MIRA INFORM REPORT

Report Date :

07.03.2012

IDENTIFICATION DETAILS

Name :	GLOCHEM INDUSTRIES LIMITED
Registered Office :	G.V. Chambers, 7-2-C8 and C8/2, IDA Santnagar, Hyderabad-500018, Andhra Pradesh, India
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	20.11.1995
Com. Reg. No.:	01-022303
Capital Investment / Paid-up Capital :	Rs. 34.261 Millions
CIN No.: [Company Identification No.]	U24110AP1995PLC022303
TAN No.: [Tax Deduction & Collection Account No.]	HYDG00852F
PAN No.: [Permanent Account No.]	AAACG9134E
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Contract Manufacturing of Centrizine Di Hydrochloride and Amlodopine Besylate in Small Volume
No. of Employees :	120 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (47)

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Maximum Credit Limit :	USD 1700000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is an established and reputed company having satisfactory track. There appears some losses incurred by the company in the current year i.e. (2010-11). However, networth are appears to be good. Trade relations are reported as fair. Business is active. Payments are reported to be usually 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.

ECGC Country Risk Classification List – September 30, 2011

Country Name	Previous Rating (30.06.2011)	Current Rating (30.09.2011)
India	A1	A1

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

LOCATIONS

Registered Office/ Corporate Office :	GV Chambers, 7-2-C8 and C8/2, IDA Sanath Nagar, Hyderabad - 500 018, Andhra Pradesh, India.
Tel. No.:	91 - 40 - 23713041 / 42 / 43, 23816951
Fax No.:	91 - 40 23711483
E-Mail :	hyd2_glochem@sancharnet.in md@glochemindia.com marketingin@glochemindia.com purchase@glolchemindina.com accounts@glochemindia.com ra@glkochemindia.com projects@glocehmindia.com
Website:	http://www.glochemindia.com
Factory 1 :	174/176, I.D.A., Bollaram - 502 325, Medak District, Andhra Pradesh, India
Tel No.:	91-8458-279003/ 280021
Fax No.:	91-8458-279058
E Mail:	bollaram@glochemindia.com
Factory 2 :	Survey No. 36, 37 and 46, Plot No. 77, Jawaharlal Nehru Pharma City, Thanam Village, Parawada Mandal Visakhapatnam, Andhra Pradesh, India
Tel No.:	91-892-4247132
Fax No.:	91-892-4247269
E Mail:	vizag@glochemindia.com
Factory 3 :	Plot No.S16 and S17, Green Industrial Park, Polapally, Jedcheria, Mahaboob Nagar District – 509302, India
Tel No.:	91-8542-304654

DIRECTORS

AS ON 30.09.2011

Name :	Mr. Kattamuri Subbarao
Designation :	Chief Promoter and Managing Director
Address :	Plot No. 48, Navanirman Nagar, Road No. 71, Jubilee Hills, Hyderabad – 500034, Andhra Pradesh, India
Date of Birth/Age :	10.03.1953
Date of Appointment :	20.11.1995
DIN No.:	00107121

Other Directorship:

Sr. 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	U24110AP1995PLC022303	GLOCHEM INDUSTRIES LIMITED	Managing director	01-07-11	20-11-95	Active	NO
2	U01119AP2010PTC069551	GIL AGROTECH ( INDIA ) PRIVATE LIMITED	Director	20-07-10	20-07-10	Active	NO

Name :	Mr. Hazarath Basha Shaik
Designation :	Director
Address :	H. No. 22-307/7A, Opposite KPHB, Bhagyanagar, Hyderabad – 500072, Andhra Pradesh, India
Date of Birth/Age :	26.03.1956
Date of Appointment :	24.05.1996
DIN No.:	01321868
Name :	Mr. Vikram Ravindra Mamidipudi
Designation :	Director
Address :	80, Road No. 3, East Marredpally, Secunderabad – 500003, Andhra Pradesh, India
Date of Birth/Age :	18.05.1956
Date of Appointment :	24.03.1999
DIN No.:	00008241

Other Directorship:

