MIRA INFORM REPORT

Report Date :

08.08.2012

IDENTIFICATION DETAILS

Name :	MSN LABORATORIES LIMITED
Registered Office :	MSN House, Plot No.C-24, Sanath Nagar Industrial Estate, Sanath Nagar, Hyderabad - 500 018, Andhra Pradesh
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	27.08.2003
Com. Reg. No.:	01-41583
Capital Investment / Paid-up Capital :	Rs.52.000 Millions
CIN No.: [Company Identification No.]	U24239AP2003PLC041583
TAN No.: [Tax Deduction & Collection Account No.]	HYDM02459C
PAN No.: [Permanent Account No.]	AADCM6283F
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer, Exporter and Importer of Pharmaceutical Bulk Drugs and Organic Intermediates Salmetrol, Rosuvastatin Calcium, Ezetimibe etc
No. of Employees :	60 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

A (60)

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 4450000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is an established company having fine track. The company has achieved huge increase in its sales turnover and profitability during 2011. Financial position of the company appears to be sound. Directors are reported to be well experienced and knowledgeable businessmen. Trade relations are reported as trustworthy. Business is active. 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 – June 30, 2012

Country Name	Previous Rating (31.03.2012)	Current Rating (30.06.2012)
India	A1	A1

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

EXTERNAL AGENCY RATING

Rating Agency Name	CRISIL
Rating	SME 1
Rating Explanation	Highest
Date	22.12.2011

RBI DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2012.

LOCATIONS

Registered Office / Corporate Office:	MSN House, Plot No.C-24, Sanath Nagar Industrial Estate, Sanath Nagar, Hyderabad - 500 018, Andhra Pradesh, India
Tel. No.:	91-40-30438600
Fax No.:	91-40-30438638 / 30438643 / 30438719
E-Mail :	msnlabs2003@gmail.com drmsnreddy@msnlabs.com careers_at_msnlabs.com scm_at_msnlabs.com
Website :	http://www.msnlabs.com
Factory 1 :	SY No 317 and 323, Rudraram Village, Patancheru Mandal, Medak District 502 329, Andhra Pradesh, India
Tel. No.:	91-84-55 220372
Fax No.:	91-84-58 279938
E-Mail :	api@msnlabs.com
Factory 2 :	Plot No.42, Anrich Industrial Estate, Bollarum, Medak, District-502325, Andhra Pradesh, India
Tel No.:	91-84-58 279936 /37
Fax No.:	91-84-58 279938
Email:	formulation_at_msnlabs.com
Factory 3 :	SYS No. 14, Gaddapotharam Village, Jinnaram Mandal, Medak-502319 District, Andhra Pradesh, India
Tel. No.:	91-8458-277090
Fax No.:	91-8458-277085
Factory 4 :	SY No. 224/A, Bibinagar Village and Mandal, Bhongir, Nalgonda District, Andhra Pradesh, India
Tel. No.:	91-8685-278580
Fax No.:	91-8685-278581

DIRECTORS

As on 30.09.2011

Name :	Dr. Manne Satyanarayana Reddy
Designation :	Managing Directors
Address :	8-3-167/D/16, Kalyan Nagar, Phase – I, Near A. G. Colony, Hyderabad- 500 038, Andhra Pradesh, India
Date of Birth/Age :	18.04.1957
Date of Appointment :	27.08.2003
DIN No.:	01657567

Other Directorship:

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	U24239AP2003PLC041583	MSN Laboratories Limited	Managing director	27-08-03	27-08-03	Active	NO
2	U24239AP2002PTC038674	Maithri Laboratories Private Limited	Director	19-12-03	19-12-03	Active	YES
3	U24239AP2004PTC044631	MSN Pharmachem Private Limited	Managing director	17-11-04	17-11-04	Active	YES
4	U73100AP2008PTC058892	MSN Research and Development Private Limited	Director	29-04-08	29-04-08	Active	NO
5	U80300AP2010PTC068094	MSN Institute Of Medical Sciences Private Limited	Director	23-04-10	23-04-10	Active	NO

