MIRA INFORM REPORT

Report Date :

11.04.2011

IDENTIFICATION DETAILS

Name :	ONCO THERAPIES LIMITED

Registered Office :	Strides House, Bilekahalli, Bannerghatta Road, Bangalore – 560076, Karnataka

Country :	India

Financials (as on) :	31.12.2009

Date of Incorporation :	14.08.2007

Com. Reg. No.:	08-043599

CIN No.: [Company Identification No.]	U24232KA2007PLC043599

TAN No.: [Tax Deduction & Collection Account No.]	BLRO02269B

PAN No.: [Permanent Account No.]	AAACO9507F

Legal Form :	A Closely held Public Limited Liability Company

Line of Business :	Research and Manufacturing of all kinds of anti cancer / oncology related pharmaceutical products.

RATING & COMMENTS

MIRA’s Rating :

Ba (42)

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

Maximum Credit Limit :	USD 5000000

Status :	Satisfactory

Payment Behaviour :	Usually Correct

Litigation :	Clear

Comments :	Subject is relatively new company having satisfactory track. Trade relations are reported as fair. Business is active. Payments are reported to be usually correct. Company can be considered normal for business dealings at usual trade terms and conditions.

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List – April 1, 2010

Country Name

Previous Rating

(31.12.2009)

Current Rating

(01.04.2010)

India

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

INFORMATION PARTED BY (GENERAL DETAILS)

Name :	Mr. Om Prakash
Designation :	Accountant
Contact No.:	91-80-66580906
Date :	09.04.2011

LOCATIONS

Registered Office/ Corporate Office/ Factory 1:	Strides House, Bilekahalli, Bannerghatta Road, Bangalore – 560076, Karnataka, India
Tel. No.:	91-80-66580000/66580906
Fax No.:	91-80-66580700/66580914
E-Mail :	kannan.n@stridesarco.com sudhir.kanchan@stridesarco.com
Location :	Owned

Factory 2:	284 – B Plot No. Bommansandra Jigani Link Road Industrial Area, Jigani Village, Bangalore, Karnataka, India

Factory 3 :	Near Jalahalli Cross, Bangalore, Karnataka, India

DIRECTORS

As on 28.05.2010

Name :	Mr. Sudhir Krishna Kanchan
Designation :	Director
Address :	Flat No.D-801, Mantri Elegance, 8^th Floor, N.S. Palya, Bannerghatta Road, Bangalore – 560 076, Karnataka, India
Date of Birth/Age :	26.02.1955
Date of Appointment :	14.08.2007

Name :	Mr. Venkatraman Subramanian Iyer
Designation :	Director
Address :	L 204, Mantri Woodland, Arekere, Bannerghatta Road, Bangalore - 560076, Karnataka, India
Date of Birth/Age :	18.03.1957
Date of Appointment :	10.03.2008

Name :	Mr. Peter Harvey Gibb
Designation :	Director
Address :	5 Georgia Boulevard, Augusta Country Estate, Gillitts – 003610, South Africa
Date of Birth/Age :	04.08.1965
Date of Appointment :	10.03.2008

Name :	Mr. Lorraine Angela Hill
Designation :	Director
Address :	75, Manorfields Estate, 21, Delamore Road, Hill Crest, Durban - 003610
Date of Birth/Age :	14.07.1963
Date of Appointment :	05.05.2009

Name :	Mr. Christopher Stubbs
Designation :	Director
Address :	28, Idylwylde Crescent, Walmer Heights, Port Elizabeth – 006070, South Africa
Date of Birth/Age :	28.10.1958
Date of Appointment :	10.03.2008
Date of Ceasing :	19.02.2009

KEY EXECUTIVES

Name :	Mr. Om Prakash
Designation :	Accountant

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 28.05.2010

Names of Shareholders		No. of Shares
Arun Kumar		1
K.R. Ravishankar		1
Sudhir Kanchan		1
Ravi Seth		1
Kannan N.		1
Anil Kumar P.		1
Strides Arcolab Limited, India		1227149
Aspen Global Incorporated, Mauritius		1179032
Total		2406187

As on 28.05.2010

Equity Share Breakup		Percentage of Holding
Category
Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others]		49.00
Bodies corporate		51.00
Total		100.00

BUSINESS DETAILS

Line of Business :	Research and Manufacturing of all kinds of anti cancer / oncology related pharmaceutical products.

