MIRA INFORM REPORT

Report Date :

03.08.2011

IDENTIFICATION DETAILS

Name :	AMNEAL PHARMACEUTICALS COMPANY (INDIA) PRIVATE LIMITED
Registered Office :	882/1-871, Village Rajoda, Near Hotel Kankavati, Bavla, Ahmedabad – 382 220, Gujarat
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	07.04.2006
Com. Reg. No.:	04-048109
Capital Investment / Paid-up Capital :	Rs.415.324 Millions
CIN No.: [Company Identification No.]	U24231GJ2006PTC048109
TAN No.: [Tax Deduction & Collection Account No.]	AHMA06911C
PAN No.: [Permanent Account No.]	AAGCA0781K
Legal Form :	Private Limited Liability Company
Line of Business :	Subject is engaged in scientific research activities.
No. of Employees :	30 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (26)

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Maximum Credit Limit :	USD 1573000
Status :	Moderate
Payment Behaviour :	Slow
Litigation :	Clear
Comments :	Subject is an established company having moderate track. There appears some accumulated losses recorded by the company. However, trade relations are reported as fair. Business is active. Payments are reported to be slow. The company can be considered for business dealings with some caution.

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	A1	A1

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

INFORMATION PARTED BY

Name :	Mr. Naitiks
Designation :	DGM – Finance
Contact No.:	91-9824998242

LOCATIONS

Registered Office :	882/1-871, Village Rajoda, Near Hotel Kankavati, Bavla, Ahmedabad – 382 220, Gujarat, India
Mobile No.:	91-9824998242 (Mr. Naitiks)
Fax No. :	91-79-26731199
E-Mail :	naitiks@amnealindia.com India@amneal.com vpindia@amneal.com sales@amneal.com
Website :	www.amneal.com
Area :	3000 sq ft
Location :	Owned
Administrative Offices :	85 Adams Avenue, Hauppauge, New York 11788
Tel. No.:	631 952 0214
Fax No.:	631 656 1009
Account Management, Sales Operations and Customer Response Offices :	118 Beaver Trail, Glasgow, KY 42141
Tel. No.:	866 525 7270/270 678 9393
Fax No.:	866 525 7271
E-Mail :	sales@amneal.com customerresponse@amneal.com
Business Development and Corporate Offices :	440 U.S. Highway 22 East, Suite 104, Bridgewater, NJ 08807
Tel. No.:	908 947 3120 / 908 947 3122
Fax No.:	908 947 4146
E-Mail :	businessdevelopment@amneal.com

DIRECTORS

As on 30.09.2010

Name :	Mr. Nikunj Bansibhai Patel
Designation :	Director
Address :	A/29/A, Karmachari Nagar Soc., Part-1, Opp. Alkapuri Soc., Ghatlodia, Ahmedabad – 380061, Gujarat, India
Date of Birth/Age :	04.11.1975
Date of Appointment :	30.09.2009
DIN No. :	02790495
Name :	Mr. Chintu K. Patel
Designation :	Director
Address :	115, Northfield Road., Parsippany, NJ 07054-3187, USA
Date of Appointment :	07.04.2006
DIN No. :	01980171
Name :	Mr. Chirag K. Patel
Designation :	Director
Address :	12, Windsor Drive, Pine Brook, NJ 07058
Name :	Mr. Suresh Punambhai Patel
Designation :	Director
Address :	22, Ramyakunj Society, Gelexi Cinema, Naroda, Ahmedabad – 382325, Gujarat, India
Date of Appointment :	07.04.2006
DIN No. :	01856345
Name :	Mr. Kanubhai Punambhai Patel
Designation :	Director
Address :	22, Ramyakunj Society, Gelexi Cinema, Naroda, Ahmedabad – 382325, Gujarat, India
Date of Appointment :	17.11.2007
DIN No. :	01883090

KEY EXECUTIVES

Name :	Jim Luce
Designation :	Executive Vice President, Sales and Marketing
Name :	Dr. Shankar Hariharan
Designation :	Executive Vice President and Chief Scientific Officer
Name :	Mr. Sanjiv Patel
Designation :	Senior Vice President, Operations
Name :	Candis Edwards
Designation :	Senior Vice President, Regulatory Affairs
Name :	Mr. Robert Loewenstein
Designation :	Esq. - Senior Vice President, General Counsel
Name :	Sandra Miceli, CPA
Designation :	Senior Vice President, Corporate Controller
Name :	Mr. David Miller, CQE
Designation :	Vice President, Quality Management
Name :	Kenneth M. Cappel
Designation :	Vice President, Global Intellectual Property
Name :	Mr. Jiten Parikh
Designation :	Vice President of Operations, Branchburg Facility
Name :	Nancy Gembitsky
Designation :	Vice President, Human Resources
Name :	Mr. Naitiks
Designation :	DGM – Finance

