MIRA INFORM REPORT

Report Date :

07.09.2012

IDENTIFICATION DETAILS

Name :	RA CHEM PHARMA LIMITED
Formerly Known As :	IGOR DYESPEC PRIVATE LIMITED
Registered Office :	Plot No. 26 and 27, Technocrats Industrial Estate, Phase I, Balangar, Hyderabad-500037, Andhra Pradesh
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	08.01.1996
Com. Reg. No.:	01- 022816
Capital Investment / Paid-up Capital :	Rs.134.928 Millions
CIN No.: [Company Identification No.]	U24110AP1996PLC022816
TAN No.: [Tax Deduction & Collection Account No.]	HYDI00508E
PAN No.: [Permanent Account No.]	AAACI6448M
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer of Bulk Drugs and Intermediates.
No. of Employees :	Not Available

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 1790000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is a subsidiary company having satisfactory track record. Trade relations are reported to be fair. Business is active. Payments are reported to be usually correct and as per commitments. The company can be considered for normal 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

EXTERNAL AGENCY RATING

Rating Agency Name	CARE
Rating	C [Long Term]
Rating Explanation	Having very high risk of default regarding timely servicing of financial obligation
Date	01.04.2012

Rating Agency Name	CARE
Rating	A 4 [Short Term]
Rating Explanation	Having minimal degree of safety regarding timely payment of financial obligation it carry very high credit risk and are susceptible of default.
Date	01.04.2012

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 :	Plot No. 26 and 27, Technocrats Industrial Estate, Phase I, Balangar, Hyderabad-500037, Andhra Pradesh, India
Tel. No.:	91-40-44758595
Fax No.:	91-40-44758596
E-Mail :	info@rachempharma.com raj@rachempharma.com
Website:	http://www.rachempharma.com
Factory :	R.S. No. 50/1, Mukteswarapuram Jaggaiahpeta Mandal, District Krishna-521175, Andhra Pradesh, India
Tel No.:	91-8683-240802/240803
E mail:	factory@rachemicals.com

DIRECTORS

AS ON 15.09.2011

Name :

Mr. Rajender Rao Juvvadi

Designation :

Managing Director

Address :

Road No. 12, Banjara Hills, Hyderabad – 500034, India

Date of Birth/Age :

20.11.1967

Date of Appointment :

14.03.2003

Din No.:

00083540

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	U67120AP1999PTC033145	LAXMI R.A. HOLDINGS AND INVESTMENTS PRIVATE LIMITED	Director	16/10/2001	16/10/2001	Active	NO
2	U24110AP1996PLC022816	RA CHEM PHARMA LIMITED	Managing director	14/03/2003	14/03/2003	Active	NO
3	U99999AP2000PTC035037	R.A.LABELS AND STICKERS PRIVATE LIMITED	Director	01/04/2004	01/04/2004	Active	NO
4	U24239AP2003PTC040264	INVENTIS DRUG DELIVERY SYSTEMS PRIVATE LIMITED	Director	10/07/2004	10/07/2004	Amalgamated	NO
5	U24239AP2006PTC050152	CLINICAL RESEARCH AND BIOSCIENCES INDIA PRIVATE LIMITED	Director	19/05/2006	19/05/2006	Amalgamated	NO
6	U24239AP2004PTC043904	INDU PHARMA PRIVATE LIMITED	Director	08/01/2007	08/01/2007	Active	NO
7	U65910AP2010PTC066795	BEANSTALK INVESTMENT CONSULTANTS PRIVATE LIMITED	Director	25/01/2010	25/01/2010	Active	NO

Name :

Mr. Sirish Kumar Ravula

Designation :

Director

Address :

253/3RT, Vijaya Nagar Colony, Hyderabad – 500057, India

Date of Birth/Age :

08.07.1965

Date of Appointment :

14.03.2003

Din No.:

