MIRA INFORM REPORT

Report Date :

07.11.2012

IDENTIFICATION DETAILS

Name :	LYKA LABS LIMITED
Registered Office :	4801/B and 4802/A, GIDC, Industrial Estate, Ankleshwar – 393002, Gujarat
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	29.12.1976
Com. Reg. No.:	04-008738
Capital Investment / Paid-up Capital :	Rs.226.657 Millions
CIN No.: [Company Identification No.]	L24230GJ1976PLC008738
TAN No.: [Tax Deduction & Collection Account No.]	BRDL00299F
PAN No.: [Permanent Account No.]	AAACL0820G
Legal Form :	A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchange.
Line of Business :	Manufacturing and Marketing of Bulk Drugs Formulations in the form of Capsules, Tablets, Ointments, Injectable and Syrups - Dry Liquids.
No. of Employees :	Not Divulged

RATING & COMMENTS

MIRA’s Rating :

B (28)

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

Maximum Credit Limit :	USD 2968680
Status :	Moderate
Payment Behaviour :	Slow
Litigation :	Clear
Comments :	Subject is an established company having moderate track. It has incurred loss from its operations during 2012. There appears some accumulated losses recorded by the company which has increased during this year. However, trade relations are reported as fair. Business is active. Payments are reported as slow. The company can be considered 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

INDIAN ECONOMIC OVERVIEW

India is developing into an open-market economy, yet traces of its past autarkic policies remain. Economic liberalization, including industrial deregulation, privatization of state-owned enterprises, and reduced controls on foreign trade and investment, began in the early 1990s and has served to accelerate the country's growth, which has averaged more than 7% per year since 1997. India's diverse economy encompasses traditional village farming, modern agriculture, handicrafts, a wide range of modern industries, and a multitude of services. Slightly more than half of the work force is in agriculture, but services are the major source of economic growth, accounting for more than half of India's output, with only one-third of its labor force. India has capitalized on its large educated English-speaking population to become a major exporter of information technology services and software workers. In 2010, the Indian economy rebounded robustly from the global financial crisis - in large part because of strong domestic demand - and growth exceeded 8% year-on-year in real terms. However, India's economic growth in 2011 slowed because of persistently high inflation and interest rates and little progress on economic reforms. High international crude prices have exacerbated the government's fuel subsidy expenditures contributing to a higher fiscal deficit, and a worsening current account deficit. Little economic reform took place in 2011 largely due to corruption scandals that have slowed legislative work. India's medium-term growth outlook is positive due to a young population and corresponding low dependency ratio, healthy savings and investment rates, and increasing integration into the global economy. India has many long-term challenges that it has not yet fully addressed, including widespread poverty, inadequate physical and social infrastructure, limited non-agricultural employment opportunities, scarce access to quality basic and higher education, and accommodating rural-to-urban migration.

Source : CIA

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 / Factory:	4801/B and 4802/A, GIDC, Industrial Estate, Ankleshwar – 393002, Gujarat, India
Tel. No.:	91-2646-221422/220549
Fax No.:	91-2646-250692
E-Mail :	enquiry@lykalabs.com investorredressal@lykalabs.com companysecretary@lykalabs.com
Website :	www.lykalabs.com
Administrative Office :	101, Shiv Shakti Industrial Estate, Andheri-Kurla Road, Andheri (East), Mumbai - 400 059, Maharashtra, India
Tel. No.:	91-22-66112200
Fax No.:	91-22-66112248

DIRECTORS

As on 30.09.2010

Name :

Mr. Narendra Ishwarlal Gandhi

Designation :

Managing director

Address :

3-C, Ridge Apartments, B.C. Kher Marg, Malabar Hill, Mumbai-400006 Maharashtra, India

Date of Birth/Age :

06.04.1950

Date of Appointment :

03.01.1977

DIN No.:

