MIRA INFORM REPORT

Report Date :

09.05.2011

IDENTIFICATION DETAILS

Name :	ARCH PHARMALABS LIMITED (w.e.f. 31.03.2004)
Formerly Known As :	ARCH COMMERZ PRIVATE LIMITED
Registered Office :	H Wing, 4^th Floor, Tex Centre, Narayan Properties, Chandivali, Off Saki Vihar Road, Andheri (East), Mumbai – 400 072, Maharashtra
Country :	India
Financial (as on) :	31.03.2010
Date of Incorporation :	02.04.1993
Com. Reg. No.:	11-150891
Capital Investment / Paid-up Capital :	Rs.212.300 Millions
CIN No.: [Company Identification No.]	U24231MH1993PLC150891
TAN No.: [Tax Deduction & Collection Account No.]	MUMA19603D
PAN No.: [Permanent Account No.]	AACCM0306Q
Legal Form :	A closely held Public Limited Liability Company
Line of Business :	Manufacturing of Pharmaceutical Intermediates in Isoxazole Penicillin range with a focus on export market.
No. of Employees :	1500 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

A (59)

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 18700000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well established 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 correct 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.

INFORMATION PARTED BY

Name :	Mr. Vikas Kedia
Designation :	Company secretary and DGM Finance
Date :	05.05.2011

LOCATIONS

Registered Office / Corporate Office :	H Wing, 4^th Floor, Tex Centre, Narayan Properties, Chandivali, Off Saki Vihar Road, Andheri (East), Mumbai - 400 072, Maharashtra
Tel. No.:	91-22-28470555 / 33089200 / 33089400 / 40756789
Fax No.:	91-22-28471234 / 1002
E. Mail.:	info@archpharmalabs.com sudhir.nagar@archpharmalabs.com
Website:	www.archpharmalabs.com
Area :	5000 Sq. ft.
Location :	Owned
Head Office :	Titanic Building, 3^rd Floor, Tex Center Off 5, Mumbai, Maharashtra, India
Tel. No.:	91-22-28470555
Fax No.:	91-22-28471012
Plant:	· Survey No. 323, Gundlamachnur Village, Hathnoora Mandal, District Medak – 502 296, Andhra Pradesh, India Tel. No.: 91-22-28560555/0560 Fax No.: 91-22-28561234/1002 E-Mail : archcom@mtnl.net.in archfin@vsnl.com infor@archpharmalabs.com Area : 5500 Sq.fts Location : Owned · Survey No. 280, Mittapally Village, Siddipet – 502 375, Medak, Andhra Pradesh, India · Plot No. T- 84, 85 and 86 MIDC Tarapur, Taluka Palghar, District Thane, Maharashtra, India · Plot No. G-4 and G-5, Kharvai MIDC, Badlapur, District Thane - 421 503, Maharashtra, India · Vitalifa Laboratories, Village Pathreri, Bilaspur Tauru Road, District Gurgoan – 122 001, Haryana, India · Plot No. G-6, MIDC Taloja, Taloja Industrial Area, Village Navade, Taluka Panvel, District Raigad, Maharashtra, India · Corporate R and D Centre - I, Plot No. 21, MIDC, Chemical Zone , Taloja Industrial Area, Village Navade, Taluka Panvel, District Raigad – 410 208, Maharashtra, India · Corporate R and D Centre - II, Plot No. C-424, TTC Turbhe, MIDC Industrial Area, Navi Mumbai, Maharashtra, India · Plot No. W-45 (C) Anand Nagar, Additional Ambernath District Thane - 421 506, Maharashtra, India · V-8, MIDC, Taloja, Raigad, Maharashtra, India
Branch:	Located at:- · Sainath, 8-2-120/86/10/2, Muncipal No. 389, Road No. 14, Banjara hills, Hyderabad - 500 034, Andhra Pradesh · Shop No.3, Village Pabhat, Chandigarh Road, Zirakpur District, Ropar, Punjab