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U51398AP1987PTC007885	NORMAK FASHIONS PRIVATE LIMITED	Director	18-11-88	18-11-88	-	Active	NO
2	U74140AP1992PTC014155	M.ANANDAM CONSULTANCY SERVICES PRIVATE LIMITED	Director	30-04-92	30-04-92	-	Active	NO
3	U85110KA1992PLC013421	ASM TECHNOLOGIES LIMITED	Director	25-01-10	30-06-98	-	Active	NO
4	U24110AP1995PLC022303	GLOCHEM INDUSTRIES LIMITED	Director	24-03-99	24-03-99	-	Active	NO
5	U01119AP1992PLC014048	WINGS INFONET LIMITED	Director	11-05-00	11-05-00	-	Active	NO
6	U74140AP2000PTC034461	ASSOCIATED BUSINESS COUNSELLILNG SERVICES PRIVATE LIMITED	Director	10-05-01	10-05-01	-	Active	NO
7	U25209TN1978PTC007619	A-BOND STRANDS PRIVATE LIMITED	Director	31-07-02	31-07-02	-	Active	NO
8	U36911AP2003PTC040714	NORMAK INDIA PRIVATE LIMITED	Director	25-03-03	25-03-03	-	Active	NO
9	U72200AP2004PTC042465	PYTHIAN INDIA PRIVATE LIMITED	Alternate director	30-04-04	30-04-04	14-04-07	Active	NO
10	U15549AP2004PTC043249	TAZA RICA BEVERAGES PRIVATE LIMITED	Director	14-09-04	14-09-04	08-09-08	Active	NO
11	L27100AP1989PLC010122	ZENOTECH LABORATORIES LIMITED	Additional director	01-10-09	29-11-05	26-02-10	Active	NO
12	L18101AP1962PLC054323	GTN INDUSTRIES LIMITED	Director	17-12-05	17-12-05	-	Active	NO
13	U65990MH1993PLC071003	CANARA ROBECO ASSET MANAGEMENT COMPANY LIMITED	Director	26-06-07	18-04-07	16-08-07	Active	NO
14	U93000AP2008PTC057571	PACIFIC RIM ALLIANCE INDIA PRIVATE LIMITED	Director	12-02-08	12-02-08	09-05-08	Active	NO
15	U74900AP2008PTC061647	ESTELLE INDIA PRIVATE LIMITED	Director	31-10-08	31-10-08	-	Active	NO
16	U80302AP2002NPL039397	INSTITUTE OF INSURANCE AND RISK MANAGEMENT	Director	17-07-09	25-03-09	-	Active	NO
17	U80101AP1995PTC022594	TRIUMPHANT INSTITUTE OF MANAGEMENT EDUCATION PRIVATE LIMITED	Director	22-07-09	22-07-09	-	Active	NO
18	L65191RJ1943PLC000135	THE BANK OF RAJASTHAN LIMITED	Director	14-12-09	14-12-09	-	Amalgamated	NO
19	U40109AP2008PLC061202	AMRELI POWER PROJECTS LIMITED	Director	29-09-11	03-12-10	-	Active	NO

Name :	Mr. Gopakumar Gopalan Nair
Designation :	Additional Director
Address :	C-002/3, Gokul Plaza, Thakur Complex, Kandivli (East), Mumbai-400101, Maharashtra, India
Date of Birth/Age :	11.06.1941
Date of Appointment :	30.06.2010
DIN No.:	00092637

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	L24224MH1960PLC011856	ULTRAMARINE AND PIGMENTS LIMITED	Director	25-05-90	25-05-90	Active	NO
2	U74999MH1991PTC063993	BDH BIOTECH PRIVATE LIMITED	Director	14-11-91	14-11-91	Strike off	NO
3	U01110AP1999PLC033147	NANDAN CLEANTEC LIMITED	Director	20-10-04	20-10-04	Active	NO
4	L99999MH1985PLC036685	SEQUENT SCIENTIFIC LIMITED	Director	17-09-07	20-06-06	Active	NO
5	U24110AP1995PLC022303	GLOCHEM INDUSTRIES LIMITED	Additional director	30-06-10	27-06-07	Active	NO
6	U74999MH2007PTC175266	GNANLEX HERMENEUTICS PRIVATE LIMITED	Director	22-10-07	22-10-07	Active	NO
7	U24110MH1997PTC112731	ELIXIR CHEMICALS PRIVATE LIMITED	Director	15-09-08	19-11-07	Amalgamated	NO
8	U85190TN2008PTC065996	SANVED RESEARCH LABS PRIVATE LIMITED	Director	09-01-08	09-01-08	Strike off	NO

Name :	Mr. Mohan Krishna Reddy
Designation :	Director
Address :	No. 78, [New 123], Road No. 7A, Women Co-operative Society, Jubilee Hills, Hyderabad – 500033, Andhra Pradesh, India
Date of Birth/Age :	03.05.1956
Date of Appointment :	24.12.2003
DIN No.:	00093185

