MIRA INFORM REPORT

Report Date :

13.08.2012

IDENTIFICATION DETAILS

Name :	LAURUS LABS PRIVATE LIMITED (w.e.f. 21.02.2012)
Formerly Known As :	APTUIT LAURUS PRIVATE LIMITED
Registered Office :	2^nd Floor, Serene Chambers, Road No 7, Banjara Hills, Hyderabad, Andhra Pradesh– 500 034
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	19.09.2005
Com. Reg. No.:	01-047518
Capital Investment / Paid-up Capital :	Rs. 777.002 millions
CIN No.: [Company Identification No.]	U24239AP2005PTC047518
PAN No.: [Permanent Account No.]	AABCL1170C
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturers of specially nutraceutical ingredients that can be integrated into dietary supplements, nutritional products and functional foods.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

B (29)

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

Maximum Credit Limit :	USD 3400000
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, 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

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 / Corporate Office :	2^nd Floor, Serene Chambers, Road No 7, Banjara Hills, Hyderabad, Andhra Pradesh– 500 034, India
Tel. No.:	91-40-39804333 / 23420500/501
Fax No.:	91-40-39804320
E-Mail :	nagaraj.a@aptuitlaurus.com info@aptuitlaurus.com
Website :	www.aptuitlaurus.com
Research and Development Office :	Plot No: DS1, ICICI Knowledge Park, Turkapally, Shameerpet Mandal, Hyderabad – 500 034, India
Tel. No.:	91-40-23480480
Fax No.:	91-40-23480481
Drug Substance Facility :	Plot No. 21, Jawaharlal Nehru Pharma City, Parawada, Visakhapatnam – 531021, India
Tel. No.:	91-8913061222
Fax No.:	91-8913061270
Aptuit Informatics:	Plot No. 100-101, Export Promotion Park, Whitefield, Bangalore – 560 066, India
Tel. No.:	91-80-41907800
Fax No.:	91-80-41907805

DIRECTORS

As on 02.09.2011

Name :

Dr. Chava Satyanarayana

Designation :

Whole Time Director and Chief Executive Officer

Address :

H.No.8 – 2 – 293/82/A/303, Plot No. 303, Road No. 25, Jubilee Hillis, Hyderabad – 500 033, India

Date of Birth/Age :

10.03.1961

Qualification :

M.Sc ; Ph.D

Date of Appointment :

21.01.2006

DIN No.:

00211921

Other Directorship:

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U72200AP2005PTC046163	NOWPOS M-SOLUTIONS PRIVATE LIMITED	Director	31/12/2005	31/12/2005	-	Active	NO
2	U24239AP2005PTC047518	LAURUS LABS PRIVATE LIMITED	Whole-time director	21/01/2006	21/01/2006	-	Active	NO

Name :

Dr. Sri Hari Raju Kalidindi

Designation :

Executive Director

Address :

Villa No. 3, Aparna Orchids, Izzatnagar, Kondapur, Hyderabad – 500 084, India

Date of Birth/Age :

01.07.1963

Qualification :

M.Sc ; Ph.D

Date of Appointment :

24.04.2006

DIN No.:

00982034

Name :

Mr. Venkata Ravi Kumar Vantaram

Designation :

Executive Director

Address :

No. 8, Sai Ansh Arcade, Durga Vihar Colony, Tirumalgherry, Hyderabad – 500 015, India

Date of Birth/Age :

01.07.1965

Qualification :

M.Com; AICWA

Date of Appointment :

30.11.2006

DIN No.:

01424180

Other Directorship:

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U24239AP2005PTC047518	LAURUS LABS PRIVATE LIMITED	Whole-time director	30/11/2006	30/11/2006	-	Active	NO
2	U72200KA2006PTC038508	Aptuit Informatics India Private Limited	Director	30/09/2008	01/10/2007	-	Amalgamated	NO
3	U72200AP2005PTC046163	NOWPOS M-SOLUTIONS PRIVATE LIMITED	Additional director	01/10/2010	01/10/2010	-	Active	NO