Products :	Oncology Products

Terms :
Selling :	Cash, Credit

Purchasing :	Cash, Credit

PRODUCTION STATUS (As on 31.12.2009)

Installed Capacity: 15.72 Million Vials per year on single shift basis

Production: Nil *

* Excludes production done towards (a) validation of plant and (b) job work for third parties

GENERAL INFORMATION

Customers :	End Users Manufacturer

No. of Employees :	300 (approximately)

Bankers :	Central Bank of India, Corporate Finance Branch, 1^st Floor, MMO Building, Fort, Mumbai – 400 023, Maharashtra, India


Banking Relations :	--

Auditors :
Name :	Deloitte Haskins and Sells Chartered Accountant
Address :	Deloitte Centre, Anchorage II, 100/2, Richmond Road, Bangalore – 560 025, Karnataka, India
Tel. No.:	91-80-66276000
Fax No.:	91-80-66276011

Holding Company :	Strides Arcolab Limited, India CIN No.: L24230MH1990PLC057062

Associates/Subsidiaries :	Aspen Global Incorporated, Mauritius Aspen Global Pte Limited

CAPITAL STRUCTURE

As On 31.12.2009

Authorised Capital :

No. of Shares	Type	Value	Amount
3000000	Equity Shares	Rs.10/- each	Rs.30.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1862500	Equity Shares	Rs.10/- each	Rs.18.625 Millions
543687	Equity Shares	Rs.3/- each	Rs.1.631 Millions
			Rs.20.256 Millions

Out of above:

Strides Arcolab Limited, the Holding Company holds 683468 Equity Shares of Rs.10/- each fully paid and 543687 shares of Rs.10/- each Rs.3/- paid up.
633468 fully paid up Equity Shares and 543687 partly paid Equity Shares have been issued to Strides Arcolab Limited for consideration other than cash.

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.12.2009	31.12.2008	31.12.2007
SHAREHOLDERS FUNDS
1] Share Capital		20.256	13.401	9.381
2] Monies Pending Allotment		19.081	313.420	118.200
3] Reserves & Surplus		1220.404	807.848	513.266
4] (Accumulated Losses)		0.000	0.000	(0.943)
NETWORTH		1259.741	1134.669	639.904
LOAN FUNDS
1] Secured Loans		0.000	0.000	0.000
2] Unsecured Loans		0.000	0.000	0.000
TOTAL BORROWING		0.000	0.000	0.000
DEFERRED TAX LIABILITIES		36.000	0.000	0.000

TOTAL		1295.741	1134.669	639.904

APPLICATION OF FUNDS

FIXED ASSETS [Net Block]		1170.644	0.000	0.000
Capital work-in-progress		157.621	1128.449	673.015

INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000

CURRENT ASSETS, LOANS & ADVANCES
	Inventories	4.187	1.606	0.000
	Sundry Debtors	0.776	98.010	0.000
	Cash & Bank Balances	106.227	3.584	2.816
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	60.894	61.986	27.343
Total Current Assets		172.084	165.186	30.159
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	184.461	122.686	60.721
	Other Current Liabilities	0.442	0.360	2.549
	Provisions	19.705	35.920	0.000
Total Current Liabilities		204.608	158.966	63.270
Net Current Assets		(32.524)	6.220	(33.111)

MISCELLANEOUS EXPENSES		0.000	0.000	0.000

TOTAL		1295.741	1134.669	639.904

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.12.2009	31.12.2008	31.12.2007
	SALES
		Income from Export of Dossiers and Site Preparation	134.108	95.980	0.000
		Other Income	7.195	2.876	0.000
		TOTAL (A)	141.303	98.856	0.000

Less	EXPENSES
		Personnel Cost	26.789	0.000	0.000
		Operating and Other Expenses	57.020	2.304	0.774
		TOTAL (B)	83.809	2.304	0.774

Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		57.494	96.552	(0.774)

Less	FINANCIAL EXPENSES (D)		0.144	0.085	0.169

	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		57.350	96.467	(0.943)

Less/ Add	DEPRECIATION/ AMORTISATION (F)		44.713	0.000	0.000

	PROFIT BEFORE TAX (E-F) (G)		12.637	96.467	(0.943)

Less	TAX (H)		4.510	33.019	0.000

	PROFIT AFTER TAX (G-H) (I)		8.127	63.448	(0.943)

Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		62.505	(0.943)	0.000

	BALANCE CARRIED TO THE B/S		70.632	62.505	(0.943)

	EARNINGS IN FOREIGN CURRENCY
		Income from Export of Dossiers and Site Preparation Activity	134.108	95.980	0.000
	TOTAL EARNINGS		134.108	95.980	0.000

	IMPORTS
		Capital Goods	40.154	52.444	0.000
		Other Goods/ Materials	1.330	0.855	0.000
	TOTAL IMPORTS		41.484	53.299	0.000

	Earnings Per Share (Rs.)
	- Basic		4.01	55.27	(32.70)
	- Diluted		3.99	49.54	(32.70)

KEY RATIOS

PARTICULARS		31.12.2009	31.12.2008	31.12.2007
PAT / Total Income	(%)	5.75	64.18	0.00