01578978

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	U24110AP1996PLC022816	RA CHEM PHARMA LIMITED	Director	10/03/2003	10/03/2003	Active	NO
2	U67120AP1999PTC033145	LAXMI R.A. HOLDINGS AND INVESTMENTS PRIVATE LIMITED	Director	19/05/2003	19/05/2003	Active	NO
3	U24239AP2003PTC040264	INVENTIS DRUG DELIVERY SYSTEMS PRIVATE LIMITED	Director	02/11/2004	02/11/2004	Amalgamated	NO
4	U24239AP2006PTC050152	CLINICAL RESEARCH AND BIOSCIENCES INDIA PRIVATE LIMITED	Director	19/05/2006	19/05/2006	Amalgamated	NO
5	U24239AP2004PTC043904	INDU PHARMA PRIVATE LIMITED	Director	02/08/2006	02/08/2006	Active	NO

Name :

Mr. Ravi Kumar Yerra

Designation :

Director

Address :

Flat #02, Jubilee Heavens, 104, Womens Co-operative Housing Society, Jubilee Hills, Hyderabad – 500033, India.

Date of Birth/Age :

05.03.1961

Date of Appointment :

01.10.2005

Din No.:

01941752

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	U24110AP1996PLC022816	RA CHEM PHARMA LIMITED	Director	01/10/2005	01/10/2005	Active	NO
2	U67120AP1999PTC033145	LAXMI R.A. HOLDINGS AND INVESTMENTS PRIVATE LIMITED	Director	01/02/2006	01/02/2006	Active	NO
3	U24239AP2004PTC043904	INDU PHARMA PRIVATE LIMITED	Director	01/06/2011	01/06/2011	Active	NO

Name :

Dr. Battula Srinivasa Reddy

Designation :

Director

Address :

310, Srinilaya Apartment, Yellareddyguda, Hyderabad, India.

Date of Birth/Age :

01.07.1966

Date of Appointment :

14.03.2003

Din No.:

02878853

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	U24110AP1996PLC022816	RA CHEM PHARMA LIMITED	Additional director	14/03/2003	14/03/2003	Active	NO
2	U67120AP1999PTC033145	LAXMI R.A. HOLDINGS AND INVESTMENTS PRIVATE LIMITED	Director	20/12/2004	20/12/2004	Active	NO

Name :

Mr. Pritam Amir Singh

Designation :

Director

Address :

7, Rukminidevi Colony, Phase-II, Opp. AOC Centre, Maredpally, Secunderabad, India

Date of Birth/Age :

15.10.1928

Date of Appointment :

01.10.2005

Din No.:

00125810

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	U24230GJ1984PLC007440	CONCORD BIOTECH LIMITED	Director	13/12/2004	13/12/2004	04/12/2009	Active	NO
2	U24110AP1996PLC022816	RA CHEM PHARMA LIMITED	Nominee director	01/10/2005	01/10/2005	-	Active	NO
3	U51101AP2010PTC071300	GLOPEC INTERNATIONAL (INDIA) PRIVATE LIMITED	Director	18/05/2012	02/04/2012	-	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 15.09.2011

Names of Shareholders	No. of Preferences Shares	No. of Equity Shares
Laxmi RA Holdings and Investment Private Limited		3843848
1575773 Ontario Inc., Canada		1551060
Joseph Herman		360000
Orchem International Trading BV, The Netherland		168434
Joflo Centrifuges Private Limited	NA	652527
Anand Gupta		699422
Laxman Kartikeyan		46023
N Nageswar Rao		3575
P V Shedbalkar		100881
Harish Pandey		67071
TOTAL	NA	7492841

AS ON 15.10.2011

Names of Allottees	No. of Shares
1575773 Ontario Inc., Canada	130890
Orchem International Trading BV, Amsterdam	130890
TOTAL	261780

AS ON 15.12.2011

Names of Allottees	No. of Shares
1575773 Ontario Inc., Canada	131752
Orchem International Trading BV, Amsterdam	131752
TOTAL	263504

AS ON 15.09.2011

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]	28.04
Bodies corporate	60.34
Other top fifty shareholders	11.62
TOTAL	100.00

BUSINESS DETAILS

Line of Business :

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

· YES Bank Limited, 9^th Floor, Nehru Centre, Discover of India, Dr. Annie Besant Road, Worli, Mumbai-400018, Maharashtra, India

· Bank of Bahrain and Kuwait BSC, 6-3-550, L.B. Bhawan, Akash Ganga, Somajiguda, Hyderabad-500082, Andhra Pradesh, India