Name :

Mr. Amal Ganguli

Designation :

Director

Address :

J-6/7, DLF, Phase – II, Gurgaon, Haryana – 122 002, India

Date of Birth/Age :

17.10.1939

Date of Appointment :

30.08.2007

DIN No.:

00013808

Other Directorship:

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U74899DL1993PTC051811	M L INFOMAP PRIVATE LIMITED	Director	20/01/1993	20/01/1993	-	Active	NO
2	U72200DL1991PLC046909	FLEXTRONICS SOFTWARE SYSTEMS LIMITED	Director	08/01/2001	08/01/2001	-	Amalgamated	NO
3	L74140DL1991PLC046369	HCL TECHNOLOGIES LIMITED	Director	08/05/2003	08/05/2003	-	Active	NO
4	L35921TN1949PLC002905	TUBE INVESTMENTS OF INDIA LIMITED	Director	02/06/2003	02/06/2003	29/07/2010	Active	NO
5	L51909DL1986PLC024222	SAMTEL COLOR LIMITED	Director	10/10/2003	10/10/2003	02/02/2007	Active	NO
6	L92111DL1988PLC033099	NEW DELHI TELEVISION LIMITED	Director	14/05/2004	14/05/2004	-	Active	NO
7	L17120MH1897PLC000163	CENTURY TEXTILE AND INDUSTRIES LIMITED	Director	31/07/2004	31/07/2004	-	Active	NO
8	U34103MP2005PLC017319	AVTEC LIMITED	Director	27/07/2005	27/07/2005	-	Active	NO
9	L74999DL1991PLC042749	ICRA LIMITED	Director	12/06/2006	30/03/2006	-	Active	NO
10	U64202DL1992PLC048053	HUGHES COMMUNICATIONS INDIA LIMITED	Director	30/09/2006	20/04/2006	-	Active	NO
11	L34103DL1981PLC011375	MARUTI SUZUKI INDIA LIMITED	Director	05/09/2006	05/09/2006	-	Active	NO
12	L64200MH1986PLC039266	TATA COMMUNICATIONS LIMITED	Director	13/09/2006	13/09/2006	-	Active	NO
13	U93090MH2006PTC165286	AIG TRUSTEE COMPANY (INDIA) PRIVATE LIMITED	Director	15/12/2006	15/12/2006	-	Active	NO
14	U65993DL2006PLC149728	ARICENT TECHNOLOGIES (HOLDINGS) LIMITED	Director	11/09/2009	06/08/2007	-	Active	NO
15	U24239AP2005PTC047518	LAURUS LABS PRIVATE LIMITED	Director	02/09/2011	30/08/2007	-	Active	NO
16	L15421UP1932PLC022174	TRIVENI ENGINEERING AND INDUSTRIES LIMITED	Director	29/12/2009	19/01/2009	10/05/2011	Active	NO
17	L64200MH1995PLC086354	TATA TELESERVICES (MAHARASHTRA) LIMITED	Director	13/08/2009	24/03/2009	-	Active	NO
18	U29110UP1995PLC041834	TRIVENI TURBINE LIMITED	Director	06/09/2011	10/05/2011	-	Active	NO

KEY EXECUTIVES

Name :	Mr. Nagaraj Kumar Annabattula
Designation :	Company Secretary
Address :	5-22, Sai Vihar Nagar, Phase – I, Meerpet, Ranga Reddy District – 079, India
Date of Birth/Age :	05.05.1975
Date of Appointment :	16.06.2007
PAN No.:	AEJPA0477L

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 02.09.2011

Names of Shareholders	No. of Shares
Satyanarayana Dr. C	3819500
Rama Krishna C	5500
Srihari Raju K	1300000
Venkata Ravi Kumar Vantaram	400000
P. Rajya Laxmi	75000
Chava pralima	10000
Vinod Nair	25000
Mula Ravinder	465000
C. Naga Rani	1560000
Vejiko Zorzut	350000
Bharat K R	75000
Nilu Poddar	75000
Vivek Mundra	50000
Anirudh Mundra	100000
Prasad Varma	25000

Equity Share Break up (Percentage of Total Equity)

As on 02.09.2011

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	23.30
Bodies corporate	0.48
Directors or relatives of Directors	58.89
Other top fifty shareholders	17.33
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturers of specially nutraceutical ingredients that can be integrated into dietary supplements, nutritional products and functional foods.

