MIRA INFORM REPORT

Report Date :

16.05.2011

IDENTIFICATION DETAILS

Name :	USV LIMITED

Registered Office :	BSD Marg, Govandi, Mumbai - 400 088, Maharashtra

Country :	India

Financials (as on) :	31.03.2010

Date of Incorporation :	25.08.1961

Com. Reg. No.:	11-12098

Capital Investment / Paid-up Capital :	Rs.999.670 millions

CIN No.: [Company Identification No.]	U24239MH1961PLC012098

TAN No.: [Tax Deduction & Collection Account No.]	MUMU00007A

Legal Form :	A Closely Held Public Limited Liability Company.

Line of Business :	Manufacturer and Marketer of Tablets Capsules and Bulk Drugs

No. of Employees :	Approximately 2800

RATING & COMMENTS

MIRA’s Rating :

A (67)

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 36340000

Status :	Good

Payment Behaviour :	Regular

Litigation :	Clear

Comments :	Subject is a well established and a closely held public limited company engaged in manufacturing and marketing of pharmaceuticals in the form of tablets, capsules, liquid, creams, etc. Financial position of the company appears to be sound. Directors are reported to be experienced and respectable businessmen. Trade relations are reported as fair. Business is active. The company is progressing well. Payments are reported to be regular and as per commitments. The company can be considered good 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 DENIED BY

Name :	Mr. Roshan Dalvi
Designation :	Accounts Department

LOCATIONS

Registered Office :	BSD Marg, Govandi, Mumbai - 400 088, Maharashtra, India
Tel. No.:	91-22-25564048 / 4049 / 4050 / 4051 / 25562225 / 25559915 / 25581118 / 67861111
Fax No.:	91-22-25515608 / 25584025
E-Mail :	albert.matherus@usv.co.in sudhir.thatte@usv.co.in hrd@usv.co.in info@usv.co.in info@usvlimitedindia.com hrd@usv.co.in custompeptides@usv.co.in
Website :	http://www.usvindia.com

Factory 1 :	MIDC, Lote Industrial Area, Khed, Ratnagiri, OIDC, Dabhel, Daman, HPSIDC, Baddi, Himachal Pradesh

Factory 2 :	Plot No. B-1 / 8, M.I.D.C. Lote Industrial Area, Taluka Khed, Ratnagiri, Maharashtra, India
Tel. No.:	91-2356-272242
Fax No.:	91-2356-272402

DIRECTORS

AS ON 27.09.2010

Name :	Mrs. Leena Gandhi Tewari
Designation :	Director
Address :	41, Ritu Apartments, 208, B.J. Road, Bandra (West), Mumbai-400050, Maharashtra, India
Date of Birth/Age :	09.03.1957
Date of Appointment :	20.01.1986

Name :	Mr. Prashant Kumar Tewari
Designation :	Director
Address :	41, Ritu Apartments, 208, B J Road, Bandra ( West), Mumbai-400050, Maharashtra, India
Date of Birth/Age :	09.04.1958
Date of Appointment :	20.01.1986

Name :	Mr. Debabrata Atul Chanda Bhaduri
Designation :	Director
Address :	9-A, Belvedere Court, Sane Guruji Marg, Mahalaxmi, Mumbai - 400011, Maharashtra, India
Date of Birth/Age :	20.11.1941
Date of Appointment :	01.05.2001

Name :	Mr. Deepak Keshav Ghaisas
Designation :	Director
Address :	B 61/62, Swapnashilp Apartments, Mahant Road, Vile Parle (East), Mumbai-400057, Maharashtra, India
Date of Birth/Age :	19.11.1957
Date of Appointment :	21.09.2003

Name :	Mr. Debabrata Sujitkumar Gupta
Designation :	Whole Time Director
Address :	B-804, Etrnai, Hiranandani Gardens, Powai, Mumbai - 400076, Maharashtra, India
Date of Birth/Age :	19.02.1963
Date of Appointment :	19.09.2005

Name :	Mr. M Muthiah Murugappa Venkatachalam
Designation :	Director
Address :	20/1, Valliammai Achi Road, Kottupuram, Chennai - 600 085, Tamilnadu, India
Date of Birth/Age :	24.11.1958
Date of Appointment :	19.09.2005

