MIRA INFORM REPORT

Report Date :

06.12.2011

IDENTIFICATION DETAILS

Name :	ASTRIX LABORATORIES LIMITED
Registered Office :	Plot No.564/A/22, Road No.92, Jubilee Hills, Hyderabad – 500 033, Andhra Pradesh
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	21.09.2005
Com. Reg. No.:	01-047551
Capital Investment / Paid-up Capital :	Rs.45.260 millions
CIN No.: [Company Identification No.]	U24239AP2005PLC047551
TAN No.: [Tax Deduction & Collection Account No.]	HYDA05588C
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer of a wide range of APIs and intermediates.
No. of Employees :	About 150 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

A (64)

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 11549000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a sister Company of Matrix Limited. It is a well – established and a reputed company having fine track. Financial position of the company appears to be sound. Trade relations are reported as fair. Business is active. Payments are reported to be regular and as per commitments. The 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 – September 30, 2011

Country Name	Previous Rating (30.06.2011)	Current Rating (30.09.2011)
India	A1	A1

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

INFORMATION DECLINED BY

Management non-cooperative

LOCATIONS

Registered Office :	Plot No.564/A/22, Road No.92, Jubilee Hills, Hyderabad – 500 033, Andhra Pradesh
Tel. No.:	91-40-30866666/ 30866444
Fax No.:	91-40-30866699
E-Mail :	nagaraj.bodige@mylan.in nagarajgoud.bodige@matrixlabsindia.com matrix@matrixlabsindia.com ashwini.kandlikar@matrixlabsindia.com
Factory :	Sy. No. 10 and 42, Gaddapotharam, Kazipally Industrial Area, Medak District – 502 319, Andhra Pradesh, India

DIRECTORS

As on 30.09.2011

Name :

Dr. Hari Babu Bodepudi

Designation :

Director

Address :

Plot No.11, Sai Ansh Arcade, Tirumalgherry, Secunderabad – 500 015, Andhra Pradesh, India

Date of Birth/Age :

01.07.1964

Date of Appointment :

29.11.2006

DIN No.:

01119687

Other Directorship :

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U24239AP2005PLC047551	Astrix Laboratories Limited	Director	29-11-06	29-11-06	-	Active	NO
2	U73100MH1997PTC106267	Mylan Pharmaceuticals Private Limited	Director	28-04-08	01-02-08	07-10-09	Active	NO
3	U24231AP1984PLC005146	Mylan Laboratories Limited	Whole-time director	07-10-09	07-10-09	-	Active	NO

Name :

Ms. Sarada Kalyani Bhagawati

Designation :

Director

Address :

H.No.1-1-380/38, Ashok Nagar Extension, Hyderabad – 500 020, Andhra Pradesh, India

Date of Birth/Age :

29.09.1968

Date of Appointment :

19.05.2009

DIN No.:

02680074

Other Directorship :

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U24239AP2005PLC047551	Astrix Laboratories Limited	Director	30-09-09	19-05-09	-	Active	NO

Name :

Dr. Yasir Yusufali Rawjee

Designation :

Director

Address :

8-2-28/11/A, F.no.104, Totem Banjara, Bhagyanagar Studio Premises, Road No.14, Banjara Hills, Hyderabad – 500 034, Andhra Pradesh, India

Date of Birth/Age :

25.12.1965

Date of Appointment :

31.05.2009

DIN No.:

01965174

Other Directorship :

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U24230GJ1984PLC007440	Concord Biotech Limited	Director	31-07-08	29-09-07	04-12-09	Active	NO
2	U24239AP2005PLC047551	Astrix Laboratories Limited	Director	30-09-09	31-05-09	-	Active	NO

KEY EXECUTIVES

Name :	Mr. R. Kiran Kumar
Designation :	Chief Operating Officer
Date of Birth/Age :	48 Years
Qualification :	M. Tech. (Transfer Process)
Experience :	23 Years
Date of Appointment :	13.09.2007