Name :	Mrs. Manne Laxmi Prasuna
Designation :	Directors
Address :	8-3-167/D/16, Kalyan Nagar, Phase – I, Near A. G. Colony, Hyderabad- 500 038, Andhra Pradesh, India
Date of Birth/Age :	06.08.1968
Date of Appointment :	27.08.2003
DIN No.:	00954334

Other Directorship:

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	U24239AP2003PLC041583	MSN Laboratories Limited	Director	27-08-03	27-08-03	Active	NO
2	U24239AP2004PTC044631	MSN Pharmachem Private Limited	Director	17-11-04	17-11-04	Active	YES
3	U24110AP2006PTC051858	MSN Organics Private Limited	Director	30-11-06	30-11-06	Active	NO
4	U73100AP2008PTC058892	MSN Research and Development Private Limited	Director	29-04-08	29-04-08	Active	NO
5	U24232AP2010PTC067538	SAAP Biotech Private Limited	Director	12-03-10	12-03-10	Active	NO
6	U80300AP2010PTC068094	MSN Institute Of Medical Sciences Private Limited	Director	23-04-10	23-04-10	Active	NO
7	U01403AP2011PTC073521	ARM Farms Private Limited	Director	25-03-11	25-03-11	Active	NO
8	U01119AP2011PTC073554	Rose Greenfields Private Limited	Director	28-03-11	28-03-11	Active	NO
9	U24239AP2002PTC038674	Maithri Laboratories Private Limited	Director	01-04-11	01-04-11	Active	YES

Name :	Mr. Bharat Chintapally Bharat
Designation :	Directors
Address :	8-3-167/D/16, Kalyan Nagar, Phase – I, Near A. G. Colony, Hyderabad- 500 038, Andhra Pradesh, India
Date of Birth/Age :	30.06.1969
Date of Appointment :	01.02.2007
DIN No.:	01591473

Other Directorship:

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	U24239AP2003PLC041583	MSN Laboratories Limited	Director	01-02-07	01-02-07	Active	NO
2	U24110AP2006PTC051858	MSN Organics Private Limited	Director	29-09-07	01-07-07	Active	NO
3	U73100AP2008PTC058892	MSN Research and Development Private Limited	Director	29-04-08	29-04-08	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2011

Names of Shareholders	No. of Shares
Manne Satyanarayana Reddy	2526800
Manne Laxmi Prasuna	427800
Manne Venkat Ram Reddy	120000
Thatikonda Seetha	1000
Thatikonda Srinivas	1000
Chintapally Anjani	1000
Chintapally Janardhan Reddy	132000
Manne Venkat Pratap Reddy	124000
Manne Jeevan Reddy	120000
Manne Srinivasa Reddy	120000
Manne Nirmala Devi	66000
Manne Geetha	55000
Thatikonda Sreedhar Reddy	1000
Srinivasan Tirumalarajan	72000
Sajja Eswaraiah	72000
Challa N.V. Ravi Kumar	72000
Muppa Kishore Kumar	72000
Chintapally Bharat Reddy	700000
Manne Madhavi	1200
Thatikonda Varalakshmamma	1000
Chintapally Vasudha	1000
Thatikonda Raja Reddy	1000
Manne Swathi	1200
Chakilam Nagaraju	456000
Manne Shrawya Reddy	55000
Total	5200000

As on 30.09.2011

Equity Share Breakup	Percentage of Holding
Category
Directors or relatives of directors	82.22
Other top fifty shareholders	17.78
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer, Exporter and Importer of Pharmaceutical Bulk Drugs and Organic Intermediates Salmetrol, Rosuvastatin Calcium, Ezetimibe etc

Products :

PRODUCT DESCRIPTION	ITEM CODE NO. (ITC CODE)
Rosuvastatin	29420031
Ezetimide	29420031
Ketrolac	30049067

PRODUCTION STATUS [AS ON 31.03.2011]

Particulars	Unit	Installed Capacity	Actual Production
APIs and Intermediates	Kgs.	38000	37740
Formulations* [Tablets and Capsules]	Nos. in Millions	450	305561

NOTE:

· Installed capacities as certified by the management but not verified by the auditors.

· * Sale quantities are after adjustment of samples.

