheme) Guidelines, 1999 (Revised),the ESOP Trust has been consolidated with the Company. 2. During the quarter, the Company has charged depreciation of Rs 23.30 million on assets capitalised as of June 07, 2006, even though the assets have not been put to commercial use, the Company has also capitalised the intellectual property assets acquired from Nobex Corporation, USA as Intangible Assets. 3. The above results were reviewed by the Audit committee on July 18, 2006 and then approved by the Board of Directors at their meeting held on July 19, 2006. 4. The figures have been reclassified wherever required, to conform with the classification in the financial statements for the quarter ended June 30, 2006.

200609 Quarter 2 –

Expenditure Includes (Increase)/Decrease in Stock in Trade Rs (263.30) million Consumption of Raw Materials Rs 1336.20 million Power Cost Rs 178.40 million Employee Cost Rs 153.10 million Other Expenses Rs 247.00 million Tax Includes Provision for Current Tax (including fringe benefit tax) Rs (3.90) million Deferred Tax Rs 19.40 million Status of Investor Complaints for the quarter ended September 30, 2006 Complaints Pending at the beginning of the quarter Nil Complaints Received during the quarter 38 Complaints disposed off during the quarter 38 Complaints unresolved at the end of the quarter Nil EPS is Basic 1. The earnings considered in ascertaining the Company's earnings per share comprise of the net profit after tax. The number of shares used in computing the basic earnings per share is the weighted average number of shares outstanding during the period / year. The number of shares used in computing diluted earnings per share comprises the weighted average share considered for deriving basic earnings per share, and also the weighted average number of shares, if any which would have been issued on the conversion of all dilutive potential equity shares. In accordance with the revised SEBI (Employee Stock Option Scheme and Employee Stock Purchase Scheme) Guidelines, 1999 (Revised),the ESOP Trust has been consolidated with the Company. 2. In the current quarter, the Company has revised its effective annual tax rate for the current year after considering the impact of Special Economic Zone ('SEZ') approval for its new facilities. Accordingly, the current quarter tax charge, which is based on the revised annual effective tax rate, also includes adjustment with respect to bringing the first quarter (FY 06-07) tax charge in line with the revised annual effective tax rate. 3. The above results were reviewed by the Audit committee on October 17, 2006 and then approved by the Board of Directors at their meeting held on October 18, 2006. 4. The figures have been reclassified wherever required, to conform with the classification in the financial statements for the quarter and half year ended September 30, 2006.

200612 Quarter 3 –

Expenditure Includes (Increase)/Decrease in Stock in Trade Rs (15.20) million Consumption of Raw Materials Rs 958.00 million Power Cost Rs 165.10 million Employee Cost Rs 169.20 million Other Expenses Rs 194.70 million Tax Includes Provision for Current Tax (including fringe benefit tax) Rs 14.60 million Deferred Tax Rs 21.60 million EPS is Basic Status of Investor Complaints for the quarter ended December 31, 2006 Complaints Pending at the beginning of the quarter Nil Complaints Received during the quarter 39 Complaints disposed off during the quarter 39 Complaints unresolved at the end of the quarter Nil 1. The earnings considered in ascertaining the Company's earnings per share comprise of the net profit after tax. The number of shares used in computing the basic earnings per share is the weighted average number of shares outstanding during the period / year. The number of shares used in computing diluted earnings per share comprises the weighted average share considered for deriving basic earnings per share, and also the weighted average number of shares, if any which would have been issued on the conversion of all dilutive potential equity shares. In accordance with the revised SEBI (Employee Stock Option Scheme and Employee Stock Purchase Scheme) Guidelines, 1999 (Revised),the ESOP Trust has been consolidated with the Company. 2. The above results were reviewed by the Audit committee on January 17, 2007 and then approved by the Board of Directors at their meeting held on January 18, 2007. 3. The figures have been reclassified wherever required, to conform with the classification in the financial statements for the quarter and nine months ended December 31, 2006.