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2011

Names of Shareholders	No. of Shares	Percentage of Holding
Equity Shares
Matrix Laboratories Limited, India	2262497	50.00
S. Srinivasan	1
Hari Babu	1
Sarada Kalyani Bhagawati	1
MP Laboratories (Mauritius) Limited	2217247	49.00
Mylan Luxembourg 2 S.a.r.l.	45250	1.00
Sandip Choudhury jointly with Mylan Luxembourg 2 S.a.r.l.	1
Yasir Rawje jointly with Mylan Luxembourg 2 S.a.r.l.	1
Shobha Sreenivasan jointly with Mylan Luxembourg 2 S.a.r.l.	1
Total No. of Shares	4525000	100.00
‘B’ Class Equity Shares
Matrix Laboratories Limited, India	993
S. Srinivasan jointly with Matrix Laboratories Limited, India	1
Hari Babu jointly with Matrix Laboratories Limited, India	1
Sandip Choudhury jointly with Matrix Laboratories Limited, India	1
Yasir Rawje jointly with Matrix Laboratories Limited, India	1
Sarada Kalyani Bhagawati jointly with Matrix Laboratories Limited, India	1
Shobha Sreenivasan jointly with Matrix Laboratories Limited, India	1
Aspen Pharmacare Holdings Limited	1
Total no. of ‘B’ Class Equity Shares	1000

As on 30.09.2011

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]	50.00
Bodies corporate	50.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of a wide range of APIs and intermediates.

PRODUCTION STATUS (AS ON 31.03.2010)

Particulars	2009-10
Licensed Capacity (Tonnes)	N.A.
Installed Capacity (Tonnes)	259.91
Actual Production (Tonnes)	214.01

Notes:

1. Licensed capacity is not applicable in terms of Government of India Notification No.477 (e) dated 25^th July, 1991.

2. Installed capacity varies based on product mix. The installed capacity is certified by the management and accepted by the auditors.

3. The actual production quantity does not include production at CMUs 108.18 tonnes and trading quantity of 8.55 tonnes.

GENERAL INFORMATION

No. of Employees :

About 150 (Approximately)

Bankers :

v The Bank of Nova Scotia, 6-3-346/1, Road No. 1, Banjara Hills, Hyderabad – 500 034, Andhra Pradesh, India

v HDFC Bank Limited, HDFC Bank House, Senapati Bapat Marg, Lower Parel, (West), Mumbai – 400 013, Maharashtra, India

v ABN Amro Bank, 6-3-24/1/1/A, Road No. 1, Banjara Hills, Hyderabad – 500 034, Andhra Pradesh, India

v State Bank of India, Overseas Branch, 5-9-300, ABIDS, Hyderabad – 500 001, Andhra Pradesh, India

Facilities :

Secured Loans	31.03.2010 Rs. In Millions	31.03.2009 Rs. In Millions
Working Capital Loans from Banks	1026.730	802.140
Total	1026.730	802.140

Unsecured Loans	31.03.2010 Rs. In Millions	31.03.2009 Rs. In Millions
Working Capital Loans from Banks	80.910	0.000
Total	80.910	0.000

Notes:

a) Working capital facilities availed from various banks are inter alia secured by way of pari passu first charge on the current assets and paripassu first charge on the fixed assets both present and future.

b) Amounts payable in respect of unsecured loans within 12 months Rs.80.910 millions (Previous year: Rs. Nil)