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

· State Bank of India, Overseas Branch, ABIDS, Hyderabad – 500 001, Andhra Pradesh, India

· State Bank of Hyderabad, Industrial Finance Branch, Punjagutta, Hyderabad – 500 082

· Punjab National Bank, Bank Street, Abids, Hyderabad – 500 001, India

Facilities :

Secured Loan	As on 31.03.2011 (Rs. in Millions)	As on 31.03.2010 (Rs. in Millions)
Rupee Term Loan secured	(A)1301.040	1312.070
Rupee Term Loans others secured	(B)86.190	0.000
Other debt secured	(C)979.950	673.000
Total	2367.180	1985.070

NOTES:

(A) Repayable within one year Rs. 454.13 (March 31, 2010 Rs. 198.000)

(B) Repayable within one year Rs. 36.98 (March 31, 2010 Rs. Nil)

(C) Cash credit facilities 833.75 621.97 Buyers credit 142.54 46.24 Other loans and advances [Repayable within one year Rs. 1.28(March 31, 2010 Rs. 3.15)] 3.66 4.79

Banking Relations :	--
Auditors :
Name :	S.R. Batliboi and Associates Chartered Accountant
Address :	Oval Office, 18 I Labs Centre, Hitesh City, Madhupur, Hyderabad – 500 081, India
Tel. No.:	91-40-66274202
PAN No.:	AABFS3421N
Related Parties :	· Aptuit Kansas City LLC, United States · Aptuit Edinburg Limited, United Kingdom · Aptuit Oxford Limited, United Kingdom · Aptuit Verona SRL, Italy · Aptuit (Deeside) Limited, United Kingdom

CAPITAL STRUCTURE

As on 02.09.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
18500000	Equity Shares	Rs. 10/- each	Rs. 185.000 millions
6900000	Preference Shares	Rs. 10/- each	Rs. 69.000 millions
	TOTAL		Rs.254.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
10411000	Equity Shares	Rs. 10/- each	Rs. 104.110 millions
6888690	Preference Shares	Rs. 10/- each	Rs. 68.887 millions
	TOTAL		Rs. 172.997 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		173.000	173.000	172.997
2] Share Application Money		0.000	0.000	0.000
3] Equity/Preference Share Warrants		0.010	0.010	0.010
4] Reserves & Surplus		1146.120	1146.120	1146.123
5] (Accumulated Losses)		(446.870)	(540.770)	(663.273)
NETWORTH		872.250	778.360	655.848
LOAN FUNDS
1] Secured Loans		2367.180	1985.070	1802.935
2] Unsecured Loans		0.000	0.000	38.445
TOTAL BORROWING		2367.180	1985.070	1841.380
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		3239.430	2763.430	2497.238
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		1889.959	1892.240	1937.473
Capital work-in-progress		11.890	9.880	79.903
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		97.000	62.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	756.230	466.200	305.840
	Sundry Debtors	1255.440	731.210	464.420
	Cash & Bank Balances	67.840	39.550	14.404
	Other Current Assets	30.810	18.500	0.729
	Loans & Advances	96.260	119.910	113.700
Total Current Assets		2206.580	1375.370	899.093
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	588.790	322.020	326.794
	Other Current Liabilities	349.470	239.230	82.498
	Provisions	27.730	14.810	9.939
Total Current Liabilities		965.990	576.060	419.231
Net Current Assets		1240.590	799.310	479.862
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		3239.430	2763.430	2497.238