KEY RATIOS

PARTICULARS	31.03.2006	31.03.2005	31.03.2004
Debt Equity Ratio	0.12	0.11	0.20
Long Term Debt Equity Ratio	0.04	0.04	0.09
Current Ratio	0.97	1.68	2.25
TURNOVER RATIOS
Fixed Assets	2.48	2.99	3.10
Inventory	8.21	8.82	8.14
Debtors	3.82	4.74	5.60
Interest Cover Ratio	65.86	71.08	60.95
Operating Profit Margin (%)	25.69	30.58	30.81
Profit Before Interest and Tax Margin (%)	22.54	27.94	28.21
Cash Profit Margin (%)	21.57	28.13	26.06
Adjusted Net Profit Margin (%)	18.42	25.48	23.45
Return on Capital Employed (%)	19.47	27.80	37.57
Return on Net Worth (%)	17.84	28.25	37.50

STOCK PRICES

Face Value	Rs. 10.00/-
High	Rs. 441.25/-
Low	Rs. 416.00/-

LOCAL AGENCY FURTHER INFORMATION

HISTORY

Biocon Limited was incorporated in the year 1978. Biocon is India's largest biotech company with a presence in bio-pharmaceuticals, enzymes, customs research and clinical research. The company was promoted as a joint venture with Ireland-based MNC Biocon Biochemicals. Later, Unilever Plc acquired Biocon Biochemical's stake in February 1995, but sold it to the current promoters in June 1999.

Biopharmaceuticals has been and will continue be the mainstay of Biocon it promise exciting growth opportunities. This segment is involved primarily in manufacture and marketing of active pharmaceutical ingredients (API) that require advanced fermentation and other skills and offer significant market potential in the regulated markets once the product goes off patent. Within this segment, statins constitute major products. Statins are a group of popular cholesterol-lowering drugs.  

The significant growth in sales in the recent past has resulted in full utilisation of capacity in the existing manufacturing facilities. A number of generic companies who are in the process of registering their formulations in the US and Europe for sale (upon expiry of patents) have evinced interest to use Biocon's statins. The company has already filed 8 drug master files in the US and 7 in the Europe for its various products. To cater to this increased demand, it plans to invest Rs 413.4 crore over a period of time up to FY2006 towards setting up a new fermentation and chemical synthesis facility as a 100% EOU.  

The facility will initially be for manufacture of statins. It will have a modular design and will contain provisions for adding further capacity as and when required. Further, the facility will also be capable of manufacturing other products involving fermentation as well as synthetic conversion processes.  

 In March 2004, the company tapped the capital market through 100% book building method. The IPO comprises of 10 million equity shares of Rs 5 each with a price band of Rs.270 -Rs.315 per equity share. The proceeds from the book building will be utilised for setting up a new facilities and chemical synthesis operations with an estimated fund of Rs.413.40 crores. 

During 2004-05 the company has launched Insugen its branded formulation of recombinant human insulin for diabetes in the Indian Market. 

The company has commenced Phase II Clinical trails for its drug TheraCIM (h-R3), a humanised monoclonal antibody, for the treatment of head and neck cancer and will be extended to include Pancreatic, Colorectal, Lung, Breast and Brain Cancers. 

The subsidiaries of Biocon are Syngene International Private Limited and Clinigene International Private Limited Biocon Biopharmaceuticals Private Limited, a joint venture company formed by Bicon with CIMAB a Cuban company, to manufacture monoclonal antibodies and other Recombinant Therapeutics. The construction of state of the art Biologicals facility for the above-mentioned products has commenced and the project is expected to be completed by September 2005.

Fixed Assets

• Land
• Buildings
• Leasehold improvements
• Plant and machinery
• Research and development equipment
• Furniture and fixtures
• Vehicles

