MIRA INFORM REPORT

Report Date :

25.01.2008

IDENTIFICATION DETAILS

Name :	RANBAXY LABORATORIES LIMITED
Registered Office :	A-11, Industrial Area, Sahibzada Ajit Singh Nagar, District Ropar - 160 055, Punjab
Country :	India
Financials (as on) :	31.12.2006
Date of Incorporation :	16.06.1961
Com. Reg. No.:	16-3747
CIN No.: [Company Identification No.]	L24231PB1961PLC003747
TAN No.: [Tax Deduction & Collection Account No.]	DELR01481E DELR09731B
PAN No.: [Permanent Account No.]	AAACR0127N
Legal Form :	Public Limited Liability Company. The company's shares are listed on the Stock Exchanges.
Line of Business :	Manufacturing and Selling of Pharmaceuticals in Dosage forms of Tablets, Capsules, Liquids, Drops, Dry syrups / Powders, Ampoules, Vials, Liquids and Drops, 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 94000000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well-established, respectable and reputed company in its field. Available information indicates high financial responsibility of the company and it's directors. Their trade relations are fair. It has established satisfactory track. Business is on sound principles. General reputation is favourable. Banking relations are good. The company's payments are always correct and as per commitments. Due to company’s huge expansion, isolated complaints are reported for slow payments in domestic market. However, overseas suppliers are paid as per commitments. The company can be considered good for normal business dealings at usual trade terms and conditions.

LOCATIONS

Registered Office :	A-11, Industrial Area, Sahibzada Ajit Singh Nagar, District Ropar - 160 055, Punjab, India
Tel. No.:	91-172-2271450
Fax No.:	91-172-2226925
E-Mail :	vasant@rllind.globemail.in sushilp@ranbaxy.co.in sushil.patwari@ranbaxy.com malvinder.singh@ranbaxy.com corporate.communications@ranbaxy.com
Website :	http://www.ranbaxy.com
Head Office :	12^th Floor, Devika tower, 6, Nehru Place, New Delhi-110019, India
Tel. No.:	91-11-26452666
Fax No.:	91-11-26225987
E-Mail :	vasant@rllind.globemail.in sushilp@ranbaxy.co.in
Corporate Office :	Plot No.90, Sector 32, Gurgaon-122001, Haryana, India
Tel. No.:	91-124-4135000
Fax No.:	91-124-4135001
Regional Head Quarters:	Located at: New Delhi, London, Singapore, New Jersey (USA), Rio de Janerio (Brazil), Johansberg (South Africa)
Marketing Offices	Located at: Doula (Cameroon), Kiev (Ukraine), Moscow (Russia), Ho Chi Minh City (Vietnam), Kaunas (Lithuania), Bucharest (Romania), Nairobi (Kenya), Abidjan (Ivory Coast), Warsaw (Poland) and Yangon (Myanmar), Almaty (Kazakhstan)
Plants:	A-8, A-9, A-10 & A-11, Industrial Area, Phase III, Sahibzada Ajit Singh Nagar, Mohali – 160 055, Chandigarh, Punjab, India
Plants:	Village Toansa, P. O. Railmajra, District Nawansahar – 144 533, Punjab, India
Plants:	Industrial Area – 3, A. B. Road, Dewas – 450 001, Madhya Pradesh, India
Plants:	Village & PO Ganguwala, Tehsil Paonta Sahib, District Sirmour – 173 025, Himachal Pradesh, India
Plants:	E-47/9, Okhla Industrial Area, Phase II, Okhla, New Delhi – 110 020, India
Plants:	E-2 & E-3, MIDC, Jejuri, District Pune – 412 303, Maharashtra, India
Plants:	Plot No. B-2, Madkaim Industrial Estate, Ponda, Goa, India

DIRECTORS

Name :	Mr. Tejendra Khanna
Designation :	Chairman (upto 08.04.2007)
Name :	Mr. D.S. Brar
Designation :	Director
Name :	Mr. V.K. Kaul
Designation :	Additional Director
Name :	Dr. Brian W. Tempest
Designation :	Chief Mentor and Executive Vice Chairman
Name :	Dr. P. S. Joshi
Designation :	Director
Name :	Mr. J. W. Balani
Designation :	Director
Name :	Mr. Vivek Bharat Ram
Designation :	Director
Name :	Mr. Nimesh N. Kampani
Designation :	Director
Name :	Mr. Vivek Mehra
Designation :	Director
Name :	Mr. Harpal Singh
Designation :	Director
Name :	Mr. Surendra Daulet Singh
Designation :	Director
Name :	Mr. Malvinder Mohan Singh
Designation :	Managing Director & Chief Executive Officer
Name :	Mr. Gurcharan Das
Designation :	Additional Director
Name :	Mr. Shivinder Mohan Singh
Designation :	Director
Name :	Mr. Ramesh L Adige
Designation :	Executive Director – Corporate Affairs and Global Corporate Communications
Name :	Mr. Ravi Mehrotra
Designation :	Director
Name :	Mr. Atul Sobti
Designation :	Chief Operating Officer and Whole time Director
OTHER PERSONNEL:
Name :	Mr. S. K. Patawari
Designation :	Company Secretary
Name :	Mr. Malvinder M. Singh
Designation :	CEO & Managing Director
Name :	Dr. O P Sood
Designation :	Member – Governing Council, Ranbaxy Science Foundation
Name :	Mr. Raghu Kochar
Designation :	Director Corporate Communications
Name :	Mr. Krishnan Ramalingam
Designation :	Senior Manager – Corporate Communications

MAJOR SHAREHOLDERS

Names of Shareholders	No. of Shares	Percentage of Holding
Shareholding of Promoter and Promoter Group 2
Indian
Individuals/ Hindu Undivided Family	6468582	1.80
Central Government/ State Government(s)
Bodies Corporate	121316718	33.70
Financial Institutions/ Banks
Any Others(Specify)
Trusts	2150914	0.60
Public shareholding
Institutions
Mutual Funds/ UTI	15407854	4.28
Financial Institutions / Banks	2096909	0.58
Insurance Companies	63596799	17.67
Foreign Institutional Investors	61326200	17.04
Non-institutions
Bodies Corporate	7180396	1.99
Individuals
Individuals -i. Individual shareholders holding nominal share capital up to Rs 0.100 Million	66409369	18.45
ii. Individual shareholders holding nominal share capital in excess of Rs 0.100 Million	11004572	3.06
Any Other (specify)
NDCOs	3032663	0.84
TOTAL (A)+(B)	359990976	100

BUSINESS DETAILS

Line of Business :

Manufacturing and Selling of Pharmaceuticals in Dosage forms of Tablets, Capsules, Liquids, Drops, Dry syrups / Powders, Ampoules, Vials, Liquids and Drops, etc.

Products :

ITC Code	Product Description
294190	Cefaclor
294200	Cephalexin
294110	Amoxicillin

Exports to :

Products :

Bulk Drugs and formulation

Countries :

China, CIS, Europe, Middle East, Nigeria, South Africa, South East Asia and USA.

Imports from :

Products :

6 APA, PENV, PENG, D alpha and D Salt

Countries :

Japan, The Netherlands and UK.

PRODUCTION STATUS

Class of Goods	Units	Installed Capacity	Actual Production
Dosage Forms
Tablets	Nos/Millions	6518.00	5236.71
Capsules	Nos/Millions	2540.00	1970.14
Dry Syrups/Powders	Bottles/Millions	27.20	41.11
Ampoules	Nos/Millions	74.40	100.11
Vials	Nos/Millions	39.00	33.80
Liquids	Kilolitres	--	1266.27
Drops	Kilolitres	--	40.60
Active Pharmaceuticals Ingredients and drug intermediates	Tonnes	2014.23	1517.58
Ointments	Tonnes	*	327.48

* In different denominations than actual production

GENERAL INFORMATION

Suppliers :

v Anasthetic Gases Private Limited

v Bhasin Packwell Private Limited

v Kejariwal Industries

v Medicamen Biotech Limited

v Niranjan Containers Private Limited

v Ranq Pharmaceuticals and Excipients Private Limited

v Sidmak Laboratories (India) Limited

v Tatva Chintan Pharma Private Limited

v Ankur Drugs and Pharma Limited

v Everest Industrial Corporation

v Laxon Drugs

v Metakaps Engineering Company

v Orchid Healthcare

v Real Gas and Chemicals

v Srikem Laboratories Private Limited

v Vevek Pharmachem (India) Limited

v Askas Platic Private Limited

v Imperial Packaging Company

v Mahabir Industries

v National Electronic Corporation

v Packs and Packaging

v Sampre Nutrition

v Sukkan Industries

v Autofits

v Kallin Industries

v Mayura Offset

v NBZ Pharma Limited

v Ramesh Industries (Indore)

v Saurav Chemicals

v Tauras Chemicals Private Limited

v Zenna Plastics Limited

No. of Employees :