· State Bank of India, Saifabad (SIB) Branch, HACA Bhavan, Opposite Assembly, Hyderabad-500004, Andhra Pradesh, India

· Axis Bank Limited, Begumpet Branch

· ICICI Bank Limited, Begumpet Branch

Facilities :

Secured Loan	As on 31.03.2011 [Rs. in Millions]	As on 31.03.2010 [Rs. in Millions]
Rupee term loan	178.828	119.380
Other external commercial borrowings	87.544	83.425
Working capital loans	223.606	179.075
Loans taken for vehicles	6.032	1.685
TOTAL	496.010	383.565
Unsecured Loan	As on 31.03.2011 [Rs. in Millions]	As on 31.03.2010 [Rs. in Millions]
Rupee term loans	31.665	33.785
Loans directors	2.177	2.837
TOTAL	33.842	36.622

Financial Institution :	· 3i Infotech Trusteeship Services Limited, 3^rd to 6^th Floor, International Infotech Park, Tower No.5, Vashi Railway Station Complex, Vashi, Navi Mumbai – 400703, Maharashtra, India · SREI Equipment Finance Private Limited, ‘Vishwakarma’, 86C, Topsia Road, Kolkata-700046, West Bengal, India
Banking Relations :	--
Auditors :
Name :	Chakradhar and Nandan Chartered Accountant
Address :	201, Srinath Residential Complex, SD Road, Secunderabad-500003, Andhra Pradesh, India.
Tel. No.:	91-40-66317174 / 66317598
E-Mail :	chakradhar_nandan@yahoo.com
Pan No.:	AABFC2045G
Holding Company :	Laxmi RA Holdings and Investments Private Limited (LRA)
Subsidiaries :	Indu Pharma Private Limited [U24239AP2004PTC043904]
Related Parties :	· 1575773 Ontario Inc. · RA Labels and Stickers Private Limited

CAPITAL STRUCTURE

AS ON 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
8000000	Equity Shares	Rs.10/- each	Rs.80.000 Millions
600000	Preferences Shares	Rs.100/- each	Rs.60.000 Millions
	Total		Rs.140.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
7492841	Equity Shares	Rs.10/- each	Rs.74.928 Millions
600000	Preferences Shares	Rs.100/- each	Rs.60.000 Millions
	Total		Rs.134.928 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		134.928	134.928	74.928
2] Share Application Money		0.000	0.000	60.000
3] Reserves & Surplus		312.586	241.484	177.895
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		447.514	376.412	312.823
LOAN FUNDS
1] Secured Loans		496.010	383.565	345.466
2] Unsecured Loans		33.842	36.622	31.716
TOTAL BORROWING		529.852	420.187	377.182
DEFERRED TAX LIABILITIES		8.042	0.377	0.000
TOTAL		985.408	796.976	690.005
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		539.883	453.906	458.158
Capital work-in-progress		22.400	6.770	0.000
Research and Development		5.194	8.580	11.966
INVESTMENT		9.744	9.744	9.744
DEFERREX TAX ASSETS		0.000	0.000	10.186
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	248.560	201.605	145.236
	Sundry Debtors	401.937	311.771	214.499
	Cash & Bank Balances	22.822	24.478	10.051
	Other Current Assets	134.894	90.276	50.296
	Loans & Advances	0.000	0.000	28.743
Total Current Assets		808.213	628.130	448.825
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	339.260	250.452	185.998
	Other Current Liabilities	40.414	42.326	57.176
	Provisions	20.880	18.032	6.560
Total Current Liabilities		400.554	310.810	249.734
Net Current Assets		407.659	317.320	199.091
MISCELLANEOUS EXPENSES		0.528	0.656	0.860
TOTAL		985.408	796.976	690.005