Milestone

Year	Key Events, Milestones and Achievements
November 1978	Biocon commenced operations as a joint venture between the promoter Ms. Kiran Mazumdar-Shaw and Biocon Biochemical’s Limited, an Ireland based multinational. The company began the manufacture and export of Papain, a plant enzyme, and Isinglass, a marine hydrocolloid, which are key products for the brewing industry
July 1982	BCZ was incorporated to focus on research and development in relation to enzymes.
1984	Biocon began focussing on research and development, to develop novel enzymes for the Biocon group worldwide through solid-state fermentation process technology referred to as "koji technology".
April 1989	HLX was incorporated as a pharmaceutical biotechnology company, which later diversified into pharmaceutical bulk activities.
July 1989	Biocon along with Unit Trust of India/Technology Development and Investment Corporation of India (UTI/TDICI), Biocon Biochemical’s Limited, Ireland and others invested in BCZ.
November 1992	UTI/TDICI transferred their entire shareholding in BCZ to Biocon Limited, Ireland. BCZ commenced operations
January 1993	Bicon received ISO 9001 accreditation from RWTUV, Germany
November 1993	Syngene was incorporated as a CRO to conduct research for third party clients in the area of drug discovery and development. Syngene's skill set in the areas of molecular biology and synthetic chemistry are complementary to their expertise in the areas of fermentation and microbial genetics.
February 1995	Unilever acquired 50% of the shares in BCZ by acquiring the entire shareholding of Biocon Biochemicals Limited, Ireland and Biocon Limited, Ireland. Unilever also acquired shares in Biocon from Biocon Biochemicals Limited, Ireland and Biocon Limited, Ireland and others
December 1995	BQIL was established with their Company and Unilever acquiring around 50% stake each. BQIL commenced manufacturing operations from August 1996
February 1998	HLX commenced manufacturing operations
June 1999	Glentec International acquired the entire shareholding of Unilever in BCZ, BQIL and the company.
March 2000	The company acquired the entire shareholding of BCZ, BQIL & HLX from Glentec International, Ms. Kiran Mazumdar-Shaw and others in exchange for issue of shares by the Company. Glentec International acquired a majority stake (approx 64%) in Syngene as part of a fresh issue of shares.
March 2000	ICICI Ventures and its affiliate funds were inducted as shareholders of the company by way of subscription to 15.35% of the share capital of the company.
May 2000	ICICI Ventures, and its affiliate funds also acquired 10% in Syngene from Glentec International.
May 2000	The company’s proprietary bioreactor christened PlafractorTM based on solid matrix fermentation received a U.S. patent
December 2000	Clinigene was incorporated to conduct longitudinal clinical studies in select disease segments as a wholly owned subsidiary of the company.
January 2001	As part of a court based restructuring, BCZ, BQIL and HLX were amalgamated into the company, with effect from April 1, 1999. The company Lovastatin facility was approved by the US FDA
March 2002	The company acquired 99.99% of Syngene from its other shareholders, including ICICI Venture and its affiliate funds, which divested their entire stake in Syngene in exchange for issue of shares by the company. Syngene was made a 99.99% subsidiary of Biocon Limited.
March 2003	BBPL was incorporated to manufacture and market a select range of biotechnology based life saving drugs as a 51:49 joint venture with CIMAB and the company
May-September 2003	ICICI Ventures along with its affiliate funds divested its shareholder interests in the company in favour of other private equity funds, being AIG AOF, a wholly owned subsidiary of AIG Asian Opportunity Fund L.P. and IVF and also to the Welfare Trust.
March 11, 2004	Biocon goes for an IPO to raise Rs 3000.000 millions to fund its huge capital expansion plans.
March 18, 2004	Biocon's IPO gets oversubscribed 32 times

Results of Operations: 

During the year under review, consolidated revenues grew 9 percent while Operating Profits (EBITDA) and Profit after tax declined by 2 percent and 12 percent respectively. The lower profits were due to the challenging conditions in the European Statin markets with sharp price erosion adversely impacting margins. Operating profit margins were however sustained at a healthy 30% due to a very broad and attractive spread of their business and high efficiency of their manufacturing operations.

Business Operations overview and Outlook: 

The Statin sales were affected during the year despite sharp volume growth and increased market share, due to significant pricing pressure in European Markets. Sales were also affected due to delayed launch of Pravastatin and Simvastatin in the United States consequent to the grant of 6 months exclusivity to the generic players who were the first to file ANDAs. However, the opening up of the US market in the later half of FY 2007 is likely to see a surge in sale of statins. To meet this increased demand, the Company is setting up a new facility at Biocon Park and is expected to commence commercial production later this year. 

The Company has made significant progress in Insulin with increased sales in both the domestic and export markets. The product is under registration in over 25 countries in Asia and Latin America and in addition, the Company is in negotiations with various partners for registering the product in the EU markets. During the year the Company has also entered into a product licensing agreement with a speciality pharmaceutical Company in Europe, for developing and marketing an intranasal spray formulation for administering insulin in 85 countries across Asia, Africa, and the Middle East. The agreement also involves a long-term supply of bulk insulin by Biocon. 

Immunosuppressants has also been a key contributor to the overall sales growth of 8% in bio-pharmaceuticals . This segment will offer significant growth opportunities during 2008 to 2010 consequent to product patent expiry of two key products in this segment. 