9000

Bankers :

v ABN Amro Bank NV

v Standard Chartered Grindlays Bank Limited

v Bank of America NA

v Citibank NA

v Deutsche Bank AG

v The HongKong & Shanghai Banking Corporation Limited (Hongkong Bank), Mercantile House, 15, Kasturba Gandhi Marg, Delhi - 110 001

v Punjab National Bank

v Calyon Bank

v ANZ Grindlays Bank PLC, Vereinigtes Konigreich

Facilities :

Secured Loans :

Loans from Banks

Secured against stocks, book debts and receivables both present and future : Rs.2242.900 millions

Unsecured Loans :

(Rs. In millions)

Short term loans
Banks	7611.620
Long term loans
Zero coupon foreign currency convertible bonds	19474.400
Banks	2398.760
Others	44.300
Deferred sales tax credit	14.020
Total	29543.100

Banking Relations :	Good
Auditors :	Statutory Auditors Walker, Chandiok & Company Chartered Accountants 41-L, Connaught Circus, New Delhi – 110 001, India Independent Auditors Grant Thornton Chartered Accountant 41-L, Connaught Circus, New Delhi – 110 001, India
Joint Ventures Overseas :	Nihon Pharmaceuticals Industry Company Limited, Japan Ohm Laboratories, Ins., USA Basics GmbH , Germany Eli Lilly Ranbaxy Limited Ranbaxy (Guangzhou China) Limited. China Ranbaxy (Hong Kong) Limited, Hong Kong Ranbaxy (Malaysia) Sdn. Bhd. Ranbaxy (S.A.! Proprietary Limited, South Africa Ranbaxy [Thailand] Company Limited
Collaborators :	Canada, china, Malaysia, Nigeria and Thailand
Subsidiaries :	Domestic Ranbaxy Drugs and Chemicals Company (a public company with unlimited liability! Solus Pharmaceuticals Limited # Ceased to be a subsidiary during the year Overseas Ranbaxy [Netherlands} BV, The Netherlands Ranbaxy Inc., USA Ranbaxy Egypt [LLC.], Egypt Ranbaxy Farmaceutica Limited, Brazil Ranbaxy Signature, LLC, USA Ranbaxy Panama SA, Panama Ranbaxy PRP (Peru] SAC Ranbaxy Australia Pty Limited, Australia Lapharma GmbH, Germany # Ranbaxy Unichem Company Limited, Thailand Ranbaxy USA, inc. Ranbaxy Italia S.p.A Terapia S.A.. Romania # Rexcei Pharmaceuticals Limited Ran Air Services Limited # Vidyut Investments Limited Ranbaxy NANV, The Netherlands Ranbaxy (Poland) S. P. Zoo, Poland Ranbaxy Nigeria Limited, Nigeria Ranbaxy Europe Limited, U.K. Ranbaxy (UK) Limited, U.K ZAO Ranbaxy, Russia Unichem Distributors Limited, Thailand * Office Pharmaceutique Industrial et Hospitalier SARL Unichem Pharmaceuticals Limited, Thailand * Ranbaxy Pharmaceuticals, Inc., USA Ranbaxy Laboratories Inc., USA Ranbaxy Hungary Kft Mundogen Farma S.A., Spam # Ranbaxy Pharma AB, Sweden # Ranbaxy Drugs Limited Gufic Pharma Limited Ranbaxy Pharmaceuticals BV, The Netherlands * Ranbaxy Ireland Limited, Ireland Ranbaxy Holdings [UK] Limited, U.K Ranbaxy Do Brazil Limited, Brazil Laboratories Ranbaxy, S.L., Spain Ranbaxy Vietnam Company Limited-, Vietnam Ranbaxy Pharmacie Generiques SAS. France Ranbaxy Pharmaceuticals Canada Inc., Canada Sonke Pharmaceuticals [Pty) Limited, South Africa Bounty Holdings Company Limited, Thailand * Ranbaxy Mexico S.A.de C.V. Ranbaxy Portugal - Com E Desenvolv De Prod Farmaceuticos Unipessoai Lda, Portugal Ranbaxy Beligium N.V., Belgium # # New entities in 2006 * Under liquidation during the year
Associates :	Fortis Healthcare Limited SRL Ranbaxy Limited International Hospitals Limited Religare Securities Limited Fortis Clinical Research Limited [Formerly Oscar Research Limited]
Memberships:	Confederation of Indian Industry

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
598000000	Equity Shares	Rs. 5/- each	Rs.2990.000 millions
100,000	Cumulative Preference Shares	Rs. 100/- each	Rs. 10.000 millions
	GRANT TOTAL		Rs.3000.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
372686964	Equity Shares	Rs. 5/- each	Rs.1863.435 millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.12.2006	31.12.2005	31.12.2004
SHAREHOLDERS FUNDS
1] Share Capital		1863.430	1862.210	1858.900
2] Share Application Money		8.790	2.780	0.000
3] Reserves & Surplus		21627.910	21907.980	23207.900
NETWORTH		23500.130	23772.970	25066.800
LOAN FUNDS
1] Secured Loans		2242.900	3534.920	1333.700
2] Unsecured Loans		29543.100	6763.120	24.900
TOTAL BORROWING		31786.000	10298.040	1358.600
DEFERRED TAX LIABILITIES		1502.380	1165.810	0.000
TOTAL		56788.510	35236.820	26425.400
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		14340.310	11999.680	8775.800
Capital work-in-progress		3018.790	4328.430	2641.600
INVESTMENT		26799.450	7627.750	6790.700
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	9549.120	8909.330	8963.400
	Sundry Debtors	10137.450	8066.180	7846.900
	Cash & Bank Balances	711.510	1165.930	372.600
	Other Current Assets	780.850	1179.160	0.000
	Loans & Advances	3911.010	3383.080	6486.000
Total Current Assets		25089.940	22703.680	23668.900
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	7233.300	7282.800	10143.500
	Provisions	5226.680	4139.920	5308.100
Total Current Liabilities		12459.980	11422.720	15451.600
Net Current Assets		12629.960	11280.960	8217.300
TOTAL		56788.510	35236.820	26425.400

PROFIT & LOSS ACCOUNT

PARTICULARS		31.12.2006	31.12.2005	31.12.2004
Sales Turnover		39777.680	35697.690	40501.500
Other Income		381.910	904.800
Total Income		40159.590	36602.490	40501.500
Profit/(Loss) Before Tax		4429.760	2013.630	6283.400
Provision for Taxation		624.330	(223.350)	998.700
Profit/(Loss) After Tax		3805.430	2236.980	5284.700
Earnings in Foreign Currency :
	Export Earnings	25891.780	22243.380	NA
	Other Earnings	1666.890	1334.020	NA
Total Earnings		27558.670	23577.400	NA
Imports :
	Raw Materials	5212.370	5382.140	NA
	Stores & Spares	82.33	93.580	NA
	Capital Goods	343.16	1041.180	MA
Total Imports		5637.860	6516.900	NA
Expenditures :
	Manufacturing Expenses	1997.090	1752.910
	Administrative Expenses	8582.780	8741.760
	Raw Material Consumed	16323.820	15048.920
	Salaries, Wages, Bonus, etc.	3310.850	3016.520	3421.810
	Interest	584.440	264.110
	Depreciation & Amortization	1067.500	1013.330
	Other Expenditure	3863.350	4863.600
Total Expenditure		35729.830	34701.150	3421.810

SUMMARISED RESULTS

PARTICULARS	31.12.2007 [Full Year]
Sales Turnover	40342.400
Other Income	7225.500
Total Income	47567.900
Total Expenditure	37641.100
Operating Profit	9926.800
Interest	915.300
Gross Profit	9011.500
Depreciation	1190.300
Tax	1591.300
Reported PAT	6229.900
Dividend (%)	500.000

KEY RATIOS

PARTICULARS	31.12.2006	31.12.2005	31.12.2004
Debt-Equity Ratio	0.89	0.24	0.04
Long Term Debt-Equity Ratio	0.50	0.03	0.00
Current Ratio	1.06	1.21	1.63
TURNOVER RATIOS
Fixed Assets	2.12	2.29	2.95
Inventory	4.52	4.10	4.72
Debtors	4.58	4.60	5.97
Interest Cover Ratio	8.58	6.66	58.23
Operating Profit Margin(%)	14.22	6.88	18.51
Profit Before Interest And Tax Margin(%)	12.02	4.81	16.91
Cash Profit Margin(%)	11.33	6.79	15.58
Adjusted Net Profit Margin(%)	9.12	4.71	13.98
Return On Capital Employed(%)	11.22	5.82	25.59
Return On Net Worth(%)	16.10	7.07	21.90

LOCAL AGENCY FURTHER INFORMATION

History:

Incorporated in June 1961 as a private limited company, Ranbaxy Laboratories (RLL) manufactures and markets pharmaceutical dosage forms (for human health care), animal health care products, bulk drugs and intermediates, diagnostics, laboratory chemicals and reagents. It is the largest exporter of bulk drugs and pharmaceutical dosage forms in India.  