Other Directorship:

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U24110AP1995PLC022303	GLOCHEM INDUSTRIES LIMITED	Director	24-12-03	24-12-03	-	Active	NO
2	U74140AP1992PTC014155	M.ANANDAM CONSULTANCY SERVICES PRIVATE LIMITED	Director	01-01-05	01-01-05	-	Active	NO
3	U67120AP2005PTC047688	BANYAN SECURITIES AND FINANCIAL SERVICES PRIVATE LIMITED	Managing director	01-03-08	02-11-05	-	Active	NO
4	U74999AP2007PTC053533	ORAFIN FINANCIAL SERVICES PRIVATE LIMITED	Director	11-04-07	11-04-07	-	Active	YES
5	U72200AP2007PTC052954	THRIVE ENERGY TECHNOLOGIES PRIVATE LIMITED	Director	10-11-07	10-11-07	-	Active	NO
6	U74900TN2008PTC065902	XYLEM SUPPLY CHANGE MANAGEMENT PRIVATE LIMITED	Director	01-01-08	01-01-08	21-07-09	Active	YES
7	U45209AP2008PTC057522	3KOLL CONCRETE SOLUTIONS PRIVATE LIMITED	Director	08-02-08	08-02-08	-	Active	NO
8	L72200AP1999PLC033131	FOUR SOFT LIMITED	Director	25-09-09	19-06-09	-	Active	NO
9	U41000TN2010PTC075859	GREENTECH AQUA PRIVATE LIMITED	Director	19-01-11	19-01-11	-	Active	NO

Name :	Mr. Haubitz Harald Horst
Designation :	Alternate Director
Address :	Hausen IM Wiesental, Am Sportplatz 6, Deutschland, Germany-79688
Date of Appointment :	30.06.2010
DIN No.:	02262856
Name :	Mr. Peter Arend William Burema
Designation :	Nominee Director
Address :	Delsbergstrasse 58, 4253, Liesberg, Netherlands-4253
Date of Appointment :	30.06.2010
DIN No.:	03054636
Name :	Mr. Sundeep Kattamuri
Designation :	Whole Time Director
Address :	Plot No.48, Navanirman Nagar, Jubilee Hills, Road No.71, Hyderabad-50003, Andhra Pradesh, India
Date of Birth/Age :	17.11.1983
Date of Appointment :	05.09.2011
DIN No.:	03128742

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 30.09.2011

Names of Shareholders	No. of Shares
T. Asinarayana	34000
S. Azizunnisa Begum	77200
S. H. Basha	90000
Annapurna Pallerla	20000
Hassan Firdous	60000
Hussain Fordous	104800
K. Kasiviswanadham	19600
P. V. Maha Lakshmi	20020
M. Madan Mohan Reddy	49800
K. Parvathi	17220
K. Subbarao	1849080
K. Subrahmanyam	40020
K. Sankara Rao	19620
K. Sushma	8500
K. Jothi	50000
Acino Pharma AG, Switzerland	686000

AS ON 31.12.2011

Names of Allottees	No. of Shares
Acino Pharma AG, Switzerland	203000
Total	203000

AS ON 30.09.2011

Equity Shares Break Up	Percentage
Foreign holdings( Foreign institutional investor(s), Foreign companie(s) Foreign financial institution(s), Non-resident Indian(s) or Overseas Corporate bodies or Others	20.00
Directors or relatives of Directors	70.00
Other top fifty shareholders	10.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Contract Manufacturing of Centrizine Di Hydrochloride and Amlodopine Besylate in Small Volume

Products :

Product Description	ITC Code No
Other Organic Compounds	2942

PRODUCTION STATUS (AS ON 31.03.2011)

Particulars	Unit	Installed Capacity	Actual Production
Bulk Drugs, Intermediates and Spent Solvents	MT	478	726.155

Notes:

1. (Industrial Licensing has been abolished in respect of Bulk Drugs and formulations in terms of Press Note No.4 (1994 series) dated October 25^th 1994 issued by the Department of the Industrial Development, Ministry of Industry, Government of India and Notification No. S.O.137 (E) dated 1^st March 1999 issued by the Department of Industrial Policy and Promotion, Ministry of Industry, Government of India). Licensed Capacities for bulk drugs and formulations are not applicable.

2. Installed Capacities varies based on product mix and utilization of manufacturing facilities given the nature of the production.

3. Installed capacities are certified by the management and have not been verified by the Auditors due to technical in nature.