00021530

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	L24230GJ1976PLC008738	LYKA LABS LIMITED	Managing director	3/01/1977	3/01/1977	-	Active	NO
2	U67120MH1984PTC031979	HIRALAXMI BUSINESS FINANCE PRIVATE LIMITED	Director	3/02/1984	3/02/1984	-	Active	NO
3	U24239MH1991PLC059995	PHARMACEUTICAL BUSINESS GROUP(INDIA) LIMITED	Director	25/01/1991	25/01/1991	29/05/2008	Active	NO
4	L24230GJ1981PLC004878	GUJARAT THEMIS BIOSYN LIMITED	Director	25/01/1991	25/01/1991	22/09/2009	Active	NO
5	U51900MH1993PTC075264	ENAI TRADING AND INVESTMENT PRIVATE LIMITED	Director	23/11/1993	23/11/1993	-	Active	NO
6	U51100GJ1992PLC023975	LYKA EXPORTS LIMITED	Director	14/02/1995	14/02/1995	-	Active	NO
7	L65910MH1991PLC064323	RELIC TECHNOLOGIES LIMITED	Director	15/05/1995	15/05/1995	29/04/2008	Active	NO
8	U19120WB1960PTC024512	TENZING AND TENZING INDIA PRIVATE LIMITED	Director	12/04/2000	1/01/2000	-	Active	NO
9	U24234MH1993PLC072947	LYKA BDR INTERNATIONAL LIMITED	Director	17/10/2003	17/10/2003	-	Active	NO
10	U67120MH1995PLC088000	RELIC PHARMA LIMITED	Director	15/03/2005	15/03/2005	30/05/2008	Active	NO
11	U85191MH2011PTC215040	LYKA LIFESCIENCES PRIVATE LIMITED	Director	21/03/2011	21/03/2011	-	Active	NO
12	U85191MH2011PLC215995	LYKA LIFECARE LIMITED	Director	8/04/2011	8/04/2011	-	Active	NO

Name :

Mrs. Nehal Narendra Gandhi

Designation :

Director

Address :

3-C, Ridge Apartments, B.C. Kher Marg, Malabar Hill, Mumbai-400006 Maharashtra, India

Date of Birth/Age :

30.09.1952

Date of Appointment :

04.02.1995

DIN No.:

00021580

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	U51900MH1993PTC075264	ENAI TRADING AND INVESTMENT PRIVATE LIMITED	Director	23/11/1993	23/11/1993	-	Active	NO
2	U51100GJ1992PLC023975	LYKA EXPORTS LIMITED	Director	15/04/1994	15/04/1994	11/08/2011	Active	NO
3	L24230GJ1976PLC008738	LYKA LABS LIMITED	Director	4/02/1995	4/02/1995	-	Active	NO
4	U19120WB1960PTC024512	TENZING AND TENZING INDIA PRIVATE LIMITED	Director	12/04/2000	1/01/2000	-	Active	NO
5	U24234MH1993PLC072947	LYKA BDR INTERNATIONAL LIMITED	Whole-time director	31/01/2008	17/10/2003	10/08/2011	Active	NO
6	U85100MH2007PTC172163	MEDISAFE SOLUTIONS INDIA PRIVATE LIMITED	Director	5/10/2009	5/10/2009	-	Strike off	NO
7	U85191MH2011PTC215040	LYKA LIFESCIENCES PRIVATE LIMITED	Director	21/03/2011	21/03/2011	-	Active	NO
8	U85191MH2011PLC215995	LYKA LIFECARE LIMITED	Director	8/04/2011	8/04/2011	-	Active	NO

Name :

Mr. Anantha Subrammani Rangaswamy Iyer

Designation :

Director

Address :

1002/3, Doll Apartments, Bhatt Lane, Kandivali (West), Mumbai – 400067, Maharashtra, India

Date of Birth/Age :

25.12.1955

Date of Appointment :

30.07.1999

DIN No.:

00020662

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	U51100GJ1992PLC023975	LYKA EXPORTS LIMITED	Director	19/07/1993	19/07/1993	-	Active	NO
2	L24230GJ1976PLC008738	LYKA LABS LIMITED	Director	1/07/2009	30/07/1999	-	Active	NO
3	U45200MH1994PTC081205	POONAM GRAH NIRMAN PRIVATE LIMITED	Director	1/12/2000	1/12/2000	-	Active	NO
4	U24110MH2007PTC167502	EUROPA BIOCARE PRIVATE LIMITED	Director	3/02/2007	3/02/2007	-	Active	NO

Name :

Mr. Sandeep Padmakant Parikh

Designation :

Director

Address :

B-7, Anand Bhavan, Bajaj Road, Vile Parle (West), Mumbai – 400056, Maharashtra, India

Date of Birth/Age :

04.01.1960

Date of Appointment :

31.01.2007

DIN No.:

