MIRA INFORM REPORT

Report Date :

03.10.2012

IDENTIFICATION DETAILS

Name :	SAI LIFE SCIENCES LIMITED [28.05.2012]
Formerly Known As :	SAI ADVANTIUM PHARMA LIMITED [30.08.2006] SAI LIFE SCIENCES LIMITED [16.12.2003] SAI DRU SYN LABORATORIES LIMITED
Registered Office :	Luxor Park, 8-2-120/ 86/ 9/ B, Opposite L.V. Prasad Eye Institute, Road No.2, Banjara Hills, Hyderabad – 500033, Andhra Pradesh
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	25.01.1999
Com. Reg. No.:	01-030970
Capital Investment / Paid-up Capital :	Rs. 131.012 Millions
CIN No.: [Company Identification No.]	U24110AP1999PLC030970
TAN No.: [Tax Deduction & Collection Account No.]	HYDS03658E
PAN No.: [Permanent Account No.]	AAECS6143F
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Subject offers complete chemistry services in support of drug discovery and development.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (51)

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

Maximum Credit Limit :	USD 5700000
Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is an established company having fine track. The company has improved its performance in the current financial year i.e. 2010-11. General financial position of the company is good. Trade relations are reported as fair. Business is active. Payments are reported to be regular 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 – 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/ Corporate Office :	Luxor Park, 8-2-120/ 86/ 9/ B, Opposite L.V. Prasad Eye Institute, Road No.2, Banjara Hills, Hyderabad – 500 033, Andhra Pradesh, India
Tel. No.:	91-40-66777555/ 66778383/ 84/ 85/ 23608222
Fax No.:	91-40-23555979/ 23542666
E-Mail :	info@sailife.com raghava@saiadvantium.com runa.k@saiadvantium.com
Website :	www.saiadvantium.com www.sailife.com
Factory 1 :	# 11-15-12/ 4, Doctors Colony, L.B. Nagar, Hyderabad – 500 074, Andhra Pradesh, India
Tel. No.:	91-40-24035646
Fax No.:	91-40-24035889
Factory 2:	Lab No.10, ICICI Knowledge Park, Turakapally (V), Shameerpet (M), R.R. District – 500 078, Andhra Pradesh, India
Tele Fax No.:	91-40-23480036
Factory 3:	International Biotech Park, Pune - 411 057, Maharashtra, India

DIRECTORS

AS ON 01.08.2012

Name :

Mr. Ranga Raju Kanumuri

Designation :

Chairman

Address :

8-2-120/A/4, Road No.9, Jubilee Hills, Hyderabad – 500 034, Andhra Pradesh, India

Date of Birth/Age :

05.01.1951

Qualification :

B Pharma, MS, PhD in Pharmacy

Date of Appointment :

25.01.1999

DIN No.:

00043186

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	U05005AP1991PTC012796	PRATHIMA AQUA CULTURE PRIVATE LIMITED	Director	13/06/1991	13/06/1991	10/03/2011	Active	NO
2	U01222AP1991PTC012795	SWATHI AQUA CULTURE PRIVATE LIMITED	Director	13/06/1991	13/06/1991	10/03/2011	Active	NO
3	U29219AP1989PLC009683	PATTANCHERU ENVEROTECH LTD.	Director	06/08/1996	06/08/1996	-	Active	NO
4	U24110AP1998PTC029265	SAI QUEST SYN PRIVATE LIMITED	Director	21/04/1998	21/04/1998	-	Active	NO
5	U24110AP1999PLC030970	SAI LIFE SCIENCES LIMITED	Whole-time director	01/08/2012	25/01/1999	-	Active	NO
6	U05005AP1990PTC011548	LAKSHMI ACQUA CULTURE PRIVATE LIMITED	Director	19/04/2000	19/04/2000	11/03/2011	Active	NO
7	U91990AP2001PTC036420	SAI BIO ASSAY PRIVATE LIMITED	Director	19/03/2001	19/03/2001	-	Strike off	NO
8	U24110AP1998PTC028812	CONQUEST PHARMA PRIVATE LIMITED	Director	30/08/2006	30/08/2006	-	Amalgamated	NO
9	U73100AP2005PTC062723	ADVANTIUM PHARMA PRIVATE LIMITED	Director	30/09/2007	20/07/2007	-	Amalgamated	NO
10	U24297AP2010PTC067624	INGENUS PHARMACEUTICALS PRIVATE LIMITED	Director	19/03/2010	19/03/2010	-	Active	NO

Name :

Mr. Krishnam Raju Kanumuri

Designation :

Managing director

Address :

