MIRA INFORM REPORT

Report Date :

08.10.2011

IDENTIFICATION DETAILS

Name :	ONCO THERAPIES LIMITED
Registered Office :	Strides House, Bilekahallli, Bannerghatta Road, Bangalore – 560076, Karnataka
Country :	India
Financials (as on) :	31.12.2010
Date of Incorporation :	14.08.2007
Com. Reg. No.:	08-043599
Capital Investment / Paid-up Capital :	Rs.22.431 Millions
CIN No.: [Company Identification No.]	U24232KA2007PLC043599
TAN No.: [Tax Deduction & Collection Account No.]	BLRO02269B
PAN No.: [Permanent Account No.]	AAACO9507F
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Research and Manufacturing of all kinds of anti cancer/ oncology related pharmaceutical products.
No. of Employees :	300 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (28)

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

Maximum Credit Limit :	USD 4700000
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 cautions.

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 – June 30, 2010

Country Name	Previous Rating (01.04.2010)	Current Rating (30.06.2010)
India	A1	A1

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

LOCATIONS

Registered Office :	Strides House, Bilekahallli, Bannerghatta Road, Bangalore – 560076, Karnataka, India
Tel. No.:	91-80-67840000
Fax No.:	91-80-67840800
E-Mail :	sudhir.kanchan@stridesarco.com kannan.n@stridesarco.com

DIRECTORS

As on 27.05.2011

Name :

Mr. Venkatraman Subramanian Iyer

Designation :

Director

Address :

L 204, Mantri Woodlands, Arekere, Bannerghatta Road, Bangalore – 560076, Karnataka, India

Date of Birth/Age :

18.03.1957

Date of Appointment :

10.03.2008

DIN No.:

00408092

Other Directorship :

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
U24231KA2003PTC039016	Medgene Pharmaceuticals Private Limited	Director	14/06/2006	3/05/2005	-	Amalgamated	NO
U02429KA2004PTC033503	Agila Specialties Private Limited	Director	14/06/2006	31/03/2006	-	Active	NO
U24231TZ1986PLC008788	Global Remedies Limited	Director	19/06/2007	26/03/2007	27/11/2008	Amalgamated	NO
U24230KA2007PTC042337	Higher Pharmatech Private Limited	Director	2/04/2007	2/04/2007	-	Active	NO
U24232KA2007PLC043599	Onco Therapies Limited	Director	30/09/2008	10/03/2008	-	Active	NO
U24231TN1996PLC035068	Grandix Pharmaceuticals Limited	Additional director	16/03/2009	16/03/2009	-	Amalgamated	NO
L24230MH1990PLC057062	Strides Arcolab Limited	Whole-time director	31/05/2010	19/01/2010	-	Active	NO

Name :

Mr. Sudhir Krishna Kanchan

Designation :

Director

Address :

B-2002, Sobha Sunbeam 2, Sobha Hill View After Thalagatpura Police Station Uttarahalli, Manavarthakal, Kanakpura Road, Bangalore – 560062, Karnataka, India

Date of Birth/Age :

26.02.1955

Date of Appointment :

14.08.2007

DIN No.:

01606191

Other Directorship :

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
U24231TZ1986PLC008788	Global Remedies Limited	Director	30/06/2008	28/06/2007	-	Amalgamated	NO
U24232KA2007PLC043599	Onco Therapies Limited	Director	14/08/2007	14/08/2007	-	Active	NO
U24231KA2003PTC039016	Medgene Pharmaceuticals Private Limited	Director	30/06/2008	1/11/2007	16/03/2009	Amalgamated	NO
U24296KA2008PTC045588	Quantum Remedies Private Limited	Director	8/04/2008	8/04/2008	25/03/2009	Amalgamated	NO
U73100KA2009PTC049535	Strides Technology And Research Private Limited	Director	6/04/2009	6/04/2009	-	Active	NO
U24232TN2001PLC047875	Grandix Laboratories Limited	Additional director	19/08/2009	19/08/2009	-	Amalgamated	NO
U74140KA2007PTC043095	Inbiopro Solutions Private Limited	Nominee director	30/05/2011	25/11/2010	-	Active	NO

Name :

Mr. Ajay Singh Rathore

Designation :

Director

Address :

C -3- 1107, L&T Apartments, South City, Bannerghatta Road, Bangalore – 560076, Karnataka, India

Date of Birth/Age :

15.08.1972

Date of Appointment :

04.05.2011

DIN No.:

03342984

Other Directorship :

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
U74140KA2007PTC043095	Inbiopro Solutions Private Limited	Nominee director	30/05/2011	25/11/2010	-	Active	NO
U24232KA2007PLC043599	Onco Therapies Limited	Additional director	4/05/2011	4/05/2011	-	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 27.05.2011

Names of Shareholders	No. of Shares
Arun Kumar	1
K R Ravishankar	1
Sudhir Kanchan	1
Ravi Seth	1
Kannan N	1
Anil Kumar P	1
Strides Arcolab Limited, India	2406181
Total	2406187

Equity Share Break up (Percentage of Total Equity)

As on 27.05.2011

Category	Percentage
Bodies corporate	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Research and Manufacturing of all kinds of anti cancer / oncology related pharmaceuticals products.