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2010

Names of Shareholders	No. of Shares
Amneal Pharmaceuticals LLC, USA	43858211
Sureshbhai Patel	49
Nikunj Bansibhai Patel	150050
Raj Chandra Medical Corporation Partner Sureshbhai P Patel, Pankil Narendrabhai Patel	1
Total	44008311

As On 30.09.2010

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]	99.65
Directors or relatives of directors	0.35
Total	100.00

BUSINESS DETAILS

Line of Business :	Subject is engaged in scientific research activities.
Terms :
Selling :	Cash, Credit: 30/60/90 Days
Purchasing :	Cash, Credit: 30/60/90 Days

GENERAL INFORMATION

Customers :

• End Users and OEM’s

No. of Employees :

30 (approximately)

Bankers :

v Bank of Baroda, S G Highway Branch, Shapath-III, Near GNFC Info Tower, S.G. Highway, Ahmedabad – 380 015, Gujarat, India

v Bank of Baroda, Bank of Baroda Towers, 3rd Floor, Opp. Law Garden, Ellisbridge, Ahmedabad - 380 006, Gujarat, India

Facilities :

Cash Credit: Rs. 446.700 Millions

Secured Loans	31.03.2010 (Rs. In Millions)	31.03.2009 (Rs. In Millions)
Loan from Bank of Baroda – Term Loan (Secured by hypothecation of stock, debts, plant and machinery and all other movable assets. Further secured by personal guarantee of all the directors and corporate guarantee of M/s Amneal Pharmaceuticals LC, USA. Further secured by equitable mortgage on immovable property) (amounts repayable within one year Rs. 31.700 millions (previous year Rs. 14.100 millions)	125.223	140.899
Loan from Bank of Baroda – Vehicle Loan (secured by hypothecation of vehicles purchased against the loans) Amounts repayable within one year Rs. 0.631 millions (previous year Nil)	2.356	0.000
Total	127.579	140.899

Unsecured Loans	31.03.2010 (Rs. In Millions)	31.03.2009 (Rs. In Millions)
Loan from Amneal Life Science Private Limited	1.778	0.500
Total	1.778	0.500

Banking Relations :	-
Auditors :
Name :	S.V. Ghatalia and Associates Chartered Accountant
Address :	2^nd Floor, Shivalik Ishaan, Near CN Vidhyalaya, Ambawadi, Ahmedabad – 380015, Gujarat, India
Pan No. :	AACFS6921Q
Holding Company :	Amneal Pharmaceuticals LLC, USA
Fellow Subsidiaries :	Amneal Life Sciences Limited Address: 882/1-871, Vil. Rajoda, Near Hotel Kankavati, Bavla, Ahmedabad – 382220, Gujarat, India

CAPITAL STRUCTURE

After 30.09.2010

Authorised Capital : Rs.600.000 millions

Issued, Subscribed & Paid-up Capital : Rs.572.233 millions

As on 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
45000000	Equity Shares	Rs.10/- each	Rs.450.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
41532436	Equity Shares	Rs.10/- each	Rs.415.324 Millions

Note – out of the above 41382336 (previous year Rs.16.521 millions) shares are held by Amneal Pharmaceuticals LLC, USA the holding company.

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2010	31.03.2009	31.03.2008
SHAREHOLDERS FUNDS
1] Share Capital		415.324	165.208	45.096
2] Share Application Money		0.000	0.000	40.537
3] Reserves & Surplus		0.000	0.000	0.000
4] (Accumulated Losses)		(22.102)	(6.699)	0.000
NETWORTH		393.222	158.509	85.633
LOAN FUNDS
1] Secured Loans		127.579	140.899	0.000
2] Unsecured Loans		1.778	0.500	0.000
TOTAL BORROWING		129.357	141.399	0.000
DEFERRED TAX LIABILITIES		3.745	2.118	0.000
TOTAL		526.324	302.026	85.633
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		327.103	221.793	7.459
Capital work-in-progress		7.148	33.561	52.187
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	10.217
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	17.354	1.126	0.000
	Sundry Debtors	0.000	0.000	0.000
	Cash & Bank Balances	4.792	8.119	4.627
	Other Current Assets	6.647	0.304	0.000
	Loans & Advances	253.658	110.892	43.463
Total Current Assets		282.451	120.441	48.090
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	29.005	22.013	6.650
	Other Current Liabilities	60.002	50.784	25.591
	Provisions	1.371	0.972	0.079
Total Current Liabilities		90.378	73.769	32.320
Net Current Assets		192.073	46.672	15.770
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		526.324	302.026	85.633