8-2-120/A/4, Road No.9, Jubilee Hills, Hyderabad – 500 034, Andhra Pradesh, India

Date of Birth/Age :

10.02.1971

Qualification :

Graduate in Chemical Engineering MBA Finance

Date of Appointment :

06.11.2008

DIN No.:

00064614

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	U05005AP1990PTC011548	LAKSHMI ACQUA CULTURE PRIVATE LIMITED	Director	06/08/1990	06/08/1990	11/03/2011	Active	NO
2	U24110AP1999PLC030970	SAI LIFE SCIENCES LIMITED	Managing director	01/07/2011	01/05/2004	-	Active	NO
3	U73100AP2005PTC062723	ADVANTIUM PHARMA PRIVATE LIMITED	Director	30/09/2007	20/07/2007	-	Amalgamated	NO

Name :

Dr. Penmasta Raju

Designation :

Director

Address :

22640 Beaverdam Drive, Ashburn, Virginia, USA 20148

Date of Birth/Age :

22.09.1952

Qualification :

Ph D in Organic Chemistry

Date of Appointment :

08.03.1999

DIN No.:

00897301

Name :

Dr. Moriarty Robert Michael

Designation :

Director

Address :

3739, Michiana Drive, Michigan City, Indiana, USA 46360

Date of Birth/Age :

31.05.1965

Qualification :

Ph D

Date of Appointment :

25.08.2007

DIN No.:

00897207

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	Company/ LLP Status	Defaulting status
1	U24110AP1999PLC030970	SAI LIFE SCIENCES LIMITED	Director	25/08/2007	16/08/2006	Active	NO

Name :

Mr. Tatta Raja Gopal Srirama

Designation :

Director

Address :

17, Lynwood Way, West Orange, New Jercy, USA 07052

Date of Birth/Age :

17.05.1951

Qualification :

MBA CA India and CPA US

Date of Appointment :

10.01.2007

DIN No.:

00988348

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	Company/ LLP Status	Defaulting status
1	U24110AP1999PLC030970	SAI LIFE SCIENCES LIMITED	Director	25/08/2007	10/01/2007	Active	NO

Name :

Mr. William Lamar Greene

Designation :

Director

Address :

973. Crestview Dr. San Carlos, California 97070

Date of Birth/Age :

02.08.1963

Qualification :

BA MD degree from UCSF

Date of Appointment :

29.04.2008

DIN No.:

02164781

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	Company/ LLP Status	Defaulting status
1	U24110AP1999PLC030970	SAI LIFE SCIENCES LIMITED	Director	11/09/2008	29/04/2008	Active	NO

Name :

Mr. Gautam Mago

Designation :

Director appointed in casual vacancy

Address :

D 202, Lloys Estate, Wadala (East), Mumbai – 500037, Maharashtra, India

Date of Birth/Age :

12.03.1979

Date of Appointment :

09.02.2012

DIN No.:

03568682

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	U74140DL2004PTC127708	UNICON FINANCIAL INTERMEDIARIES PRIVATE LIMITED	Director	20/07/2011	20/07/2011	22/03/2012	Active	NO
2	U24110AP1999PLC030970	SAI LIFE SCIENCES LIMITED	Director appointed in casual vacancy	09/02/2012	28/09/2011	-	Active	NO
3	U72300DL2006PTC154694	UNITEDLEX BPO PRIVATE LIMITED	Additional director	07/12/2011	07/12/2011	-	Active	NO
4	U65922HR1998PLC042782	INDIA SHELTER FINANCE CORPORATION LIMITED	Additional director	21/03/2012	21/03/2012	21/07/2012	Active	NO

KEY EXECUTIVES

Name :	Mrs. Runa Karan
Designation :	Company Secretary
Address :	46, MIGH, Behind Ganesh Temple, Vijaynagar Colony, Hyderabad – 500057, Andhra Pradesh, India
Date of Birth/Age :	16.08.1974
Date of Appointment :	03.10.2008
PAN No.:	AKLPK3369B

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

Shareholding Details File Attached

AS ON 01.08.2012

Equity Share Breakup	Percentage of Holding
Category
Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others]	35.36
Bodies corporate	5.82
Directors or relatives of directors	43.14
Other top fifty shareholders	15.04
Others	0.64
Total	100.00

BUSINESS DETAILS

Line of Business :

Subject offers complete chemistry services in support of drug discovery and development.