RLL has three successful overseas joint ventures in Nigeria, Malaysia and Thailand. A joint venture incorporated in India with Eli Lilly -- a leading original research company in pharmaceuticals was began its operations. The bulk antibiotics plant at Toansa, Punjab, has been approved by the US FDA and the dosage forms pharmaceuticals plant at Dewas, MP, is accredited by the World Health Organisation (WHO). The plants for bulk cephalosporins at Mohali and bulk fluoroquinolones at Dewas have also been designed to conform to FDA and MCA standards.Ranbaxy has decided to disinvest its entire 50% in the 50:50 joint venture Eli Lilly Ranbaxy and finally dissolve its eight-year-old joint venture with the US-based Eli Lilly and Company. For Ranbaxy, retaining its 50% stake would entail an investment of about Rs 370.000Millions

In 1997-98, it entered into a 50:50 joint venture with the New Jersey-based Schein Pharmaceuticals Inc, the generics arm of Bayer AG, Germany, for manufacture of Ranitidine. 

It went public in October 1993 to part-finance manufacturing facilities of bulk fluoroquinolones at Dewas, MP; and dosage forms at Paonta Sahib, Himachal Pradesh. For easier access to the European markets, RLL bought a drug firm in Ireland in January 1996. In 1996, it acquired six leading brands from Gufic. Croslands Research Laboratories, a leading manufacturer of dermatological pharmaceutical formulations has been merged with RLL. In October 1998 sold off the Glat (Global Alliances and Technologies) division of Croslands to French pharma major Galderma. 

In June 2001, Ranbaxy Laboratories Netherlands B.V, a wholly owned subsidiary of Ranbaxy Laboratories (RLL) and Vectura (Ventura), a world leader in the application of particle science for the development of novel drug delivery systems, made a collaboration to develop a new cost-effective, patent protected oral- controlled release technology with potential application for a broad range of pharmaceuticals compounds.  

In May 2002, the company has filed an Investigational New Drug (IND) application of its molecule, RBx 7644 (Ranbezolid), an extended spectrum Oxazolidinone, with the Drugs Controller General of India (DCGI). Worldwide, this is the second anti-bacterial molecule of oxazolidinone class of compounds; but is the first going into clinical investigations with an extended spectrum of activity both in solid and injectable form. The company has completed the developmental activates for its 3 key products Cifran DD,Zanocin OD and Riomet OD. 

Ranbaxy Pharmaceuticals Inc., a wholly-owned subsidiary of the company has received approval from US FDA to sell a version of the antibiotic amoxicillin in the US. The company has given its focus on selling its versions of medicines going off patent in the US, the world's biggest drug market, where drugs worth 35 billion US dollars in sales, lose patent protection between 2000 and 2005. The company gets FDA nod for Cefadroxil Oral Suspension USP. The US Food & Drug Administration has approved to market Cefadrozil Powder for Oral Suspension USP in 125 mg/5 ml,250 mg/5 ml strengths. 

For several years, it has consistently been winning export awards, the last one being the top Trishul award from CHEMEXCIL in Nov.'92. The company has bagged the prestigious National Safety Award for the year 2001 & 2002 and the same has received during the September 2003. Also Ranbaxy received the Economic Times Award for Corporate Excellence-for the 'Company of the year' during the October 2003. 

The company has signed an agreement during the year 2003 to acquire RPG (Aventis) SA along with its fully owned subsidiary, OPIH SARL, in France. This acquisition was completed during 2004 and the integrated the business successfully. Consequently, RPG Aventis was renamed as Ranbaxy Pharmacie Generiques SAS. During 2004 the company has set up new subsidiaries in Europe and Australia. 

The company was the first to launch prescription products under its own label in the United States. In March - 2000 it launched CLAFRINAST, this novel drug compound belongs to the VLA (Very Large Antigen)4 class of drug which represents a totally new mechanism for treatment of asthma. No such drug has been launched in the international market. During the year 2004, the Company has successfully launched its various new products in the Global Markets such as Metformin XR & Cefpodoxime Proxetil Tablets in the US, Clarithromycin and Easyhaler Inhalers in UK, Exorex and Sotret Gel in India & Cutison and Contifil-OD in Brazil and much more. 

In India three new herbal brands were launched under the umbrella of 'New Age Herbals' during the year. The Company has introduced 41 new products and line extensions in Pharmaceutical Research in the domestic market. 

The Company has increased its installed capacity of Tablets by 336.70 Nos./Millions, Capsules by 20.00 Nos./Millions, Dry Syrups/Powders by 3.00 Nos./Millions, Active Pharmaceuticals indegredients & drug intermediates by 180.67 Tonnes. With this expansion, the total installed capacity of Tablets, Capsules, Dry Syrups/Powders, API has increased upto 4098.00 Nos/Millions, 1630.00 Nos/Millions, 27.20 Nos/Millions, 2058.02 Tonnes respectively. 

After RLL's recent foray into the Italian market, the company has launched its operations in Canada during September 2005 with its wholly owned subsidiary Ranbaxy Pharmaceuticals Canada Inc or RPCL. This is the first India based pharma company with a ground presence in the canadian market.

Milestone:

January 2003:

v The Company launched Co-Amoxyclav (Enhancin/Moxclav) in the US.

v Bayer, the licensing collaborator for Cipro once-a-day product, launched its 500mg dosage forms in the US market.

February 2003:

v The Company launched a high and advanced Cephalosporin, Cefprozil, under the brand name Refzil O (Cefprozil).

v The Company launched its second branded product, Sotret (Isotretinoin), in the US

April 2003:

v The Company rolled-out the company’s vision for 2012.

June 2003:

v The Company entered into Collaborative Research with ‘Medicines for Malaria venture’ (MMV), Geneva, for the development of Anti-Malarial Drug.

September 2003:

v Bayer, the company’s licensing collaborator for Cipro once-a-day product (developed by Ranbaxy), launched the 1 gm dosage form in the US market.

v The Company launched high-end Anti-Infective Injectable, Cilanem, for the first time in India.

v The Company gained USFDA approval for commercialization of Riomet (Metformin HCL) oral solution 100 mg/ml.

v The Company launched the latest Cholestrol Reducing Agent, Rosuvas (Rosuvastatin) in India

v The Company received prestigious National Safety Awards for the Year 2001 & 2002.

October 2003:

v The Company receives The Economic Times Award for Corporate Excellence for the “Company of the Year”.

v The Company and GlaxoSmithkline PLC (GSK) entered into a drug discovery and clinical development collaboration covering a wide range of therapeutic areas signifying the recognition of Ranbaxy’s research capabilities.

v The Company signed an agreement with The William Jefferson Clinton Foundation to supply HIV/AIDS drugs to millions of people in developing countries at a significantly reduced price.

v The Company and Anna University signed an agreement to collaborate for New Drug Discovery.

November 2003:

v President Bill Clinton visited Company’s R&D centre to thank Ranbaxy and the other four partner companies of the Clinton Foundation who had signed an agreement to supply HIV/AIDS drugs.

December 2003:

v The Company signed an agreement to acquire RPG (Aventis) SA along with its fully owned subsidiary, OPIH SARL, in France.

Business:

The company is engaged in manufacturing and selling of pharmaceuticals in dosage forms of tablets, capsules, liquids, drops, dry syrups / powders, ampoules, vials, liquids, drops and bulk pharmaceutical substances including intermediates, laboratory reagents - solids, liquids, medical aids and pop bandages / medicated and non medicated tapes.

OPERATIONS

The year under review witnessed an improved performance of the Company on all parameters and as a result the Company's overall financials rebounded significantly as compared to the previous year. Consolidated net sales at Rs. 60,652 Million, recorded an increase of 17% while net profits at Rs. 5,154 Million were up 95% over the previous year. The key contributors to this improved performance were the 180 days marketing exclusivity of Simvastatin 80 mg in USA, buoyant growth in the branded generics markets led by India, CIS and the ASEAN countries and the acquisition of Terapia SA in Romania. In the domestic market, the Company continued to consolidate its position with improvement in market share.

The Company's international markets accounted for 79% of the overall Company's revenues (76% in 2005), whereas the Dosage form sales constituted 91% of total revenues (86% in 2005).

During the year, the Company initiated a focused program to optimize the cost structure and these efforts yielded significant results.

R&D costs during the year were significantly lower than the previous year, without affecting the overall R&D deliverables. Similarly,

Selling, General & Administration (SG&A) expenditure recorded significant improvement as a percentage to sales. However, the performance for the year was impacted due to delay in new product launches in USA as a result of the warning letter issued by the US FDA in June 2006, for their Poanta Sahib Facility and also the difficult market conditions prevailing in some of the key Western European markets such as UK, France and Germany.

In February 2007, Federal officials conducted a search at the New Jersey premises of the Company's US subsidiaries. The Company is not aware of any wrongdoing and is co-operating fully with the concerned authorities.

The Company continued with its growth strategy through a mix of organic and inorganic initiatives. A robust product flow across key markets coupled with a number of value enhancing and strategic acquisitions in the year is expected to provide a sound platform for the sustained growth in the coming years.