00022365

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	U67120MH1995PLC092327	WALL STREET SECURITIES ANDINVESTMENTS (INDIA) LIMITED	Director	17/11/2001	17/11/2001	-	Active	NO
2	U99999MH1998PTC116624	Y POINT TECHNOLOGIES (INDIA) PRIVATE LIMITED	Director	12/05/2003	12/05/2003	-	Amalgamated	NO
3	U72900MH2000PTC126767	Y-POINT (INDIA) PRIVATE LIMITED	Director	12/05/2003	12/05/2003	-	Amalgamated	NO
4	U51900MH1999PTC118208	TEKEDGE (INDIA) PRIVATE LIMITED	Director	13/06/2003	13/06/2003	-	Amalgamated	NO
5	U72900MH2002PTC138380	XORIANT SOLUTIONS PRIVATE LIMITED	Director	13/06/2003	13/06/2003	-	Active	NO
6	U74200MH1992PTC065011	TEK EDGE SERVICES (INDIA) PRIVATE LIMITED	Director	1/08/2003	1/08/2003	-	Strike off	NO
7	U65910MH1986PTC040012	WALL STREET DERIVATIVES AND FINANCIAL SERVICES (INDIA) PRIVATE LIMITED	Director	29/03/2004	29/03/2004	-	Active	NO
8	L71110MH1962PLC012396	PATEL INTEGRATED LOGISTICS LIMITED (CN)	Director	1/10/2006	1/10/2006	-	Active	NO
9	L24230GJ1976PLC008738	LYKA LABS LIMITED	Director	31/01/2007	31/01/2007	-	Active	NO
10	U74140MH2008PTC183608	SOLEIL FINANCIAL SERVICES PRIVATE LIMITED	Director	17/06/2008	17/06/2008	-	Active	YES
11	U92100MH2008PTC184767	ARUN GOVIL PRODUCTIONS PRIVATE LIMITED	Director	17/07/2008	17/07/2008	-	Active	YES
12	U72200MH2008PTC184756	CEMTREX (INDIA) PRIVATE LIMITED	Director	17/07/2008	17/07/2008	-	Active	NO
13	U74140MH2008PTC187722	DEVELOPMENT EQUITIES PRIVATE LIMITED	Director	22/10/2008	22/10/2008	-	Active	NO
14	U92100MH2008PTC188097	CINE VISION DISTRIBUTORS PRIVATE LIMITED	Director	10/11/2008	10/11/2008	-	Active	YES
15	U24234MH1993PLC072947	LYKA BDR INTERNATIONAL LIMITED	Director	26/02/2010	22/09/2009	-	Active	NO
16	U65990MH2005PTC155633	ATLANTIS INVESTMENT ADVISORS (INDIA) PRIVATE LIMITED	Additional director	16/06/2010	16/06/2010	-	Strike off	NO
17	U74990MH2010PTC204495	DUCON POWER SYSTEMS (INDIA) PRIVATE LIMITED	Director	19/06/2010	19/06/2010	-	Active	NO

Name :

Mr. Dushyant Balmukund Parikh

Designation :

Director

Address :

32 Quail Run Road, Suffield – 06078, United States of America

Date of Birth/Age :

17.06.1952

Date of Appointment :

15.05.2006

DIN No.:

00368820

Name :

Mr. Vinodkant Amritlal Sanghani

Designation :

Director

Address :

‘Sanjivi’, 13, Ami Society, Diwalipura, J.P. Road, Baroda – 390015, Gujarat, India

Date of Birth/Age :

21.01.1931

Date of Appointment :

29.09.1994

DIN No.:

00967316

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	L24230GJ1976PLC008738	LYKA LABS LIMITED	Director	29/09/1994	29/09/1994	-	Active	NO
2	U72200GJ1998PTC035027	NOMUS INTERNET SYSTEMS PRIVATE LIMITED	Director	25/11/1998	25/11/1998	-	Active	NO

Name :

Mr. V S Shanbhag

Designation :

Director

KEY EXECUTIVES

Name :	Mr. Piyush Girish Hindia
Designation :	Company Secretary
Address :	B/20, Anand Sagar, Dr. Radhakrishnan Cross Road, Andheri (East), Mumbai – 400069, Maharashtra, India
Date of Birth/Age :	22.10.1957
Date of Appointment :	02.07.2008
PAN No.:	AAAPH3500J

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 30.09.2012

Category of Shareholders	No. of Shares	Percentage of Holding
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	4824850	22.36
Bodies Corporate	202415	0.94
(2) Foreign
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	3400	0.02
Financial Institutions / Banks	700	0.00
Central Government / State Government(s)	130000	0.60
Venture Capital Funds	1445	0.01
Insurance Companies	1000	0.00
Foreign Institutional Investors	926311	4.29
(2) Non-Institutions
Bodies Corporate	2037125	9.44
Individuals
Individual shareholders holding nominal share capital up to Rs.0.100 Million	7048571	32.66
Individual shareholders holding nominal share capital in excess of Rs.0.100 Million	4299525	19.92
Any Others (Specify)
Clearing Members	50044	0.23
Non Resident Indians	404614	1.87
Foreign Corporate Bodies	1650000	7.65
(C) Shares held by Custodians and against which Depository Receipts have been issued
(1) Promoter and Promoter Group	--	--
(2) Public	--	--
Total	21580000	100.00

BUSINESS DETAILS

Line of Business :

Manufacturing and Marketing of Bulk Drugs Formulations in the form of Capsules, Tablets, Ointments, Injectable and Syrups - Dry Liquids.

