1. Summary Information

		Country	India
Company Name	ARCH PHARMALABS LIMITED	Principal Name 1	Mr. Ajit Annu Kamath
Status	Good	Principal Name 2	Mr. Manoj Tejraj Jain
		Registration #	11-150891
Street Address	H Wing, 4^th Floor, Tex Centre, Narayan Properties, Chandivali, Off Saki Vihar Road, Andheri (East), Mumbai - 400 072, Maharashtra
Established Date	02.04.1993	SIC Code	--
Telephone#	91-22-28470555 / 33089200 / 33089400 / 40756789	Business Style 1	Manufacturer
Fax #	91-22-28471234 / 1002	Business Style 2	--
Homepage	www.archpharmalabs.com	Product Name 1	FCMIC - Chloride
# of employees	1500 (Approximately)	Product Name 2	CMIC - Chloride
Paid up capital	Rs. 212,340,220/-	Product Name 3	DICMIC - Chloride
Shareholders	Foreign holdings (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%)	Banking	Karnataka Bank Limited
Public Limited Corp.	NO	Business Period	18 Years
IPO	NO	International Ins.	-
Public Enterprise	NO	Rating	A (59)
Related Company
Relation	Country	Company Name	CEO
Sister Company	India	Avon Organics Limited	--
Note	-

2. Summary Financial Statement

Balance Sheet as of	31.03.2010		(Unit: Indian Rs.)
Assets		Liabilities
Current Assets	8,162,000,000	Current Liabilities	2,468,600,000
Inventories	3,743,400,000	Long-term Liabilities	11,260,900,000
Fixed Assets	5,770,800,000	Other Liabilities	443,500,000
Deferred Assets	000	Total Liabilities	14,173,000,000
Invest& other Assets	1,167,300,000	Retained Earnings	4,158,200,000
		Net Worth	4,670,500,000
Total Assets	18,843,500,000	Total Liab. & Equity	18,843,500,000
Total Assets (Previous Year)	14,816,600,000
P/L Statement as of	31.03.2010		(Unit: Indian Rs.)
Sales	10,233,700,000	Net Profit	508,800,000
Sales(Previous yr)	7,133,300,000	Net Profit(Prev.yr)	367,700,000

MIRA INFORM REPORT

Report Date :

09.09.2011

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

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

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. 

BUSINESS DESCRIPTION

Ssuyve Subject is a manufacturer and supplier of inorganic chemicals and ingredients for pharmaceutical products. The company processes a range of acetic acids and ethanol, dimethyl and chloride chemicals. It undertakes various research projects for manufacturing chemicals and pharmaceutical ingredients. Additionally, the company offers product development, process validation, quality monitoring and project management services. It manufactures and supplies a number of lipid lowering, antifungal, anti-depressant and antibacterial agents for different pharmaceutical products. In addition, the company offers product specification and technical support services.

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.

BOARD OF DIRECTORS

Ajit Kamath, aged 41 years, is the Executive Chairman and Managing Director of the Company and was first appointed as an Additional Director in the Company on January 1, 2001. He holds a Bachelors Degree in Commerce from the University of Mumbai and has more than 12 years of experience in the pharmaceutical industry. Prior to joining the Company he has worked with CEAT Financial Services Limited and was one of the promoters of Arch Commerz Private Limited, which reverse-merged into the Company pursuant to the Scheme of Rehabilitation. He has been instrumental in the acquisitions made by the Company since the acquisition of the Gurgaon Unit in December 2004. He has been involved and instrumental in planning and formulating the overall business strategy and developing business relations for the Company.

T Mallikarjuna Reddy, aged 50 years, is the Executive Vice-Chairman of the Company and was first appointed as an Additional Director in the Company on November 4, 1993. He holds a Masters Degree in Arts from the Andhra University. He has over 17 years experience in the pharmaceutical industry. He plays an active role in the operations of Company and reviews the functioning of the manufacturing facilities situated in Andhra Pradesh. He also assists in formulation of corporate policy and strategies for the Company. Prior to joining the Company he has worked with United India Insurance Co. Limited.

