MIRA INFORM REPORT

Report Date :

22.07.2008

IDENTIFICATION DETAILS

Name :	BIOLOGICAL E LIMITED
Registered Office :	18/1 & 3, Azamabad, Hyderabad - 500 020, Andhra Pradesh
Country :	India
Financials (as on) :	31.03.2007
Date of Incorporation :	10.12.1953
Com. Reg. No.:	01-1095
CIN No.: [Company Identification No.]	U01120AP1953PLC001095
TAN No.: [Tax Deduction & Collection Account No.]	HYDB00005F
Legal Form :	Closely held Public Limited Liability Company.
Line of Business :	Manufacturer and Exporter of Vaccines, Pharmaceuticals, Anti-Cough, Digestive Enzymes, Anti-Biotic, Anti-Ulcer, Anti-Arithritis, GI, VG, Anticoagulatns

RATING & COMMENTS

MIRA’s Rating :

Aa

RATING		STATUS	PROPOSED CREDIT LINE
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

Maximum Credit Limit :	USD 2000000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Available Information indicate high financial reputation of the company. Financial position is good. Payments are correct and as per commitments. The company is doing very well. It can be considered good for any normal business dealings at usual trade terms and conditions. It can be required a promising business payments in a medium to long run.

LOCATIONS

Registered Office / Factory 1:	18/1 & 3, Azamabad, Hyderabad - 500 020, Andhra Pradesh, INDIA
Tel. No.:	91-40-27617831 / 30214021 (3 Lines) / 27617835 / 27615134 / 27672306 91-40-27603742 / 30213999 [For International Customer]
Fax No.:	91-40-27615309 / 27675003 / 27616715 / 27630307
E-Mail :	info@biologicale.com balajims@hd2.vsnl.net.in dsc@biologicale.co.in intl@biologicale.co.in umakanta.b@biologicale.co.in
Website :	http://www.biologicale.com
Factory 2:	Gaganpahad, R. R. District, Andhra Pradesh, India
Factory 3:	Plot Nos. 7 & 8, IDA Phase II, Patancheru, Medak District, Andhra Pradesh, India
Factory 4:	Bodla, Agra, Uttar Pradesh, India
Factory 5:	Plot Nos. 9 & 10, IDA Phase IV, Patancheru, Medak District, Andhra Pradesh, India
Sales Office1 :	Das Chambers, 25, Dalal Street, Mumbai – 400 023, Maharashtra, India
Tele No:	91-22-22673829/22673836/22673927/22671355
Sales Office 2:	21, Bipin Behari Ganguly Street, Kolkata, West Bengal
Sales Office 3:	Sinha Library Road, Patna – 800 001, Bihar
Sales Office 4:	44/21, Lorry Godown Shed Road, APMC Yard, Yeshwantpur, Bangalore – 560 022, Karnataka
Sales Office 5:	Gunfactory Lane, Rehabari, Guwahati – 781 008, Assam
Commercial Warehouse :	Kumar Engineering Works Compound, Kalina, Santacruz, Mumbai, Maharashtra, India
Tel. No.:	91-22-26183046/26187129/2612 6425