SUBSIDIARIES AND JOINT VENTURES

(A) Brazil

Brazil is amongst the largest markets in Latin America region. During the year, the Company increased its equity stake in Ranbaxy Farmaceutica Limiteda. (RFL) from 80% to 93.67%.

(B) South Africa

The Company formed a Joint Venture (JV) in South Africa under the name Sonke Pharmaceuticals (Proprietary) Limited with Community Investment Holdings - CIH (Pty) for the growing Anti-retroviral business in South Africa. The Company owns a 68.4% equity stake in the JV.

(C) Sweden

With a view to further expand its direct presence in the Nordic countries, the Company established a wholly owned subsidiary in Sweden under the name of Ranbaxy Pharma AB. This subsidiary would manage operations in the territories of Sweden, Norway, Denmark & Finland.

MERGER & ACQUISITIONS

The generic industry continued to witness a spate of M&A deals signifying the increasing consolidation in the industry. The dynamic landscape is fuelling inorganic growth opportunities whereby more and more companies are focusing on the need to gain size and scale in large generic markets, enhancing their presence across newer and more domplex therapeutic segments and broadening their market presence in branded generics. The Company was also active in M&A, having completed the following transactions

during the year:

(1) Terapia S.A. (Romania)

Post approval from the Romanian Competition Council, the acquisition of Terapia SA has been successfully concluded in June 2006.

Ethimed [Belgium) and Allen (Italy)

The acquisitions of Ethimed NV, a generics company in Belgium, and of Allen SPA, the unbranded generics business of Glaxo SmithKline in Italy, have been successfully completed.

(3) Be-Tabs Pharmaceuticals (Proprietary) Limited (South Africa)

Be-Tabs Pharmaceuticals (Proprietary) Limited (Be-Tabs) is the 5th-largest branded generics company in South Africa with a turnover of US $ 29 Million and with good profitability. The Company has entered into an agreement for acquisition of 100% Equity stake in Be-Tabs for a consideration of about US $ 70 Million Be-Tabs is a good strategic fit for the Company in the largest Pharma market of the African continent and will enable the Company to further strengthen its presence in this market. The Competition Council of South Africa has approved the acquisition and the transaction is expected to be completed sometime in second quarter of 2007.

[4.) Mundogen (Spain)

Mundogen S.p.A constituted the generics business of Glaxo SmithKline in Spain. The Company has an existing product basket and a well established sales network with good coverage. This acquisition is expected to provide significant momentum for growth in the Spanish market.

(5)

(i) Zenotech Laboratories,

(ii) Krebs Biochemicals & Industries &

(iii) Cardinal Drugs (India).

In order to enhance its manufacturing competitiveness, the Company acquired -

li) 6.94% Equity stake in M/s Zenotech Laboratories Limited, Hyderabad for a consideration of Rs. 200 Million This strategic stake would help the Company to gain access to the high growth therapeutic segment of Oncology for a number of markets.

(ii) 14.9% Equity stake in M/s Krebs Biochemicals & Industries Limited, Hyderabad, for a consideration of Rs. 89 Million This strategic stake would enable the Company to gain access to low cost manufacturing of fermentation based products.

(iii) Active pharmaceutical ingredients based manufacturing facility of M/s Cardinal Drugs Limited. Gwalior. This would further augment the vertical integration strengths and expand existing manufacturing capacities.

(6) The Company has acquired Senetek PLC's proprietary technology to gain access to such niche patented technologies. Senetek PLC's proprietary disposable autoinjector technology is for self-administration of parenteral drugs used in emergency treatment for anaphylactic shocks.

MANAGEMENT DISCUSSION AND ANALYSIS REPORT

INDUSTRY STRUCTURE & DEVELOPMENTS

The Global Pharmaceutical market audited sales grew by 7% (at constant exchange rates) to reach US $ 608 Billion in 2006.

North America, Europe and Japan continued to remain the key markets accounting for 87% of the worldwide pharmaceutical sales in 2006. The buoyant growth recorded in the US pharmaceutical market, led by an increase in prescribing volume due to Medicare Part D, and a strong growth in the oncology products globally, were the key contributors to market expansion.

The North American pharmaceutical sales grew by 8.0% to reach US $ 290 Billion, constituting 48% of the global sales in 2006.

Growth was fuelled by the Medicare Part D prescription benefit, the increased utilization of generics within new therapy classes and the launch of drugs targeted at specific diseases, e.g. cancer and diabetes. Europe clocked sales of US $ 182 Billion, a growth of 4.8%, and contributed 30% to total global pharmaceutical sales. Japan, the world's second largest market, which has historically posted slower growth rates, continued its weak performance with a de-growth of 0.7% at US $ 57 Billion. Sales in Latin America grew by 12.9% to reach US $ 28 Billion, while Asia, Africa & Australia grew by 9.8% to US$ 52 Billion. Emerging markets, including Turkey, Korea, Russia and India, all experienced double digit growth, outpacing global performance and signaling important shifts in the market place. With these markets recording higher growth rates than markets in North America and Western Europe, the geographic mix of growth has leaned towards these emerging economies.

The Top 10 products in the market contributed approximately 10% to Global Pharmaceutical Sales in 2006, with combined sales of US $ 60 Billion. Atorvastatin (Lipitor US $ 14 Billion) followed by Esomeprazole (Nexium US $ 7 Billion) and Fluticasone - Salmeterol combination (Seretide/Advair US $ 6 Billion) were the 3 top-selling products worldwide. Lipid Regulators, Oncologies and Respiratory Agents held the top three positions in terms of therapeutic classes worldwide. Lipid Regulators grew by 7.5% to US $ 35 Billion, while Oncologies was the fastest growing therapeutic class at US $ 34 Billion, a growth of 20.5%. Respiratory agents were the third largest therapy class with 10.4% growth in sales to US $ 25 Billion.

Generics

The Generic segment growth continued to outpace the global pharmaceutical market growth fuelled by the fundamental drivers of growth, that is, the increasing ageing population and government's efforts to reduce their healthcare expenditures.

Generic medicines are increasingly being prescribed by general practitioners as more affordable alternatives to higher-priced originator brand-name drugs. In 2006, generics represented more than half of the volume of pharmaceutical products sold in 7 key world markets viz. US, Canada, France, Spain, Italy, Germany and the UK. While in 2006, the US witnessed significant patent expiries for products with sales in excess of US $ 14 Billion, key markets in Western Europe saw government induced healthcare reforms impacting growth in these markets. As with the global pharmaceutical market, the branded generic markets in Emerging economies witnessed robust growth rates, indicating a substantial change in the geographical mix of generic market growth.

The year witnessed pricing pressure in certain key geographies, led by a mix of market factors and government led healthcare policy changes. The pricing pressure in the US market continued, but was alleviated by the opportunity presented by the number of high value products going off patent.

The trend towards consolidation was a key highlight in the year with several mergers and acquisitions taking place across the developed and emerging markets. Indian companies have actively taken part in the consolidation drive, led by a need to broad base their presence, enhance their competitive advantages and widen their product portfolio.

The three largest markets for Ranbaxy are USA, Europe and India. The prevailing market environment in these geographies is as discussed below :

United States : In 2006, the prescription volume of unbranded generics grew 13%. Although volumes rose across a number of therapeutic areas, the emergence of new generic forms of lipid regulators, anti-depressants and inhaled nasal steroids, resulted in significant double digit growth for these classes of medications. Sales were up 22% in 2006, driven by key blockbuster products such as Simvastatin, Clopidogrel and Sertraline going off patent. Generics continue to play an increasingly prominent role in the US healthcare market. According to IMS Health, generics (including branded generics) accounted for

over 60% of all prescriptions dispensed and 20% of all prescription dollars spent in 2006.

According to the baseline forecast of IMS Health, the US generics market is expected to deliver a CAGR in excess of 14% in value terms, over the period from 2005 to 2010. Generics will have a greater prescription market share compared to 2006, as the market realizes the full impact of the US $ 14 Billion in branded products, that were genericized in the course of 2006. Further, an additional US $ 12 Billion worth of branded products are expected to be genericized in 2007. The US market also witnessed the introduction of two key generic pharma-related legislations, one by Waxman / Hatch on having a regulatory pathway for biosimilars and the other by Rockefeller / Schumer / Leahy proposing to prevent authorized generics during the 180 day exclusivity period. Both these, if enacted, would augur well for the generic industry.

Europe : The key markets in Western Europe faced challenging conditions in 2006. The markets of UK, France and Germany witnessed intense competitive action, as well as state intervention, to reduce the cost of Medicare to the patients, necessitated by spiraling healthcare cost spends. The markets in Central, Eastern and Southern Europe, Including the CIS belt continued to experience higher levels of growth led by a higher per capita pharmaceutical expenditure and an increasing utilization of generic drugs.