DIRECTORS

As on 29.09.2010

Name :	Mr. Ajit Annu Kamath
Designation :	Chairman and Managing Director
Address :	404, I la Apartments, Sector 4, R. O. P. 7, Chrkop, Kandivli (West), Mumbai-400067, Maharashtra, India
Date of Birth/Age :	12.12.1969
Qualification :	Graduate
Date of Appointment :	01.11.2003
DIN No. :	00032799
Name :	Mr. Manoj Tejraj Jain
Designation :	Deputy Managing DirectorDirector
Address :	Flat No. 4-A, Shefali, Mahim Makarand Society, 114, SVS Marg, Mahim, Mumbai – 400016, Maharashtra, India
Date of Birth/Age :	20.03.1970
Date of Appointment :	01.11.2003
DIN No. :	00034727
Name :	Mr. Mallikarjuna Reddy Tirumalareddy
Designation :	Vice Chairman
Address :	B-13, Madhura Nagar, S.R. Nagar P.O., Hyderabad-500038, Andhra Pradesh, India
Date of Birth/Age :	15.04.1960
Date of Appointment :	04.04.1993
DIN No. :	00298545
Name :	Mr. Rajendra Kumar Padmanabhan Kaimal
Designation :	Executive Director
Address :	Flat No. 1202, Sector R-3, C Wing, Orchid Enclave, Nahar’s Amrit Shakti, Chandivali, Andheri (East), Mumbai – 400072, Maharashtra, India
Date of Birth/Age :	23.06.1973
Date of Appointment :	01.11.2003
DIN No. :	00032839
Name :	Ms. Rajadhyaksha Vandana Makarand
Designation :	Nominee Director
Address :	301, 3^rd Floor, LAxmi Gopal Hatiskar Marg, Prabhadevi, Mumbai – 400025, Maharashtra, India
Date of Birth/Age :	09.10.1971
Date of Appointment :	19.07.2007
DIN No. :	00164120
Name :	Mr. Sunil Vasantrao Diwakar
Designation :	Nominee Director
Address :	C-002, Shreejiville, Opp. Nitin Company, Almeda Road, Panch Pakhadi, Thane (West), Mumbai – 400602, Maharashtra, India
Date of Birth/Age :	22.05.1963
Date of Appointment :	28.01.2008
DIN No. :	00089266
Name :	Mr. Koppisetty Srinivas
Designation :	Nominee Director
Address :	Flat No. 304, Building No. 15, Mhada Residential Complex, Oshiwara, Andheri (West), Mumbai – 400053, Maharashtra, India
Date of Birth/Age :	17.05.1963
Date of Appointment :	19.12.2007
DIN No. :	00514607

KEY EXECUTIVES

Name :	Mr. Vikas B. Kedia
Designation :	Company Secretary and DGM Finance
Address :	Flat No. 201, C-Wing, Krishna Building, Vasant Sagar Complex, Thakur Village, Kandivali (East), Mumbai – 400101, Maharashtra, India
Date of Birth/Age :	08.07.1976
Date of Appointment :	26.12.2003
PAN No. :	AMZPK9885E

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

(As On 29.09.2010)

Category	Percentage
Foreign holdings( Foreign institutional investor(s), Foreign companie(s) Foreign financial institution(s), Non-resident Indian(s) or Overseas Corporate bodies or Others	2.74
Nationalized or Other Banks	0.02
Venture Capital	48.51
Bodies corporate	30.16
Directors or relatives of Directors	11.44
Other top fifty shareholders	4.75
Others	2.38
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturing of Pharmaceutical Intermediates in Isoxazole Penicillin range with a focus on export market.

Products :

Item Code No.	Product Description
29159000	CMIC - Chloride
29159000	DICMIC - Chloride
29159000	FCMIC - Chloride

· CMIC Chloride : 3 - (2 Chlorophenyl)-5-Methyl Isoxazole - 4 - Carbonyl Chloride

· DICMIC Chloride : 3 - (2,6 Dichlorophenyl)-5-Methyl Isoxazole-4-Carbonyl Chloride

· FCMIC Chloride : 3-(2 Chloro. 6-Flurophenyl)-5-Methyl Isoxazole-4- Carbonyl Chloride.

· PMIC Chloride : 3 –Phenyl-5-Methyl Isoxazole-4-Carbonyl Chloride

Exports :

Products :

Pharmaceuticals and Chemicals

Countries :

· Pakistan

· Bangladesh

· Oman

· Spain

· Italy

· UAE

· Mexico

Imports :

Products :

Raw Material

Countries :

· Japan

· China

· Germany

· Switzerland

· U.A.E.

