MIRA INFORM REPORT

Report Date :

10.03.2011

IDENTIFICATION DETAILS

Name :	AUROBINDO TONGLING (DATONG) PHARMACEUTICAL CO., LTD
Registered Office :	Economic & Technology Development Zone, Datong, Shanxi Province, 037300 Pr
Country :	China
Financials (as on) :	31.12.2009
Date of Incorporation :	07.08.2000
Com. Reg. No.:	140200400001588
Legal Form :	Chinese-Foreign Equity Joint Venture Enterprise
Line of Business :	-----

RATING & COMMENTS

MIRA’s Rating :

C

RATING		STATUS	PROPOSED CREDIT LINE
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended

Status :	Undetermined
Payment Behaviour :	----
Litigation :	----

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 – December 31, 2010

Country Name	Previous Rating (30.09.2010)	Current Rating (31.12.2010)
China	a2	a2

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

Company name & address

AUROBINDO TONGLING (DATONG) PHARMACEUTICAL CO., LTD.

ECONOMIC & TECHNOLOGY DEVELOPMENT ZONE, DATONG,

SHANXI PROVINCE, 037300 PR CHINA (REGISTERED ADDRESS)

TEL: N/A FAX: N/A

EXECUTIVE SUMMARY

INCORPORATION DATE : AUGUST 7, 2000

REGISTRATION NO. : 140200400001588

REGISTERED LEGAL FORM : CHINESE-FOREIGN EQUITY JOINT VENTURE ENTERPRISE

CHIEF EXECUTIVE : MR. YANG YONG (LEGAL REPRESENTATIVE)

STAFF STRENGTH : N/A

REGISTERED CAPITAL : CNY 54,000,000

BUSINESS LINE : N/A

TURNOVER : CNY 35,829,000 (AS OF DEC. 31, 2009)

EQUITIES : CNY 83,570,000 (AS OF DEC. 31, 2009)

PAYMENT : NOT YET DETERMINED

RECOMM. CREDIT RANGE : NO RECOMMENDATION

MARKET CONDITION : AVERAGE (AS OF DEC. 31, 2009)

FINANCIAL CONDITION : FAIRLY STABLE (AS OF DEC. 31, 2009)

OPERATIONAL TREND : STEADY (AS OF DEC. 31, 2009)

GENERAL REPUTATION : AVERAGE

EXCHANGE RATE : CNY 6.56965=USD 1

Adopted abbreviations

ANS - amount not stated

NS - not stated

SC - subject company (the company inquired by you)

NA - not available

CNY – China Yuan Ren Min Bi

Note: The given contact numbers “86-352-6108710 / 6108188” do not exist.

SC was registered as a Chinese-foreign equity joint venture enterprise at local Administration for Industry & Commerce (AIC-The official body of issuing and renewing business license) on August 7, 2000.

Company Status: Chinese-foreign equity joint venture enterprise

This form of business in PR China is defined as a legal person. It is a limited co. jointly invested by one or more foreign companies and one or more PR China controlled companies within the territories of PR China according to a certain proportion of capital investment. The investing parties exercise business management, share profits and bear all risks and liabilities of the co. together. The equity joint venture law requires that foreign party contribute not less than 25% of the registered capital, with no maximum. The investing parties are free to agree on method of profit distribution and liabilities bearing according to the proportion of capital investment. Each investing parties contributes funds, tangible assets, technology & etc. The board of directors excises the high authority. The joint venture usually has a limited duration of 10 to 50 years. Enterprise with large investment, long construction periods, low investment returns, introducing of advanced technology & advanced technology products that have good competition position in international market may extend beyond the 50 years limit.

SC’s registered business scope includes manufacturing APIs (cefradine).

Mr. Yang Yong is registered as legal representative of SC.

It is not possible to contact the company directly to obtain further information. The nature and extent of the company’s operations could not be determined and it could not be confirmed whether the company operates from the Registered Office address or in another location.

http://www.aurobindo.com/ The website belongs to Aurobindo Pharma Limited. The design is professional and the content is well organized. At present it is in English version.

Changes of its registered information:

Date of change	Item	Before the change	After the change
Unknown	Registered No.	000158	140200400001588

MAIN SHAREHOLDERS:

Name % of shareholdings

Aurobindo Pharma Limited (India) 50

Aurobindo (Datong) Bio-pharma Co., Ltd. 50

Aurobindo Pharma Limited (India)

=========================

Aurobindo Pharma had gone public in 1995 by listing its shares in various stock exchanges in the country. The company is the market leader in semi-synthetic penicillin drugs. It has a presence in key therapeutic segments like SSPs, cephalosporins, antivirals, CNS, cardio-vascular, gastroenterology, etc.

Add: Plot # 2, Maitri Vihar, Ameerpet, Hyderabad 500 038, Andhra Pradesh, India

Tel: +91 (40) 6672 5000

Fax: +91 (40) 2374 1080 / +91 (40) 2374 6833

Website: http://www.aurobindo.com/

Email: info@aurobindo.com

Aurobindo (Datong) Bio-pharma Co., Ltd.