GENERAL INFORMATION

No. of Employees :

60 (Approximately)

Bankers :

· Barclays Bank PLC, 20/21, Kamaraj Salai, Kanchipuram-631501, Tamilnadu, India

· Axis Bank Limited, Credit Management Center,5-2-183/184, III rd Floor, R RP Road, Secunderabad-500003, Andhra Pradesh, India

· ICICI Bank Limited, Landmark Race Cource Circle, Alkapuri, Baroda - 390015, Gujarat, India

· Axis Bank Limited, 6-3-879/B, Pullareddy Buildings, Greenlands Road, Begumpet, Hyderabad-500016, Andhra Pradesh, India

Facilities :

Secured Loan	As on 31.03.2011 [Rs. in Millions]	As on 31.03.2010 [Rs. in Millions]
Rupee term loans	79.320	227.242
Working capital loans	348.773	237.677
Hire purchase installment payable	17.998	12.232
Total	446.091	477.151

Banking Relations :	--
Financial Institution :	3i Infotech Trusteeship Services Limited, 3^rd To 6^th Floor, International Infotech Park, Tower No.5, Vashi Railway Station Complex, Vashi, Navi Mumbai - 400703, Maharashtra, India
Auditors :
Name :	B.R.M. Reddy and Company Chartered Accountants
Address :	6-3-1186/A/6, II Floor, Begumpet, Hyderabad-500 038, Andhra Pradesh, India
Pan No.:	AADFB7698A
Associates :	· MSN Pharmachem Private Limited · Maithri Laboratories Private Limited · MSN Organics Private Limited · MSN Research and Development Private Limited

CAPITAL STRUCTURE

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
10000000	Equity Shares	Rs.10/- each	Rs.100.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
5200000	Equity Shares	Rs.10/- each	Rs.52.000 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2011	31.03.2010	31.03.2009
SHAREHOLDERS FUNDS
1] Share Capital		52.000	52.000	52.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		1060.711	491.715	238.096
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		1112.711	543.715	290.096
LOAN FUNDS
1] Secured Loans		446.091	477.151	332.932
2] Unsecured Loans		0.000	0.000	11.004
TOTAL BORROWING		446.091	477.151	343.936
DEFERRED TAX LIABILITIES		73.459	37.354	18.932
TOTAL		1632.261	1058.220	652.964
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		881.832	484.764	267.689
Capital work-in-progress		93.127	53.017	75.202
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	401.052	340.169	195.945
	Sundry Debtors	1079.456	763.915	423.942
	Cash & Bank Balances	30.286	7.214	108.480
	Other Current Assets	148.476	0.000	0.000
	Loans & Advances	437.904	124.372	96.965
Total Current Assets		2097.174	1235.670	825.332
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	1356.512	687.818	444.762
	Other Current Liabilities	8.159	20.840	24.019
	Provisions	75.201	6.573	46.478
Total Current Liabilities		1439.872	715.231	515.259
Net Current Assets		657.302	520.439	310.073
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		1632.261	1058.220	652.964

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	3125.325	2125.342	1059.986
		Other Income	31.673	12.686	34.589
		TOTAL (A)	3156.998	2138.028	1094.575
Less	EXPENSES
		Consumption Materials Changes Inventories	1613.828	1236.189
		Manufacturing Service Costs	154.245	102.987
		Employee Related Expenses	172.827	123.693	832.961
		Administrative Selling Others Expenses	230.674	147.233
		Research Development Expenditure	79.678	56.380
		TOTAL (B)	2251.252	1666.482	832.961
Less	PROFIT / (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		905.746	471.545	261.614
Less	FINANCIAL EXPENSES (D)		33.490	45.610	43.921
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		872.256	425.935	217.693
Less/ Add	DEPRECIATION/ AMORTISATION (F)		30.495	19.339	13.599
	PROFIT / (LOSS) BEFORE TAX (E-F) (G)		841.761	406.596	204.094
Less	TAX (H)		254.516	140.811	76.772
	PROFIT / (LOSS) AFTER TAX (G-H) (I)		587.245	265.785	127.322
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		491.715	238.097	115.689
Less	APPROPRIATIONS
		Dividend	76.974	10.400	4.200
		Tax on Dividend		1.767	0.714
	BALANCE CARRIED TO THE B/S		1001.986	491.715	238.097
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	2234.012	11349.782	510.537
		Other Earnings	4.072	4.002	0.000
	TOTAL EARNINGS		2238.084	11353.784	510.537
	IMPORTS
		Raw Materials	212.546	168.624	141.014
		Stores & Spares	47.679	0.000	0.363
		Capital Goods	0.553	10.489	6.287
	TOTAL IMPORTS		260.778	179.113	147.664
	Earnings / (Loss) Per Share (Rs.)		112.93	51.11	28.90