DIRECTORS

Name :	Dr. Vijaykumar Datla
Designation :	Chairman
Address :	2-2-12/3A, D. D. Colony, Adikmet, Hyderabad – 500007, Andhra Pradesh
Date of Birth/Age :	22-02-1945
Qualification :	MBBS
Experience :	32 years
Date of Appointment :	01-05-1972
Name :	Dr. [Mrs.] Renuka Datla
Designation :	Director
Address :	H. No. 2-2-12/3A, D. D. Colony, Adikmet, Hyderabad – 500007, Andhra Pradesh
Date of Birth/Age :	20.05.1946
Qualification :	MD
Experience :	30 years
Date of Appointment :	29.08.1991
Name :	Mr. G. V. Rao
Designation :	Director
Address :	D-2, Euro Singar Road No. 10, Banjara Hills, Hyderabad – 500034, Andhra Pradesh, India
Date of Birth/Age :	12-08-1938
Qualification :	FCA
Experience :	40 years
Date of Appointment :	18-11-2000
Name :	Mr. A.S. Prasad
Designation :	Director
Address :	F-3,8-977/9/6, Srinivasa Apartments, Yellarreddy Guda, Hyderabad – 500073. Andhra pradesh
Date of Birth/Age :	04-08-1959
Date of Appointment :	21-03-2202
Name :	Mr. D. Asudeva Rao
Designation :	Director
Address :	1-1-78/A/6, Gandhi Nagar, Hyderabad–500080, Andhra Pradesh.
Date of Appointment :	01-09-05
Name :	Ms. Uma Kanta Barik
Designation :	Director
Address :	Flat No. 303, Pramila Towers, Kharkhana, Secunderabad – 500015, Andhra Pradesh, India
Date of Birth/Age :	03.05.1972
Date of Appointment :	12.04.2007

KEY EXECUTIVES

Name :	Mr. Umakantha Barik
Designation :	Secretary
Address :	Flat No. 303, 3^rd Floor, Pramila Towers, Kakaguda, Secunderabad – 500015, Andhra Pradesh, India
Date of Birth/Age :	03.05.1972
Date of Appointment :	12.04.2007

MAJOR SHAREHOLDERS

AS ON 30.09.2005

Names of Shareholders	No. of Shares
Vijaykumar Datla	121961
Vijaykumar Datla(HUF)	4594
Poornima Mantena	4357
Indira P. Raju	4357
Mahima Datla	7224
Vijay Kumar Datla) (Trustee poomima & Indu Trust)	1999
Vijaykumar Datla (Trustee poomima & Indu Trust)	1685
Poomima , Mrs. Renuka Datla	187
Vijay Kumar Datla and Dr. (Mrs) Renuka Datla	5515
Mahima Datla and Dr. (Mrs) Renuka Datla	14172
Renuka Datla and Miss. Mahima Datla	26995
V.R. Investments & Finance Private Limited	18425
D.V.K. Raju and Krishna V. Datla	249
Prakash A Mody and Mrs. Anita P. Mody	2313
D. Subba Raju	70
G. Jagannath	100
J. Moos	85
P.V. Ranveer	200
P. Rajylaxmi	7
Pumendu Gupta and Mrs. Krishna Gupta	250
Supama P. Mody , Dr. Prakash A. Mody and Mrs. Anita P. Mody	1032
S.A. Dave, Mrs. Saroj and Mrs.Shraddhah	50
S.L. Mukhrjee	124
Total	215951

AS ON 30.09.2007

Equity Share Breakup	Percentage of Holding
Category
Bodies corporate	8.53
Directors or relatives of directors	89.51
Other	1.96
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer and Exporter of Vaccines, Pharmaceuticals, Anti-Cough, Digestive Enzymes, Anti-Biotic, Anti-Ulcer, Anti-Arithritis, GI, VG, Anticoagulatns  

Products :

Product Descriptions	Item Code
Heparin and Salts	30019091
Cont Alkalds and Its Derivatives but not cont Harmon	30044090
Preparation of Vitamins	30045039

Brand Names :

“GI KIT”, “NEO HEAPATEF”, “BE STOZYME”, “BEPAMOL” AND “BETHADOXYN”.