Sales of Enzymes declined during the year due to capacity constraints. The increased capacity consequent to the setting up of the new facility at Biocon Park is expected to also contribute to the growth of Enzymes in the coming years.  

Retail sales of Insulin and a range of cardio-diabetic drugs have made good progress in the Indian market and is expected to substantially build on this initial success. 

Biocon continues to make good progress in its drug discovery initiatives. During the year, biocon acquired the intellectual property assets of its research collaboration partner Nobex Corporation, USA to gain full ownership of the on-going oral insulin and oral Btype natriuretic peptide (BNP) programmes. This acquisition of nearly 300 patents and patent applications focussed on oral peptide therapeutics in the metabolic and cardiovascular segment also provides Biocon with access to additional innovative technologies and new therapeutic paradigms. 

During the year, Biocon Biopharmaceuticals Private Limited has completed clinical trials in head & neck cancer for a novel anti-EGFR monoclonal antibody. Other monoclonal antibodies that are moving up the development path are BVX 10, BVX 20 and anti-CD6. These programs are expected to transform Biocon into an innovator Company.  

Subsidiaries and Joint Ventures: 

Syngene International Private Limited: 

For the Financial Year 2005-06, Syngene registered strong growth of 49 % in revenues from Rs 661 Million to Rs 982 Million and 64% at the profit after tax level from Rs 275 Million to Rs 452 Million. 

Syngene is today one of India's leading custom research service providers. Syngene's state-of-the-art infrastructure and a broad set of service offerings, enable it to participate in the drug development process, from discovery to supply of development compounds. 

Syngene's annual compound growth rate of 40% over the last five years, reflects its increased acceptance as a 'research hub' for the biggest names in the pharma industry. Having firmly established its reputation amongst leading European and American pharma companies, Syngene plans to aggressively target newer markets like Japan and a large number of small biotech and specialty pharma companies from around the world. To facilitate these opportunities for growth, Syngene is investing in additional laboratories located at Biocon Park. 

Syngene has a strong knowledge base, where out of the total strength of 528 employees (387 in the previous year) more than 90% employees are scientists. With the focused and collaborative efforts of its employees, Syngene has achieved greater heights during the year and has built a strong international reputation. 

Clinigene International Private Limited: 

Clinigene International Private Limited is a wholly owned subsidiary of the Company focussed on Clinical Development. 

For the current financial year, Clinigene incurred a loss of Rs 10.9 Million as against a loss of Rs 29.4 Million in the previous year. The Company registered a revenue of Rs 56.5 Million as against Rs 14.0 Million in the previous year. 

Clinigene continues to build a very solid foundation. The demand for outsourced clinical research continues to grow exponentially. Clinigene will extend its operations to a 60,000 sq ft facility by the first quarter of FY 2007. To augment Clinigene's capabilities in conducting internationally benchmarked clinical trials for multinational pharma companies, the scaled-up establishment will have a new unit for Phase I trials and also offer world-class Biometrics & Data Management Services. 

Biocon Biopharmaceuticals Private Limited: 

This is Biocon's 51:49 JV with a Cuban Company, to manufacture monoclonal antibodies and other Recombinant therapeutics. The most advanced therapeutic being developed is a monoclonal antibody, BIOMAB EGFR for the treatment of head and neck cancers and represents a significant initiative in the Company's foray into original molecules.  

Construction of a state of the art Biologicals facility at 'Biocon Park' is complete. This facility is the first of its kind in India. The validation of the facility is underway and commercial production is expected to commence in 2006-07.   

Corporate Governance:

They strive to attain high standards of corporate governance while interacting with all their stakeholders. The Company has complied with the corporate governance code as stipulated under the listing agreement with the stock exchanges. A separate section on corporate governance along with a certificate from the auditors confirming the level of compliance is annexed and forms a part of the Directors' report.  

Outlook:  

The global pharmaceutical industry is forecasted to grow at 5-8% compounded annual growth rate through 2009. Growth will be mainly driven by the emergence of new markets including Asia, Easter Europe and Latin America, as well as ageing populations, innovative medicines and rising demand for higher quality of life. The generic industry is expected to grow significantly over the next few years with an estimated USD 100 billion worth of branded pharmaceutical products expected to go off patent by 2010 of which, an estimated USD 21 billion due to expire in 2006. Medicare reform and prescription drug benefit is also expected to have a favorable impact on the generic drug industry. In addition the EU has recently finalised its policy and legal framework for so-called bio-similars, opening the EU market for generic versions of biotechnology-derived drugs. 