· Belgium

· South Korea

Terms :

Selling :

L/C, Cash and Credit (30 / 60 / 90 days)

Purchasing :

L/C, Cash and Credit (30 / 60 / 90 days)

GENERAL INFORMATION

Suppliers :

· BASF Aktiengesellschaft, Germany

Indenting Agent

BASF India Limited

Rhone-Poulence House, Sudam Kalu Ahire Marg, Mumbai-400025, Maharashtra

Tel. No. 91-22-4930703

Fax No. 91-22-4950512

Contact Person: Mr. Udipt Agarwal

· Changzhou Foreign Economic Technical and Trading (Group) Corporation

12-D Midsouth Tower, 33 West, Guanhe Road, Changzhou, Jiangsu, China

Tel. No. +86-5196626038

Fax No. +86-519-6609289

E-Mail: htchem@public.cz.js.cn

Contact Person: Mr. Fu-Qiang Sun

· Zhejiang Medicines and Health Products Imports and Exports Corporation

2188, Ti Yu Chang Road, Hangzhou 310003, China

Fax No. (571) 5100777 / 5105518

· Clariant GmbH-Kundenbuchhaltung

D-65840, Sulzbach, Germany

Tel. No. + 49 (6196) 75760 SWITCHBOARD

Fax No. +49 (6196) 7578856

Representative Office:

Colour-Chem Limited

Mumbai-Agra Road, Balkaum, Thane-400608

Tel. No. 91-22-5345060

Fax No. 91-22-5349629

Contact Person: Mr. A. K. Roy

· Nissho Iwai Corporation Fine and Bio Chemicals, Japan

Representative Office

Nissho Iwai Corporation (Bombay Liaison Office)

Dalamal House, 8th Floor, Nariman Point, Mumbai-400021, Maharashtra

Tel. No. 91-22-2837685

Fax No. 91-22-2024138

Contact Person: Mr. Saikat Bhowmik

· Tessenderlo Chemie S. A., Belgium

Representative Office:

Finorga (India) Private Limited

105-A, Neelam Centre, 249 B, Hind Cycle Road, Worli, Mumbai-400025, Maharashtra

Tel. No. 91-22-4934627/4933310

Fax No. 91-22-4950504/4937925

Contact Person: Mr. Manish Vasaiwala

· OG Corporation

8-7, Nihonbashi - Honcho 2 - Chome, Chuo-Ku, Tokyo, 103 –

8417, Japan

Tel. No. +81 3 3665 - 8311

Fax No. +81 3 3665 - 8365

· Uwe Gers Chemie Handels GmbH

Romerweg 1, D - 67117, Limburgerhof, Germany

Tel. No. + 49 6236465032

Fax No. + 49 623648191

E Mail : ug-chemie@t-online.de

· Benzo Petro International Limited

5, Welcome Shopping Centre, Opp Punit Nagar, Old Padra Road, Vadodara-390007, Gujarat

Tel. No. 91-265-333302 / 342395

Fax No. 91-265-342395 / 330640

Contact Person: Mr. D. C. Gami

· Search Chem Industries Private Limited

Uniphos House, 11th Road, Madhu Park, Khar (West),

Mumbai-400052, Maharashtra

Tel. No. 91-22-6041111/6000700

Fax No. 91-22-6041010

Contact Person: Mr. Sanjay Singhania

· Adani Exports Limited

7th Floor, “The Eagle’s Flight”, Suren Road, Andheri (East), Mumbai-400093, Maharashtra

Tel. No. 91-22-6836969

Fax No. 91-22-6833838

Contact Person: Mr. Ashish Tawakley / Mr. Uday Mehta

· Tata Chemicals Limited

57, Luz Lane, Mylapore, Chennai-600004, Tamilnadu

Tel. No. 91-44-4996882

Fax No. 91-44-4981023

Contact Person: Mr. M. Vellodi – Regional Manager

· Alkyl Amines Chemicals Limited

401-407, Nirman Vyapar Kendra, Plot No. 10, Sector 17, Vashi, Navi Mumbai-400703, Maharashtra