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income		2135.392	1051.707
		Other Income		39.578	6.841
		TOTAL (A)	2815.530	2174.970	1058.548
Less	EXPENSES
		Material Costs		972.889	525.811
		Other Manufacturing expenses		138.049	84.187
		Personnel expenses		276.598	209.235
		Operating and selling expenses		147.096	140.220
		Research and development expenses		213.437	190.694
		TOTAL (B)	2354.720	1748.069	1150.147
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		460.810	426.901	(91.599)
Less	FINANCIAL EXPENSES (D)		229.820	237.493	181.403
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		230.990	189.408	(273.002)
Less/ Add	DEPRECIATION/ AMORTISATION (F)		172.090	132.464	121.038
	PROFIT / (LOSS) BEFORE TAX (E-F) (G)		58.900	56.944	(394.04)
Less	TAX (I)		(35.000)	(65.563)	77.372
	PROFIT / (LOSS) AFTER TAX (G-I) (J)		93.900	122.507	(471.414)
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		(540.766)	(663.273)	(219.458)
Add	Balance brought forward of Amalgamating company		0.000	0.000	27.599
	BALANCE CARRIED TO THE B/S		(446.866)	(540.766)	(663.273)
	EARNINGS IN FOREIGN CURRENCY
		API and Contract Research Services	NA	818.744	244.751
		Software Services	NA	132.834	123.904
	TOTAL EARNINGS		NA	951.578	368.655
	IMPORTS
		Raw Materials	NA	663.298	254.165
		Stores & Spares	NA	1.622	0.000
		Capital Goods	NA	10.862	29.872
	TOTAL IMPORTS		NA	675.782	284.038
	Earnings Per Share (Rs.)
	Basic		0.00	11.77	(45.28)

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	3.33	5.63	(44.53)
Net Profit Margin (PBT/Sales)	(%)	NA	2.61	(37.46)
Return on Total Assets (PBT/Total Assets}	(%)	1.43	1.74	(13.89)
Return on Investment (ROI) (PBT/Networth)		0.06	0.07	(0.60)
Debt Equity Ratio (Total Liability/Networth)		3.82	3.29	3.44
Current Ratio (Current Asset/Current Liability)		2.28	0.65	2.14

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	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	No
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	No
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]	Date of Birth of Proprietor/Partner/Director, if available	Yes
32]	PAN of Proprietor/Partner/Director, if available	No
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	No

Note:

Registered office of the company has been shifted from 3^rd Floor, Uma Hyderabad House, Rajbhavan Road, Somajiguda, Hyderabad, Andhra Pradesh, India to the Present address w.e.f. 14.08.2008

BUSINESS OPERATIONS

The Company successfully accomplished major milestones by receiving regulatory approvals from FDA (US), MHRA (UK), TGA (Australia) and FDA (Korea) for its drug substance facility located in Visakhapatnam.

The Company received regulatory approval from FDA (US) and TGA (Australia) without any major observations for R&D centre located in Hyderabad.

The Company’s revenue increased from Rs. 2,136.000 million in the previous year to Rs. 2,816.000 million with a growth rate of 32%. Operating profit (EBITDA) of Rs. 460.810 million increased from Rs. 439.100 million during the previous year.

The Company developed and commercialized around 27 products including 5 nutraceutical products so far. The company also manufactured several clinical trial materials to the Innovator Pharmaceutical Companies. The Company also filed 14 DMFs for various products in the regulatory markets.

The Company filed 40 patents since inception, strengthening its intellectual property capability to realize commercial benefits over a period of time.

The Department of Scientific and Industrial Research (DSIR) recognized the Company’s R&D and the Company is eligible to get weighted deduction on the expenditure spent on Research and Development from income tax. The Company continued its focus on Research and Development and incurred Rs. 272.440 million on R&D expenditure.

The Company has a net deferred tax asset of Rs. 319.870 million as against Rs. 234.520 million in the previous year. However, based on virtual certainty and on conservative basis during the year, the Company recognized deferred tax asset (net) of Rs. 97.000 million. The Company expects to realize the entire deferred tax asset based on future profitability.