Exports to :

Sri Lanka and Singapore and Denmark , Yemen

Imports from :

China and Thailand

Terms :

Selling :

Credit [30 days] terms

Purchasing :

Credit [90 days] terms

GENERAL INFORMATION

Suppliers :	˜ Evans, UK ˜ Pasteur Meriuk Connaught, Frane ˜ Solvey & CIE, Belgium
Customers :	Wholesalers
No. of Employees :	600
Bankers :	Bank of Baroda, New York Branch, 277, Park Avenue, New York - 101720083 Bank of Baroda, ABIDS, Hyderabad-500 001 Corporation Bank, Hyderguda, Hyderabad-500 029. The Lakshmi Vilas Banks Limited, Bank Street , Koti, Hyderabad-500 001. ICICI Bank Limited, Begumpet, Hyderabad-500 016 Andhra Bank, Sultan Bazar, Hyderabad 500195 State Bank of India, Commercial Branch, Secuderabad

Banking Relations :	Good
Auditors :	Brahmaya & Company Chartered Accountant Hyderabad 500082.
Mobile No. :	403 & 404, Golden Green Apartments, Irrum Manzil Colony, Hyderabad – 500082, Andhra Pradesh, India
Tel No:	91-40-22337002
Subsidiaries :	Ø Biotech Medicals Private Limited 309, 3^rd Floor, House No. 3-S-890 Paras Chambers, Himayal Nagar, Hyderabad, Andhra Pradesh [CIN No.: U24230AP1999PTC032680] - Manufacturers of Formulations Ø B. E. Investment & Finance Private Limited 18/1 and 3, Azamabad, Hyderabad, Andhra Pradesh [CIN No. U65993AP1987PTC008036] - Investment and Finance Ø R. Construction Company Private Limited Ø Biotech Pharma Ø Biotech Pharma Private Limited Ø B E Animal Health Private Limited Ø V R Packing Company Private Limited Ø DAP Containers Private Limited Ø Biona Helth Care Private Limited Ø Raju Investments
Associates :	Ø B E Chemicals Private Limited Ø Beflora India Limited Ø Biotech Pharma Ø V. R. Construction Company Private Limited Ø Fermenta Pharma Biodil Limited, Haryana, India Ø Vaistha Technologies (Private) Limited – Medical Software Company Ø Solvay B. E. Animal Health Limited Ø Biological Products Private Limited Ø G L India Limited Ø Delta Investment & Finance Company (Private) Limited Ø V. R. Investment & Finance Company Limited
Membership :	CHEMEXEL, BPMA, FIEO,GMP CERTIFIED

CAPITAL STRUCTURE

AS ON 29.09.2007

Authorised Capital :

No. of Shares	Type	Value	Amount
500000	Equity Shares	Rs. 100/- each	Rs. 50.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
216000	Equity Shares	Rs. 100/- each	Rs. 21.600 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2007	31.03.2006	31.03.2005
SHAREHOLDERS FUNDS
1] Share Capital		21.600	21.600	21.600
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		476.509	438.936	0.000
4] (Accumulated Losses)		0.000	0.000	386.378
NETWORTH		498.109	460.536	407.978
LOAN FUNDS
1] Secured Loans		1288.205	1329.721	874.065
2] Unsecured Loans		222.028	56.033	31.327
TOTAL BORROWING		1510.233	1385.754	905.392
DEFERRED TAX LIABILITIES		19.597	1.231	2.910
TOTAL		2027.939	1847.521	1316.280
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		361.764	229.639	177.183
Capital work-in-progress		1413.074	1068.449	526.847
INVESTMENT		31.669	12.110	11.358
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	173.993	116.690	124.682
	Sundry Debtors	158.256	156.571	173.400
	Cash & Bank Balances	78.675	365.886	276.008
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	203.932	178.723	894.194
Total Current Assets		614.856	817.870	1468.284
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	421.947	323.588	919.681
	Provisions	5.054	4.926	10.070
Total Current Liabilities		427.001	328.514	929.751
Net Current Assets		187.855	489.356	538.533
MISCELLANEOUS EXPENSES		33.577	47.967	62.358
TOTAL		2027.939	1847.521	1316.280