Products :

ITEM CODE NO. (ITC CODE)	PRODUCTION DESCRIPTION
29420090	Citicoline
29420090	Ceftriaxone + Tazobactum
29419090	Pantoprazole

PRODUCTION STATUS AS ON 31.03.2012

Particulars	Unit	Actual Production
A. Bulk Drugs	Kgs.	#
B. Formulations:
Capsules	Nos.	325000
Tablets	Nos.	300000
Ointments	Kgs.	300
Injectables	Vials/ Ampoules	30000
Syrup - Dry	Bottles/ Sachets	11250
- Liquid	Litres	--

Note:

* As certified by the management

** (i) Actual production of Bulk Drugs includes Production for Captive consumption. Actual Production of formulations includes quantity manufactured by processor.

(ii) Actual production of Bulk Drugs and Formulations does not include quantity manufactured for third party.

# Installed capacity has not been disclosed as this is variable and subject to changes in product mix, and utilization of manufacturing facilities, given the nature of operations.

GENERAL INFORMATION

No. of Employees :

Not Divulged

Bankers :

· The Kapol Co-operative Bank Limited

· Dena Bank, 67-A, Krishna Bhavan, Nehru Road, Vile Parle (East), Mumbai – 400057, Maharashtra, India

· Bank of Maharashtra

Facilities :

Secured Loan	As on 31.03.2012 (Rs. in Millions) (18 Months)	As on 30.09.2010 (Rs. in Millions)
Non Convertible Debentures (Privately Placed)	98.200	0.000
(a) Loans and Advances from Banks:
Working Capital	246.696	285.469
Term Loans from Bank	320.249	231.136
(b) Interest accrued and due on above loans	5.809	0.000
Total	670.954	516.605

Of the above Debentures issued during the period:

(i) 245 13.5% debenture of Rs. 1lacs each are redeemable at end of 36Months

with put & call option for redemption at the end of 24 months

(ii) 99 13.5% debenture of Rs. 1lacs each are redeemable at end of 30Months

with put & call option for redemption at the end of 21 months

(iii) 110 13.5% debenture of Rs. 1lacs each are redeemable at end of 30Months

(iv) 128 13.5% debenture of Rs. 1lacs each are redeemable at end of 33Months

(v) 104 13.5% debenture of Rs. 1lacs each are redeemable at end of 36Months

(vi) 54 13.75% debenture of Rs. 1lacs each are redeemable at end of 39Months

(vii) 70 13.5% debenture of v1lacs each are redeemable at end of 33Months

with put & call option for redemption at the end of 27 months

(viii) 26 13.75% debenture of Rs. 1lacs each are redeemable at end of 27Months

(ix) 77 13.5% debenture of Rs. 1lacs each are redeemable at end of 21Months

(x) 69 13.5% debenture of Rs. 1lacs each are redeemable at end of 18Months

Unsecured Loan	As on 31.03.2012 (Rs. in Millions) (18 Months)	As on 30.09.2010 (Rs. in Millions)
(a) Fixed Deposits	249.650	208.784
(b) Sales Tax Deferement Scheme	16.383	23.170
(c) Deferred Liability : Due to Hire purchase vendors (Who have a lien on the assets acquired on Hire purchase)	5.823	3.237
(d) Inter Corporate Deposits	44.777	37.055
Total	316.633	272.246

Financial Institute :	IL and FS Trust Company Limited, IL and FS Financial Centre, Plot No. C22, G Block, Bandra Kurla Complex, Bandra (East), Mumbai – 400051, Maharashtra, India
Banking Relations :	--
Auditors :
Name :	M.A. Parikh and Company Chartered Accountants
Address :	Yusuf Building, 2^nd Floor, 43, Mahatma Gandhi Road, Mumbai – 400001, Maharashtra, India
PAN.:	AAAFM1433H
Branch Auditors :	Thakorebhai Shirish Desai and Butala Chartered Accountants
Associates :	· Lyka Exports Limited · Lyka Securities and Investment Private Limited
Subsidiaries :	Lyka BDR International Limited
Entities owned by / over which is able to exercise significant influence :	Enai Trading and Investment Private Limited