India : The Indian industry is characterized by a highly competitive and fragmented marketplace with a presence of several players, including smalt scale companies. The Domestic formulation market for the year 2006, is valued around Rs. 273 Billion (US $ 6 Billion], having grown by 18% during the year. 2006 was a strong year for the industry, ted by buoyant growth in both acute and chronic therapy products, and an increasing demand for medicines from the rural and semi-urban population. The Top 10 companies continued to have a dominant combined market share of 36.5% (Source: ORG-IMS SSA Audit MAT December 20061.

Key developments in the Indian Pharmaceutical Sector are as under:

• 55% of industry growth was driven by the therapeutic areas of Anti-infectives, Cardio Vascular & Diabetes, Gastro-intestinal & Orthopedics.

• The rural segment is increasingly demanding access to western medicine and was a prominent growth driver in the acute therapy segment. The growth rate of the Rural and Semi-Urban segment was at 23.2% (Town Class II and below).

• 84% of the overall market growth was driven by volumes of existing products, 12% due to new product introductions and 4% due to pricing and other factors.

OUTLOOK ON OPPORTUNITIES

The fundamental growth drivers of generics remain strong. Ranbaxy today is amongst the top 10 global generic companies, with an expanding global presence and a well spread marketing infrastructure. With its capabilities in vertical integration, a robust product pipeline and an India centric lower cost manufacturing base, it is well placed to capitalize on the opportunities in the generics space. The Company has a well balanced mix of revenues from the developed and emerging markets and is present in 23 of the top 25 markets in the world.

In USA, their potential for revenue growth from generic products is closely related to their pipeline of pending ANDAs, as well as tentative approvals already granted. As of December 31, 2006, they had 197 ANDAs filed with the US FDA, of which 121 have been approved. Of the 76 ANDAs pending approval, based on their own analysis of publicly available US FDA data, they believe they are the first to file on 20 of these ANDA applications, which relate to brand-name drugs having aggregate sales in the United States of more than US $ 25 Billion.

With high uptake of lower-cost therapies replacing branded products in classes such as lipid regulators, antidepressants, respiratory agents, the increasingly active role of patients demanding greater access to lower cost products, and the large value of branded drugs going off-patent, generics will assume a more important role going forward. Mounting efforts on the part of insurers and employers to encourage use of generics to control healthcare costs, will also be an important growth driver for the segment.

They believe that Europe, including CIS, would be a key growth driver for the Company. While countries in Western Europe, such as Germany and France, were impacted in 2006 due to regulatory changes, they expect that market conditions will be relatively stable in 2007 and beyond. The under penetrated generic markets of Spain and Italy provide a lucrative opportunity for growth and the Company has been making, and will continue to make, organic and inorganic efforts to progress in these markets.

Today, the Company is present in 23 of the 27 EU countries, signifying its expanding footprint in EU. With the front end infrastructure in place, the Company is well geared to capitalize on the growing opportunities in the market.

The outlook on the Indian Pharma market continues to be positive, with volume consumption driving the market (only 32% of Indians as of now use allopathy medicines and drug consumption at US $ 7 per head is one of lowest in the world). With India becoming a signatory to the WTO and introduction of the Patent Product regime, the Indian market will be an attractive option for introduction of research-based products. Ranbaxy, the leading pharmaceutical company in India, is well set to become a partner of choice in the Indian market. The Company has a strong reach in Metro cities, as well as extra urban areas, with its wide distribution network. Ranbaxy has been successful in building new product concepts with the focused approach of its specialty teams.

SEGMENT-WISE PERFORMANCE

Ranbaxy recorded global sales of US $ 1,339 Million, a 17% growth over last year. Dosage form sales constituted 91% of global sales. The sales in overseas market constituted 79% of the total sales of the Company, as compared to 76% last year.

FINANCIAL PERFORMANCE

For the year, the Company recorded consolidated global sates of Rs. 60,652 Million (US $ 1,339 Million), 17% higher than the prior year. Profit before interest, depreciation and amortization, and exceptional items was Rs. 9,390 Million (US $ 207 Million), higher than the prior year by 152%. Profit before tax before extra-ordinary items at Rs. 6,510 (US $ 144 Million) was higher by 304%, while profit after tax was Rs. 5,154 Million (US $ 114 Million), 95% higher than last year.

Operating Joint Ventures:

Brazil

v Ranbaxy Farmaceutics Limiteda.

China

v Ranbaxy (Guangzhou China) Limited

Egypt

v Ranbaxy Egypt Limited

France

v Ranbaxy France SAS

Germany

v Basics GmbH

Hong Kong

v Ranbaxy (Hong Kong) Limited

India

v Ranbaxy Fine Chemicals Limited

v Rexcel Pharmaceuticals Limited

v Solus Pharmaceuticals Limited

v Vorin Laboratories Limited

v Vidyut Travel Services Limited

Ireland

v Ranbaxy Ireland Limited

Malaysia

v Ranbaxy (Malaysia) Sdn Bhd

The Netherlands

v Ranbaxy (Netherlands) B.V.

v Ranbaxy Pharmaceuticals B.V.

Nigeria

v Ranbaxy (Nigeria) Limited

Panama

v Ranbaxy Panama S. A.

Peru

v Ranbaxy PRP (Peru) SAC

Poland

v Ranbaxy Poland Sp. zoo.

South Africa

v Ranbaxy (SA) (Pty.) Limited

Thailand

v Ranbaxy Unichem Company Limited

v Unichem Distributors Limited, Part.

v Unichem Pharmaceuticals Limited

UK

v Ranbaxy (UK) Limited

v Ranbaxy Europe Limited

USA

v Ohm Laboratories Inc.

v Ranbaxy Pharmaceuticals Inc.

v Ranbaxy Schein Pharma, LLC

Vietnam

v Ranbaxy Vietnam Company Limited

The company is in trade terms with:

v Askas Plastic Private Limited

v Bhasin Packwell Private Limited

v Ankit Glass Industries Private Limited

v Symbiotech Steroids Private Limited

v Zenna Plastics Limited

v Srikem Laboratories Private Limited

v Excipients Private Limited

v NBZ Pharma Limited

v Kejariwal Industries

v Time Cap Pharma Private Limited

Fixed Assets

v Goodwill

v Trade Marks and Product Licenses

v Land

v Building

v Plant & Machinery

v Furniture & Fixtures

v Vehicles

AS PER WEBSITE

Corporate Profile

Ranbaxy Laboratories Limited, headquartered in India, is an integrated, research based, international pharmaceutical company, producing a wide range of quality, affordable generic medicines, trusted by healthcare professionals and patients across geographies. The Company is ranked amongst the top ten global generic companies and has a presence in 23 of the top 25 pharma markets of the world. The Company with a global footprint in 49 countries, worldclass manufacturing facilities in 11 and a diverse product portfolio, is rapidly moving towards global leadership, riding on its success in the world’s emerging and developed markets.

Financials

Subject was incorporated in 1961 and went public in 1973. For the year 2006, the Company's Global Sales at US $1339 Mn reflected a growth of 17%. The EBIDTA at US$207 reflected an expansion of 16%. Profit After Tax at US$ 114 Mn registered an increase of 95% over the previous year.

The Company is moving towards a well balanced mix of revenues from developed and emerging markets and is currently well positioned to leverage the varied growth potential offered by these markets. For the year 2006, North America, the Company's largest market contributed sales of US $ 391 Mn, reporting a growth of 18% followed by Europe garnering US$ 332 Mn reflecting a growth of 23%. The Company’s business in Asia was led by a strong performance in India clocking in sales of US$ 260 Mn nudging towards market leadership backed by its strong brand-building skills.

Strategy

The Company has successfully pursued its inorganic growth strategy and concluded over 15 acquisitions since 2004, including the latest 9 acquisitions valued at US$ 450 Mn (4 in Europe, 1 in the US, 3 in India and 1 in South Africa). These acquisitions have significantly expanded its business in emerging and profitable markets. The Company will continue to evaluate acquisition options in US, Europe, India and emerging markets to accentuate its business and competitiveness in these markets.

R&D

Subject views its R&D capabilities as a vital component of its business strategy that will provide the company with a sustainable, long-term competitive advantage. The Company today has a pool of 1,200 scientists who are engaged in path-breaking research.

Subject is among the few Indian pharmaceutical companies in India to have initiated its research program in the late 70’s. To support its global ambition a first of its kind world class R&D centre was commissioned in 1994. Today, the Company’s multi-disciplinary R&D centre at Gurgaon, in India, houses dedicated facilities for generics research and innovative research. The Company’s robust R&D environment for both drug discovery & development reflects the Company's commitment to be a leader in the generics space and offer value added formulations based on its Novel Drug Delivery System (NDDS) and New Chemical Entity (NCE) research outcomes.

The company's NDDS focus is mainly on the development of NDA/ ANDAs of oral controlled- release products for the regulated markets. The Company's first significant international success using the NDDS technology platform came in September 1999, when Ranbaxy out-licensed its first once-a-day formulation to a multinational company.

The research areas for drug discovery at Ranbaxy are anti-infectives, inflammatory / respiratory, metabolic diseases and Oncology. Presently, the Company has 10 programs in the area of NDDR including one NCE in Phase-II clinical trials. The Company has received approvals to commence Phase I studies in India on its NCE molecule for Dyslipidemia. In addition, the Company also has a number of other pre-clinical leads in various segments.