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2007	31.03.2006	31.03.2005
Sales Turnover		933.929	930.806	905.658
Other Income		36.057	16.213	14.368
Total Income		969.986	947.019	920.026
Profit/(Loss) Before Tax		73.104	67.275	59.286
Provision for Taxation		29.766	7.821	20.200
Profit/(Loss) After Tax		43.338	59.454	39.086
Earnings in Foreign Currency :		83.482	68.259	32.544
Expenditures :
	Raw Material Consumed	270.548	259.279	237.109
	Purchases made for re-sale	0.008	7.154	14.639
	Consumption of stores and spares parts	0.000	5.625	4.575
	Increase/(Decrease) in Finished Goods	[37.805]	7.684	7.824
	Salaries, Wages, Bonus, etc.	168.568	146.510	134.085
	Managerial Remuneration	7.158	6.843	6.339
	Payment to Auditors	0.214	0.174	0.171
	Interest	36.465	25.178	27.400
	Insurance Expenses	5.328	6.962	6.230
	Power & Fuel	32.216	24.453	24.498
	Depreciation & Amortization	17.454	15.628	14.793
	Other Expenditure	396.728	374.254	383.077
Total Expenditure		896.882	879.744	860.740

KEY RATIOS

PARTICULARS		31.03.2007	31.03.2006	31.03.2005
PAT / Total Income	(%)	4.47	6.28	4.25
Net Profit Margin (PBT/Sales)	(%)	7.83	7.23	6.55
Return on Total Assets (PBT/Total Assets}	(%)	7.49	6.42	3.60
Return on Investment (ROI) (PBT/Networth)		0.15	0.15	0.15
Debt Equity Ratio (Total Liability/Networth)		3.89	3.72	4.50
Current Ratio (Current Asset/Current Liability)		1.44	2.49	1.58

LOCAL AGENCY FURTHER INFORMATION

Fixed Assets

• Land
• Building
• Plant and Machinery
• Water Works
• Electrical Installations and Air Conditioner
• Date Processing Machines
• Office Equipment
• Furniture & Fixture & Canteen Assets
• Vehicles
• Trade Marks

Subsidiaries Companies :

B. E . Investment & Finance Private Limited :

Annual Report Of B.E. Investments & finance Private Limited . For the year ended 31^st March, 2005 is enclosed pursuant to section 212 of the companies Act 1956 and it has reported a loss of Rs. 1.952 Millions as a loss of Rs. 1.168 Millions of the previous year.

Biotech Medicals Private Limited :

The sixth Annual Report of fully owned subsidiary .viz Biotech Medicals Private Limited , for the year ended 31^st March, 2005 is enclosed pursuant to section 212 of the companies Act 1956. The company has registered a turnover of Rs. 0.265 Million and a Net profit of Rs. 0.128 Million for the year vended 31^st March, 2005 as against Rs. 0.212 Million and a Net Profit of Rs. 0.096 Million for the previous year recording a profit of Rs. 0.182 Millions before tax as against Rs. 0.123 Million for the previous year.

Form 8

Name of the company	M/s. BIOLOGICAL E LIMITED
Presented By	Mr. G.V. Rao, Finance Director
Date and Description of the Instrument charge	Section Letter Dated 12.03.2004. Term Loan Agreement for Machinery / Goods Stocks dated 17.03.2004 for Rs. 100.000/- Millions.
Amount secured by the charge/amount owing on the securities of charge	Short Term Loan of Rs. 10.000/- Millions
Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given	Pari – passu First charge on the company’s movable & immovable properties situated at Azamabad, Patancheru in AP & Bodla near Agra.
Gist of the terms and conditions and extent and operation of the charge.	Interest: The effective rate of interest is 8.5% below PLR i.e 12.5% p.a. Bullet payment at the end of Loan period or absorption in Regular Term Loan.
Name and Address and description of the person entitled to the charge.	The Lakshmi Vilas Bank Limited, Bank Street , Koti, Hyderabad-500 001.
Date and brief description of instrument modifying the charge	NA
Particulars of modification specifying the terms and conditions or the extant or operation of the charge in which modification is made and the details of the Modification.	NA