CAPITAL STRUCTURE

AS ON 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
24000000	Equity Shares	Rs.10/- each	Rs.240.000 Millions
200000	Redeemable Preference Shares	Rs.100/- each	Rs.20.000 Millions
	TOTAL		Rs.260.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
21580000	Equity Shares	Rs.10/- each	Rs.215.800 Millions
108570	10% Cumulative Redeemable Preference Shares	Rs.100/- each	Rs.10.857 Millions
	TOTAL		Rs.226.657 Millions

Of the above shares

1) 32,220 Equity Shares of Rs.10 (as subdivided) each were allotted to the Shareholders of erstwhile Lyphin Chemicals Private Limited pursuant to scheme of amalgamation without payment being received in cash.

2) 1,200,000 Equity Shares of Rs.10 each were allotted as fully paid up by way of Bonus shares by capitalisation of General Reserve.

3) 1,160,000 Equity Shares of Rs.10 each were alloted as fully paid up as under:

(a) 920,000 Equity shares on conversion of 92,000 (Series A) fully Convertible Debentures of Rs.200 each into 10 Shares at a premium of Rs.10 each.

(b) 200,000 Equity shares on conversion of the convertible portion of Rs.40 each of 100,000 (Series B) Convertible Debentures into 2 Shares at a premium of Rs.10 each.

(c) 40,000 Equity shares on conversion of 40,000 zero interest fully Convertible Debentures into one equity share of Rs.10 each at a premium of Rs.61 each.

4) 4,000,000 Equity share of Rs.10 each on conversion of Global Depository Receipt at a premium of Rs.47.45 each.

5) 1,250,000 Equity shares of Rs.10 each on conversion of non-transferable Equity Share Warrants to Promoters, Promoters group, Domestic investors and Business Associates.

6) 930,000 Equity shares of Rs.10 each on Preferential basis to Promoters and Business Associates.

7) 6,380,000 Equity shares of Rs.10 each on Preferential basis to Promoters and Domestic investors.

8) 650,000 Equity shares of Rs.10 each on Preferential basis to Promoters group and Domestic investors.

9) 108,570 10% Cumulative Redeemable Preference Shares of Rs.100 each fully paid up redeemable at the option of the Company but not later than 20 years from the date of allotment.

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2012 (18 Months)	30.09.2010	30.09.2009
SHAREHOLDERS FUNDS
1] Share Capital		226.657	226.657	226.657
2] Equity Share Warrants		0.000	0.000	0.000
3] Reserves & Surplus		844.528	1039.557	793.583
4] (Accumulated Losses)		(329.015)	(271.865)	(289.965)
NETWORTH		742.170	994.349	730.275
LOAN FUNDS
1] Secured Loans		670.955	516.605	469.717
2] Unsecured Loans		316.633	272.246	182.435
TOTAL BORROWING		987.588	788.851	652.152
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		1729.758	1783.200	1382.427
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		837.734	1155.434	670.678
Capital work-in-progress		188.253	82.984	51.086
INVESTMENT		202.235	202.292	202.329
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	149.678	131.394	116.010
	Sundry Debtors	494.975	510.968	455.193
	Cash & Bank Balances	18.236	26.411	27.761
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	533.952	262.181	358.946
Total Current Assets		1196.841	930.954	957.910
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	469.660	386.008	381.182
	Other Current Liabilities	239.235	216.045	190.871
	Provisions	0.235	0.235	1.302
Total Current Liabilities		709.130	602.288	573.355
Net Current Assets		487.711	328.666	384.555
MISCELLANEOUS EXPENSES		13.825	13.824	73.779
TOTAL		1729.758	1783.200	1382.427