Subject also has a global alliance in the area of drug discovery and development with GlaxoSmithKline Plc. Presently two research programs have been initiated under this alliance.

Vision & Aspirations

The Company is driven by its vision to achieve significant business in proprietary prescription products by 2012 with a strong presence in developed markets. It aspires to be amongst the Top 5 global generic players and aims at achieving global sales of US $5 Bn by 2012.

People

The Company’s business philosophy based on delivering value to its stakeholders constantly inspires its people to innovate, achieve excellence and set new global benchmarks. Driven by its vision to become a global leader the Company reinvents itself to achieve sustained growth and leadership.

Driven by the passion of its over 12,000 strong multicultural workforce comprising 50 nationalities, Ranbaxy continues to aggressively pursue its mission to become a Research-based International Pharmaceutical Company and attain a true global leadership position.

Press Clippings:

RANBAXY RECEIVES FINAL APPROVAL TO MANUFACTURE AND MARKET CETIRIZINE HYDROCHLORIDE TABLETS (OTC), 5MG AND 10MG

Gurgaon, Haryana, India, December 31, 2007

Ranbaxy Laboratories Limited (RLL), announced today that the company has received final approval from the U.S. Food and Drug Administration to manufacture and market Cetirizine Hydrochloride Tablets (OTC), 5 mg and 10 mg. The Office of Generic Drugs, U.S. Food and Drug Administration, has determined the Ohm formulation to be bioequivalent and have the same therapeutic effect as that of the reference listed drug Zyrtec® Allergy tablets, 5mg and l0mg and Zyrtec® Hives Relief tablets, 5mg and 10mg by Pfizer Pharmaceuticals Inc. Total annual market sales for Cetirizine Hydrochloride Tablets as a prescription only product were $1.3 billion (IMS – MAT: September 2007).

Cetirizine Hydrochloride is indicated for the temporary relief of runny nose, sneezing, itching of the nose or throat, and itchy, watery eyes due to hay fever or other upper respiratory allergies.

"We are pleased to receive this final approval for Cetirizine Hydrochloride Tablets (OTC) 5mg and 10mg, that has proven its clinical value and utility in both adults and children. We are pleased to offer this preferred formulation that will meet the needs of all patients who need this medication in response to allergic reactions. This OTC product formulation further expands our portfolio of affordable generic alternatives and will be launched immediately to all classes of trade," said Jim Meehan, Vice President of Sales and Distribution for Ohm Laboratories Inc, a wholly owned subsidiary of RLL.

Ohm, based in North Brunswick, New Jersey, is a wholly owned subsidiary of Ranbaxy Laboratories Limited (“RLL”), India’s largest pharmaceutical company. Ohm is engaged in the sale and distribution of generic and branded private label, OTC products in the U.S. healthcare system.

Ranbaxy Laboratories Limited, headquartered in India, is an integrated, research based, international pharmaceutical company producing a wide range of quality, affordable generic medicines, trusted by healthcare professionals and patients across geographies.

Ranbaxy’s continued focus on R&D has resulted in several approvals in developed markets and significant progress in New Drug Discovery Research. The Company’s foray into Novel Drug Delivery Systems has led to proprietary "platform technologies", resulting in a number of products under development. The Company is serving its customers in over 125 countries and has an expanding international portfolio of affiliates, joint ventures and alliances, ground operations in 49 countries and manufacturing operations in 11 countries.

RANBAXY RECEIVES WHO PRE-QUALIFICATION FOR THREE ADDITIONAL ARVS

TWO PRODUCTS INTRODUCED FOR THE FIRST TIME ON THE WHO LIST

Gurgaon, Haryana, India, September 10, 2007

Ranbaxy Laboratories Limited (Ranbaxy) announced today that the World Health Organisation, (WHO), Geneva, has included three more Anti Retroviral (ARV) products of the Company in its pre-qualification list taking the total to 15 ARVs.

The ARV’s approved by the WHO recently are:

Lamivudine 150mg/Zidovudine 300mg tablet + Efavirenz 600mg tablet compliance pack

Lamivudine 150mg/Stavudine 30mg tablet + Efavirenz 600mg tablet compliance pack

Lamivudine 150mg/Stavudine 40mg tablet + Efavirenz 600mg tablet compliance pack

With these inclusions, Ranbaxy now has a total of 15 ARVs on the WHO pre-qualification list consisting of single dose and fixed dose combination products.

Commenting on the latest WHO listings, Ranbaxy’s CEO&MD, Mr. Malvinder Mohan Singh said, "We are committed to using our experience and technology in developing innovative products to make value added generic ARVs that improve compliance and reduce costs. Recent years have seen major reduction in cost of ARVs and Ranbaxy has been on the forefront in providing affordable ARVs to patients across nations. We now need to look for other benefits for patients and develop smarter products. We are delighted with these new approvals and believe this will benefit patients immensely".

These ARVs are made available in compliance Kit packs, designed to enhance patient compliance for medication and are Ranbaxy’s latest additions to the WHO list. These packs contain two fixed dose combination tablets of Lamivudine/Zidovudine or Lamivudine/Stavudine with a single tablet of Efavirenz. Among these, Lamivudine/Stavudine + Efavirenz formulations are the first by any company on the WHO list.

Worldwide, several patients use Lamivudine, Efavirenz and Stavudine/Zidovudine, all together. Presenting these ARV’s in kits will enable the doctors ensure patients comply with the treatment. The Kit packs will also make it simple for procurement managers to place orders and help to reduce cost of procurement and shipment.

Ranbaxy’s ARVs, including the recently approved WHO pre-qualified products, are manufactured at the Company’s state-of-the-art manufacturing facilities in India, inspected and approved by some of the most stringent agencies in the world. The Company has already filed a range of ARVs for USFDA approvals and has begun to receive tentative approvals from the USFDA under the PEPFAR program. The Company’s ARVs are sold in over 50 countries worldwide.

Ranbaxy Laboratories Limited, India's largest pharmaceutical company, is an integrated, research based, international pharmaceutical company producing a wide range of quality, affordable generic medicines, trusted by healthcare professionals and patients across geographies. Ranbaxy’s continued focus on R&D has resulted in several approvals in developed markets and significant progress in New Drug Discovery Research. The Company’s foray into Novel Drug Delivery Systems has led to proprietary "platform technologies," resulting in a number of products under development. The Company is serving its customers in over 125 countries and has an expanding international portfolio of affiliates, joint ventures and alliances, ground operations in 49 countries and manufacturing operations in 11 countries

RANBAXY LAUNCHES PRAVASTATIN SODIUM 80 MG TABLETS IN USA

RANBAXY TO BENEFIT FROM 180 DAY EXCLUSIVITY

Gurgaon (Haryana), India, June 25, 2007

Ranbaxy Laboratories Limited (RLL), announced today that the Company’s wholly owned subsidiary, Ranbaxy Pharmaceuticals Inc. (RPI), has launched Pravastatin Sodium 80 mg Tablets in the U.S. healthcare system.

Being the first-to-file, Ranbaxy will enjoy a 180 day exclusivity for Pravastatin 80mg and benefit from the commercial gains during this period. The annual sales for Pravastatin 80mg are $ 209 Million (IMS: MAT - Dec. 2006).

“They will make Pravastatin Sodium 80 mg Tablets available to all classes of trade immediately, and their Ranbaxy Sales and Distribution Teams will be doing everything to have product in the hands of their customers as quickly as possible. They are delighted to have this product formulation as an addition to their ever expanding product portfolio of affordable generic alternatives,” said Jim Meehan, Vice President of Sales and Marketing for RPI, USA.

Pravastatin is indicated in the treatment of primary prevention of coronary events such as in hypercholesterolemic patients without clinically evident coronary heart disease. Pravastatin is also indicated to reduce the risk of myocardial infarction, reduce the risk of undergoing myocardial revascularization procedures and reduce the risk of cardiovascular mortality with no increase in death from non-cardiovascular causes. It is also indicated for treatment in the secondary prevention of cardiovascular events such as in patients with clinically evident coronary heart disease to reduce the risk of stroke and stroke/transient ischemic attack (TIA), and slow the progression of coronary atherosclerosis

Ranbaxy Pharmaceuticals Inc. (RPI) based in Jacksonville, Florida, USA, is a wholly owned subsidiary of Ranbaxy Laboratories Limited (RLL), India’s largest pharmaceutical company. RPI is engaged in the sale and distribution of generic and branded prescription products in the U.S. healthcare system.