Banking Relations :	--
Auditors :
Name :	Deloitte Haskins and Sells Chartered Accountants
Address :	Gowra Grand, III Floor, 1-8-1-384 and 385, SP Road, Secunderabad – 500 003, Andhra Pradesh, India
Tel. No.:	91-40-40312600
Fax No.:	91-40-40312714
Income-tax PAN of auditor or auditor's firm :	AACFD3771D
Holding Company :	Matrix Laboratories Limited, India [Joint venturer (50%) upto 31.05.2009 and Holding Company w.e.f. 01.06.2009] CIN No.: L24231AP1984PLC005146
Joint Venture Company :	Aspen Pharmacare Holdings Limited [Joint venturer (50%) upto 31.05.2009]
Fallow Subsidiary :	MP Laboratories (Mauritius) Limited (w.e.f. 01.06.2009) Mylan Luxembourg 2 S.A.R.L. (w.e.f. 01.06.2009) Matrix Pharma Group (Xiamen) Limited (w.e.f. 01.06.2009) Matrix Laboratories Xiamen Limited (w.e.f. 01.06.2009) Dafeng Mchem Pharmaceutical Chemical Company Limited (w.e.f. 01.06.2009)
Ultimate Holding Company :	Mylan Inc.

CAPITAL STRUCTURE

As on 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
4999000	Equity Shares	Rs.10/- each	Rs.49.990 millions
1000	B Class Equity Shares	Rs.10/- each	Rs.0.010 million
	Total		Rs.50.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
4525000*	Equity Shares	Rs.10/- each	Rs.45.250 millions
1000**	B Class Equity Shares	Rs.10/- each	Rs.0.010 million
	Total		Rs.45.260 millions

Notes:

* Of the above, 2262500 Equity Shares are held by Matrix Laboratories Limited, the holding company. 2217250 shares by MP Laboratories (Mauritius) Limited and 45250 shares by Mylan Luxembourg 2 SARL, both wholly owned subsidiaries of Mylan Laboratories Inc., the ultimate holding company.

** Of the above, 999 B Class Equity Shares are held by Matrix Laboratories Limited, 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		45.260	45.250	45.250
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		2841.910	2245.950	1979.245
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		2887.170	2291.200	2024.495
LOAN FUNDS
1] Secured Loans		1026.730	802.140	720.263
2] Unsecured Loans		80.910	0.000	0.000
TOTAL BORROWING		1107.640	802.140	720.263
DEFERRED TAX LIABILITIES		183.470	170.930	132.520
TOTAL		4178.280	3264.270	2877.278
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		1393.100	1461.590	1532.536
Capital work-in-progress (includes Capital Advance)		2.020	9.100	3.407
INVESTMENT		0.000	0.000	0.000
DEFERRED TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	1282.090	983.790	799.371
	Sundry Debtors	2087.670	1314.190	786.612
	Cash & Bank Balances	2.060	34.080	0.400
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	88.800	206.300	202.357
Total Current Assets		3460.620	2538.360	1788.740
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	621.760	673.050	396.606
	Other Current Liabilities	21.690	30.500	17.873
	Provisions	34.010	41.230	32.926
Total Current Liabilities		677.460	744.780	447.405
Net Current Assets		2783.160	1793.580	1341.335
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		4178.280	3264.270	2877.278

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	5068.010	3799.320	3011.485
		Other Income	69.530	26.650	20.332
		TOTAL (A)	5137.540	3825.970	3031.817
Less	EXPENSES
		Materials Consumed	3272.760	2458.340	1949.392
		Manufacturing Expenses	557.860	495.360	461.519
		Personnel Cost	120.360	92.720	84.942
		Administrative, Selling and Other Expenses	64.600	177.090	69.015
		TOTAL (B)	4015.580	3223.510	2564.868
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		1121.960	602.460	466.949
Less	INTEREST & FINANCIAL EXPENSES (D)		65.370	47.890	49.483
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		1056.590	554.570	417.466
Less/ Add	DEPRECIATION/ AMORTISATION (F)		153.260	149.000	141.485
	PROFIT BEFORE TAX (E-F) (G)		903.330	405.570	275.981
Less	TAX (H)		307.370	138.870	98.023
	PROFIT AFTER TAX (G-H) (I)		595.960	266.700	177.958
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		625.710	359.010	181.047
	BALANCE CARRIED TO THE B/S		1221.670	625.710	359.005
	EARNINGS IN FOREIGN CURRENCY
		FOB Value of Exports	705.440	973.180	1166.297
	TOTAL EARNINGS		705.440	973.180	1166.297
	IMPORTS
		Raw Materials	2376.430	1623.380	947.291
		Consumables and Capital	7.290	3.440	2.565
	TOTAL IMPORTS		2383.720	1626.820	949.856
	Earnings Per Share (Rs.)		131.70	58.94	39.33