Name :	Mr. Tanmay Anand Joshi
Designation :	Director
Address :	1/23, Radha Krishna Nivas, Dr. B.A. Road, Dadar (East), Mumbai-400014, Maharashtra, India
Date of Birth/Age :	20.11.1983
Date of Appointment :	05.06.2009

KEY EXECUTIVES

Name :	Mr. Albert Mathew
Designation :	Finance Head

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 27.09.2010

Names of Shareholders	No. of Shares
Leena Gandhi Tewari	91287618
Aneesha Gandhi Tewari	11106
Treva Health Care Private Limited, India	5553
Vipal Health Care Private Limited, India	5553
USV Reliable Homes Private Limited, India	7404
Tewari Gandhi Leena / Tewari Kumar Prashant	5395665
Tewari Kumar Prashant / Tewari Gandhi Leena	3041193
Tewari Kumar Prashant	201759
Neo-Pharma Industries Private Limited, India	11106

Total	99966957

(AS ON 27.09.2010)

Category	Percentage

Bodies corporate	0.03
Directors or relatives of directors	99.97

Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer and Marketer of Tablets Capsules and Bulk Drugs

Products :

Product Description	ITC Code
Medicaments (Tablets and Capsules)	3006
Medicaments (Bulk Drugs and Intermediates)	2942
Medicaments (Liquids)	3004

APIs

Small molecule APIs
Peptides

Finished Products

Biosimilars
Solid Orals
Injectables
Ophthalmics

Brand Names :

Pioz (Insulin Sensitizer)
Arbitace
Clopigrel (anti-platelet)
Ecosmin (enteric coated aspirin)
Nizer D (Nimesulide with Pseudo ephedrine – an anti-cold preparation)
Quicktest – U (Urine strip for Glucose analysis)

Imports :

Products :

Raw Materials and Machinery

GENERAL INFORMATION

Trade Terms :

· Alfa Wassenrman, Italy

· Cimab

· Fujix Inc. Japan

· Om Pharma, Switzerland

· Engelhard, Germany

New Collaborations

· Sebapharma, Germany

· Kissei, Japan

No. of Employees :

Approximately 2800

Bankers :

· State Bank of India, Mid Corporate Loan, Administrative Unit, Shree Hari Building, RTO Lane, Four Bunglows, Andheri (West), Mumbai-400053, Maharashtra, India

· Standard Chartered Grindlays Bank Limited, Dr. D. N. Road, Mumbai-400 001, Maharashtra, India

· The Saraswat Co-operative Bank Limited, Mumbai, Maharashtra, India

· Canara Bank

Facilities :

Secured Loan	31.03.2010 Rs. In Millions	31.03.2009 Rs. In Millions
Long Term Loans (secured by the whole of the movable and immovable properties acquired from the loan, including movable plant and machinery spares, tools and accessories and other movable, both present and future (save and except book debts) all acquire from the loan sanctioned by department of Biotechnology. Future, secured by bank guarantee given of Rs. 15.850 millions)	7.820	0.000

Total	7.820	0.000

Unsecured Loans	31.03.2010	31.03.2009
From Department and Biotechnology	0.000	7.820
Sales Tax department Loan	32.130	39.070

Total	32.130	46.890


Banking Relations :	--

Financial Institution :	Department of Biotechnology, Block 2, CGO Complex, New Delhi-110003, Delhi, India

Auditors :
Name :	Ashesh Jani Chartered Accountant
Address :	12, Dr. Annie Besant Road, Worli, Mumbai-400018, Maharashtra, India
Pan No :	AACFD4815A

Associates :	· Treva Health Care Private Limited · Vipal Health Care Private Limited · Tender Remedies · Business Link Automation (India) Limited · Vital Pharmacal Private Limited · Neo Pharma Industries Private Limited · Chronomed Health Care Private Limited · USV Reliable Homes Private Limited

Subsidiaries :	· USV North America Inc · Indicus Pharma LLC · USV Europe Limited

CAPITAL STRUCTURE

AS ON 27.09.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
125000000	Equity Shares	Rs.10/- Each	Rs.1250.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
99966957	Equity Shares	Rs.10/- Each	Rs.999.670 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		999.670	999.670	999.670
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		8086.350	7390.334	7161.530
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		9086.020	8390.004	8161.200
LOAN FUNDS
1] Secured Loans		7.825	0.000	14.160
2] Unsecured Loans		32.127	46.893	46.270
TOTAL BORROWING		39.952	46.893	60.430
DEFERRED TAX LIABILITIES		228.141	241.771	271.670