GENERAL INFORMATION

No. of Employees :

120 (Approximately)

Bankers :

· Punjab National Bank, Hitech City Branch, Madhapur, Hyderabad-500033, Andhra Pradesh, India

· Axis Bank Limited, 5-2-183/184, 3^rd Floor, Credit Management Centre, R P Road, Secunderabad-500003, Andhra Pradesh, India

Facilities :

Secured Loan	Rs. In Millions 31.03.2011	Rs. In Millions 31.03.2010
Working Capital Loans
From Banks	45.131	38.135
Term Loans
From Bank – Foreign Currency Loan	24.833	3.707
Vehicle Loans from Others	0.335	0.507
Total	70.299	42.349
Amount Repayable within one year	5.193	3.929
Notes: i. Working Capital Loans from Banks are secured by hypothecation of Current Assets and by Second charge on Fixed Assets of the Company. Also guaranteed by Managing Director ii. Term Loans from bank is secured by first charge on Fixed Assets of the Company. Also Guaranteed by Managing Director iii. Vehicle Loans are secured by Hypothecation of Respective Vehicle

Banking Relations :	--
Auditors :
Name :	Deloittte Haskins and Sells Chartered Accountants
Address :	Coramandel House, 1-2-10, SP Road, Secunderabad – 500003, Andhra Pradesh, India
Pan No.:	AACFD3771D

CAPITAL STRUCTURE

AS ON 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
5000000	Equity Shares	Rs.10/- each	Rs. 50.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
3426080	Equity Shares	Rs.10/- each	Rs. 34.261 Millions

Note:

Of the above 1713040 Equity Shares of Rs. 10 each have been allotted as fully paid Bonus Shares bt capitalization of General Reserve

AS ON 30.09.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
5000000	Equity Shares	Rs.10/- each	Rs. 50.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
3629080	Equity Shares	Rs.10/- each	Rs. 36.291 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		34.261	34.261	17.130
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		403.120	443.061	419.147
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		437.381	477.322	436.277
LOAN FUNDS
1] Secured Loans		70.299	42.349	39.978
2] Unsecured Loans		0.000	0.000	0.000
TOTAL BORROWING		70.299	42.349	39.978
DEFERRED TAX LIABILITIES		20.194	19.325	12.322
TOTAL		527.874	538.996	488.577
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		302.153	307.507	223.558
Capital work-in-progress		323.430	261.796	59.308
INVESTMENT		0.001	0.001	22.531
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	147.558	147.201	113.823
	Sundry Debtors	61.256	58.474	78.405
	Cash & Bank Balances	1.770	69.988	80.433
	Other Current Assets	0.163	1.106	1.079
	Loans & Advances	78.404	82.866	30.126
Total Current Assets		289.151	359.635	303.866
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	376.293	376.581	64.419
	Other Current Liabilities	3.238	2.797	2.927
	Provisions	7.330	10.565	53.340
Total Current Liabilities		386.861	389.943	120.686
Net Current Assets		(97.710)	(30.308)	183.180
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		527.874	538.996	488.577

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	356.598	821.521	676.729
		Other Income	5.632	19.970	8.334
		TOTAL (A)	362.230	841.491	685.063
Less	EXPENSES
		Purchase of Goods for Resale	10.883	1.504	0.541
		Raw Materials Consumed	177.178	261.577	235.178
		Operating Expenses	201.898	486.389	172.702
		Decrease / (Increase) in Finished Goods and Work in Process	(23.836)	12.021	(27.135)
		TOTAL (B)	366.123	761.491	381.286
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		(3.893)	80.000	303.777
Less	FINANCIAL EXPENSES (D)		5.833	4.761	7.793
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		(9.726)	75.239	295.984
Less/ Add	DEPRECIATION/ AMORTISATION (F)		28.801	24.012	17.516
	PROFIT BEFORE TAX (E-F) (G)		(38.527)	51.227	278.468
Less	TAX (H)		1.416	8.175	56.615
	PROFIT AFTER TAX (G-H) (I)		(39.943)	43.052	221.853
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		44.451	38.403	16.613
Less	APPROPRIATIONS
		Transfer to General Reserve	0.000	35.000	170.000
		Dividend	0.000	1.713	25.696
		Tax on Dividend	0.000	0.291	4.367
	BALANCE CARRIED TO THE B/S		4.508	44.451	38.403
	EXPORT VALUE		181.018	732.772	570.828
	IMPORTS
		Raw Materials	49.548	113.202	79.405
		Capital Goods	4.506	15.333	7.351
	TOTAL IMPORTS		54.054	128.535	86.756
	Earnings Per Share (Rs.)		(11.66)	12.56	64.76