Opportunities: 

The surge in generics together with patent expiry of Simvastatin, and Pravastatin in USA provides Biocon with attractive opportunities in the near to medium term. Supply of Insulin to Innovator Companies, Patent expiry of key immunosuppressant drugs and the opening up of bio-similars is also seen as large opportunities. Success in Biocon's Research and Development initiatives into new drug discovery could also yield significant benefits. 

BUSINESS

Subject is engaged in the business as Manufacturers, Exporters and Importers of all kinds of Enzymes, Oleoresins, Catalytic Preparations, Organic Chemicals and Organic and Bio-Chemicals, etc.

Subject is also engaged in to carry on the business of manufacturing, processing, distilling, compounding, formulating, acquiring, buying, selling, importing, exporting and dealing in all enzyme products from animal, microbial, plant sources, products from fish sources, vegetable and herb extracts, agricultural products including cattle feed, and all chemicals heavy or fine, organic, inorganic, biological or any other formulations, derivatives and compounds thereof from mineral origin or from other chemicals or from by-products or waste products of other trades and industries and other branded preparations and compounds, derivatives and formulations thereof and consumers products based thereon, pharmaceutical specialities, surgical specialities, cosmetics, germicides, detergents and acids.

The company is in trade terms with :

˜ Anil Agro Products Private Limited

˜ Avani Enterprise

˜ Bangalore Paper Filter Company

˜ Bangalore Genei Private Limited

˜ Cauvery Mineral Water Private Limited

˜ Drawcans Private Limited

˜ Eskay Fine Chemicals

˜ International Fibre Glass Products (Private) Limited

˜ Millenium Chem Pharma Private Limited

˜ Quantum Drugs and Chemicals

˜ Ragukul Industries

˜ Senthil Papai and Food Products Limited

˜ Speciality Organics Private Limited

˜ Microtrol Sterilisation Private Limited

˜ Bayer Chemicals

˜ Sunil Agro Food Private Limited

˜ Venus Casein Products

Its products range include:-

v Biopharmaceuticals

v Enzymes

Its services range include:-

v Custom Research

v Clinical Research

The company’s fixed assets of important value includes land, building, plant and machinery, furniture and fixtures and vehicles.

Board of Directors

Dr. Neville Bain • Chairman, Institute of Directors, UK • Board Member, Scottish & Newcastle Plc., Provexis Limited • Former Group CEO, Coats Viyella Plc. • Former Deputy Group Chief Executive and

Finance Director, Cadbury Schweppes Plc. • Author of several management books on corporate governance, strategy and people management

Prof. Charles L. Cooney • Professor, Chemical & Biochemical Engineering, MIT, USA • Director, Genzyme Inc. and Bio-Processors Inc. • Recipient of prestigious awards, including Gold Medal of the

Institute of Biotechnology Studies and Distinguished Service Award from the American Chemical Society

Dr. Bala S. Manian • Chairman and Co-founder, Reametrix Inc. • Co-founder, Quantum Dot Corporation and Surromed Corporation, USA • Expert in the design of electro-optical systems • Authored several peer-reviewed scientifi c publications and holder of many patents • Recognised through several awards for contributions as educator, inventor and entrepreneur, including Technical Academy Award in Digital Cinematography by Academy of Motion Pictures, Arts and Sciences

Prof. Ravi Mazumdar • University Research Chair Professor, Department of Electrical and Computer Engineering, University of Waterloo, Canada • Fellow of the Institute of Electrical and Electronics Engineers (IEEE) and Fellow of the Royal Statistical Society

Dr. Kiran Mazumdar-Shaw • Chairman & Managing Director, Biocon • First generation entrepreneur with more than 28 years experience in biotechnology and industrial enzymes • Master Brewer, Ballarat University, Australia • Awarded the Padmabhushan, one of India’s highest civilian awards, for her pioneering efforts in Biotechnology, 2005

Prof. Catherine Rosenberg • University Research Chair Professor and Chairman, Department of Electrical and Computer Engineering, University of Waterloo, Canada

Mr. John Shaw • Vice Chaiman, Biocon • Served in senior positions in various locations around the world • Chairman, Madura Coats Limited between 1991-1998

Mr. Suresh Talwar • Partner, Crawford Bayley & Co., an Indian law fi rm of repute. • Director, Cadbury India Limited, Birla Sun Life Insurance Co. Limited, L&T Limited • Area of professional specialisation includes

corporate law and related fi elds • Legal counsel to numerous Indian companies, multinational corporations and Indian/foreign banks

Established in 1994 as a subsidiary of Biocon, Syngene is a chemical synthesis-driven Custom Research Company (CRC). They are the first Indian biotechnology CRC to receive special export status by the Government of India.