This form is for	Modification of charge
Charge identification number of the modified	90262072
Corporate identity number of the company	U01120AP1953PLC001095
Name of the company	BIOLOGICAL E LIMITED
Address of the registered office or of the principal place of business in India of the company	18/1 & 3, Azamabad, Hyderabad - 500 020, Andhra Pradesh, India
Type of charge	Immovable Property Any Interest in immovable property Book debts
Particular of charge holder	Corporation Bank, Hyderabad – 500029, Andhra Pradesh, India Cb276@corpbank.co.in
Nature of description of the instrument creating or modifying the charge	No document was executed. At the request of the company the Lakshmi Vilas Bank released the documents of the property situated at Bodla, Agra from mortgage after getting no objection letters from other Bankers including Corporation Bank and accordingly returned the original documents of the said property.
Date of instrument Creating the charge	18.01.2008
Amount secured by the charge	Rs. 162.500 Millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest Interest @ 1.75 % over PLR subject to change from time to time Terms of Repayment Repayable on demand
Short particulars of the property charged	Land and Building and other immovable properties situated at Azamabad, Patancheru, Gaganpahad Excluding Agra
Date of latest modification prior to the present modification	13.11.2001
Particulars of the present modification	Release of property documents in respect of Agra property from Mortgage

HISTORY

Subject was established over 50 years ago. It is the first private sector biological products company in India and the first pharmaceuticals company in South India. BE is also the pioneer in preventive medicine.

Originally incorporated as Biological Products Private Limited in 1953, and launched by Dr. D.V.K. Raju, Biological E today, is a leader in Vaccinology in India and a significant player in the world vaccine market. They are further expanding and enhancing the facilities and product lines for vaccines through the establishment of a new plant and R&D centre in Andhra Pradesh.

Early on, Biological E Limited partnered with Evans Medical of UK to develop pharmaceutical formulations. Later they teamed with Glaxo, India to focus on building the pharmaceutical business in India. They have also collaborated with Pasteur Meriux Connaught of France and Solvay & Cie of Belgium. Every tie-up they entered into has sought to strengthen and advance their over all strategy of being innovative, expanding and developing product lines and building infrastructure with an eye to the future.

Subject supplies most of the essential and life saving drugs to Central and State Government Hospitals, Public Sector Undertakings, the Indian Armed Forces and the domestic retail market. Their International division provides global-access to high quality innovative products and caters to the health and well being of people worldwide.

Subject is now a serious participant in the exciting new face of medical science - Gene Therapy. With the dynamic Dr. Vijay Kumar Datla, Chairman & Managing Director as its head and inspiration, BE is offering hope to people who can't be helped by standard treatments.

From being one of the first endeavours to promoters of the indigenous pharmaceutical industry to a formidable presence in the preventive spheres of vaccines; producers of bulk drugs to cutting edge genetic and cell-based technologies to treat disease, Biological E Limited has always displayed the vigour, energy to surmount ever higher peaks and the vision to constantly expand it's horizons.

Subject has a long and richly textured history but the future promises to be even more exciting and successful.

CMT REPORT [Corruption, Money laundering & Terrorism]

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

1] INFORMATION ON DESIGNATED PARTY

No exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

2] Court Declaration :

No exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

3] Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

4] Record on Financial Crime :

Charges or conviction registered against subject: None

5] Records on Violation of Anti-Corruption Laws :

Charges or investigation registered against subject: None

6] Records on Int’l Anti-Money Laundering Laws/Standards :

Charges or investigation registered against subject: None

7] Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

8] Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

9] Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

10] Press Report :

No press reports / filings exists on the subject.

CORPORATE GOVERNANCE

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

CONTRAVENTION

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.46.29
UK Pound	1	Rs.84.90
Euro	1	Rs.58.83

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	8
PAID-UP CAPITAL	1~10	8
OPERATING SCALE	1~10	8
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	8
--PROFITABILIRY	1~10	8
--LIQUIDITY	1~10	8
--LEVERAGE	1~10	8
--RESERVES	1~10	8
--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	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		72

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average/normal.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended

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