Ranbaxy Laboratories Limited, headquartered in India, is an integrated, research based, international pharmaceutical company producing a wide range of quality, affordable generic medicines, trusted by healthcare professionals and patients across geographies. Ranbaxy’s continued focus on R&D has resulted in several approvals in developed markets and significant progress in New Drug Discovery Research. The Company’s foray into Novel Drug Delivery Systems has led to proprietary "platform technologies", resulting in a number of products under development. The Company is serving its customers in over 125 countries and has an expanding international portfolio of affiliates, joint ventures and alliances, ground operations in 49 countries and manufacturing operations in 11 countries

RANBAXY PRESENTS SPECIAL AWARD IN PUBLIC HEALTH TO PROFESSOR K. SRINATH REDDY

Gurgaon, India, December 29, 2006

Ranbaxy Science Foundation, a non-profit organization set-up by Ranbaxy Laboratories Limited (RLL) to encourage and reward Indian scientists around the world, today, presented its 3rd ‘Ranbaxy Special Award in Public Health’ to Professor K. Srinath Reddy, Professor of Cardiology, AIIMS, and President Public Health Foundation of India, for his research contributions in public health in the field of epidemiology and prevention of cardio vascular diseases. The Foundation confers this special award on a person whose work or action has had a strong and lasting impact on public health issues. The award was presented by Dr. Nitya Anand, Chairman, Ranbaxy Science Foundation. On the occasion, Prof. Reddy delivered a lecture on the topic “Promoting Heart Health in India: A Public Health Approach”.

Prof. Reddy has been awarded with the Ranbaxy Special Award for distinguished services to public health in recognition of his outstanding national and global contributions to health promotion and prevention of cardiovascular and other chronic diseases. His illustrious career as a cardiologist and epidemiologist till recently as a faculty member of the AIIMS and presently as the President of the Public Health Foundation of India, is replete with rich and varied contributions to public health. Prof. Reddy has, through his research, helped to identify the nature and extent of risk factors contributing to the rapid rise of heart diseases in India and also charted the dynamics of health transition which is transforming developing countries into a high risk zone for cardiovascular diseases, diabetes and cancers. Working closely with Indian Ministry of Health as well as international agencies such as the World Health Organization and the World Heart Federation, he has helped to evolve policies and designed public health programmes related to prevention of cardiovascular diseases and obesity, tobacco control, healthy nutrition and physical activity.

Prof. Reddy has also created several new initiatives for health promotion and disease prevention. Through HRIDAY-SHAN, a school and college based network for promoting health awareness and informed health advocacy among youth, thousands of students have been mobilized into health action in Delhi and 10 other states. The first ever Global Youth Meet on Health, organized by HRIDAY-SHAN in 2006, unified youth from 35 countries into a Youth For Health movement which is set to conduct global campaigns for health promoting policies. An ongoing programme, in 10 industries across India, is providing over 200,000 employees and their family members health education, risk factor screening and counseling for disease prevention and management. Rigorous evaluation has shown these interventions to be highly successful in reducing risk and WHO has identified them to be ‘best practices’ for replication elsewhere.

Prof. Reddy has also been globally acclaimed for his role in championing tobacco control. As a member of the Indian delegation to the inter-governmental negotiations on the global Framework Convention on Tobacco Control, his articulate advocacy has made him a spokesperson for the developing countries. He was awarded with the WHO Director General’s Award for ‘Outstanding Contributions To Global Tobacco Control’ at the World Health Assembly of 2003.

Professor K. Srinath Reddy was awarded PADMA BHUSHAN by the President of India in 2005. He has brought honour to India by being awarded the Queen Elizabeth Medal for Health Promotion in 2005 and by becoming the first Indian Scientist to be inducted into the US National Academies’ Institute of Medicine. He is also the first Indian to deliver the prestigious Cutter Lecture at the Harvard School of Public Health. He has been listed by the University Grants Commission as one of the top Indian researchers in Medical Sciences and Social Sciences. He is a winner of ECAAR Global Peace Essay Award, adjudged by nine Nobel Laureates and other luminaries, as well as the Times of India Human Rights Essay Prize.

The Ranbaxy Special Award in Public Health has earlier been conferred on Mr. S. R. Rao former Commissioner of Surat and Dr. Justice K. Narayana Kurup former Acting Chief Justice and Judge of the Madras High court in recognition of their dynamic contributions towards improving the sanitation system in the aftermath of plague and imposing ban on smoking in public places respectively.

Ranbaxy Science Foundation is a non-profit organisation and was set up as an independent society in 1985 with the mission of providing impetus to the scientific endeavour in the country by encouraging and rewarding excellence in medical and pharmaceutical research. So far the Foundation has honoured 104 scientists for their outstanding Research and Scientific contributions in the fields of Medical and Pharmaceutical Sciences.

Ranbaxy Laboratories Limited, headquartered in India, is an integrated, research based, international pharmaceutical company producing a wide range of quality, affordable generic medicines, trusted by healthcare professionals and patients across geographies. Ranbaxy's continued focus on R&D has resulted in several approvals in developed markets and significant progress in New Drug Discovery Research. The Company's foray into Novel Drug Delivery Systems has led to proprietary "platform technologies", resulting in a number of products under development.  The Company is serving its customers in over 125 countries and has an expanding international portfolio of affiliates, joint ventures and alliances, ground operations in 49 countries and manufacturing operations in 9 countries.

RANBAXY IN-LICENSES NDDS CARDIOVASCULAR DRUG FROM ETHYPHARMA FOR INDIAN MARKET 

Gurgaon (Haryana), India - September 18, 2006

Ranbaxy Laboratories Limited (Ranbaxy) announced today that the Company has entered into a strategic in-licensing agreement for the Indian market, with Ethypharm LL India (Ethypharm), a wholly-owned subsidiary of a leading French drug delivery company, for a Fixed Dose Combination of Fenofibrate micronized 160 mg and Atorvastatin 10 mg

Ranbaxy will market the product under its brand name STORFIB(tm). Introduction of STORFIB will address the need for effective management of Mixed Dyslipidemia, which is very common amongst the Indian population. The product will be manufactured by Ethypharm, at its facility located near Mumbai.

Commenting on the agreement, Mr. Sanjeev I. Dani, Regional Director, India and Middle East, Ranbaxy said, "Ranbaxy in India, is the leader in Novel Drug Delivery System (NDDS products) and a pioneer in the Lipids management portfolio. The launch of STORFIB, which symbolises both these strengths, would further augment their leadership position in the cardio-vascular market. "

Combinational products are growing very fast in India and it is estimated that more than two thirds of all combination products worldwide are registered first in India. Ethypharm endeavours to ensure that the benefits of its Drug Delivery technologies also encompass such combinational products. "This product encapsulates the benefits of both Combination offerings and Drug Delivery technologies and will help the large Indian populace who suffer from Combined (mixed) Dyslipidemia which is common culprit in Asian subcontinent including India", said Mr Ajey Kumar, Chief Executive Officer of Ethypharm India.

Fenofibrate is a drug prescribed to lower triglycerides in cases of Hyperlipidemia while Atorvastatin is a cholesterol lowering drug. Ethypharm's enhanced absorption technologies serve to increase bioavailability of drugs like Fenofibrate thereby making it more efficacious, effective and safe medicine.

Earlier in May 2006, Ranbaxy had entered into a similar in-licensing agreement with Ethypharm, India, for marketing of Tramadol Flashtab®, a pain management drug. It is Ranbaxy's strategic intent to in-licence other value added Drug Delivery products for the Indian market to supplement its significant portfolio in this area. Ranbaxy's strong marketing and distribution network coupled with its own expertise in the segment, makes it a partner of choice for companies evaluating similar collaborative go-to-market arrangements.

Ethypharm is a French company, present on the principal world health markets with manufacturing and R & D sites in Europe, North America, China and India. Ethypharm is headed by Gérard Leduc (Chairman and CEO) and Henry Martin (General Manager) since November 2005. The Ethypharm pharmaceutical company focuses on developing, manufacturing and licensing pharmaceutical products based on optimization of delivery through proprietary technologies, mainly in the oral sustained release formulations. The Company has a special focus on pain management, cardiovascular, oncology and CNS branded and generic products. Over the years, Ethypharm has developed more than 50 branded and generic products, based on its core proprietary technologies.

Ranbaxy Laboratories Limited, headquartered in India, is an integrated, research based, international pharmaceutical company producing a wide range of quality, affordable generic medicines, trusted by healthcare professionals and patients across geographies. Ranbaxy's continued focus on R&D has resulted in several approvals in developed markets and significant progress in New Drug Discovery Research. The Company's foray into Novel Drug Delivery Systems has led to proprietary "platform technologies", resulting in a number of products under development. The Company is serving its customers in over 125 countries and has an expanding international portfolio of affiliates, joint ventures and alliances, ground operations in 49 countries and manufacturing operations in 8 countries.

RANBAXY GAINS WHO PRE-QUALIFICATION FOR FOUR MORE ARVS

Gurgaon, India, May 24, 2006

Ranbaxy Laboratories Limited (Ranbaxy) announced today that the World Health Organisation, Geneva (WHO), has included four additional Anti Retroviral (ARV) products of the Company in its pre-qualification list. The products approved by the WHO are:

Efavirenz 600mg tablets
Efavirenz 200mg capsules
Stavudine 30mg capsules
Stavudine 40mg capsules

With these inclusions, the Company now has a total of 12 ARVs on the WHO pre-qualification list. The Company also has three approvals from USFDA for ARVs, making it eligible for making supplies to the US funded PEPFAR programme.