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012 (18 Months)	30.09.2010	30.09.2009
	SALES
		Income	1341.927	1158.200	1505.261
		Processing and Labour Charges Received	56.190	28.792	15.494
		Other Income	53.313	22.018	65.595
		TOTAL (A)	1451.430	1209.010	1586.350
Less	EXPENSES
		Manufacturing and Other Expenses	1315.655	1032.099	1454.339
		TOTAL (B)	1315.655	1032.099	1454.339
Less	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		135.775	176.911	132.011
Less	FINANCIAL EXPENSES (D)		225.552	111.212	144.504
	PROFIT/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		(89.777)	65.699	(12.493)
Less/ Add	DEPRECIATION/ AMORTISATION (F)		54.588	33.959	36.929
	(LOSS) / PROFIT BEFORE EXCEPTIONAL ITEMS AND TAXES.		(144.365)	31.740	(49.422)
Add/ (Less)	EXCEPTIONAL ITEMS
	PROFIT/(LOSS) ON SALE OF FIXED ASSETS (Net)		88.464	(0.441)	0.000
	AMORTIZATION OF EXPENSES FOR RESTRUCTING OF LOAN		(1.249)	0.000	0.000
	FOREIGN CURRENCY MONETARY ITEM TRANSLATION		0.000	(13.823)	0.000
	PROFIT/ (LOSS) BEFORE TAX (E-F) (G)		(57.149)	17.473	(49.422)
Less	TAX (H)		0.000	(0.627)	15.020
	PROFIT/ (LOSS) AFTER TAX (G-H) (I)		(57.149)	18.100	(64.442)
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		(271.865)	(289.965)	(225.523)
	BALANCE CARRIED TO THE B/S		(329.015)	(271.865)	(289.965)
	EARNINGS IN FOREIGN CURRENCY
		Export of goods on FOB basis	10.413	14.307	11.893
		Others Earnings	6.482	0.000	0.271
	TOTAL EARNINGS		16.895	14.307	12.164
	IMPORTS
		Raw Materials	140.825	117.252	207.789
		Capital Goods	0.000	0.000	2.386
	TOTAL IMPORTS		140.825	117.252	210.175
	Earnings/ (Loss) Per Share (Rs.)		(2.65)	0.79	(3.07)

QUARTERLY RESULTS

PARTICULARS	1^st Quarter 30.06.2012
	UnAudited
Net Sales	212.200
Total Expenditure	184.440
PBIDT (Excl OI)	27.760
Other Income	5.040
Operating Profit	32.800
Interest	36.830
Exceptional Items	4.970
PBDT	0.940
Depreciation	7.800
Profit Before Tax	(6.860)
Tax	0.000
Provisions and contingencies	0.000
Profit After Tax	(6.860)
Extraordinary Items	0.000
Prior Period Expenses	0.000
Other Adjustments	0.000
Net Profit	(6.860)

KEY RATIOS

PARTICULARS		31.03.2012 (18 Months)	30.09.2010	30.09.2009
PAT / Total Income	(%)	(3.94)	1.50	4.06
Net Profit Margin (PBT/Sales)	(%)	(4.25)	2.70	3.28
Return on Total Assets (PBT/Total Assets}	(%)	(2.81)	1.50	3.03
Return on Investment (ROI) (PBT/Networth)		(0.08)	0.03	(0.07)
Debt Equity Ratio (Total Liability/Networth)		2.29	1.39	1.68
Current Ratio (Current Asset/Current Liability)		1.69	1.54	1.67

LOCAL AGENCY FURTHER INFORMATION

OPERATIONS

During the period, the earning before interest, tax, and depreciation of the company was Rs.223.000 Millions and on an annualized basis was Rs.148.700 Millions as against Rs.176.500 Millions of the previous Year. The Company had operational loss of Rs.2.600 Millions and on an annualized basis, the operational loss was Rs.1.700 Millions as against operating profit of Rs.65.300 Millions of previous year which was mainly due to suspension of operations at Tarapur factory for modernization/upgradation of plant and increase in finance cost as well as sealing of our Ankleshwar plant for a short period.

The Company has received demand notice from the Government for payment of about Rs.200.000 Millions, including interest, under provisions of Drug Price Equalization Account (DPEA) of DPCO 1979. The main demand pertains to a product, which in the opinion of the Company and the Legal Experts was not covered under the provisions of DPCO 1979. As per legal opinion, the Company has a good case and the likelihood of success outweighs the possibility of the matter being rejected on merits. The demand was challenged by the Company by filing application in the Hon’ble Gujarat High Court at Ahmedabad. However, to pressurize the Company to make the payment, the Government, through the Mamlatdar, Ankleshwar, sealed the factory at Ankleshwar from 25th June, 2011 to 18th July, 2011. As per the interim order passed by the Hon’ ble Gujarat High Court, the Company deposited Rs.100.000 Millions with the Government and the factory was desealed. Due to sealing of the factory, and consequential regulatory issues, the production and sales of the Company and its working Capital was very adversely impacted resulting into unexpected heavy losses.

The Company’s Lyophilized products have been receiving encouraging response from major Pharma Companies. TheCompany has planned expansion of its Lyophilization facility at Ankleshwar factory for increased manufacturing capacity and modernization/ upgradation of its manufacturing facility at Tarapur.The Company’s present Lyophilization facility at Ankleshwar is WHO GMP compliant which is approved by renowned Pharma Companies as well as several overseas Regulatory Authorities.