PRODUCTION STATUS AS ON 31.12.2010

Particulars	Unit	Licensed Capacity	Installed Capacity	Actual Production
Liquid Vials	Numbers in Million	**NA	39.86	NA

Note : Installed Capacities are as certified by the management and relied upon by the Auditors. The installed capacities serve multiple purposes and will vary according to product mix.

** Not applicable as the products have been de- licenssed.

GENERAL INFORMATION

No. of Employees :

300 (Approximately)

Bankers :

Central Bank of India, Corporate Finance Branch, 1^st Floor, MMO Building, Fort, Mumbai – 400023, Maharashtra, India

Facilities :

Secured Loan	As on 31.12.2010 (Rs. in Millions)	As on 31.12.2009 (Rs. in Millions)
Long Term Loans
From Bank	2700.000	0.000
Short Term Loans
From Bank	350.000	0.000
Total	3050.000	0.000

Note :

a) Long term loans are secured by first exclusive charge of fixed assets of the company and on milestone payment from Pfizer Inc, USA.

b) Short term loans are secured by first exclusive charge on milestone payment from Pfizer Inc, USA and on escrow account to be maintained with the bank.

c) Long term loans due within one year Rs.683.333 Millions

Banking Relations :	--
Auditors :
Name :	Deloitte Haskins and Sells Chartered Accountants
Address :	Deloitte Centre, Anchorage II, 100/2, Richmond Road, Bangalore – 560025, Karnataka, India
PAN.:	AADFD3771D
Holding Company :	Strides Arcolab Limited (‘SAL’)
Fellow Subsidiaries :	· Agila Specialties Private Limited (‘AGILA’) · Onco Laboratories Limited (‘OLL’)
Company with substantial Interest :	· Aspen Global Incorporated, Mauritius (‘Aspen’) · Aspen Global Pte Limited
	·

CAPITAL STRUCTURE

As on 31.12.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
3000000	Equity Shares	Rs.10/- each	Rs.30.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1862500	Equity Shares	Rs.10/- each	Rs.18.625 Millions
543687	Equity Shares (Equity shares of Rs.10/- each, called up and paid up Rs.7/- per share)	Rs.10/- each	Rs.3.806 Millions

Note:

Out of the above

a) Strides Arcolab Limited, the Holding Company holds 683,468 (Previous year 683,468) Equity shares of Rs.10/- each fully paid and 543,687 (Previous year 543,687) Equity share of Rs.10/- each; called up and paid up Rs.7/- (Previous year Rs.3/-) per share.

b) 633,468 (Previous year 633,468) fully paid up Equity share and 543,687 (Previous year 543,687) partly paid up Equity shares (Rs.7 paid up (Previous year Rs.3 paid up)) have been issued to Strides Arcolab Limited for consideration other than cash.

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.12.2010	31.12.2009	31.12.2008
SHAREHOLDERS FUNDS
1] Share Capital		22.431	20.256	13.401
2] Share Application Money		0.000	19.080	313.420
3] Reserves & Surplus		1278.081	1220.404	807.848
4] (Accumulated Losses)		(106.929)	0.000	0.000
NETWORTH		1193.583	1259.740	1134.669
LOAN FUNDS
1] Secured Loans		3050.000	0.000	0.000
2] Unsecured Loans		0.000	0.000	0.000
TOTAL BORROWING		3050.000	0.000	0.000
DEFERRED TAX LIABILITIES		0.000	36.000	0.000
TOTAL		4243.583	1295.740	1134.669
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		1174.709	1170.644	0.000
Capital work-in-progress		203.433	157.620	1128.449
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	67.603	4.187	1.606
	Sundry Debtors	34.184	0.776	98.010
	Cash & Bank Balances	408.692	106.227	3.584
	Loans & Advances	3007.164	60.894	61.986
Total Current Assets		3517.643	172.084	165.186
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	312.935	184.461	122.686
	Other Current Liabilities	321.637	0.442	0.360
	Provisions	17.630	19.705	35.920
Total Current Liabilities		652.202	204.608	158.966
Net Current Assets		2865.441	(32.524)	6.220
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		4243.583	1295.740	1134.669