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

Bank of Bahrain and Kuwait B.S.C., 6-3-550, L.B. Bhawan, Akashganga, Somajiguda, Hyderabad – 500082, Andhra Pradesh, India

Facilities :

Secured Loans	31.03.2011	31.03.2010
	(Rs. In Millions)
Rupee term loans banks secured	235.097	313.979
Working capital loans banks secured	416.037	263.269
Loans taken for vehicles secured	1.183	2.198
Total	652.317	579.446
Note: 1. Term loans are secured by way of first charge on the fixed assets and extension of first charge on present and future current assets.2. Secured by hypothecation of vehicles. 1. Cash credit is secured by way of first charge on present and future current assets and extension of first charge on fixed assets. 2. Secured by hypothecation of vehicles.

Banking Relations :	--
Auditors :
Name :	BSR and Associates Chartered Accountants
Address :	Reliance Humsafar Banjara Hills, Hyderabad, Andhra Pradesh, India
Income-tax PAN of auditor or auditor's firm :	AAIFB7355D
Subsidiary:	Sai Life Sciences Inc, USA
Companies in which Directors / Directors relatives are interested :	Ø Sai Quest Syn Private Limited, India Ø Chemrich Fine Chemicals Private Limited, India Ø MPM Asset Management LLC, USA

CAPITAL STRUCTURE

AFTER 01.08.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
21,400,000	Equity Shares	Rs. 10/- each	Rs. 214.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
13,144,200	Equity Share	Rs.10/- each	Rs. 131.442 Millions

AS ON 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
21,400,000	Equity Shares	Rs. 10/- each	Rs. 214.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
13,101,200	Equity Share	Rs.10/- each	Rs. 131.012 Millions

NOTE:

1. 21,400,000 equity shares of Rs 10 each

2. 13,101,200 equity shares of Rs 10 each fully paid-up.1. Nil (previous year : 55,000) equity shares of Rs 10 each alloted to the eligible employees of the Company on the exercise of the vested stock option in accordance with the terms of exercise under the "ESOP Stock Option Plan - 2004".

3. 13,101,200 equity shares of Rs 10 each fully paid-up.1. Nil (previous year : 55,000) equity shares of Rs 10 each alloted to the eligible employees of the Company on the exercise of the vested stock option in accordance with the terms of exercise under the "ESOP Stock Option Plan - 2004".

4. 13,101,200 equity shares of Rs 10 each fully paid-up.1. Nil (previous year : 55,000) equity shares of Rs 10 each alloted to the eligible employees of the Company on the exercise of the vested stock option in accordance with the terms of exercise under the "ESOP Stock Option Plan - 2004".

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		131.012	131.012	129.535
2] Share Application Money		0.000	0.000	3.610
3] Reserves & Surplus		1312.974	1105.214	1002.917
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		1443.986	1236.226	1136.062
LOAN FUNDS
1] Secured Loans		652.317	579.446	462.316
2] Unsecured Loans		0.000	0.000	4.314
TOTAL BORROWING		652.317	579.446	466.630
DEFERRED TAX LIABILITIES		87.746	51.140	17.725
TOTAL		2184.049	1866.812	1620.417
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		1326.518	1246.303	699.476
Capital work-in-progress		73.136	25.082	532.463
INVESTMENT		10.581	0.384	0.484
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	224.309	188.800	112.228
	Sundry Debtors	461.938	306.384	228.671
	Cash & Bank Balances	185.621	200.228	206.343
	Other Current Assets	27.368	10.720	0.000
	Loans & Advances	287.143	188.515	130.083
Total Current Assets		1186.379	894.647	677.325
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	326.343	246.536	210.119
	Other Current Liabilities	36.328	33.600	59.363
	Provisions	49.894	19.468	19.849
Total Current Liabilities		412.565	299.604	289.331
Net Current Assets		773.814	595.043	387.994
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		2184.049	1866.812	1620.417

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	1844.405	1460.668	1072.836
		Other Income	52.856	40.129	23.407
		TOTAL (A)	1897.261	1500.797	1096.243
Less	EXPENSES
		Consumption materials changes inventories	557.549	417.263
		Manufacturing service costs	117.062	97.992
		Employee related expenses	534.851	470.881
		Administrative selling other expenses	284.556	271.472
		TOTAL (B)	1494.018	1257.608	1199.526
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		403.243	243.189	(103.283)
Less	FINANCIAL EXPENSES (D)		57.404	53.052	18.565
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		345.839	190.137	(121.848)
Less/ Add	DEPRECIATION/ AMORTISATION (F)		96.902	81.722	49.538
	PROFIT BEFORE TAX (E-F) (G)		248.937	108.415	(171.386)
Less	TAX (H)		41.177	33.416	(25.378)
	PROFIT AFTER TAX (G-H) (I)		207.760	74.999	(146.008)
	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		223.099	152.405	296.839
	BALANCE CARRIED TO THE B/S		430.859	227.404	150.831
	EARNINGS IN FOREIGN CURRENCY
		Export of Goods and Services	1820.577	1440.761	1042.063
	IMPORTS
		Raw Materials	234.273	225.861	97.283
		Stores & Consumables	17.043	5.556	4.914
		Capital Goods	95.483	46.855	211.971
	TOTAL IMPORTS		346.799	278.272	314.168
	Earnings Per Share (Rs.)
	Basic		15.86	5.77	(11.40)
	Diluted		15.78	5.73	(11.40)