The prospects of lyophilized products, both formulations and Bulk Drugs, in domestic and International Markets are promising. These products form the backbone of the sales from Company’s Ankleshwar plant. Company’s manufacturing activities for marketing by renowned Pharmaceutical Companies is generating reasonable revenue for the Company.

The sales of Critical Care Injectable Products of the Company have started picking up and the overall performance of this segment of activities is improving. The production at Tarapur factory has been suspended for modernization/upgradation of the plant which is expected to start before close of the calendar year 2012. Due to suspension of operations at Tarapur Factory, the overall sales and profitability of the Company was adversely affected.

During the period under report, the Company in consultation with IDBI capital Market services Ltd had undertaken Corporate Restructuring Programme and sold some of its unproductive assets, the realization of which was utilized towards reduction of outstanding of the Banks. In pursuant to the said Restructuring Programme, the Company’s Banker, Dena Bank has also restructured the existing credit facilities of the Company and has sanctioned additional credit facilities to the Company for its expansion/modernization and additional working capital requirements.

During the period, the Company has entered into the Technical Know - How cum Royalty Agreements, for manufacture of High Tech products to the Companies based in Turkey and Indonesia. The Company is amongst first few Companies in India to export the Technical Know - How and similar arrangements are under discussion in other countries.

During the period under report, the Company has received permission for eight new products from Drug Regulatory Authorities and has applied for five more new products.

PATENTS

During the period under report, the Company has filed three Patent applications at Indian Patent office. One PCT

Application was filed under the patent Co operation Treaty and one PCT application was filed in National Phase in the countries viz Japan, Europe and China.

FUTURE OUTLOOK

In view of the proposed expansion of capacity of Lyophilized facility at Ankleshwar, the Company will be able to meet increased demand of Lyophilized products both from domestic and international markets. Upon completion of modernization of plant at Tarapur, the Company will be able to service fresh export orders, through its Subsidiary Lyka BDR International Limited. Recently, the Company has introduced the critical care products, which is well accepted in the market. The Company is also exploring further opportunities to export technology to overseas Companies. The Company’s plant is also approved by Regulating Authorities of Uganda, Nigeria, and Kenya which will pave the way for further increase of its export business, through its subsidiary in these countries. In the coming year, the Company is planning to file new patents which will increase the intangible value of the Company.

The Company’s subsidiary LYKA BDR INTERNATIONAL LTD (LBDR) has further added 63 products in various countries and has filed nearly 200 new dossiers for registrations in various markets. LBDR is focusing on the non regulated/semi regulated markets for increasing its business which include Philippines, Myanmar and other countries. During the first quarter, the Company has shown reasonable growth in its turnover and financial performance.

Based on the current scenario, the Company’s prospects are promising and encouraging and the Company is well poised for its improved performance.

MANAGEMENT DISCUSSION AND ANALYSIS

INDUSTRY STRUCTURE AND DEVELOPMENTS

The Indian Pharmaceutical industry currently tops the chart amongst India’s science –based industries with wide ranging capabilities in the complex field of drug manufacture and technology. A highly organized Sector, the Indian Pharmaceutical Industry is growing at about 10 percent annually. It ranks the world’s third largest in terms of volume and stands 14th in terms of value. India accounts for around 8% of global production.

The Indian Pharmaceutical Industry has expanded significantly in the last two decades. The pharmaceutical industry in India meets around 90% of country’s demand for bulk drugs, Drug intermediates, formulations, tablets, capsules and injectables. Indian Pharma Industries continue to attract the global attention for its proficient R and D personnel and facilities, contract manufacturing capabilities and the facilities for Clinical trials. Now the Companies are steadily increasing their investment in Research and Development.

The growth of the Indian Pharmaceutical Industry is expected to emerge from three major areas:

1. Contract research and development services.

2. Export led business of generics and bulk drugs and

3. Growth in specialty therapeutic areas in the domestic market.

Indian Companies continue to be aggressive in pursuing merger and acquisition strategies to gain access to international markets and to reinforce their position globally. Strategic alliance too will be on the rise particularly in the areas of contract research, contract manufacturing, product licensing and transfer of technology.

A number of leading drugs go off patent every year and the generic penetration is increasing in all the countries of the world raising the opportunity for exports in this segment Approximately US$ 123 billion worth of generic products are at risk of loosing patents by 2012.

Medical tourism in India is growing at a rate of 30 percent per year. It is estimated that India will earn US$ 2.2 Billion a year through medical tourism by 2012. Govt. spending on Healthcare is on rise.