Tel. No. 91-22-7890632

Fax No. 91-22-7890631

Contact Person: Mr. Sameer Ardekar

· Haresh Kumar and Company

23, Anant Building, 217, Shamaldas Gandhi Marg, Mumbai-400002, Maharashtra

Tel. No. 91-22-8375382 /83

Fax No. 91-22-8254417

Contact Person: Mr. Kailash Kasat

· Chemplast Sanmar Limited

8, Cathedral Road, Chennai - 600 086, Tamilnadu

Tel. No. (Chennai) 91-44-822 7739

(Mumbai) 91-22-5973390/91

Fax No. (Chennai) 91-44-822 1545

(Mumbai) 91-22-5973395

Contact Person: Mr. Subramanium

Customers :

Manufacturer, OEM’s and End users

No. of Employees :

1500 (Approximately)

Bankers :

· Karnataka Bank Limited

Overseas Branch, 2 Firuz Ara, 160, M.K. Road, Cooperage, Mumbai - 400 021

Tel. No. 91-22-22885016/17

Fax No. 91-22-22020463

· Axis Bank Limited

Universal Insurance Building, Sir P. M. Road, Fort Branch, Mumbai-400001, Maharashtra

Tel. No. 91-22-22835782/84/87/89

Fax No. 91-22-22844113

· Export Import Bank of India, Centre One Building, Floor 21, World Trade Centre, Cuffe Parade, Mumbai – 400005, Maharashtra, India

· DBS Bank Limited

· HDFC Bank Limited

· IL and FS Limited

· India Bank

· State Bank of India

· State Bank of Indore

· State Bank of Mysore

· State Bank of Patiala

· YES Bank Limited

· Canara Bank

· The Greater Bombay Co-operative Bank Limited

· The Karur Vysya Bank Limited

· Bank of India, Cuffe Parade, Mumbai – 400005, Maharashtra, India

Facilities :

Secured Loans	31.03.2010 Rs. in millions	31.03.2009 Rs. in millions
a) Debentures
Non – Convertible Debentures (Note – a)	200.000	300.000
b) Term Loan (Note – b)
From Bank	3682.800	2901.300
From Institution	805.700	645.800
c) Working Capital / Short Term Loans (Note – c)	4268.300	2810.600
d) Loans under Hire purchase arrangements (Note – d)	13.000	22.100
e) Interest accrued and due	31.600	50.400
Total	9001.400	6730.200

Notes

a) Non-Convertible Debentures referred to in (a) above are secured by subservient charge on the movable assets of the company and personal guarantee of the company's promoter directors. Debentures are reedemable at par in one or more installments on various dates with the earliest redemption being on 28.02.2011 and the last being in 28.02.2012.

b) The Term Loans referred to in (b) above are secured by first pari-passu charge on the fixed assets, second pari-passu charge on the current assets and personal guarantee of the company's promoter directors except term loan of Rs.676.100 Millions (Previous year Rs.435.600 Millions) which is secured by residual charge on the entire fixed assets and current assets of the company.

c) Working Capital Loans referred to in (c) above are secured by first pari-passu charge on the current assets, second pari-passu charge on the fixed assets and personal guarantee of the company's promoter directors.

d) Loans under Hire Purchase agreements referred to in (d) above are secured by the hypothecation of the specific vehicle financed by the respective bank.

Unsecured Loans	31.03.2010 Rs. in millions	31.03.2009 Rs. in millions
Debentures (Redemable within three years)	100.000	750.000
Long Term From Others (Rs.1.000 Million payable within one year)	1.000	2.100
Short Term From Banks/Institutions	2101.500	1009.600
Deferred Sales tax Liability	57.000	57.000
Total	2259.500	1818.700

Banking Relations :

Satisfactory

Financial Institution :

· LIC of India

· DEG, Germany

Auditors :

Name 1 :

Nayak and Rane

Chartered Accountants

Address:

501, Siddhivinayak Annexe, C – Wing, S.J. Marg, Lower Parel, Mumbai – 400013, Maharashtra, India

Name 2 :

Chaturvedi and Shah

Chartered Accountants

Address :

714-715, Tulsiani Chambers, 212, Nariman Point, Mumbai – 400021, Maharashtra, India

Sister Concern:

· Arch Financial Services (Bom) Private Limited

Engaged in providing financial services

· Arch Phytochemicals Private Limited

Engaged in Preparing Registration Dossiers for Homeopathic medicines

· Avon Organics Limited (CIN No. : L24110AP1993PLC16112)