Manoj Jain, aged 40 years, is the Deputy Managing Director and Chief Financial Officer of the Company and was first appointed as an Additional Director in the Company on January 1, 2001. He is a fellow member of the Institute of Chartered Accountants of India and also holds a Bachelors Degree in Commerce from the University of Mumbai. He was one of the promoters of Arch Commerz Private Limited, which reverse-merged into the Company pursuant to the Scheme of Rehabilitation and has more than 12 years of experience in the pharmaceutical industry. He has been instrumental in planning and formulating the overall business strategy of the Company. He is the Chief Financial Officer of the Company and is overall in-charge of the accounting and finance functions of the Company. He is also responsible for the statutory and secretarial affairs and the audit and taxation related activities of the Company. He is also instrumental in the formulation of corporate policy, strategic and perspective planning and external relations for the Company.

Rajendra Kaimal, aged 37 years, is the Executive Director of the Company and was first appointed as an Additional Director in the Company on November 1, 2003. He holds a Bachelors Degree in Commerce from the University of Mumbai. He has completed his Masters in Management Studies from Narsee Monjee Institute of Management Studies, Mumbai and is a Cost Accountant from the Institute of Cost and Works Accountants of India. He was one of the promoters of Arch Commerz Private Limited, which reverse-merged into the Company pursuant to the Scheme of Rehabilitation and has over 11 years of experience in the pharmaceutical industry. He is over-all in-charge of overseeing the commercial operations of the Company including purchase and export functions. He is also responsible for day-to-day co-ordination between all the manufacturing facilities of the Company.

Vandana Rajadhyaksha, aged 38 years, was appointed as a Nominee Director in the Company on behalf of ICICI Venture, acting as an investment manager to India Advantage Fund I, India Advantage Fund II, India Advantage Fund V and Rainbow Fund, pursuant to the terms of the Common Shareholders Agreement, with effect from July 19, 2007. She is a Metallurgical Engineer from Indian Institute of Technology, Mumbai and has also completed her Management Degree in Business Administration from the University of Pune. She has over 12 years of experience in the manufacturing, consulting and financial services sectors. She also has extensive experience in appraisal of projects in the e-business, retail, hospitality and financial services sectors and is a manager of the Company’s portfolio with ICICI Venture. Prior to joining ICICI Venture, she was associated with Tata Special Steels Limited for 3 years before spending a year with the consulting practice of KPMG.

Dr. Hira Sadhak, aged 60 years, is an Independent Director of the Company and was appointed as an Additional Director on December 9, 2010. He holds a Bachelor’s Degree in Economics from Calcutta University and a Master’s Degree in Economics from the University of Kalyani, West Bengal. He also holds a PhD in Industrial Finance from University of Pune. He has more than 30 years of experience in the financial services industry, financial sector research and management experiences in pension fund, mutual fund, life insurance and banking companies. He has in his career held various prestigious positions in the pension fund, mutual fund, life insurance and banking companies such as the managing director and chief executive officer of LIC Pension Fund Limited, joint general manager of LIC Mutual Fund and executive director with Life Insurance Corporation of India. He has been instrumental in drafting of key policies in his position as a member of Technical Committee on Accounting Policy for National Pension Scheme, Pension Fund Regulatory and Development Authority, Technical Advisory Group on Real Estate Price Index for India, Working Group on Household Savings, 10th and 11th Planning Commission and Working Group Fifth Economic Census, India.

Dr. Shailesh Mehta, aged 61 years, is an Independent Director on the Board of the Company and was appointed as an Additional Director in the Company on December 9, 2010. He holds a Degree in B.Tech. in mechanical engineering from Indian Institute of Technology, Mumbai and M.S. in Operations Research from Case Western Reserve University, USA. He also holds a PhD in Operation Research and Computer Science from Case Western Reserve University. He is the managing general partner of Granite Hill Capital Partners and is the president of Granite Hill Capital Ventures, a family asset management and advisory firm. He has served as the Chairman of the Board and CEO of Providian Financial Corporation (1986-2001) a Fortune 500 company, (currently part of JP Morgan-Chase). He has also served as operating general partner of West Bridge Capital (2001-2004) (now Sequoia India). He has also served as president and COO of Capital Holding.