TOTAL		9354.113	8678.668	8493.300

APPLICATION OF FUNDS

FIXED ASSETS [Net Block]		3478.177	2143.760	2267.740
Capital work-in-progress		123.773	770.700	440.820

INVESTMENT		4913.096	2636.605	4106.960
DEFERREX TAX ASSETS		0.000	0.000	0.000

CURRENT ASSETS, LOANS & ADVANCES
	Inventories	1144.009	1036.570	1039.930
	Sundry Debtors	1125.101	1057.634	760.000
	Cash & Bank Balances	753.588	2878.119	385.120
	Other Current Assets	0.000	0.001	0.000
	Loans & Advances	673.311	768.643	540.770
Total Current Assets		3696.009	5740.967	2725.820
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	1255.160	1032.430	859.800
	Current Liabilities	58.800	53.907	4.800
	Provisions	1542.982	1527.027	193.040
Total Current Liabilities		2856.942	2613.364	1048.040
Net Current Assets		839.067	3127.603	1677.780

MISCELLANEOUS EXPENSES		0.000	0.000	0.000

TOTAL		9354.113	8678.668	8493.300

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	10149.490	8320.340	6756.980
		Export Incentive (Net)	71.960	33.650	32.750
		Other Income	392.920	574.410	344.430
		TOTAL (A)	10614.370	8928.400	7134.160

Less	EXPENSES
		Consumption of Materials	2176.830	1939.170	1455.800
		Purchase of Traded Goods	1313.110	1102.440	992.810
		Operating and Other Expenses	3409.070	3002.340	2376.440
		Research and Development Expenditure	706.350	580.190	445.100
		Increase/(Decrease) in Finished Goods	(40.970)	18.050	(205.990)
		TOTAL (B)	7564.390	6642.190	5064.160

Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		3049.980	2286.210	2070.000

Less	FINANCIAL EXPENSES (D)		1.540	4.300	2.650

	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		3048.440	2281.910	2067.350

Less/ Add	DEPRECIATION/ AMORTISATION (F)		386.720	356.780	360.350

	PROFIT BEFORE TAX (E-F) (G)		2661.720	1925.130	1707.000

Less	TAX (I)		453.460	198.900	244.410

	PROFIT AFTER TAX (G-I) (J)		2208.260	1726.230	1462.590

	EXCESS PROVISION FOR TAX IN RESPECT OF EARLIER YEARS (NET)		0.000	2.46	71.33

Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		6148.390	6095.210	4810.720

Less	APPROPRIATIONS
		Proposed Dividend	(1292.570)	(1284.580)	(149.950)
		Tax on Proposed Dividend	(219.670)	(218.310)	(25.480)
		Transfer to General Reserve	(220.830)	(172.620)	(74.000)
	BALANCE CARRIED TO THE B/S		6623.580	6148.390	6095.210

	EARNINGS IN FOREIGN CURRENCY
		F.O.B. Value of goods exported	NA	2450.480	2048.540
	TOTAL EARNINGS		NA	2450.480	2048.540

	IMPORTS
		Raw Materials and Packing Material		532.260	346.200
		Traded Goods		107.120	49.430
		Plant and Machinery		54.790	145.310
		Laboratory Equipment		72.950	44.970
		Laboratory Chemicals and Consumables	NA	34.490	21.350
		Stores and Components		3.770	3.430
		Others		3.720	6.470
	TOTAL IMPORTS		NA	809.100	617.160

	Earnings Per Share (Rs.)		22.09	17.29	15.34

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	20.80	19.33	20.50

Net Profit Margin (PBT/Sales)	(%)	26.23	23.14	25.26

Return on Total Assets (PBT/Total Assets}	(%)	37.10	24.42	34.18

Return on Investment (ROI) (PBT/Networth)		0.29	0.23	0.21

Debt Equity Ratio (Total Liability/Networth)		0.32	0.32	0.14

Current Ratio (Current Asset/Current Liability)		1.29	2.20	2.60

LOCAL AGENCY FURTHER INFORMATION

Form 8

Name of the company

USV LIMITED

Presented By

A.B. Kale, Company Secretary

1) Date and description of instrument creating the change

Joint Deed of Hypothecation dated 14.12.1999 and Working capital consortium agreement dated 14.12.1999

2) Amount secured by the charge/amount owing on the securities of charge

Rs.410.000 Millions

3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given

Stocks of raw materials, semi finished and finished goods, store and spares not relating to plant and machinery (Consumable stores and spares), Bills receivables and book debts and other moveable as more particularly set out in Joint Deed of Hypothecation.