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	1105.581	918.510	664.632
		Other Income	3.105	3.108	4.780
		TOTAL (A)	1108.686	921.618	669.412
Less	EXPENSES
		Consumption Materials Changes Inventories	582.322	467.578	0.000
		Manufacturing Service Cost	177.133	137.582	453.414
		Employee Related Expenses	93.388	71.848	71.141
		Administrative Selling Other Expenses	89.000	98.743	60.790
		TOTAL (B)	941.843	775.751	585.345
Less	PROFIT / (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		166.843	145.867	84.067
Less	FINANCIAL EXPENSES (D)		40.828	42.899	41.547
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		126.015	102.968	42.520
Less/ Add	DEPRECIATION/ AMORTISATION (F)		31.071	27.198	27.318
	PROFIT / (LOSS) BEFORE TAX (E-F) (G)		94.944	75.770	15.202
Less	TAX (H)		23.842	12.181	(5.231)
	PROFIT / (LOSS) AFTER TAX (G-H) (I)		71.102	63.589	20.433
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		103.976	40.387	19.954
	BALANCE CARRIED TO THE B/S		175.078	103.976	40.387
	Earnings / (Loss) Per Share (Rs.)		9.49	8.49	2.73

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	6.41	6.90	3.05
Net Profit Margin (PBT/Sales)	(%)	8.59	8.25	2.29
Return on Total Assets (PBT/Total Assets}	(%)	7.04	7.00	1.67
Return on Investment (ROI) (PBT/Networth)		0.21	0.20	0.05
Debt Equity Ratio (Total Liability/Networth)		2.07	1.94	2.00
Current Ratio (Current Asset/Current Liability)		2.02	2.02	1.80

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

NOTE:

The registered office of the company has been shifted from 6-3-1239/2, “AMAR”, 4^th Floor, Raj Bhavan Road, Somajiguda, Hyderabad-500082, Andhra Pradesh, India to the present address w.e.f. 19.11.2009.

GLOBAL PHARMACEUTICAL INDUSTRY:

The Global Pharmaceutical Industry is witnessing significant changes hitherto unheard off and unanticipated. USA and Europe which were preferred destinations for Pharmaceutical Companies from across the globe seem to be losing the sheen. Several new destinations are expected to get added in the near future, but first let us look at the Industry perspective and position The Global Pharma is expected to grow by 5-7% in value terms over the next few years to reach around 1.1trillion USD by 2014. Of this around 30-35% is expected to be the share of Generic Medicines. United States of America with revenue of USD320-330billlion would continue to be the single largest market. Europe will be around USD160million, Japan will be around the same but significant growth is expected to come from a group of countries spread across continents. These countries are China, India, Brazil, Mexico, Argentina, Turkey, Russia, Venezuela, Poland, South Africa, Thailand, Indonesia, Romania, Egypt, Ukraine and Pakistan. These should be considered as the new Pharma world and they are expected to account for 25-30% of the market share. In gist there would be a paradigm shift and all the stake holders which would include manufacturers, distributors, insurance agencies etc have to take cognizance of this fact and strategize their plans accordingly pricing will continue to be a critical factor both for Generic and Brands as affordable healthcare remains a priority for government’s world over. This aspect in addition to increasing cost of new drug development, thinning of product pipe lines for innovators as well as generics, spiralling health care budgets, significant changes in life styles influencing the disease patters shall prompt companies review their business strategies From a generic perspective the highest growth is expected to come from USA, Canada, UK, S. Korea and the “New World” markets.

INDIAN PHARMACEUTICAL INDUSTRY:

Indian Pharmaceutical Market is also expected to witness significant changes. In 2011 it is the 10th largest in terms of revenue (USD12.3billion) and 3rd largest in terms of volume. The market is highly fragmented with more than 100 large companies, 250-300 mid size companies and around 15,000 small scale units. It was predominantly dominated by Indian origin companies after the multinationals moved out in 1970. However the market is witnessing interesting changes some of which are highlighted below:

1) Global Pharmaceutical Companies showing interest to set their foot back in India - Acquisition of companies in India by TEVA and Watson, Commencement of Indian Formulation Operations by Mylan, Acquisition of Nicholas Piramal by Abbot and Ranbaxy by Daiichi are a few indicators.

2) Increased Regulatory Requirements: Approval of new products is increasingly become more time consuming and expensive with several new guidelines being followed by the Drug Controller General of India.

3) Significant increase in time lines for approval to carry out bio studies and clinical studies on patent population Thus competition is expected to become more intense and price sensitive.