Lead by their synthetic chemistry division, Syngene specialises in developing high value organic molecules through multi-step synthesis involving diverse and complex chemistries. Extending their expertise to molecular biology, they have also developed an impressive capability to produce biopharmaceuticals through rDNA technology using microbial, yeast and mammalian host systems.

Collaborative work underlines Syngene's work ethos. Their team of highly skilled scientists closely interacts with their global clients to offer them quality services with particular attention to confidentiality, time-lines and cost-effectiveness.

Syngene

Syngene is an internationally reputed Custom Research Company (CRC) with multi-disciplinary skills in synthetic chemistry and molecular biology. Leveraging the convergence of information technology and biotechnology, they conduct high value R&D in early stage drug discovery and development for a diverse global clientele.

A subsidiary of Biocon, Syngene provides customised R&D services to the pharmaceutical and biotechnology sectors, on a strong platform of confidentiality and intellectual property protection. With state-of-the-art facilities, dedicated connectivity and highly qualified researchers, they offer their customers a powerful value advantage in the field of outsourced research and development

Press release

KIRAN MAZUMDAR SHAW, INTELLECTUAL LEGACY

February 05, 2007

Publication : Business World

New York Times called her "India's mother of Invention" and The Economist gave her the title "India's Biotech Queen". Whatever the tag. What you can't ignore is the fact that Kiran Mazumdar Shaw almost single-handedly put India on the global bio-pharmaceutical map. Shaw's Biocon is today a pioneer in the fields of biopharmaceuticals, custom research, clinical research and enzymes. Kiran Mazumdar Shaw, who started it all, talks to us in an exclusive interview about life as a scientist, businessperson and woman.

Who is the one person in the life who made a difference and how?

My late father, R.I Mazumdar for he made me believe that scientific knowledge is hard currency. Not everyone has this intellectual asset. He also encouraged me to pursue a career by applying my knowledge in a gainful manner. He believed that women who did not utilize their education in a meaningful manner had in essence destroyed valuable intellectual capital for the country. I followed my father to take a master's brewing degree in Australia after graduating in Zoology in Bangalore, and later co-invented a unique fermentation device that allowed me to apply my knowledge in an innovative manner. My father was the one who gave me the confidence to start Biocon.

You have been named as India's richest woman. What does wealth mean to you?

I believe I have created intellectual wealth from very frugal resources and that is what I am acknowledged for. I do hope I can inspire ordinary people to build enterprises from very little monetary resources but a rich mind to succeed. I am proud of having created a valuable organization and that is the wealth I am proud of Biocon is really about building intellectual wealth and not about creating material wealth. It is the opportunity that the company has provided to hundreds of scientists that matter to me.

Do you think you had to sacrifice on the personal font to achieve professional success?

No not really, it is important to have family support and co-operation to succeed in one's career. For women especially, balancing home and work life may become difficult without adequate support from the family. Whilst it is true that I was single when I built Biocon, the real growth came when I got married. My husband has played a vital role in our success today.

Looking back, do you think you could have done anything differently?

I certainly believe that everything happens with a reason. I wanted to join medical school and when that did not happen I took up biology instead. And that led me to specialise in brewing. However when I was not accepted as a brew master in India. I turned to biotechnology is a very accidental manner in hindsight, I am grateful that the brewing doors shut on me and I set up Biocon instead!

As a woman heading a company, do you take any special interest in the women in the company? Do you favour women for jobs at Biocon?

Knowledge does not have gender divide-women scientists, women engineers, women writers have enormous opportunities to excel and succeed. At Biocon we do our best to ensure gender sensitivity issues are addressed. Women are encouraged not to come at odd hours in the night and if women have to travel to interior areas of the country a male escort is provided. Biocon has a fully equipped creche that enables employees to have their children cared for while they pursue their careers at the work place, these considerations take care of employee apprehensions. However, I am not the kind of person who will appoint women for the sake of their gender but for the role they play.