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	10.95	5.00	(13.32)
Net Profit Margin (PBT/Sales)	(%)	13.50	7.42	(15.98)
Return on Total Assets (PBT/Total Assets}	(%)	9.91	5.06	(12.45)
Return on Investment (ROI) (PBT/Networth)		0.17	0.09	(0.15)
Debt Equity Ratio (Total Liability/Networth)		0.74	0.71	0.67
Current Ratio (Current Asset/Current Liability)		2.88	2.99	2.34

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	Yes
17]	Major suppliers	No
18]	Major customers	No
19]	Payments terms	No
20]	Export / Import details (if applicable)	No
21]	Market information	--
22]	Litigations that the firm / promoter involved in	--
23]	Banking Details	Yes
24]	Banking facility details	Yes
25]	Conduct of the banking account	--
26]	Buyer visit details	--
27]	Financials, if provided	Yes
28]	Incorporation details, if applicable	Yes
29]	Last accounts filed at ROC	Yes
30]	Major Shareholders, if available	Yes
31]	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

SCHEME OF AMALGAMATION

I. AMALGAMATION OF ADVANTIUM PHARMA PRIVATE LIMITED

A Background

Advantium Pharma Private Limited 'APPL' was incorporated on 29 March 2005. On 3 October2007 SAPL purchased entire share capital of APPL and effective that date APPL became a wholly owned subsidiary of SAPL. On 10 June 2009 the Board of Directors of the Company passed a resolution for the merger of APPL with theCompany. A Scheme of Arrangement 'the Scheme' pursuant to Section 391 read with Section 394 of the Companies Act1956 'the Act' and other applicable provisions was filed before the Honourable High Court of Andhra Pradesh for the amalgamation of APPL transferor company and SAPL transferee company.

The Honourable High Court of Andhra Pradesh sanctioned the Scheme vide its Order dated 1 April 2010; the amalgamation is effective from 1 April 2009.

During the previous year in line with Accounting Standard 4 Contingencies and Events Occurring After the Balance Sheet Date financial statements for the year ended 31 March 2010 was prepared after incorporating the financials of APPL with that of the Company’s results.

b Salient features of the Scheme

The salient features of the scheme of arrangement for the amalgamation are as follows:

The Appointed Date of the Scheme for the amalgamation is 1 April 2009.

Ø With effect from the Appointed Date the entire undertaking of the transferor company including all its movable and immovable properties in possession or reversion present or contingent of whatsoever nature and wherever situated be transferred and vest with transferee company in accordance with and under section 394 of the Act.

Ø With effect from the Appointed Date all debts liabilities duties and obligations of whatsoever nature shall without any further act or deed be transferred to and taken over by the transferee company in accordance with and under section 394 of the Act.

Ø All legal and other proceedings and actions of whatsoever nature in any Court or Tribunal or before any authority be continued and prosecuted by or against transferee company in the same manner and to the same extent as they would have been continued and prosecuted by or against transferor company if the scheme had not been given effect to.

Ø The employees of the transferor company shall become the employees of the transferee company without interruption in service.

C Consideration

Issued, subscribed and paid up capital	Amount (Rs)
Sai Advantium Pharma Limited (791,495 shares of Rs 10 each)	79,14,950
Dr. K. Rangaraju (SAPL nominee) ( 10 shares of Rs 10 each)	100
Total	79,15,050

As per the Scheme all the equity shares held by the Company in APPL and its nominees shall be cancelled. Accordingly there will be no issue and allotment of shares in the Company to the shareholders of APPL upon the scheme of amalgamation become effective. Hence consideration is considered to be ‘Nil’.