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	18.60	12.43	11.63
Net Profit Margin (PBT/Sales)	(%)	26.93	19.13	19.25
Return on Total Assets (PBT/Total Assets}	(%)	28.25	23.63	18.67
Return on Investment (ROI) (PBT/Networth)		0.75	0.75	0.70
Debt Equity Ratio (Total Liability/Networth)		1.69	2.26	2.96
Current Ratio (Current Asset/Current Liability)		1.45	1.73	1.60

LOCAL AGENCY FURTHER INFORMATION

Check List by Info Agents	Available in Report (Yes / No)
1) Year of Establishment	Yes
2) Locality of the firm	Yes
3) Constitutions of the firm	Yes
4) Premises details	No
5) Type of Business	Yes
6) Line of Business	Yes
7) Promoter’s background	Yes
8) No. of employees	Yes
9) Name of person contacted	No
10) Designation of contact person	No
11) Turnover of firm for last three years	Yes
12) Profitability for last three years	Yes
13) Reasons for variation <> 20%	--
14) Estimation for coming financial year	No
15) Capital in the business	Yes
16) Details of sister concerns	Yes
17) Major suppliers	No
18) Major customers	No
19) Payments terms	No
20) Export / Import details (if applicable)	No
21) Market information	--
22) Litigations that the firm / promoter involved in	--
23) Banking Details	Yes
24) Banking facility details	Yes
25) Conduct of the banking account	--
26) Buyer visit details	--
27) Financials, if provided	Yes
28) Incorporation details, if applicable	Yes
29) Last accounts filed at ROC	Yes
30) Major Shareholders, if available	Yes
31) PAN of Proprietor/Partner/Director, if available	No
32) Date of Birth of Proprietor/Partner/Director, if available	Yes
33) Voter ID No of Proprietor/Partner/Director, if available	No
34) External Agency Rating, if available	Yes

NOTE:

The registered address of the company has been shifted from “H.No.8-3-167/D/16, Kalyan Nagar, Phase-I, Near A. G. Colony, Hyderabad – 500038, Andhra Pradesh, India” to the present address w.e.f. 28.09.2009.

FINANCIAL PERFORMANCE:

The Company recorded gross sales of Rs. 3189.800 Millions in FY 11 as against Rs. 2186.100 Millions in FY 10, a growth of 45.92%. While operating profits at Rs.909.300 Millions in FY 11 as against Rs.47.63 in FY 10 grew at 91%, the Operating Margins at 29.10% in FY 11 as against 22.41% in FY 10.

Net profit margins of the company were at 18.36% in FY 11 as against 12.43% in FY 10 grew by 118% over the previous year.

The year, saw a significant increase in operating margins mainly on account of (a) Continuous process research and development (b) Launch of new molecules (c) higher revenues from products launched during the previous years (d) effect of foreign currency movements (e) ability to control procurement costs better cash flow management amongst other initiatives.

The Company's ability to continuously improve its operating margin in future might not be as effective as in the past to uncertain conditions in the global economy.

CRISIL has retained its rating at SME 2 indicating High level of creditworthiness adjudged in relation to other SMEs.

OPERATIONS:

The Company presently has two world class bulk actives and chemicals manufacturing facility situated at Rudraram, Medak District, and Kardanur, Medak District near Hyderabad and one finished dosages manufacturing facility at ANRICH Industrial Estate, Bollaram, Medak District, Near Hyderabad.