==============================

Add: Economic & Technology Development Zone, Datong, Shanxi Province

Email: arvind@sh163.net / arvind@aurobindo.com

l Legal representative:

Mr. Yang Yong ID# 140102570905341, born in 1957.

l Directors:

Dr.M.Shivakumaran

P.V.Ramprasad Reddy

K.Nityananda Reddy

G.P.Prasad

Exhausting our efforts, we are unable to find SC’s telephone number in various information sources, including the internet, yellow pages and telecom companies. Therefore, the nature and extent of SC’s operations could not be determined.

According to the above website:

All Pharma (Shanghai) Trading Company Limited

APL Pharma Thai Ltd. (Thailand)

Helix Healthcare B.V. (The Netherlands)

Aurobindo Pharma USA Inc.

Auro Pharma Inc. (Canada)

Aurex Generics Limited (U.K.)

Aurobindo Pharma Industria Farmaceutica Ltda (Brazil)

APL Holdings (Jersey) Limited (Jersey)

Etc.

Overall payment appraisal:

( ) Excellent ( ) Good ( ) Average ( ) Fair ( ) Poor (X) Not yet determined

The appraisal serves as a reference to reveal SC's payments habits and ability to pay. It is based on the 3 weighed factors: Trade payment experience (through current enquiry with SC's suppliers), our delinquent payment and our debt collection record concerning SC.

Trade payment experience: N/A

Delinquent payment record: None in our database.

Debt collection record: No overdue amount owed by SC was placed to us for collection within the last 6 years.

Datong Nanjiao District Credit Cooperative Association Branch Business Department

AC#: N/A

Relationship: Normal

Balance Sheet

Unit: CNY’000

	As of Dec. 31, 2008	As of Dec. 31, 2009
Cash & bank	124	915
Notes receivable	0	41
Inventory	13,714	10,880
Accounts receivable	18,188	19,653
Advances to suppliers	0	0
Other accounts receivable	55,259	48,756
Other current assets	77	67
	------------------	------------------
Current assets	87,362	80,312
Fixed assets net value	41,087	38,714
Project under construction	5,563	5,293
Long-term deferred expenses	394	238
Intangible and other assets	2,735	2,169
	------------------	------------------
Total assets	137,141	126,726
	=============	=============
Short loans	0	0
Notes payable	0	0
Accounts payable	10,764	20,346
Advances from clients	0	0
Accrued payroll	0	0
Taxes payable	-3,315	-3,998
Other accounts payable	17,750	6,808
Other current liabilities	0	0
	------------------	------------------
Current liabilities	25,199	23,156
Long-term liabilities	20,000	20,000
	------------------	------------------
Total liabilities	45,199	43,156
Equities	91,942	83,570
	------------------	------------------
Total liabilities & equities	137,141	126,726
	=============	=============

Income Statement

Unit: CNY’000

	As of Dec. 31, 2008	As of Dec. 31, 2009
Turnover	22,321	35,829
Cost of goods sold	19,745	34,439
Sales expense	265	0
Management expense	2,973	2,750
Finance expense	-841	-855
Non-operating income	18,506	29
Profit before tax	18,562	-665
Less: profit tax	12	0
Profits	18,550	-665

Important Ratios

=============

	As of Dec. 31, 2008	As of Dec. 31, 2009
*Current ratio	3.47	3.47
*Quick ratio	2.92	3.00
*Liabilities to assets	0.33	0.34
*Net profit margin (%)	83.11	-1.86
*Return on total assets (%)	13.53	-0.52
*Inventory /Turnover ×365	225 days	111 days
*Accounts receivable/Turnover ×365	298 days	201 days
*Turnover/Total assets	0.16	0.28
* Cost of goods sold/Turnover	0.88	0.96

PROFITABILITY: FAIR

l The turnover of SC appears average in its line in 2008, and it increased in 2009.

l SC’s net profit margin appears good in 2008, but it appears fair in 2009.

l SC’s return on total assets appears fairly good in 2008, but it appears fair in 2009.

l SC’s cost of goods sold is fairly high in 2009, comparing with its turnover.

LIQUIDITY: AVERAGE

l The current ratio of SC is maintained in a fairly good level in both 2 years.

l SC’s quick ratio is maintained in a fairly good level in both 2 years.

l The inventory of SC appears fairly large in both 2 years.

l The accounts receivable of SC appears fairly large in both 2 years.

l SC has no short-term loan in both 2 years.

l SC’s turnover is in a poor level in both 2 years, comparing with the size of its total assets.

LEVERAGE: AVERAGE

l The debt ratio of SC is low in both 2 years.

l The risk for SC to go bankrupt is average.

Overall financial condition of the SC: Fairly stable (As of Dec. 31, 2009)

Exhausting our efforts, we are unable to contact SC. If further contact details of SC are provided, we will definitely continue our investigations.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.45.02
UK Pound	1	Rs.72.70
Euro	1	Rs.62.54

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

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%)

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.