Manufacturing Facility : Sadasivpeth, Near Hyderabad and Solapur, Maharashtra

% Stake : 43.60%

· Benzochem Lifesciences Private Limited

Manufacturing Facility : Tarapur, Near Mumbai

% Stake : 70%

· Arch Herbals Private Limited

· Arch Impex Private Limited

· Arch Investment Private Limited

· Arch Pharmachem Limited

· Avant Capital Services Private Limited

· AMR Investments Private Limited

· Accenture Hospitality Private Limited

· Marm Realty Private Limited

· Tube Glass Containers Limited

Subsidiaries :

· Arch Life Sciences Limited (Formerly Sibra Pharmaceuticals Limited) (CIN No. : U24239AP2003PLC042232)

Manufacturing Facility : Medak, Near Hyderabad

% Stake : 58.46%

· Arch Finechemicals Limited (Formerly Watsol Organics Limited) (CIN No. : U24110AP1993PLC015533)

Manufacturing Facility : Medak, Near Hyderabad

% Stake : 88.95%

· Arch Pharmalabs (USA) Inc.

CAPITAL STRUCTURE

(As on 31.03.2010)

Authorised Capital :

No. of Shares	Type	Value	Amount
30000000	Equity Shares	Rs.10/- each	Rs.300.000 millions
10000000	Preference Shares	Rs.10/- each	Rs.100.000 millions
	Total		Rs. 400.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
21234022	Equity Shares	Rs.10/- each	Rs.212.300 Millions

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		212.300	212.300	212.340
2] Share Application Money		300.000	0.000	0.000
3] Reserves & Surplus		4158.200	3649.400	3281.681
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		4670.500	3861.700	3494.021
LOAN FUNDS
1] Secured Loans		9001.400	6730.200	2837.619
2] Unsecured Loans		2259.500	1818.700	1011.183
TOTAL BORROWING		11260.900	8548.900	3848.802
DEFERRED TAX LIABILITIES		425.100	291.800	205.614
TOTAL		16356.500	12702.400	7548.437
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		5770.800	4608.900	2710.252
Capital work-in-progress		674.200	1172.200	0.000
INVESTMENT		492.400	717.900	790.849
DEFERREX TAX ASSETS		0.000	0.000	0.000
Foreign Currency Monetary Item Translation Difference Account		0.700	5.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	3743.400	3109.400	1491.210
	Sundry Debtors	4771.500	3112.700	1695.545
	Cash & Bank Balances	501.300	408.300	960.317
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	2889.200	1682.200	684.937
Total Current Assets		11905.400	8312.600	4832.009
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	821.700	1089.600	703.323
	Other Current Liabilities	1646.900	1010.900	82.157
	Provisions	18.400	13.700	10.990
Total Current Liabilities		2487.000	2114.200	796.470
Net Current Assets		9418.400	6198.400	4035.539
MISCELLANEOUS EXPENSES		0.000	0.000	11.797
TOTAL		16356.500	12702.400	7548.437

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	10233.700	7133.300	5141.993
		Other Income	64.500	20.700	34.654
		TOTAL (A)	10298.200	7154.000	5176.647
Less	EXPENSES
		Cost of Materials	6403.100	4682.600	3442.808
		Manufacturing and Other Expenses	1409.300	1089.200	749.932
		TOTAL (B)	7812.400	5771.800	4192.740
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		2485.800	1382.200	983.907
Less	FINANCIAL EXPENSES (D)		1312.400	596.400	357.057
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		1173.400	785.800	626.850
Less/ Add	DEPRECIATION/ AMORTISATION (F)		458.700	240100	160.619
	PROFIT BEFORE TAX (E-F) (G)		714.700	545.700	466.231
Less	TAX (I)		205.900	178.000	131.734
	PROFIT AFTER TAX (G-I) (J)		508.800	367.700	334.497
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		1138.600	855.400	658.466
Less	APPROPRIATIONS
		Debenture Redemption Reserve Account	(36.100)	84.500	3.720
		Short / Excess Provision for Tax	0.000	0.000	4.693
		Proposed Dividend on Preference Shares	0.000	0.000	0.798
		Distribution Tax thereon	0.000	0.000	128.333
	BALANCE CARRIED TO THE B/S		1683.500	1138.600	855.419
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	3474.200	1666.600	700.413
		Others	484.400	78.000	29.584
	TOTAL EARNINGS		3958.600	1744.600	729.997
	IMPORTS
		Raw Materials	2228.200	1469.100	843.428
		Capital Goods	5.300	63.900	49.249
	TOTAL IMPORTS		2233.500	1533.000	892.677
	Earnings Per Share (Rs.)		23.96	17.31	15.32