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	(11.03)	5.12	32.38
Net Profit Margin (PBT/Sales)	(%)	(10.80)	6.24	41.15
Return on Total Assets (PBT/Total Assets}	(%)	(6.52)	7.68	52.80
Return on Investment (ROI) (PBT/Networth)		(0.09)	0.11	0.64
Debt Equity Ratio (Total Liability/Networth)		1.09	0.95	0.40
Current Ratio (Current Asset/Current Liability)		0.75	0.92	2.52

LOCAL AGENCY FURTHER INFORMATION

BUSINESS REVIEW:

The Company has made a turnover of Rs.379.83 Millions for the year ended 31^st March 2011 compared to the previous year's turnover of Rs.830.87 Minions representing a fall of 54%.

The Company has made an EBITDA of Rs. 3.89 Millions (1.02%of Turnover) for the year, significantly lower compared to the previous year.

Consequent to certain observations made by the EMEA authorities during their inspection of Vizag facility for GMP compliance in Feb 2010, there was a recall of our product "Clopidogrel Besilate" sold in European Markets. This event has impacted the Company's business for the current year in European Markets since the Company had to discontinue the manufacturing of Clopidogrel product at our Vizag facility. However, the Company has taken significant corrective steps towards restoration of the GMP certification for the Vizag facility and has successfully been re-inspected and restored with GMP certification in May 2011.

Meanwhile, the Company has also started developing certain new products to improve its revenues. Following steps have also been taken with precise and careful planning to accelerate restoration of operations to its optimum level:

a) Expanding our customer base and product base,

b) Building customer confidence through several GMP audits and inspections,

c) Exploring new business tie-ups with reputed companies and

d) Entering into arrangements with customers for our Dosage Forms Facility capacities.

They expect that the above actions will enable the Company to return to its normal operational position in the next year.

OUTLOOK

The Company has received the EU GMP certification of its Vizag Facility in May 2011, following the inspection of the Facility by EDQM in Jan 2011.

After passing through testing times in the current financial year and having taken corrective steps and several initiatives, the Company is confident of achieving its targets for 2011-12 and 2012-13. The Company will continue its thrust on exports to international markets particularly the regulated markets. The Company is also developing new processes and new products in its R and D to maintain its market competiveness, increasing its market share and adding new customers.

In order to achieve these objectives, certain capital expenditure has been identified to provide for balancing equipments that will enable the Company to accelerate its growth and thereby significantly improve the performance from the financial year 2011-12 onwards. The additional capital expenditure also includes the requirements for regulatory compliances.

The Company has already started ramping up the volumes of its existing APls. Simultaneously three new products are being scaled up and commercialized during the current year. Another three products are ready for being scaled up. With these plans, the Company will endeavor to achieve 150% incremental growth in 2011-12.

Finished Dosage Forms:

As are aware, the Company has also made a foray into the area of Finished Dosage Forms (Solid Orals) and the Board is also pleased to announce that the Jadcherla Facility is also ready in all aspects to take up the manufacture pending regulatory approvals. Several customers have visited the Unit and have expressed interest in supplies from this facility. The Company is negotiating with several such customers and expects several supply contracts to materialize soon. This facility is scheduled for inspection by MHRA during October 2011. Subsequent to which the facility would be ready to cater to such customers' orders.

CONTINGENT LIABILITIES

(Rs. In Millions)

PARTICULARS	31.03.2011	31.03.2010
Letters of Credit (Denominated by Foreign Currency)	4.752	12.746
Counter Guarantees Given to Bank	6.550	5.150