Indian export market is continuously growing and it has already made its impact in the global generics market, including the regulated markets.

OPPORTUNITIES, THREATS

OPPORTUNITIES

The Company’s Research and Development (R and D) Centre is continuously focusing on developing new formulations, especially Lyophilized Formulations and various fixed dose combinations. The renowned Pharma Companies have continued to show their interest in the lyophilized products of the Company. There is a good demand for freeze dried products locally and internationally and as they are one of the leading manufacturers of freeze dried products, there is a good scope of growth of these products. The Company is also under Negotiation with other countries for export of technology and out license of patent which will give boost to revenues of the Company in the coming years. The expiration of patent every year will gear up export of Generic Products manufactured by the Company and thereby increase revenue of the Company.

The Company’s subsidiary LYKA BDR INTERNATIONAL LTD (LBDR) has further added 63 products in various countries, adding value to its Intangible assets. LBDR is also likely to file appx. 200 new dossiers in rest of the world markets, which will help LBDR to explore new markets. These will help to increase the consolidated sales and profitability of the Company in the coming years.

Bankers Charges Report as per Registry

Corporate identity number of the company	L24230GJ1976PLC008738
Name of the company	LYKA LABS LIMITED
Address of the registered office or of the principal place of business in India of the company	4801/B and 4802/A GIDC Industrial Estate, Ankleshwar – 393002, Gujarat, India Email : companysecretary@lykalabs.com
This form is for	Modification of charge
Charge identification (ID) number of the charge to be modified	10069537
Type of charge	Immovable property
Particular of charge holder	Dena Bank, 67-A, Krishna Bhavan, Nehru Road, Vile Parle (East), Mumbai – 400057, Maharashtra, India Email : vileas@denabank.co.in
Nature of instrument creating charge	Memorandum of entry for extension of existing mortgage dated 31.12.2011
Date of instrument Creating the charge	31.12.2011
Amount secured by the charge	Rs.597.800 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest Not Applicable Terms of repayment Not Applicable Margin Not Applicable Extent and operation of the charge Exten of Equitable Mortgage by deposit of Title Deeds in respect of the immovable properties 1) Units No.212,216,217,218 and 219 at Adarsh Industrial Estate 2) Plot No.T-139 on the Tarapur Industrial Area District Thane, 3) Plot No.4801/B and 4802/A, S. No.369,216/P, 322., 368,217 in Taluka Ankleshwar, District Bharuch. 4) Unit No.102 to 105,205 at Ark Industrial Estate, Andheri (East), 5) Immovable Property at Village Jujwa, Valsad bearing Block No.771 pt. 6) Flat A/103, A/203, A/301,A/302 at Valsad bearing Revenue Survey No.610 pt
Short particulars of the property or asset(s) charged (including complete address and location of the property)	Units No.212,216,217,218 and 219 at Adarsh Ind Estate, Andheri (East), Mumbai-400059 3) Plot No.T-139 on the Tarapur Inl Area Taluka-Palghar, District Thane Plot No.4801/B and 4802/A, S. No.369,216/P, 322., 368,217 in the village Piraman and Jitali, Taluka Ankleshwar, District Bharuch. Unit No.102 to 105,205 at Ark Indl Estate, Makvana Road, Marol, Andheri (E), Mumbai-400069 Immovable Property at Village, Jujwa, Taluka and District Valsad, Bearing Block no. 771 PT. Flat A/103, A/203, A/301,A/302 at village Bhagadwada, Taluka and District Valsad Bearing Revenue Survey No.610 PT old city Survey No. 4878, New city Survey No.4040
Date of instrument modifying the charge	28.04.2011
Particulars of the present modification	By the present modification dated 31-12-2011 the Borrower has created Extension of Mortgage by deposit of Title Deeds in respect of various immovable properties as mentioned in Second Schedule to the Memorandum of Entry For Extension of Mortgage Dt.31-12-2011 to cover the total limit of Rs. 597.800 Millions. Thus by present modification the total limit for which extension of Mortgage is created stands at Rs.597.800 Millions.

FIXED ASSETS

· Land (Leasehold) Buildings

· Plant and Machinery

· Vehicles

· Furniture and Fixtures and Office Equipments

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 guiltyor 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.54.59
UK Pound	1	Rs.87.31
Euro	1	Rs.69.86

INFORMATION DETAILS

Report Prepared by :

SDA

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	4
--CREDIT LINES	1~10	2
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		28

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended
-	NB	New Business	-

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.