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	11.60	6.97	5.87
Net Profit Margin (PBT/Sales)	(%)	17.82	10.67	9.16
Return on Total Assets (PBT/Total Assets}	(%)	18.61	10.14	8.31
Return on Investment (ROI) (PBT/Networth)		0.31	0.18	0.14
Debt Equity Ratio (Total Liability/Networth)		0.62	0.68	0.58
Current Ratio (Current Asset/Current Liability)		5.11	3.41	4.00

LOCAL AGENCY FURTHER INFORMATION

REVIEW OF OPERATIONS:

The Company has achieved net revenues of Rs.5137.500 millions for the year ended March 31, 2010. The profit after tax (PAT) for the year ended on that date is Rs.595.900 millions.

CONTINGENT LIABILITIES:

Particulars	31.03.2010 (Rs. in millions)
(a) Indirect Tax claims disputed by the company relating to issues of applicability and classification	45.930
(b) Foreign Bill Discounting	14.730

form 8:

This form is for	Creation of charge
Corporate identity number of the company	U24239AP2005PLC047551
Name of the company	ASTRIX LABORATORIES LIMITED
Address of the registered office or of the principal place of business in India of the company	1-1-151/1, 4^th Floor, Sairam Towers, Alexander Road, Secunderabad – 500 003, Andhra Pradesh, India
Type of charge	Immovable Property
Particular of charge holder	The Bank of Nova Scotia, 6-3-346/1, Road No.1, Banjara Hills, Hyderabad – 500 034, Andhra Pradesh, India E-Mail: bns.hyderabad@scotiabank.com
Nature of description of the instrument creating or modifying the charge	Memorandum of Entry dated 20th March, 2009 for creating equitable mortgage by deposit of title deeds in respect of immovable properties.
Date of instrument Creating the charge	20.03.2009
Amount secured by the charge	Rs.400.000 millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest: As per sanction letter vide BNS HYD CB 79 OL 16 2008 dated 12^th December, 2008 given by the bank sanctioning working capital limits and as applicable from time to time. Terms of Repayment: As per sanction letter vide BNS HYD CB 79 OL 16 2008 dated 12^th December, 2008 given by the bank sanctioning working capital limits and as applicable from time to time. Margin: As per sanction letter vide BNS HYD CB 79 OL 16 2008 dated 12^th December, 2008 given by the bank sanctioning working capital limits and as applicable from time to time. Extent and Operation of the charge: First pari passu Charge on the entire Immoveable Properties of the Company.
Short particulars of the property charged	First pari passu charge in favour of working capital bankers in the Multiple Banking Arrangement on the entire immovable properties of the Company situated at Sy.No.10 and Sy. No.42, Jinnaram Mandal, Medak District in the state of Andhra Pradesh.

Fixed assets:

Tangible

v Land – Freehold

v Plant and Machinery

v Electrical Equipments

v Computers

v Office Equipment

v Furniture and Fixtures

v Lab Equipment

v vehicles

Intangible

v Software

v DMF and Patents

v Technical Known How

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.51.39
UK Pound	1	Rs.80.20
Euro	1	Rs.68.92

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	7
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	8
--PROFITABILIRY	1~10	8
--LIQUIDITY	1~10	8
--LEVERAGE	1~10	7
--RESERVES	1~10	8
--CREDIT LINES	1~10	7
--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		64

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.