FORM 8

Corporate identity number of the company	U24110AP1995PLC022303
Name of the company	GLOCHEM INDUSTRIES LIMITED
Address of the registered office or of the principal place of business in India of the company	GV Chambers, 7-2-C8 and C8/2, IDA Sanath Nagar, Hyderabad - 500 018. India.
This form is for	Modification of charge
Type of charge	Immovable property Book debts Movable property (not being pledge)
Particular of charge holder	Axis Bank Limited, 5-2-183/184, 3^rd Floor, Credit Management Centre, R P Road, Secunderabad-500003, Andhra Pradesh, India
Nature of instrument creating charge	Memorandum of Deposit of Title Deeds Memorandum of Entry of PNB
Date of instrument Creating the charge	09.11.2011
Amount secured by the charge	Rs. 199.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of interest No change in previous terms and conditions Terms of repayment No change in previous terms and conditions Margin No change in previous terms and conditions Extent and operation of the charge First charge on below mentioned properties for term loan or Rs.50.000 Millions of Axis bank and second charge on parripassu basis with PNB for working capital limits of Rs.149.00 Millions of Axis Bank . (i) Plot No 77 in Survey Nos. 36,37 and 46 Jawaharlal Nehru Pharma City situated within the village Limits of Thanam, parawada Mandal Visakhapatnam District, Andhra Pradesh. (ii) Plot No 8 and 9 In S. No 174 To 176 of Bollaraum Village, Narsapur Taluka, Medak District No change in other previous terms and conditions.
Short particulars of the property charged (Including location of the property)	Plot No 77 in Survey Nos. 36,37 and 46 Jawaharlal Nehru Pharma City situated within the village Limits of Thanam, parawada Mandal Visakhapatnam District. Plot No 8 and 9 In S. No 174 To 176 of Bollaraum Village, Narsapur Taluka, Medak District
Charge identification number of the charge to be modified	90259724
Particulars of the present modification	Extension of Equitable mortgage by way of deposit of title deeds for first charge on term loan of Rs. 50.000 Millions and second parripassu charge along with Punjab National Bank for working capital of Rs.149.000 Millions of Axis Bank Limtied in respect of properties (i) Plot No 77 in Survey Nos. 36,37 and 46 Jawaharlal Nehru Pharma City situated within the village Limits of Thanam, parawada Mandal Visakhapatnam District (ii) Plot No 8 and 9 In S. No 174 To 176 Of Bollaraum Village, Narsapur Taluka, Medak District.

FIXED ASSETS

• Land
• Building
• Plant and machinery
• Electrical Installation
• Computers
• Office Equipments
• Furniture and Fixture
• Vehicles
• Laboratory Equipments

AS PER WEBSITE

Evolution of Glochem

1996	Begins as a Trading Company
1997   -  2002	Manufacturing operations commenced in 1997 and got Stabilized. Facility received WHO GMP certificate in 2002.
2004	Received COS for Amlodipine Besilate and Cetirizine DIHCL. DMF for Amlodipine Maleate approved by several European Health Authorities Development of non-Bisulphate salt of Clopidogrel commences.
2005 - 2006	· Development of non-Bisulphate salt of Clopidogrel. · Entered into a strategic business association and equity partnership arrangement with Cimex (currently known as Acino) Pharma, Switzerland · DMFs filed with USFDA - for Amlodipine Besilate and  Cetirizine  Dihcl
2007	· Received EUGMP approval for Amlodipine Besilate. · USFDA approval received for its facilities at Unit 1, Bollaram, Hyderabad. · A new cGMP/USFDA compliant API manufacturing facility at Pharmacity, Visakhapatnam has been commissioned. DMFs filed with · USFDA for Clopidogrel Bisulphate and Levo Cetririzine · Health Canada for Clopidogrel Bisulphate, Amlodipine Maleate, Amlodipine Besilate and Cetirizine Di hcl.
2008	· Approval received for the non Bisulphate salt of Clopidogrel from an European regulatory authority. · DMF filed with USFDA for Raloxifene HCl. · Unit -2 at Vizag received EUGMP approval
2009	· An additional API manufacturing block with 26 reactors (with reaction volume of 40 M³) with two pharma (class 100,000) modules has been commissioned at Vizag in Aug 2009. · A new USFDA, EUGMP and MHRA compliant Finished Dosage Forms facility is coming up at Pharma special SEZ at Jadcherla near Hyderabad · Unit No 2 at Pharma City, Vizag receives USFDA approval. · At unit -2, Process validation for Amlodipine Mesilate, Amlodipine Besilate, Candesartan Cilexetil, and Eprosartan Mesylate, completed. DMFs are under preparation.
2010	A new USFDA, EUGMP and MHRA compliant Finished Dosage Forms facility is commissioned at Pharma special SEZ at Jadcherla near Hyderabad

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. 50.02
UK Pound	1	Rs. 79.31
Euro	1	Rs. 66.02

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	7
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	7
--PROFITABILIRY	1~10	4
--LIQUIDITY	1~10	--
--LEVERAGE	1~10	6
--RESERVES	1~10	6
--CREDIT LINES	1~10	6
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	YES
--AFFILIATION	YES/NO	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		47

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.