Shareholding pattern of APPL as at the appointed date:

D Accounting treatment

The Company has accounted for the merger in its books as per the Pooling of Interest Method of Accounting prescribed under the Accounting

Standard 14 issued by the Institute of Chartered Accountants of India such that –

Ø All the assets and liabilities recorded in the books of APPL have been transferred to and vested in the Company pursuant to the Scheme and have been recorded by the Transferee Company at their book values as appearing in the books of the Transferor Company;

Ø On and from the Appointed Date the reserves and the balance in the Profit and Loss Account of the Transferor Company have been merged with those of the Transferee Company in the same form as they appear in the financial statements of the Transferor Company;

Ø Difference in accounting policies between the Transferor Companies and Transferee Company have been quantified and adjusted in the profit and loss account of the Transferee Company to ensure that the financial statements of the Transferee Company reflect the financial position on the basis of consistent accounting policies.

BACKGROUND

Advantium Pharma Private Limited 'APPL' was incorporated on 29 March 2005. On 3 October 2007 SAPL purchased entire share capital of APPL and effective that date APPL became a wholly owned subsidiary of SAPL. On 10 June 2009 the Board of Directors of the Company passed a resolution for the merger of APPL with the Company. A Scheme of Arrangement 'the Scheme' pursuant to Section 391 read with Section 394 of the Companies Act1956 'the Act' and other applicable provisions was filed before the Honourable High Court of Andhra Pradesh for the amalgamation of APPL transferor company and SAPL transferee company.

The Honourable High Court of Andhra Pradesh sanctioned the Scheme vide its Order dated 1 April 2010; the amalgamation is effective from 1 April 2009. During the previous year in line with Accounting Standard 4 Contingencies and Events Occurring After the Balance Sheet Date financial statements for the year ended 31 March 2010 was prepared after incorporating the financials of APPL with that of the Company’s results.

BANKERS CHARGES REPORT AS PER REGISTRY

Corporate identity number of the company	U24110AP1999PLC030970
Name of the company	SAI LIFE SCIENCES LIMITED
Address of the registered office or of the principal place of business in India of the company	Luxor Park, 8-2-120/ 86/ 9/ B, Opposite L.V. Prasad Eye Institute, Road No.2, Banjara Hills, Hyderabad – 500 033, Andhra Pradesh, India Email ID: runa.k@sailife.com
This form is for	Creation of charge
Type of charge	Book Debts Movable Property Others (subservient charge on current and movable fixed assets)
Particular of charge holder	Bank of Bahrain and Kuwait B.S.C., 6-3-550, L.B. Bhawan, Akashganga, Somajiguda, Hyderabad – 500082, Andhra Pradesh, India Email ID: hyderabad@bbkindia.com
Nature of description of the instrument creating or modifying the charge	Agreement of Hypothecation of Goods and Assets
Date of instrument Creating the charge	20.06.2012
Amount secured by the charge	Rs. 16.200 Millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest BBK Base Rate (i.e, presently @ 10.25% p.a) plus 325 bps; present effective rate being 13.50% p.a Terms of Repayment Tenor: 24 months Principal repayable in 8 equal quarterly installments of Rs. 2.025 Million commencing at the end of 3rd month from the date of first draw down. Interest to be serviced at monthly rests. Margin Margin : 25% Extent and Operation of the charge Subservient Charge on the current and movable fixed assets of the Borrower Others All other terms and conditions as per Bank's Offer Letter Ref No. CR:2012:52 dated June 8,2012
Short particulars of the property charged	Subservient Charge on the current and movable fixed assets of the Borrower

CONTINGENT LIABILITIES

(Rs. in millions)

Particulars	31.03.2011	31.03.2010
i Bank guarantees	32.517	32.543
ii Letters of credit outstanding	16.697	12.940
iii Estimated amount of contracts remaining to be executed on capital account and not provided for net of advances	66.528	21.962
iv Claims against the Company not acknowledged as debts in respect of a Income tax matters*	8.129	--
b Service tax matters	6.923	--

* The Company’s claim for certain deductions under the provisions of the Income Tax Act 1961 for the assessment years 2007-08 and 2008-09 were disallowed by the income tax authorities in respect of which the Company’s appeals are currently pending. The Company’s management believes that the Company is eligible for the aforesaid deduction and accordingly no further provisions were recorded as of 31 March 2011.

FIXED ASSETS:

Ø Freehold Land

Ø Leasehold Land

Ø Leasehold Improvements

Ø Buildings

Ø Plant and Machinery

Ø Computers

Ø Furniture and Fixture

Ø Office Equipments

Ø Vehicles

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 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. 52.78
UK Pound	1	Rs. 85.16
Euro	1	Rs. 67.79

INFORMATION DETAILS

Report Prepared by :

BVA

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	7
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	7
--CREDIT LINES	1~10	5
--MARGINS	-5~5	-
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		51

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

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.