Dr. Shantilal Jain, aged 48 years, is an Independent Director on the Board of the Company and was appointed as an Additional Director in the Company on January 24, 2011. He is a practicing physician and has completed his MBBS from Grant Medical College, Mumbai. He also holds a MD in General Medicine form Grant Medical College, Mumbai. He has more than 20 years of experience in the field of medicine. He has in his career authored various books and research papers and has been a faculty member at the YMT Medical College, Mumbai.

Puthenveetil J. Vincent, aged 66 years, is an Independent Director on the Board of the Company and was appointed as an Additional Director in the Company on December 9, 2010. He holds a Bachelor’s degree in Commerce from University of Calcutta. He has also completed a Management Development Programme from Indian Institute of Public Administration, New Delhi. He has more than three decades of experience in the field of higher financial management with the Government of India. He was a member of the Indian Civil Account Services (ICAS) and was responsible for expenditure control, internal audit of government departments, banks and financial institutions. In his career as an ICAS he has acted as a financial adviser to the Union Ministry of Finance and the Union Ministry of Home Affairs. He has also acted as the Chief Controller of Accounts, Union Ministry of Finance and as Controller of Aid Accounts and Audit (CAAandA), responsible for audit of external aid and monitoring, disbursement and accountant of foreign aid. He has also held senior positions as Financial Controller, Union Ministry of Civil Aviation and Tourism and Director (Finance) of Ministry of Surface Transport.

Ramakant Nayak, aged 65 years, is an Independent Director on the Board of the Company and was appointed as an Additional Director in the Company on January 24, 2011. He holds a Bachelor’s degree in Science from Karnataka University and Bachelor’s Degree in Law from University of Mumbai. He is also a member of Indian Banks Association Standing Committee of Private Sector Banks. He has, in his more than 40 years of experience in the commercial banking sector, held various prestigious positions in the banking industry such as the chairman and chief executive officer of the Lakshmi Vilas Bank Limited and managing director and chief executive officer of the Lord Krishna Bank Limited.

PRESS RELEASE

Accord Fintech (India): 11 March 2011

[What follows is the full text of the news story.]

India, March 11 -- Arch Pharmalabs Limited has informed BSE that Debentures worth Rs. 100.000 Millions issued to AXIS Bank Limited (Non-convertible Redeemable Debentures of Rs. 10 Lakhs each), has been redeemed on March 07, 2011. Published by HT Syndication with permission from ACCORD FINTECH BSE. For any query with respect to this article or any other content requirement,

Aii Data Processing Limited: 21 January 2011

[What follows is the full text of the news story.]

(ADPnews) - Jan 21, 2011 - India'sCARE yesterday affirmed its ratings on the bank facilities of Arch Pharmalabs Limited

The agency issued the following press release:

Ratings Assigned

Facilities/Instruments Amount (Rs. Millions) Ratings Remarks

Long-term Bank Facilities 4900.000 Millions CARE A [Single A] Reaffirmed

Short-term Bank Facilities 3900.000 Millions PR1 [PR One] Reaffirmed

Long-term loan (Existing and Proposed) 5500.000 Millions CARE A [Single A] Reaffirmed

Short-term loan (Existing and Proposed) 1000.000 Millions PR1 [PR One] Reaffirmed

Total Facilities 15300.000 Millions

Long-term NCD 10.00 (outstanding)CARE A [Single A] Reaffirmed

Short-term Debt (Carved out of Working 100.00 PR1+ (SO) Reaffirmed

Capital Limit and Backed by SBLC of Axis Bank)

Rating Rationale

The ratings continue to derive strength from APL�s established position as bulk-drug/Active Pharmaceutical Ingredient (API) manufacturer, diversification into high-margin Contract Research and Custom Synthesis activities, well-equipped R and D facilities, long-standing relations and strategic alliances with reputed clients, and better financial performance in terms of sales growth and improved profitability. Further, the rating also takes into consideration pre-IPO equity infusion by the promoters and foreign institutional investors.