4) Gist of the terms and conditions and extent and operation of the charge.

Interest

State Bank of India @13.25% p.a.

Standard Chartered Grindlays Bank @16.84% p.a

(formerly known as ANZ Grindlays Bank)

The Saraswat Co-op Bank Limited @16.00% p.a.

Margin

	Inventories	Book Debts
State Bank of India	30%	40%
Standard Chartered Grindlays Bank (formerly known as ANZ Grindlays Bank)	30%	30%
The Saraswat Co-op Bank Limited	30%	40%

Repayable on demand

5) Name and Address and description of the person entitled to the charge.

State Bank of India, Industrial Finance Branch, Shivsagar Estate, Worli, Mumbai – 400 001 (Rs.205.000 Millions

Standard Chartered Grinalsy Bank (formerly known as ANZ Grindlays Bank), 90, 1.G. Road, Fort, Mumbai – 400 001 (Rs.102.500 Millions)

The Saraswat Co-op Bank Limited, Sailer Building, D.N. Road, Fort, Mumbai – 400 021 (Rs.102.500 Millions)

6) Date and brief description of instrument modifying the charge

Memorandum of Entry for Extension of Mortgage dated April 26, 2002.

7) Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification.

The amount of charge on immovable property of the company situated at Plot No.1/8, Lote parshuram Industrial Area, Village Awashi, Taluka Khed, Dist Ratnagiri, Maharashtra is increased from Rs.410.000 millions to Rs.545.000 millions. Standard Chartered Grindlays bank is substituted by Standard Chartered Bank.

Corporate identity number of the company	U24239MH1961PLC012098
Name of the company	USV LIMITED
Address of the registered office or of the principal place of business in India of the company	BSD Marg, Govandi, Mumbai - 400 088, Maharashtra, India
This form is for	Modification of charge
Charge identification number of the modified	10181441
Type of charge	Movable Property
Particular of charge holder	Department of Biotechnology, Block 2, CGO Complex, New Delhi-110003, Delhi, India Email ID: sninawe@dbt.co.in
Nature of instrument creating charge	Deed of Hypothecation dated 10th day of June 2010 modifying the earlier Deed of Hypothecation dated October 15, 2009, to be read with the Agreement executed between the Department of Biotechnology and M/s USV Limited
Date of instrument Creating the charge	10.06.2010
Amount secured by the charge	Rs.11.950 millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest Upto 10.000 millions: 1% More Than 10.000 millions: 2% Terms of Repayment Repayable in 10 equal yearly installments starting six months after completion of the project Margin 26.38% Extent and Operation of the charge The Whole of the movable and immovable properties acquired from the loan sanctioned by the DBT under the SIBRI scheme including movable plant and machinery, machinery spares, tools and accessories and other movables both present and future (save and except book debts) all acquired from the loan sanctioned by DBT
Short particular of the property or asset(s) charged	i) Whole of the movable and immovable properties acquired from the loan sanctioned by the DBT under the SIBRI scheme ii) The above movable and immovable properties includes movable plant and machinery, machinery spares, tools and accessories and other movables both present and future (save and except book debts)

FIXED ASSETS

Land – Freehold
Land – Leasehold
Factory Building
Residential Buildings
Office Premises
Plant and Machinery
Office Equipments
Furniture and Fixtures
Vehicles
Computers

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] 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. 44.91
UK Pound	1	Rs. 73.06
Euro	1	Rs. 64.03

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	8
--PROFITABILIRY	1~10	8
--LIQUIDITY	1~10	8
--LEVERAGE	1~10	8
--RESERVES	1~10	7
--CREDIT LINES	1~10	8
--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	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		67

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

1144.009

1036.570

1039.930

1125.101

1057.634

760.000

753.588

2878.119

385.120

0.000

0.001

0.000

673.311

768.643

540.770

3696.009

58.800

53.907

4.800

1542.982

1527.027

193.040

2856.942

839.067

3127.603

1677.780

Unit