Commenting on the new WHO listings, Ranbaxy’s CEO &MD, Mr. Malvinder Mohan Singh said, “This is a significant development. They strongly feel that Generic ARVs are essential in fighting the worldwide struggle against HIV/AIDS and are committed to providing high quality, cost effective generics.” He further added, “Efavirenz is rapidly becoming a preferred drug in HIV treatment program in developing countries. The other newly listed drug, Stavudine, is also being widely used as a first line of therapy against AIDS. Both products increase customer choice enabling patients to access therapy easily, at affordable prices.”

Ranbaxy’s ARVs, including the recently approved WHO pre-qualified products, are manufactured at the Company’s state-of-the-art manufacturing facilities, inspected and approved by some of the most stringent agencies in the world. These include the USFDA and the WHO.

Since 2001, Ranbaxy has been providing high quality ARV medicines, at affordable prices, to countries and patients afflicted by HIV/AIDS who might not otherwise have been able to gain access to this therapy. The Company's ARVs have been used as mainstays in various large treatment programs, both National and NGO/Institutional with good results. Ranbaxy is committed to supporting the global fight against HIV/AIDS through high quality, affordable medicines.

Ranbaxy Laboratories Limited, headquartered in India, is an integrated, research based, international pharmaceutical company producing a wide range of quality, affordable generic medicines, trusted by healthcare professionals and patients across geographies. Ranbaxy's continued focus on R&D has resulted in several approvals in developed markets and significant progress in New Drug Discovery Research. The Company's foray into Novel Drug Delivery Systems has led to proprietary "platform technologies", resulting in a number of products under development. The Company is serving its customers in over 125 countries and has an expanding international portfolio of affiliates, joint ventures and alliances, ground operations in 49 countries and manufacturing operations in 7 countries.

RANBAXY IN-LICENCES NDDS ANALGESIC MOLECULE FROM ETHYPHARM-FRANCE, FOR INDIA

 Adds muscle to its strategic portfolio of Novel drugs

Gurgaon, India, May 24, 2006

Ranbaxy Laboratories Limited (Ranbaxy) announced today that the Company has entered into a strategic in-licensing agreement for the Indian market, with Ethypharm LL India (Ethypharm), a wholly-owned subsidiary of a leading French drug delivery company, for the Novel Drug Delivery System (NDDS) analgesic, Tramadol 50 mg Flashtab®. The product will be supplied from Ethypharm's manufacturing facility near Mumbai, and marketed and distributed by Ranbaxy under its brand name 'Trambax'.

Tramadol is a drug of choice for severe to moderately severe pain in trauma cases and is currently one of the four most commonly prescribed analgesics worldwide. It is also used as an adjunct therapy in the treatment of cancer patients. Tramadol Flashtab® tablets melt rapidly in the mouth without water and combine several benefits in terms of acceptability, accuracy of dosing and safety. This inherent property of a Flashtab® is an advantage in the treatment of pain, since it can be consumed without water and hence can be used anywhere, anytime. Ranbaxy and Ethypharm aim to respond to the needs of patients and health authorities' for convenient medication by utilising the unique Flashtab® technology.

Commenting on the agreement, Mr. Sanjeev I. Dani, Regional Director, India and Middle East, Ranbaxy said, "The introduction of Trambax (Tramadol Flashtab®) Tablets is part of Ranbaxy's strategy to provide world-class products with NDDS technology to doctors in India bringing rapid pain relief to their patients. This will further strengthen their portfolio in the pain management segment."

"The Indian market of Tramadol is approximately Rs 150 Millions annually and is expected to grow significantly with the addition of this Novel Drug Delivery System, making the administration of the product easier and more convenient to the patient", said Mr Ajey Kumar, Chief Executive Officer of Ethypharm LL India.

Today Ranbaxy is a clear market leader in India in the NDDS space with a basket of 30 novel products already on pharmacy shelves in the country.

This year, with the introduction of the NDDS product Trambax, Ranbaxy has so far launched 2 in-licenced products and has 5 more such products in the pipeline, for launch during the year.

It is Ranbaxy's strategic intent to in-licence other value added NDDS products for the Indian market to supplement its own significant portfolio in this area. Ranbaxy's strong marketing and distribution network coupled with its own expertise in NDDS makes it a partner of choice for companies evaluating similar collaborative go-to-market arrangements.

Ethypharm is a pharmaceutical laboratory specialized in controlled release systems of medical products for the oral route. Its principal therapeutic areas concern pain, cardio-vascular and the central nervous system. The Company has more than 50 products launched by business partners of international repute in approximately 70 countries. Ethypharm develops and manufactures its products in compliance with the current pharmaceutical norms worldwide. The Company has developed a large range of technology platforms for the administration of products by the oral route, including controlled release, orally disintegrating taste-masked formulations and systems for the improvement of the solubility of active substances of low solubility. Ethypharm is present on the principal world health markets with plants and Research & Development centres in Europe, in North America (Canada) and in Asia (China and India). Ethypharm LL India is a 100% subsidiary of Ethypharm S.A., France.

Ranbaxy Laboratories Limited, headquartered in India, is an integrated, research based, international pharmaceutical company producing a wide range of quality, affordable generic medicines, trusted by healthcare professionals and patients across geographies. Ranbaxy's continued focus on R&D has resulted in several approvals in developed markets and significant progress in New Drug Discovery Research. The Company's foray into Novel Drug Delivery Systems has led to proprietary "platform technologies", resulting in a number of products under development. The Company is serving its customers in over 125 countries and has an expanding international portfolio of affiliates, joint ventures and alliances, ground operations in 49 countries and manufacturing operations in 7 countries.

RANBAXY IN-LICENCES NEW ASTHMA DRUG FROM EURODRUG LABORATORIES, NETHERLANDS

Product to be marketed in India for the first time

Gurgaon, India, May 17, 2006

Ranbaxy Laboratories Limited (Ranbaxy) announced today that the Company has entered into an in-licensing agreement for the Indian domestic market, with the Netherlands based Pharma company, Eurodrug Laboratories, for the asthma product Doxophylline - a Novel Xanthine Bronchodilator .

The product developed in collaboration with many European medical centers, will be introduced for the first time in India under the Brand Name "SYNASMA". The drug is indicated for Chronic Bronchitis, Asthma and Chronic Obstructive Pulmonary Disease (COPD) and is considered to be superior to available Xanthine analogues, like Theophylline and Aminophylline. Eurodurg has been successfully marketing this medicine in Europe, Latin America and few Asian markets like Korea, Philippines and Thailand.

Commenting on the development, Mr. Sanjeev I. Dani, Regional Director -India & Middle East-, Ranbaxy, said "Synasma (Doxophylline) is yet another innovative asthma drug to be introduced in India for the 'first' time, by Ranbaxy. It is their strategic intent to in-licence differentiated products for the Indian market in the post-patent era and this drug augments the Company's position in the fast growing asthma segment."

Reflecting the commitment of Ranbaxy in continuing to launch new molecules with unique action mechanisms, Mr. Dani further added, " Doxophylline will build on the oral asthma franchise of Ranbaxy, which is already a leader in the montelukast market."

India presently has an estimated 15-20 million asthmatic patients and the estimated prevalence rate in 5-11 year old children is between 10-15%. A large segment of  the population is susceptible to this disorder. The classified triggers for asthma include environment pollutants, molds, dust mites, certain food etc and the disease affects all sections of the society.

The Eurodrug Laboratories Group is a Netherlands based multinational pharma company established in 1984 with a vision of introducing one NCE every two years in the global market. The primary activity of Eurodrug group is registering, marketing and distributing a wide range of New Chemical Entities of European origin available through it's contract research, in-licensing and joint-ventures. Eurodrug is actively present in over 21 countries especially in Latin America, Asia Pacific and Eastern Europe. In most of the countries Eurodrug, markets the products through its own local sales-forces whereas in some countries it operates through leading local companies.  

Ranbaxy Laboratories Limited, headquartered in India, is an integrated, research based, international pharmaceutical company producing a wide range of quality, affordable generic medicines, trusted by healthcare professionals and patients across geographies. Ranbaxy's continued focus on R&D has resulted in several approvals in developed markets and significant progress in New Drug Discovery Research. The Company's foray into Novel Drug Delivery Systems has led to proprietary "platform technologies", resulting in a number of products under development.  The Company is serving its customers in over 125 countries and has an expanding international portfolio of affiliates, joint ventures and alliances, ground operations in 49 countries and manufacturing operations in 7 countries.

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.39.43
UK Pound	1	Rs.77.06
Euro	1	Rs.57.65

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	8
PAID-UP CAPITAL	1~10	8
OPERATING SCALE	1~10	9
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	8
--PROFITABILIRY	1~10	8
--LIQUIDITY	1~10	9
--LEVERAGE	1~10	9
--RESERVES	1~10	9
--CREDIT LINES	1~10	-
--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	YES
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		68

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