BUSINESS OUTLOOK:

An entrepreneur always finds opportunity in adversity. A more intense and complex business environment throws open challenges that need more systematic, thorough and rational evaluation. An enterprise that initiates this process proactively is geared up to get its due share of presence and recognition even in tough times their business strategies and initiatives were always keeping the future environment in mind. It was a blend of what the market needed today with what should be done today to secure tomorrow. Creation of three specific business units (API, Formulations and Clinical Research) in a short span of 9years was in line with this thinking. In line with the corporate vision and philosophy to me an integrated service provider to global pharmaceutical companies RA succeeded in creating three successful strategic business units which are not only self reliant and stand alone profit centres but also capable of integrating with one another to provide a robust business strategy to the customer(s) API Business: In the past 9 years API business has made impressive strides in developing, emerging and regulated economies. The facility is approved by USFDA, South Korean FDA, Ministry of Iran and several other regulators. Several, Certificate of Suitability Applications for API’s for sale in European Market have been filed and a few have been granted. API business is well spread with presence across continents and regions. Over the past few years RA succeeded in establishing long term business links with innovating companies, Generic API manufacturers, Generic Formulation Companies, Custom Synthetic Companies and Contract Manufacturers. RA supplies Intermediates to Drug Product Innovators, Intermediates to Generic API Manufacturers, API’s to Formulators and Custom Made Products In the next two years the business is expected to witness significant organic growth and reach Rs.2500.000 Millions Formulation Business: In the past few years their formulation business has made certain impressive progress in niche business segments which is expected to give a healthy top and bottom line growth in both medium and long term. The business can be broadly classified into four segments as listed below:

· Supply of pellets (pre formulation intermediates) to developing markets

· Supply of pellets (pre formulation intermediates) to emerging and developed markets

· Supply of formulations to regulated markets

· Contract development Supply of pellets in developing markets: Their Company increased its presence to over dozen countries in Asia, Africa, Middle East and ASEAN region. Several products have been successfully launched in these markets and they are now considered as a supplier who meets the manufacturing standards of developed world but is able to supply to these markets at competitive price. Many more customers and products are expected to get added in the next few years Supply of pellets to emerging and developed markets: Latin , South and Central America, Turkey, Jordan etc are considered to the emerging markets as their requirements in terms of manufacturing practices and quality systems are at par with developed countries. In the past few years their company has made significant progress in sale of pellets in these markets that match the innovators product in invitro release profile and pharmacokinetics. Commercial sale of Lansoprzole Pellets and Flurbiprofen Pellets in Turkey, Venlafaxine, Tamsulosin in Mexico and Brazil has successfully started in these markets. In all the above they are either the only supplier or occupy a position of Top2 suppliers. Another 2 new products each year are expected to get added over the next few years. The list of products includes Duloxetine Pellets, Mebeverine Pellets, Tolterodine Pellets, Galantamine Pellets and Methyl Phenidate Pellets. Supply of Formulations to Developed Markets: In 2011 they commenced export of finished formulation to Canada, succeeded in filing the first ANDA in USA and signed up for launch of two formulations in Europe. The facility successfully went through re-audit by the Canadian Ministry of Health. With ANDA accepted by USFDA inspection from this regulator is imminent in the next 15-18months. The product pipe line for 2012 and 2013 includes at least two products for Canada and three more ANDA’s for USA each year. The medium term business plan looks very robust with sale expected to commence in 2014 for products filed in 2011 and 2012 Contract Development and Manufacturing: Their Company has four blockbuster products under development and scale up under partnership agreement with some leading US Distributors and Generic Manufacturers. The development reached scale up stage and bio study results look very promising. The success of even one of the four can increase the sales revenue multiple fold besides establishing us as one of the few Indian companies with cutting edge technological capability in oral solid dosage and modified release formulations. New Initiatives: De-risking the business model and making it further robust is the focus for the next few years. With this perspective integration of API and Dosage form businesses to provide a long term cost effective formulation to customer has been an initiative that was incubated in 2011. They have identified several in-house API’s (both niche and large volume) to be taken up for formulation development and supply to global markets. The product list includes Mebeverine, Tianeptine, Lamotrigene etc. Their endeavour is to ensure that this model contributes to around 20% of sales and profitability of the formulation division in next 3years and would probably go up to 40% in five years.