Particulars	31.03.2011
Sales Turnover	12000.000 (Approximately)

Expected Sales ( 2011-2012 ) : Rs.15000.000 Millions

The above information has been parted by Mr. Vikas Kedia

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	4.94	5.14	6.46
Net Profit Margin (PBT/Sales)	(%)	6.98	7.65	9.07
Return on Total Assets (PBT/Total Assets}	(%)	4.04	4.22	6.18
Return on Investment (ROI) (PBT/Networth)		0.15	0.14	0.13
Debt Equity Ratio (Total Liability/Networth)		2.94	2.76	1.33
Current Ratio (Current Asset/Current Liability)		4.79	3.93	6.07

LOCAL AGENCY FURTHER INFORMATION

SUNDRY CREDITORS DETAILS :

(Rs. In Millions)

Particulars	31.03.2010	31.03.2009	31.03.2008
Micro and Small Enterprises	0.000	0.000	0.000
Others	821.700	1089.600	703.323
Total	821.700	1089.600	703.323

HISTORY

Incorporated on 2 Apr.'93 as Merven Drug Products Private Limited, Merven Drug Products (MDPL) was converted into a public limited company on 13 Sep.'93. It was originally promoted by T V Raghava Reddy, Rajgopala Reddy and P Vijayalakshmi. The company is been engaged in the business of bulk drugs. 

 In Oct.'94, MDPL came out with a public issue of 4.160 millions equity shares at par, aggregating Rs. 41.600 millions, to part-finance the Rs.147.500 millions project to manufacture basic and bulk drugs with an installed capacity of 135 tpa. The production facility is planned in accordance with the US FDA standards. The company is the first in the country to make certain speciality products such as fluoxetine, esmolol and roxythromycin. The project is located in Medak district of Andhra Pradesh. Commercial production commenced in 1995. It also doubled the capacity which became operational by Dec.'95. It started production with CMIC chloride, an intermediate and a raw material for cloxacillin sodium. 

The company has an exclusive technical tie-up with Applied Chemtech, India. The company has entered into arrangements to undertake conversion work on job order basis in order to improve the plant capacity utilisation. 

Cash cruch and slow down in the bulk drugs industry has resulted in losses and the net worth being eroded. As such, the company has become a sick company. 

The company is currently engaged in only job work for other companies, as the company could not produce its products due to non-availability of working capital facility.

The Company's business comprising Pharmaceutical Intermediates and Active Pharmaceutical Ingredients (APIs) continued to post steady growth. The increase of products offered under both Intermediates and API basket has contributed significantly to the increased turnover and profitability. The Management reiterates it market leadership in the domestic market for a series of APIs and Intermediates. 

A detailed overview and analysis on the performance and the outlook of the Company is set out in the 'Management Discussion and Analysis Report', forming a part of this Annual Report. 

The company through its focused business strategy perceives itself as a 'Non-competing' vendor which has led to zero conflict perception amongst customers worldwide. 

FORM 8 :

Corporate identity number of the company	U24231MH1993PLC150891
Name of the company	ARCH PHARMALABS LIMITED
Address of the registered office or of the principal place of business in India of the company	H Wing, 4^th Floor, Tex Centre, Narayan Properties, Chandivali, Off Saki Vihar Road, Andheri (East), Mumbai – 400 072, Maharashtra, India
This form is for	Creation of charge
Type of charge	Movable property
Particular of charge holder	Export Import Bank of India, Centre One Building, Floor 21, World Trade Centre, Cuffe Parade, Mumbai – 400005, Maharashtra, India
Nature of instrument creating charge	Unattested Deed of Hypothecation (DOH) of moveable assets dated 7th April 2011 executed by Arch Pharmalabs Limited (the Borrower) in favour of Export-Import Bank of India (Exim Bank) for Rs.500.000 millions, a copy whereof is attached hereto.
Date of instrument Creating the charge	07.04.2011
Amount secured by the charge	Rs.500.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of interest : 11.50% per annum payable monthly subject to reset in accordance with the Loan Agreement. Terms of repayment : The loan shall be repaid by the Borrower in 16 equal quarterly installments commencing after a moratorium of one year from the date of disbursement or such other date as may be advised by Exim Bank at the time of first disbursement. Margin : 21% Extent and operation of the charge : The charge created in favour of Exim Bank shall rank as a first pari passu charge over the entire movable fixed assets of the Borrower.
Short particulars of the property or asset(s) charged (including complete address and location of the property)	Whole of Borrower's moveable fixed assets.