During the year, disputes arose between Aptuit Singapore, the Company and Dr. Satyanarayana Chava in relation to their rights and obligations under the Share Subscription Agreement which were referred to ICC International Court of Arbitration. However, the arbitration proceedings suspended in view of the ongoing discussions between the parties in an attempt to resolute the disputes.

OUTLOOK

As a result of established business relationships, regulatory approvals, efficacious process development of various products, patents and DMFs filed till date, the Company is poised to grow significantly.

The business proportions and synergies forms part of growth prospects which are discussed in detail in the Management’s Discussion and Analysis (MDA), which forms part of this Annual Report.

Bankers Charges Report as per Registry

Corporate identity number of the company	U24239AP2005PTC047518
Name of the company	APTUIT LAURUS PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	2^nd Floor, Serene Chambers, Road No 7, Banjara Hills, Hyderabad, Andhra Pradesh– 500 034, India e-mail: nagaraj.a@aptuitlaurus.com
This form is for	Modification of charge
Charge identification (ID) number of the charge to be modified	10074320
Type of charge	Immovable Property Movable Property (not being pledge) Book debts
Particular of charge holder	State Bank of India, Overseas Branch, 2^nd Floor, Rajaja Centre, Road No. 36, Jubilee Hills, Hyderabad – 500 033, Andhra Pradesh, India e-mail: badrinath.akkala@sbi.co.in
Nature of instrument creating charge	1. Memorandum of entry dated 23.12.2011 2. Letter regarding the grant of individual limits within the overall limit
Date of instrument Creating the charge	23.12.2011
Amount secured by the charge	Rs. 3288.000 millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest EPC: 12.50% pa CC (Hyp): 5.25% above BR Present rate is 15.25% Corp Loan" 6.50% above BR Present rate is 16.50% Term Loan I & II (on rest): 6% above BR Present rate is 16.00% Terms of Repayment Working capital limits on demand Margin Raw material - 25% SIP - 25% FG - 25% EPC - 10% Receivables (Cover 90 days) - 25% Letter of credit - 10% BG - 10% Extent and Operation of the charge 1st Charge on all existing and future fixed assets (excluding assets proposed to be acquired/acquired out of term loan availed from Tata Capital Ltd and BBK) for term and corporate loans 1st charge on all current assets on pari passu basis with SBH,PNB,ICICI Bank and BBK 2nd charge on all existing and future fixed assets for working capital limits on pari-passu basis with SBH,PNB,ICICI Bank and BBK 2nd charge on all current assets for term and corporate loans
Short particulars of the property or asset(s) charged (including complete address and location of the property)	1st Charge on all existing and future fixed assets of the Company(excluding assets proposed to be acquired/acquired out of term loan availed from Tata Capital Ltd and BBK)for term and corporate loans 1st charge on all current assets of the Company on pari passu basis with SBH,PNB,ICICI Bank and BBK 2nd charge on all existing and future fixed assets of the Company for working capital limits on pari-passu basis with SBH,PNB,ICICI Bank and BBK 2nd charge on all current assets of the Company for term and corporate loans
Date of instrument modifying the charge	13.10.2010
Particulars of the present modification	Working capital limits reduced from 892.000 millions to 810.000 millions Term loans reduced from 1249.600 millions to 936.300 millions Corporate Loan reduced from Rs.150.000 millions to Rs.111.100 millions Derivative limits sanctioned for Rs.32.000 millions Pari passu 2nd charge extended on the existing and future fixed assets in favour of (1) ICICI Bank, Landmark Race course circle, Alkapuri, Baroda, Gujarat 390015, and (2) Bank of Bahrain and Kuwait B.S.C., 6-3-550, LB Bhawan, Akashganga, Somajiguda, Hyderabad 500082.