BULK ACTIVES:

The Company produces around 36 bulk actives in addition to the other chemicals and intermediates in its bulk actives facility. Of this the major products are clopidogrel, ezetimibe, rosuvastatin, terbinafine and voricanazole which together contribute over 80% of the product revenues. The year saw launch of new molecules viz., aliskiren, almotristan, febuxostat, foseapripitant, ramelton, trospium choride.

The Company efforts to build a stronger customer base, both in domestic as well as export markets, has yielded better results. The share of export revenues increased to 72% from 64%. The Company expects that the share of export revenues would increase in the years to come. This being propelled mainly through conscious efforts to increase its regulatory filings, customer partnerships, etc. The Company has filed, in the Indian Patent Office, 107 intellectual property rights applications of which 48 have been published in the IPO Journal. Similarly, 50 applications have been filed under Patents Cooperation Treaty (PCT) - of these 41 have been published. The company has filed nearly 56 DMFs including CEPS in US, Europe, Canada, Korea, Japan etc.

FINISHED DOSAGES BUSINESS:

The Company produces over 60 products in its finished dosage basket. The company has ventured into chronic therapy-Lifestyle diseases which is the biggest threat to the country. This segment, covering invasive and degenerative diseases, is one of the fastest growing segments world over and India in particular. The successful presence of our finished dosages business enables the Company in moving up the value chain in the pharmaceutical vertical.

During the year, the Company has successfully expanded its market reach by establishing a strong presence in the market. As Domestic Formulations Company we have started making inroads in the market and are able to make a mark in the Indian Market. The Company is making necessary efforts in registering its products in various countries in the semi-regulated markets of the world. Distribution partners have been identified in many countries in Asia-Pacific, Latin America, Africa and some parts of CIS.

FUTURE PLANT OF ACTION:

Several new products have been identified after a thorough study of the market and the processes to manufacture these products will be developed in the R and D lab. Commercialization of plants for which the products are under trials at pilot plant level. Further improvement in quality and productivity.

BANKERS CHARGES REPORT AS PER REGISTRY

Corporate identity number of the company	U24239AP2003PLC041583
Name of the company	MSN LABORATORIES LIMITED
Address of the registered office or of the principal place of business in India of the company	MSN House, Plot No.C-24, Sanath Nagar Industrial Estate, Sanath Nagar, Hyderabad - 500 018, Andhra Pradesh, India E-mail : drmsnreddy@msnlabs.com
This form is for	Creation of charge
Type of charge	Book debts Movable property (not being pledge) Others (Current Assets both Present and Future)
Particular of charge holder	ICICI Bank Limited, Landmark Race Cource Circle, Alkapuri, Baroda - 390015, Gujarat, India E-mail : ananya.garg@icicibank.com
Nature of instrument creating charge	Deed of Hypothecation dated: 24.01.2012.
Date of instrument Creating the charge	24.01.2012
Amount secured by the charge	Rs.400.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of interest CC : I BASE+2.50% WCDL: I BASE+2.25% EPC ,FUBD/FBP: I BASE +2% PCFC,PSCFC,BUYERS CREDIT : 6M LIBOR + 3.5% FCNR(B) : COF + 0.75% Terms of repayment Validity of facility : Up to 22.12.2012 Margin CC,WCDL,EPC/PCFC, FCNR(B) : 25% LC : CASH MARGIN - 10% BUYERS CREDIT : CASH MARGIN - 5% Extent and operation of the charge First pari passu charge in favour of ICICI Bank by way of hypothecation of the Company entire stocks of raw materials, semi-finished and finished goods, consumable stores and spares and such other movables including book-debts, bills whether documentary or clean, outstanding monies, receivables, both present and future, in a form and manner satisfactory to the Bank First pari passu on movable fixed assets of the company
Short particulars of the property charged (Including location of the property)	First pari passu charge in favour of ICICI Bank by way of hypothecation of the Company current assets both present and future, in a form and manner satisfactory to the Bank First pari passu on movable fixed assets of the company

CONTINGENT LIABILITIES NOT PROVIDED FOR:

PARTICULARS	31.03.20211 (Rs. in millions)	31.03.2010 (Rs. in millions)
Guarantees issued by banks	1.115	4.115
Letters of credit outstanding	33.012	23.437
Total	34.127	27.552