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009
	SALES
		Income	118.886	20.109
		Other Income	13.908	2.263
		TOTAL (A)	132.794	22.372
Less	EXPENSES
		Personnel Expenses	33.515	6.027
		Operating and Administrative Expenses	47.948	6.067
		Exceptional items	26.229	0.000
		Prop period items	0.000	(2.122)
		TOTAL (B)	107.692	9.972
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		25.102	12.400
Less	FINANCIAL EXPENSES (D)		17.202	10.461
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		7.900	1.939
Less/ Add	DEPRECIATION/ AMORTISATION (F)		21.677	6.381
	PROFIT/ (LOSS) BEFORE TAX (E-F) (G)		(13.777)	(4.442)
Less	TAX (H)		1.626	2.257
	PROFIT/ (LOSS) AFTER TAX (G-H) (I)		(15.403)	(6.699)
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		(6.699)	0.000
	BALANCE CARRIED TO THE B/S		(22.102)	(6.699)
	EARNINGS IN FOREIGN CURRENCY
		Rendering of contract research and development services	118.886	20.110
	TOTAL EARNINGS		118.886	20.110
	IMPORTS
		Capital Goods	8.225	20.143
		Other Than Capital Goods	8.449	0.000
	TOTAL IMPORTS		16.674	20.143
	Earnings Per Share (Rs.)		(0.69)	(0.77)

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	(11.60)	(29.94)	NA
Net Profit Margin (PBT/Sales)	(%)	(11.59)	(22.09)	NA
Return on Total Assets (PBT/Total Assets}	(%)	(2.26)	(1.30)	NA
Return on Investment (ROI) (PBT/Networth)		(0.04)	(0.03)	NA
Debt Equity Ratio (Total Liability/Networth)		0.56	1.35	0.377
Current Ratio (Current Asset/Current Liability)		3.13	1.62	1.48

LOCAL AGENCY FURTHER INFORMATION

Performance Review:

During the year the company has further strengthened its business and its sales of services of the company is at Rs. 118.886 millions.

Nature of Operations:

Subject is engaged in scientific research activities, including due diligence analytical testing for abbreviated new drug application (ANDA) and marketing of research work and resulting products, if any, mainly for exports to its parent company, Amneal Pharmaceuticals LLC, USA.

FORM 8:

Corporate identity number of the company	U24231GJ2006PTC048109
Name of the company	AMNEAL PHARMACEUTICALS COMPANY (INDIA) PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	882/1-871, Village Rajoda, Near Hotel Kankavati, Bavla, Ahmedabad – 382 220, Gujarat, India
This form is for	Modification of charge
Type of charge	Book debts Movable property Goods
Particular of charge holder	Bank of Baroda, S G Highway Branch, Shapath-III, Near GNFC Info Tower, S.G. Highway, Ahmedabad – 380015, Gujarat, India E-mail : sghahm@bankofbaroda.com
Nature of instrument creating charge	Supplemental Composite Agreement of Hypothecation of Goods, Book Debts Moveable Machinery and Vehicles
Date of instrument Creating the charge	24.11.2010
Amount secured by the charge	Rs.446.700 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest - Term Loan I Concessional Rate of Interest 3.50% Over Base Rate i.e. 12% P.a. as against applicable ROI of 6.25% over base rate with concession of 2.75% Term Loan II as per Term Loan I Margin – Term Loan I 30% On factory land and building and 25% on machinery and equipments overall margin 31.27% Term Loan II 30% on factory building and 25% on machinery and equipments, overall margin 34.54% Extent and operation of the charge First Charge over the said property of the company
Particulars of the property charged	Hypothecation of entire machineries equipments, electrical installations, furniture and fixtures, office equipments, and other movable fixed assets and current assets of the company present and future.
Date of instrument modifying the charge	27.03.2008
Particulars of the present modification	At the time of review cum increase of the credit facilities, bob has sanctioned fresh Term Loan (II) of Rs.327.800 millions with a sub-limit (FCNR B) of Rs.160.000 millions and sub limit of import l/c one time transaction (at Sight/DP) of Rs.72.500 millions. Thus total credit facilities sanctioned by bob comes to Rs.446.700 millions

Contingent Liabilities not provided for: (As On 31.03.2010)

Claims against the company not acknowledged as debts Rs.6.045 millions (previous year Rs.4.674 millions (2008-09)

FIXED ASSETS:

v Freehold Land

v Buildings

v Plant and machinery

v Laboratory equipments

v Electrical equipments and fittings

v Office equipment

v Furniture and fixtures

v Computer

v Vehicles

v Computer software

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.44.23
UK Pound	1	Rs.72.09
Euro	1	Rs.62.98

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILIRY	1~10	2
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	2
--CREDIT LINES	1~10	2
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		26

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.