However, the rating continues to be constrained by high gearing levels, long working capital cycle, and increasing debt-funded capex with time and cost overrun.

Timely completion and revenue generation from the on-going projects as well as successful equity infusion through the IPO in a timely manner are the key rating sensitivities.

Company Profile

Arch Pharmalabs Limited (APL) was incorporated on April 2, 1993 by first-generation entrepreneurs Mr. Ajit Kamath, Mr. Manoj Jain and Mr. Rajendra Kaimal. APL is engaged in the manufacturing of API/intermediates, contract research, custom synthesis and contract manufacturing. The company has grown over the years through both organic and inorganic route. APL has nine manufacturing facilities across India, all of which are certified as per the World Health Organisation ½ certified Good Manufacturing Practices (WHO-cGMP) as well as ISO: 9001-2000. One of the above facilities has been inspected by the USFDA and EDQM authorities and the company is awaiting the certifications. In addition, APL�s main RandD Centre at Taloja is approved by the Department of Scientific and Industrial Research (DSIR) of the Government of India (GOI) and it also has a support RandD laboratory near Mumbai.

In H1FY11, the private equity (PE) investors viz. Dataline Invst. Limited and Mitsui and Co. Limited invested Rs.450.000 Millions and Rs.637.000 Millions, respectively in APL. In FY10, the promoters through group companies, viz., AMR Invst. Limited and Arch Pharmachem infused Rs.300.000 Millions in APL. Further, these group companies brought in an additional capital of Rs.200.000 Millions in APL in H1FY11.

APL reported net sales of Rs.1,0233.700 Millions for FY10 and a PAT of Rs.583.700 Millions. As per un-audited results, the company reported total income of Rs.5573.300 Millions in H1FY11 with PBILDT and PAT margins of 25.86% and 6.95%, respectively.

(INR 100 = USD 2.189/EUR 1.617)

ICRA gives LA rating to Arch Pharmalabs' debt

Aii Data Processing Limited: 22 October 2010

[What follows is the full text of the news story.]

(ADPnews) - Oct 22, 2010 - ICRA set on Friday an LA rating with a "stable" outlook to the INR 1.5 billion proposed non-convertible debenture (NCD)/long-term debt programme of Indian pharmaceutical intermediates producer Arch Pharmalabs Limited

The agency issued the following press release:

ICRA has assigned LA (pronounced L A) rating to the proposed Non Convertible Debenture (NCD)/ Long term debt programme of Arch Pharmalabs Limited (APL) � for Rs. 150 crore1. The long term rating has been assigned a stable outlook.

The rating factors in APL�s demonstrated ability to sustain healthy revenue growth in conjunction with stability in operating margins, its global leadership in the manufacture of intermediates for semisynthetic isoxazole penicillin drugs and well established presence in certain key bulk drug segments.

The rating also takes into account the substantial scale up of the company�s contract research and manufacturing services (CRAMS) business catering to a strong pipeline of novel drugs by leading innovator companies, thereby lending sustainability to future revenue growth and strengthening the company�s client/ product diversification. APL�s financial profile is characterised by high leverage on account of acquisitions and substantial capital expenditure undertaken in the past, funded largely through debt.

Moreover, the company�s high working capital intensity, largely characteristic of the bulk drug industry, has resulted in negative fund flow from operations. In an attempt to improve its capital structure, the company has undertaken a series of fund raising initiatives, culminating with an IPO expected to be completed by the end of FY 2011. In the absence of any significant acquisitions in the near term coupled with the successful execution of the fund raising initiatives, the company�s credit profile is expected to be strengthened post the public issue.