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.12.2010	31.12.2009	31.12.2008
	SALES
		Sales and Services	149.955	0.000
		Income from Export of Dossiers	0.000	134.108	95.980
		Other Income	29.124	6.931	2.876
		TOTAL (A)	179.079	141.039	98.856
Less	EXPENSES
		Material Consumed	69.941	0.000	0.000
		Increase/ Decrease in stock	(4.946)	0.000	0.000
		Personal Cost	44.916	26.815	0.000
		Operating and Other Expenses	122.377	56.993	2.304
		TOTAL (B)	232.288	83.808	2.304
Less	PROFIT/ LOSS BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		(53.209)	57.231	96.552
Less	FINANCIAL EXPENSES (D)		105.298	(0.119)	0.085
	PROFIT/ LOSS BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		(158.507)	57.350	96.467
Less/ Add	DEPRECIATION/ AMORTISATION (F)		55.054	44.713	0.000
	PROFIT/ LOSS BEFORE TAX (E-F) (G)		(213.561)	12.637	96.467
Less	TAX (I)		(36.000)	4.510	33.019
	PROFIT/ LOSS AFTER TAX (G-I) (J)		(177.561)	8.127	63.448
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		70.633	62.505	(0.943)
	BALANCE CARRIED TO THE B/S		(106.928)	70.633	62.505
	EARNINGS IN FOREIGN CURRENCY
		Reimbursement of Site transfer and BE study expenses and Sales Job work	10.427	0.000	0.000
		Sale of Products	52.580	0.000	0.000
		Development and Licensing Income	72.403	0.000	0.000
		Income from sale of dossiers	0.000	134.108	95.980
	TOTAL EARNINGS		135.410	134.108	95.980
	IMPORTS
		Capital Goods	26.559	40.154	52.444
		Others Goods	11.501	0.817	0.855
		Materials	27.376	0.513
	TOTAL IMPORTS		65.436	41.484	53.299
	Earnings/ Loss Per Share (Rs.)		(82.97)	3.99	49.54

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	99.15	5.76	64.18
Net Profit Margin (PBT/Sales)	(%)	142.42	0.00	0.00
Return on Total Assets (PBT/Total Assets}	(%)	4.55	0.94	58.39
Return on Investment (ROI) (PBT/Networth)		0.17	0.01	0.08
Debt Equity Ratio (Total Liability/Networth)		3.10	0.16	0.14
Current Ratio (Current Asset/Current Liability)		5.39	0.84	1.04

LOCAL AGENCY FURTHER INFORMATION

OPERATIONS

The Company has received regulatory approvals from MHRA, UK, ANVISA, Brazil and TGA, Australia and is expecting similar approval from US FDA in the near future.

The Company has entered into agreements with Big Pharma companies for supply of Oncology related products to US, Europe, Far East and other regulated markets.

The Company expects to go fully operational in the year 2011 to cater to the markets globally.

SHARE CAPITAL

Authorized Capital :

During the year, the authorized share capital of the Company is Rs.30.000 Millions consitsting of 3000000 equity share of Rs. 10/- each.

Paid Up Capital :

The paid up share capital of the Company is Rs.22.430 Millions comprising of 1862500 equity shares of Rs.10 each fully paid up and 53,687 equity shares of Rs.10 each partly paid up to the extent of Rs.7/- per share

During the year, a Sale of Shares Agreeement was signed between Aspen Global Incorporated (Aspen) and Strides Arcolab Limited (Strides), the Holding Company, pursuant to which Aspen had agreed to sell their entire stake in the Company to Strides. This arrangement is part of the consolidation of Oncology Business by Strides. The economic interest in these shares was transferred to Strides as on 01.01.2010.

FORM 8

Corporate identity number of the company	U24232KA2007PLC043599
Name of the company	ONCO THERAPIES LIMITED
Address of the registered office or of the principal place of business in India of the company	Strides House, Bilekahallli, Bannerghatta Road, Bangalore – 560076, Karnataka, India Email Id: sudhir.kanchan@stridesarco.com
This form is for	Creation of charge
Type of charge	Immovable property Movable property (not being pledge) Others
Particular of charge holder	Central Bank of India, Corporate Finance Branch, 1st Floor, MMO Building, Fort, Mumbai – 400023, Maharashtra, India Email Id : info@c-adlalwani.com
Nature of instrument creating charge	Memorandum of Entry in favour of Central Bank of India
Date of instrument Creating the charge	16.09.2010
Amount secured by the charge	Rs.1300.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of interest BPLR At Present 12% and/ or as stipulated by Bank from time to time, with annual reset Terms of repayment Moratorium Period of 12 Months from 1^st Disbursement, 10 Half Yearly Installments of Rs.1300.000 Millions each (5 Years) and/ or stipulated by bank from time to time Margin Margin 20% and/ or as stipulated by bank from time to time Extent and operation of the charge First charge (present and future)= Term Loan-1 =Rs.1300.000 Millions and/or as stipulated by bank from time to time Other As stipulated by bank from time to time and as per agreement attached and as per sanction letter of the bank
Short particulars of the property charged (Including location of the property)	· First Exclusive charge (present and future) EMG Of part of Industrial Plot bearing No 284-B (Part), in all admeasuring 15550 sq. mtrs. comprised in part of suvery Nos. 197,198,204 and 205 including · All the Building(s) raised thereon, Plant(s) and Machinery(s), Fixtures, Trees etc raised/ Embedded/ Rooted and situate at KIAB Industrial area at Bommasandra- Jigani Link Road · Village Jigani Hobli, Taluka Anekal, District Bangalore, Karnataka with all fixed assets of the company

FIXED ASSETS

· Leasehold Land

· Buildings

· Furniture and Fixtures

· Office Equipments and Computers

· Plant and Machinery

· Software Licenses

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.49.13
UK Pound	1	Rs.75.97
Euro	1	Rs.65.99

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	4
--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	YES
--AFFILIATION	YES/NO	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		28

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.