Net Profit Margin (PBT/Sales)	(%)	9.42	100.51	0.00

Return on Total Assets (PBT/Total Assets}	(%)	0.94	58.40	(3.13)

Return on Investment (ROI) (PBT/Networth)		0.01	0.09	0.00

Debt Equity Ratio (Total Liability/Networth)		0.16	0.14	0.10

Current Ratio (Current Asset/Current Liability)		0.84	1.04	0.48

LOCAL AGENCY FURTHER INFORMATION

THE DETAILS OF SUNDRY CREDITORS:

Rs. In Millions

Particulars	31.12.2009	31.12.2008	31.12.2007
Sundry Creditors
- Due to micro/small enterprise	0.022	0.000	0.000
- Due to others	184.439	122.686	60.721
Total	184.461	122.686	60.721

OPERATIONS:

The company was incorporated on 14.08.2007 with an object of engaging in the business of research and manufacturing of all kinds of anti cancer / oncology related pharmaceutical products. The company has set up a state of art Oncology Unit at Bommansandra Jigani Link Road Industrial Area in Bangalore.

During the year, the company negotiated a landmark agreement with Pfizer Inc., USA for licensing and supply of oncology products developed and to be manufactured by the company for U.S. territory.

During the year, the company’s Oncology facility received regulatory approvals from MHRA, ANVISA and TGA.

Form 8:

Corporate identity number of the company	U24232KA2007PLC043599
Name of the company	ONCO THERAPIES LIMITED
Address of the registered office or of the principal place of business in India of the company	Strides House, Bilekahalli, Banner Ghatta Road, Bangalore – 560 076, Karnataka, India E-Mail: sudhir.kanchan@stridesarco.com
This form is for	Creation of charge
Type of charge	Immovable Property Movable Property Others (Fixed Assets)
Particular of charge holder	Central Bank of India, Corporate Finance Branch, 1^st Floor, MMO Building, Fort, Mumbai – 400 023, Maharashtra, India E-Mail: info@c-adlalwani.com
Nature of description of the instrument creating or modifying the charge	1. Memorandum of entry in favour of Central Bank of India
Date of instrument Creating the charge	16/09/2010
Amount secured by the charge	Rs.1300.000 millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest: BPLR at present 12 % and/or as stipulated by Bank from time to time, with annual reset Terms of Repayment: Moratorium period of 12 months from 1^st disbursement, 10 half yearly installments of Rs.130.000 millions each (5 years) and/or as stipulated by Bank from time to time Margin: Margin 20 % and/or as stipulated by Bank from time to time Extent and Operation of the charge: First charge (present and future) = Term Loan - 1 = Rs.130.000 millions and/or as stipulated by Bank from time to time Others: As stipulated by Bank from time to time and as per agreement and as per sanction letter of the Bank
Short particulars of the property charged	first exclusive charge(present and future) EMG of part of industrial Plot Bearing No 284-B(Part), in all admeasuring 15550 sq.mtrs, comprised in part of Survey Nos.197, 198, 204 and 205 including all the building(s) raised thereon, plant(s) and machinery(s), fixtures, tress etc raised/ embedded/ rooted/ attached thereto, and lying and situate at KIADB Industrial area at Bommasandra-Jigani Link Road Village Jigani, Jigani Hobli, Taluka Anekal, District Bangalore, Karnataka with all fixed assets of the company

FIXED ASSETS:

Leasehold Land
Buildings
Furniture and Fixtures
Office Equipments
Computers
Plant and Machinery

CMT REPORT (Corruption, Money Laundering & Terrorism]

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

1] INFORMATION ON DESIGNATED PARTY

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

2] Court Declaration :

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

3] Asset Declaration :

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

4] Record on Financial Crime :

Charges or conviction registered against subject: None

5] Records on Violation of Anti-Corruption Laws :

Charges or investigation registered against subject: None

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

Charges or investigation registered against subject: None

7] Criminal Records

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

8] Affiliation with Government :

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

9] Compensation Package :

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

10] Press Report :

No press reports / filings exists on the subject.

CORPORATE GOVERNANCE

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

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

CONTRAVENTION

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

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.44.04
UK Pound	1	Rs.72.19
Euro	1	Rs.63.40

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--PROFITABILIRY	1~10	4
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--CREDIT LINES	1~10	5
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	NO
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		42

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

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

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

RATING EXPLANATIONS

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

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.

MIRA INFORM REPORT

4.187

1.606

0.776

98.010

106.227

3.584

0.000

0.000

60.894

61.986

172.084

165.186

184.461

122.686

0.442

0.360

19.705

35.920

204.608

158.966

(32.524)

6.220

5.75

9.42

0.94

0.01

0.16

0.84

Unit