Company Profile

APL is engaged primarily in the manufacture of APIs and pharmaceutical intermediates and also provides contract research and manufacturing services to international and domestic pharmaceuticals companies. Over the years, it has grown organically and in-organically through acquisitions and currently has eleven manufacturing locations across the country, of which three are USFDA approved.

APL is amongst the global leaders in the business of side chains for semi-synthetic isoxazole penicillin. The company�s other key products include bulk drugs namely Atorvastatin and Clopidogrel. APL has been supported by three Private Equity Investors namely ICICI Venture, ILandFS and SwissTec Ventures, who have been associated with the company for the past few years and have a combined shareholding of ~50%.

Recent Results

On a consolidated basis, APL reported a net profit of Rs. 559.000 Millions in FY 2010 on an operating income of Rs. 1,1619.000 Millions as compared to a net profit of Rs. 432.000 Millions in the previous year on an operating income of Rs. 9807.000 Millions.

JAPANESE NEWSPAPER HIGHLIGHTS - SEPT 23, 2010

Asia Pulse Businesswire: 23 September 2010

[What follows is the full text of the news story.]

TOKYO, Sept 23Asia Pulse - Highlights of today's newspapers:

THE NIKKEI DAILY:

- China Thursday denied reports that it had blocked "rare earth" exports to Japan in response to mounting tensions between the two countries following the detention of a Chinese ship captain by Tokyo.

- The Australian airline intends to increase the number of no-frills flights between Japan and other Asia-Pacific locations, its chief executive said Wednesday.

- The U.S. arm of Nomura won the job of joint lead manager for the 1.5 billion dollars in bonds that the Japan Bank for International Cooperation issued Wednesday.

- Nintendo Co. (7974) affiliate Pokemon Co. said Wednesday that its latest title in the "Pokemon" video game series sold 2.55 million copies in its first week on the market.

THE ASAHI DAILY:

- Honda Motor Co. plans to sharply increase its purchases of motorcycle parts from overseas to stay competitive in the shrinking domestic market, sources said.

- Land prices fell across Japan in the year to July 1, but at a slower pace than the previous year, and there are signs of a leveling-off in the largest metropolitan areas, according to a land ministry survey released Tuesday.

- British Airways said Sept. 21 it will offer five flights a week from London'sHeathrow Airport to Tokyo'sHaneda Airport from February.

- NEC Corp. announced Sept. 22 it installed an IP telephony and Deuoromedia IPTV system in the luxury hotel Mandarin Oriental, Macao, which opened June 30.

- Sharp Corp. said Sept. 22 it has signed an agreement to acquire Recurrent Energy LLC, a U.S. developer of distributed solar projects, to make it a wholly owned subsidiary.

- Toshiba Corp. announced Sept. 22 that Toshiba Industrial Products Asia Co. Limited, its motor manufacturing and sales base in Vietnam, opened a new production facility.

- Trading house Mitsui and Co. on Sept. 22 sealed an agreement with Mumbai-based Arch Pharmalabs Limited to acquire 5 per cent of the company in a deal worth 637 million rupees (US$13.99 million, or 1.19 billion yen).

- Takeda Pharmaceutical Co. announced Sept. 22 that Dexilant, a once-daily oral treatment for heartburn associated with symptomatic non-erosive gastroesophageal reflux disease (GERD), is now available in Canada.

Japan's Mitsui Acquires 5% Stake In India's Arch Pharmalabs – Report

Nikkei English News: 22 September 2010

[What follows is the full text of the news story.]

DOW JONES NEWSWIRES

Mitsui (8031.TO) has paid around INR650 million ($14.3 million) for a 5% stake in Indian active pharmaceutical ingredients manufacturer Arch Pharmalabs, the Economic Times reported on its website Thursday, citing Arch Pharmalabs' chairman and managing director, Ajit Kamath.

"The stake is more strategic, than a financial requirement," the website quoted Kamath as saying. The company is looking at an initial public offer early next year to provide an exit route for some investors, the website said.

Mitsui's investment will be in freshly issued equity, the website reported.

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.44.18
UK Pound	1	Rs.73.65
Euro	1	Rs.64.95

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.