FIXED ASSETS:

· Freehold Land

· Leasehold Land

· Office Building

· Factory Building

· Factory Equipments

· Computer Equipments

· Furniture and Fixtures

· Ships Vessels

· Vehicles

· Aircrafts Helicopters

· Motor Vehicles

KEY MILESTONES

Incorporated as a private limited company in 2005, Laurus labs commenced the facility build-up within one year. Year 2007 turned out to be a momentous year for Laurus Labs with not only the R and D center commencing operations, but also the initiation, completion and commissioning of the large-scale API manufacturing facility at Visakhapatnam (Vizag) happening within this year. After two years of focused R and D output resulting in multiple product launches and DMF filings, Laurus crossed yet another significant milestone when the facilities at Vizag and Hyderabad received key regulatory approvals from USFDA, TGA and MHRA in first quarter of 2010, a trend continuing to date with additional recognitions from KFDA and PMDA within last one year.

With an innovation driven R and D and world-class and regulatory recognized manufacturing set-up firmly in place, Laurus labs has since been on a steady on growth path.

BRIEF PROFILES OF THE DIRECTORS

Dr. Satyanarayana Chava, Chief Executive Officer (CEO), has a successful track record of 26 years in pharmaceutical industry, especially Research & Development, manufacturing and business development. With work experience at reputed pharmaceutical companies in various senior roles, Dr. Satyanarayana held the key assignment of Chief Operating Officer at Matrix Laboratories, Hyderabad. With several breakthroughs to his credit in the API process development, he has sound knowledge in Intellectual Property related matters in the pharmaceutical industry and authored over 75 patents.

Dr. Raju S Kalidindi, Executive Director, comes with 26 years of pharmaceutical research and operational experience. He worked for a couple of years in USA and 11 years for Mayne Pharma in Australia. In Mayne Pharma, he held several positions including a senior management role (Project Leader) before he left in March, 2006. His areas of expertise include research and development (R&D) in generic formulations, technology transfers, patent strategies, regulatory affairs, API sourcing and business development. Dr. Raju has several patents and research publications to his credit.

Mr. V V Ravi Kumar, Executive Director, has 23 years experience in Finance, IT & Supply Chain management. He has got rich professional experience in Pharma industry and has got good knowledge in dealing with Mergers and Acquisitions and joint venture management in the global context. He is a part of senior management that transformed M/s Matrix Laboratories into a major pharmaceutical company.

Mr. Amal Ganguli independent Director, is an experienced chartered accountant with rich experience in the profession, corporate business and management. His areas of expertise are Statutory Audit, Internal & Management audits, Evaluation and Strengthening of control systems, Indian and International tax matters, Mergers & Acquisitions, Valuations and Corporate restructuring.

Mr. Ganguli is a fellow member of the Institute of Chartered Accountants of India and the Institute of Chartered Accountants of England and Wales. Besides his qualifications in the area of accounting and auditing, Mr. Ganguli is a fellow of the British Institute of Management and alumnus of IMI, Geneva.

With a career spanning over 41 years in Price Waterhouse, UK/India, Mr. Ganguli was the Chairman and Senior Partner of Price Waterhouse Coopers (PWC), India, for seven years before retiring in 2003.

Mr. Ganguli is a member of the Board of Directors as well as the chairman/member of the Audit Committees of several leading Indian companies such as Maruti Suzuki India Limited (formerly Maruti Udyog Limited), Tata Telecommunications Limited, Century Textiles and Industries Limited, ICRA Limited, HCL Technologies Limited, New Delhi Television Limited, Triveni Turbines Limited, AVTEC Limited, Hughes Communications India Limited, Aricent Technologies (Holdings) Limited, AIG Trustee Co. India Limited, ML Infomap Private Limited, Ascendas Property Fund Trustee Private Limited, Tata Teleservices Maharashtra Limited Veritas Advisors LLP and Thought Arbitrage Research Institute.

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.55.34
UK Pound	1	Rs.86.45
Euro	1	Rs.68.04

INFORMATION DETAILS

Report Prepared by :

NID

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	4
--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	NO
--AFFILIATION	YES/NO	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		29

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.