BANKERS CHARGES REPORT AS PER REGISTRY

This form is for	Modification of charge
Charge identification number of the modified	10327698
Corporate identity number of the company	U24110AP1996PLC022816
Name of the company	RA CHEM PHARMA LIMITED
Address of the registered office or of the principal place of business in India of the company	Plot No. 26 and 27, Technocrats Industrial Estate, Phase I, Balangar, Hyderabad-500037, Andhra Pradesh, India
Type of charge	Book Debts Movable Property [not being pledge] Immovable Property
Particular of charge holder	· State Bank of India, Saifabad (SIB) Branch, HACA Bhavan, Opposite Assembly, Hyderabad-500004, Andhra Pradesh, India Email: raj@rachempharma.com
Nature of description of the instrument creating or modifying the charge	1) MOE 2) Novation agreement (Axis to Indusind) 3) Novation agreement (Barclays To Axis) 4) Execution letter 5) Security agent agreement 6) Link Documents
Date of instrument Creating the charge	20.04.2012
Amount secured by the charge	Rs.787.200 Millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Extent and Operation of the charge As per MOE Others Existing Exposure of Axis Bank Limited stands modified from Rs. 135.500 Millions to Rs. 80.000 Millions existing exposure of Barclays Bank Plc stands extinguished and Indus Ind Bank's (new Member) exposure stands at Rs. 135.500 Millions the exposure of other member banks, i.e., SBI, ICICI and BBK remain unchanged and the overall exposure under consortium remains the same at Rs. 787.200 Millions.
Short particulars of the property charged	Working capital: first charge on all current assets of the company across all the 3 divisions shared with consortium members viz. Axis, ICICI, Barclays PLC, Bank of Bahrain and Kuwait BSC Term loan: first charge on all fixed assets of the company including land and Bldg. across all the 4 locations shared with banks vi Axis, ICICI, Barclays PLC, Bank of Bahrain and Kuwait BSC. Equitable mortgage of all resi. flat no.302, 3 floor, suraksha nivas,8-3-224/2/A,1085sq ft together with undivided share of land measuring 41 sq yards at madura ngr, hyd of Y Radhika Equitable mortgage of house no.60 in type1,sfhs category, phase V, Vanasthalipuram resi complex, survey no.201,Sahebnagar Kalan vill, Hayathnagar Taluq, RR Dist with 210sq mtrs of Sirish Kumar Any other property mortgaged as collateral to other banks/freehold will also be pooled and mortgaged charge will be shared on pari passu basis with other lenders Hypothecation charge on the unencumbered plant and machinery belonging to Indu Pharmaceuticals Private Limited Personal Guarantee of 1. Mr. J. Rajender Rao 2.Mr. R. Sirish Kumar 3.Mr. Ravi K Yerra 4. Dr. B. Srinivasa Reddy. Irrevocable, unconditional CG from Indu Pharma Private Limited, Lakshmi RA Holdings, Investments Private Limited, in favour of lenders/security agent for due repayment of facilities payment of all interest other monies Existing lender Axis bank Limited. novated rights and obligations to new lender Indusind Bank Limited Existing lender Barclays bank PLC novated rights, obligations to new lender Axis bank Limited.
Date of latest modification prior to the present modification	17.12.2011
Particulars of the present modification	Memorandum of Entry No. RACPL/01/2011-12. Existing Exposure of Axis Bank Limited stands modified from Rs. 135.500 Millions. to Rs. 80.000 Millions existing exposure of Barclays Bank PLC stands extinguished and IndusInd. Bank's (new Member) exposure stands at Rs. 135.500 Millions the exposure of other member banks, i.e. SBI, ICICI and BBK remain unchanged and the overall exposure under consortium remains the same at Rs. 787.200 Millions.

FIXED ASSETS

Ø Factory Land

Ø Plant And Machinery

Ø Computer

Ø Furniture And Fixture

Ø Motor Vehicles

Ø Office Equipments

Ø Electrical 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.55.97
UK Pound	1	Rs.89.02
Euro	1	Rs.70.61

INFORMATION DETAILS

Report Prepared by :

TPT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--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	NO
--AFFILIATION	YES/NO	YES
--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.