Do you think women still have a difficult time proving themselves at work in the 21st Century?

Indian business women are making their mark in diverse fields from banking to Biotechnology. I see Indian women being an increasing tribe of high performance across the globe. Women have realised that they can be as successful as their male counterparts and with encouragement, achieve any success. In order to be successful, Indian women need to develop a sense of self-confidence, a sense of determination and a willingness to work hard, One should not be de-motivated by failure but learn from one's mistakes. A sense of overall perseverance is very essential.

How important is a role model in one's life?

I have drawn inspiration from several people at each stage of my life; my father, my Irish collaborator with whom I started Biocon, Mr. Vaghul Chairman of ICICI who bet on my technology and financed my first large fermentation project. Prof Mashelkar, D.G.CSIR who endorsed my R and D focus and made me believe in intellectual property. My husband who invested in me in every way, Dr. M.K.Bhan, Secy, Department of Biotechnology who is helping to build a strong Biotechnology capability in the country. Dr. Devi Shetty who has inspired me in terms of a new healthcare approach for the masses and of course my team who inspired me every day to build a company that will truly be a torch bearer for Indian Biotechnology.

For those who admire you, what would you advise?

If you have a vision, a plan and the conviction, you should follow it and success will come to you. Biocon is testimony to a vision that a team of like minded people with the same drive toe excel can achieve.

If you had to take an opportunity to thank or pay tribute to a special woman, who would it be and why?

I am truly inspired by women of courage and conviction in the business world who have broken glass ceilings, gained the respect of the corporate world and made a big difference to their companies by changing the gender mindset that unfortunately still exists in the so called intellectual arena. I would like to especially pay a tribute to Indian women in the corporate world like Indira Nooyi, Naina Lal Kidwai, Shikha sharma, Swati Piramal, Anu Agha, Mallika Srinivasan, the ICICI trio and many others who are helping to build a new India where women can hold their heads up high.

Biocon arm Syngene, Swedish co to develop new diarrhoea drug

September 04, 2006

Publication : Business Line

Biocon`s custom research subsidiary Syngene International and Swedish drug company Innate Pharmaceuticals AB have said they are working together on a new class of drugs - virulence blockers - against bacterial diarrhoea.

Virulence blockers are considered to be an alternative to antibiotics but not exploited. Over the next three years, the two partners will conduct clinical studies and develop a candidate drug up to a limited phase II stage, manufacture and market it globally, a Syngene press release said. Once therapeutic effect is demonstrated, Syngene will conduct further clinical studies to enable the virulence blocker to be registered as a drug for treating bacterial diarrhoea

Innate will have European marketing rights and Syngene for the rest of the world. Each company will receive royalties on the sales achieved by the other. The tie-up is expected to bring the potential drug faster to the clinical trials phase. The drug disarms certain bacteria without affecting the body's normal bacterial flora; it reduces the chances of the bacteria getting drug-resistant. Innate Pharmaceuticals has worked on many of these substances and applied for patents.

Biocon did not disclose the financial details, merely saying, "The cooperation greatly reduces Innate Pharmaceuticals' risk exposure and provides it with the financial capacity to further develop virulence blocking drugs. Additional resources will also allow Innate Pharmaceuticals to strengthen the patent protection for its virulence blockers."

Innate Pharmaceuticals and Syngene have been working together in several projects over the past three years."The new agreement reiterates our commitment to new research initiatives together," said Mr Sune Rosell, Innate CEO.

Dr Goutam Das, COO, Syngene, said, "Together we are committed to developing virulence blockers as alternatives and complements to antibiotics. This effort is also towards a new class of targets hitherto not exploited"

Diarrhoeal diseases affect over one billion people worldwide every year, causing around four lakh deaths in India and over 3,000 deaths in the US.