FIXED ASSETS:

v Land

v Building

v Plant and Machinery

v Electrical installations

v Lab Equipments

v Generator

v Office Equipments

v Computers

v Furniture and Fixtures

v Motor Vehicles

WEBSITE DETAILS:

PROFILE:

Subject is one of the fastest growing manufacturers of Active Pharmaceutical Ingredients (APIs) and Finished Dosages in India. Established in the year 2003, MSN Group comprises of five API manufacturing plants (including one for Oncology), one finished dosage facility (one more for Oncology being built) and a dedicated RandD Center center going to be operational by Nov 2011. Their plants are ISO 9001-2000 certified, WHO: GMP, EU: GMP and USFDA approved. Their manufacturing units are designed to confirm to the principles of Quality, Safety and sound Environment.

Subject Group management team comprises of top notch professionals, with extensive experience in synthetic chemistry, process engineering, quality, IT, SCM, marketing, regulatory requirements and environmental safety and a proven track record in pharmaceutical industry. Their outstanding teams of well-educated, motivated and result-oriented employees have contributed actively to their spectacular growth.

Thriving on the platform of innovation and excellence, they have grown into a successful and profitable enterprise with a portfolio covering all the major therapeutic areas.

Subject Groups efficient and well-knit global sales and marketing team of professionals assimilate market trends effectively and market their products in all the major pharmaceutical markets globally. Their professional knowledge and attitude combined with common sense and business acumen have played a pivotal role in surging their sales and revenues.

They have very efficient systems driven supply chain management and a highly responsive customer relationship management team. In fact, they are the youngest pharmaceutical company in the world to have SAP in place for all their commercial operations. They guarantee competitive edge to their customers because of their absolute cost efficiency and aggressive product development timelines. Along with this commitment comes an irrevocable promise of quality and consistency.

Subject Group seeks to explore and develop more strategic areas to diligently pursue new opportunities and effectively transmit ethically consistent and truthful image of their products.

NEWS:

MSN LABORATORIES SUCCESSFULLY COMPLETES USFDA AUDIT FOR THE 3 RD SUCCESSIVE TIME

Hyderabad based MSN Laboratories has successfully completed US FDA Audit. The group has 55 DMFs for the

US market. Out of which 29 DMFs are from this facility.

Commenting on the development, Dr MSN Reddy, chairman and managing director, MSN Group, said, that the 3rd consecutive audit that has been successfully completed by the MSN Group. Achieving this for the 2nd time for the same unit has reiterated our belief and commitment towards quality.

MSN Group is one of the fastest growing pharmaceutical manufacturers of APIs and finished dosages in India. The group has six API (including an Oncology) and one finished dosage facilities and an integrated R and D Center located in Hyderabad. Two more finished dosage facilities including one for Oncology are being built. MSN group facilities are USFDA, WHO/EU GMP approved and ISO 9001:2008 certified.

The MSN group be offering custom Synthesis for API, Dosage development services for the global markets from its State-of-the-art R and D Center soon. The world class research center has about 42 stand alone laboratories housing 400 scientists spread over a 300,000 sq. ft facility.

With more than 100 APIs and 120 finished dosages, MSN group offers a strong portfolio of complex and niche products covering all the major therapies. It has 120 filed DMFs and CEPs for the US, Europe, Canada, Korea and Japan, and 800 dossiers for the finished dosages for the emerging markets. With 137 Indian and 51 International Patents under its` belt, MSN Group offers comprehensive product support to more than 250 customers across 65 countries in the North America, Europe, Latin America, Africa and Asia.

With an outstanding workforce, cutting-edge science, state-of-the-art technology base and knowledge intensive initiatives, MSN group is working on innovative solutions for tomorrow`s healthcare problems.

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.55.50
UK Pound	1	Rs.86.40
Euro	1	Rs.68.70

INFORMATION DETAILS

Report Prepared by :

TPT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	7
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	7
--PROFITABILIRY	1~10	8
--LIQUIDITY	1~10	7
--LEVERAGE	1~10	7
--RESERVES	1~10	8
--CREDIT LINES	1~10	8
--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		60

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.