FIXED ASSETS

· Land

· Factory Building

· Office Premises

· Plant and Machinery

· Furniture and Fixtures

· Electrical Installation

· Computers

· Office Equipment

· Vehicles

Website DETAILS

Profile

Founded in 1999, Subject has gained recognition as a world-class provider of small molecule process chemistry, custom synthesis services and full life-cycle API and drug intermediates manufacture for the global pharmaceutical industry. Generating revenues of USD 125 million (FY 2007), the India-based, IP-secure offering is supported by 1900 customer-centric Archers, ten certified facilities (including cGMP-compliant, audited assets) and a state-of-the-art Process R and D / Technology Transfer centre.

Subject works tirelessly to deliver value, innovation and effective supply chain solutions in the spirit of true partnership. The large family of satisfied customers range from emerging or specialty companies to global majors, many of whom have designated Subject as a Preferred Supplier or Strategic Partner. Subject received CNBC TV Emerging India 2006 Award as the No.1 Small or Medium Company in the Pharmaceuticals and Chemicals category.

News

Arch Pharmalabs Limited acquires api manufacturing facility of Watson Pharma located at Dombivli, Near Mumbai.

Arch Pharmalabs Limited has acquired the API manufacturing facility of Watson Pharma. located at Dombivli, Near Mumbai with effect from 1^st January, 2009.

This cGMP facility is USFDA and EDQM inspected. It continues to maintain its approved status from USFDA since 1998 and EDQM since 2002.

The facility is currently engaged in manufacturing of over 15 APIs with capabilities of handling complex chemical processes. The total team strength at this facility is about 250. There are 3 independent manufacturing blocks, a pilot plant, a Kilo-lab, QA/QC and in-house Effluent treatment plant.

The addition of the Dombivli facility, which is the eleventh for Arch in India, combines the resources of the manufacturing plant, which is primarily aimed at the international market, along with the experienced management of Arch, further augmenting the positioning of Arch as a supplier of process research and development and contract manufacturing services to the global pharmaceutical industry.

Arch Pharmalabs gets verification mark from USP (PIVP)

Source : Company Release

Date : Tuesday, April 21^st, 2009

Arch Pharmalabs Limited, one of the leading suppliers of API (Active Pharmaceuticals Ingredients) and Intermediates, today announced, has received a new verification mark for one of its drug substance (API) from the US Pharmacopeia (USP) under the Pharmaceutical Ingredient Verification Program (PIVP) at their Gurgaon manufacturing facility.

USP created the PIVP as an independent, ethical, and credible third party verification for quality compliance thus adding one more element of safety and comfort for manufacturers and their customers. This was done to address increasing concerns throughout the pharmaceutical industry about the quality and consistency of pharmaceutical ingredients.

The programme enables manufacturers to showcase their quality and integrity of their products with a recognizable 'USP Verified' mark'. Arch Pharmalabs has received this verification for Clopidogrel Bisulfate (Form 1). This mark can be used by Arch Pharmalabs on the certificate of analysis and other bulk-label containers of this product.

Commenting on this development, Mr. Ajit Kamath, CMD, Arch Pharmalabs Ltd. said "This USP verification mark signifies our commitment to the very stringent processes and quality standards we follow at Arch Pharmalabs. We have undergone rigorous and independent conformity assessments to receive this certification. We further, look forward to working closely, with USP PIVP and exposing our other products to this respectful certification".

About: USP (PIVP)

The US Pharmacopeia (USP) verification assures consistency of quality in process (good manufacturing practice) and product. PIVP has three elements: a GMP audit against international guidelines, a manufacturing and quality-control document review, and lab testing of product samples. A post certification stage includes surveillance testing and requests for follow-up information.

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.44.78
UK Pound	1	Rs.73.42
Euro	1	Rs.65.27

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	7
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	7
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	7
--LEVERAGE	1~10	6
--RESERVES	1~10	7
--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	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		59

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.