Innate was formed in 2000 as a commercial platform for the research taking place at two Swedish institutions — Ume(macr) University and Karolinska Institute. The 12-year-old Syngene provides customised RND services in early stage drug discovery and development to pharma and biotech companies

Biocon and Bentley Announce Approval and Expansion of Bentley's Nasulin Phase II Studies in India

Biocon's Clinigene International Private Limited to conduct clinical trials

Bangalore, February 20, 2007

India's largest Insulin producer, Biocon Limited has announced today that its licensing partner, Bentley Pharmaceuticals, Inc. (NYSE: BNT), a specialty pharmaceutical company, has received approval from the Drug Controller General of India (DCGI) to proceed with a Phase II clinical evaluation of Nasulin in Type II diabetic patients. Nasulin is Bentley's intranasal insulin product utilizing its proprietary delivery technology CPE-215. As per the licensing agreement, Biocon is responsible for developing and marketing Nasulin in India and select territories. Biocon provides a source of insulin powder and Cardinal Health has manufactured the clinical supplies for this Phase II study under contract with Bentley.

This approval follows the completion of Bentley's pharmacokinetic clinical studies of Nasulin studies in India. The Phase II study will be initiated in March 2007 and is expected to be completed before the end of the year.

Mr. John Sedor, President of Bentley commented, "This expansion marks an incremental milestone in the clinical development of Nasulin. We are encouraged by the progression of data we've accumulated in the insulin program which further validates our intranasal delivery technology platform and its potential to deliver other therapeutic peptides in similar formulations to insulin."

Mr. Rakesh Bamzai, President Marketing, Biocon said "We are very excited about the progress made in the nasal insulin program with Bentley. Biocon truly believes that non injectable insulins will drive the future of diabetes therapy the world over."

Clinigene, a CAP accredited CRO and wholly-owned subsidiary of Biocon, Limited, will administer the complex program. Dr. A. S. Arvind, Chief Operating Officer, Clinigene International Private Limited said, "Phase II clinical studies for this product will consist of 80 patients and will be conducted in six centers in India under the direction of top clinical investigators. The patients will self-administer Nasulin spray three times per day for twelve weeks. They will be monitored for control of their post-prandial blood sugar and HbA1c (a subtype of hemoglobin, used to measure effectiveness of the therapy)."

Chairman and CEO of Bentley, James Murphy, remarked, "Biocon has been a reliable partner for several years and has significant experience in developing insulin products. The Bentley researchers together with the clinicians and regulatory staff of Biocon and its subsidiaries are fully committed to the clinical advancement of Nasulin."

Data received from the Nasulin Phase II program in India will supplement Bentley's Phase II studies already underway in the U.S. under the direction of Dr. Sherwyn Schwartz at the Diabetes and Glandular Disease Clinic (DGD) in Texas. Bentley also expects to complete a significant portion of the U.S. Phase II studies before the end of 2007.

About Bentley

Bentley Pharmaceuticals, Inc. is a specialty pharmaceutical company focused on advanced drug delivery technologies and generic pharmaceutical products. Bentley's proprietary drug delivery technologies enhance the absorption of pharmaceutical compounds across various membranes. Bentley manufactures and markets a growing portfolio of generic and branded generic pharmaceuticals in Europe for the treatment of cardiovascular, gastrointestinal, infectious and central nervous system diseases through its subsidiaries - Laboratorios Belmac, Laboratorios Davur, Laboratorios Rimafar and Bentley Pharmaceuticals Ireland. Bentley also manufactures and markets active pharmaceutical ingredients through its subsidiary, Bentley API.

Additional information regarding Bentley Pharmaceuticals may be obtained through Bentley's web site at www.bentleypharm.com.

About Biocon

Established in 1978, Biocon Limited is one of India's premier biotechnology companies. Biocon and its two subsidiary companies, Syngene International Private Limited and Clinigene International Private Limited form a fully integrated biotechnology enterprise, specializing in biopharmaceuticals, custom research, clinical research and enzymes. With successful initiatives in clinical development, bio-processing and global marketing, Biocon delivers products and solutions to partners and customers across the globe. Many of these products have USFDA and EMEA acceptance. Biocon launched the world's first recombinant human insulin, INSUGEN using Pichia expression and India's first indigenously produced monoclonal antibody BIOMAb-EGFR.

For further information contact:

Paula Sengupta / Gayatri Appaya
Biocon Limited
Tel: +91 80 2808 2808
Fax: +91 80 2852 3423
Email: paula.sengupta@biocon.com
gayatri.appaya@biocon.com

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. 44.19
UK Pound	1	Rs. 86.32
Euro	1	Rs. 58.07

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	8
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	9
--PROFITABILIRY	1~10	7
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	6
--RESERVES	1~10	6
--CREDIT LINES	1~10	8
--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
TOTAL		61

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		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

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