1. Summary Information

		Country	India
Company Name	ANU’S LABORATORIES LIMITED	Principal Name 1	Dr. K. Rajeswara Rao
Status	Moderate	Principal Name 2	Mr. A.P. Rao
		Registration #	01-023283
Street Address	H. No. A-49, Madhuranagar, Yousufguda, Hyderabad – 500038, Andhra Pradesh, India
Established Date	20.02.1996	SIC Code	--
Telephone#	91-40-23741677	Business Style 1	Manufacturer
Fax #	91-40-23741678	Business Style 2	--
Homepage	http://www.anulabs.com	Product Name 1	Bulk Drug Intermediates
# of employees	358 (Approximately)	Product Name 2	--
Paid up capital	Rs.244,459,983/-	Product Name 3	--
Shareholders	shareholding of Promoter and Promoter - 44.01% Public shareholding - 55.99%	Banking	IDBI Bank
Public Limited Corp.	Yes	Business Period	17 Years
IPO	Yes	International Ins.	-
Public Enterprise	Yes	Rating	B (27)
Related Company
Relation	Country	Company Name	CEO
Associates	--	Sambasiva Transport	--
Note	-

2. Summary Financial Statement

Balance Sheet as of	31.03.2012		(Unit: Indian Rs.)
Assets		Liabilities
Current Assets	1370,500,000	Current Liabilities	565,370,000
Inventories	664,040,000	Long-term Liabilities	1103,700,000
Fixed Assets	969,510,000	Other Liabilities	105,290,000
Deferred Assets	88,800,000	Total Liabilities	1,774,360,000
Invest& other Assets	335,700,000	Retained Earnings	1409,730,000
		Net Worth	1654,190,000
Total Assets	3,428,550,000	Total Liab. & Equity	3,428,550,000
Total Assets (Previous Year)	2,918,970,000
P/L Statement as of	31.03.2012		(Unit: Indian Rs.)
Sales	2680,420,000	Net Profit	34,390,000
Sales(Previous yr)	2,694,140,000	Net Profit(Prev.yr)	172,980,000

MIRA INFORM REPORT

Report Date :

12.01.2013

IDENTIFICATION DETAILS

Name :	ANU’S LABORATORIES LIMITED
Registered Office :	H. No. A-49, Madhuranagar, Yousufguda, Hyderabad – 500038, Andhra Pradesh
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	20.02.1996
Com. Reg. No.:	01-023283
Capital Investment / Paid-up Capital :	Rs.244.460 Millions
CIN No.: [Company Identification No.]	L24230AP1996PLC023283
TAN No.: [Tax Deduction & Collection Account No.]	HYDA03184G
PAN No.: [Permanent Account No.]	AACCA0071G
Legal Form :	A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchange.
Line of Business :	Manufacturer of Bulk Drug Intermediates.
No. of Employees :	358 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (27)

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

Maximum Credit Limit :	USD 6600000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having a moderate track record. There appears continues dip in profitability. The liquidity of the company is deteriorating. However, directors seems to be experience businessmen in the pharmaceutical industry and strong market position for its key product. Trade relations are reported to be fair. Business is active. Payments are reported to be slow but correct. The company can be considered for business dealing with some caution.

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	ICRA
Rating	Long term = D
Rating Explanation	This rating are in default or are expected to be in default soon.
Date	May 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 :	H. No. A-49, Madhuranagar, Yousufguda, Hyderabad – 500038, Andhra Pradesh, India
Tel. No.:	91-40-23741677
Fax No.:	91-40-23741678
E-Mail :	nnaidu@anulabs.com anulabs@anulabs.com ir@anulabs.com
Website :	http://www.anulabs.com
Corporate Office :	H. No: 8-3-678, Plot No: 68B Pragathi Nagar, Yousufguda, Hyderabad - 500 045, Andhra Pradesh, India
Tel. No.:	91-40-23741677 / 44373535
Fax No.:	91-40-23741678
Factory 1 :	Chilakammarri Village, Shadnagar, Mahaboob Nagar District, Andhra Pradesh, India
Factory 2 :	Plot No. 272, 273, 280, 281, I.D.A, Pashamylaram, Isnapur, Medak District, Andhra Pradesh, India
Factory 3 :	Plot No.12, Jawaharlal Nehru Pharma City (J.N.P.C), Paravada Mandal, Visakhapatnam – 530021, Andhra Pradesh, India
Factory 4 :	IDA, Pydibhimavaram Village, Srikakulam Taluk and District, Andhra Pradesh, India

DIRECTORS

As on 31.03.2012

Name :	Dr. K. Rajeswara Rao
Designation :	Non-Executive Director
Date of Birth/Age :	21.07.1947
Qualification :	M.B.B.S.
Date of Appointment :	28.09.2011
Name :	Mr. A.P. Rao
Designation :	Non-Executive Director
Date of Birth/Age :	16.08.1943
Qualification :	MBA, AICWA
Date of Appointment :	14.08.2012
Name :	Mr. M.S.S.V. Satyanarayana
Designation :	Whole Time Director
Name :	Mr. K. Hari Babu
Designation :	Managing Director
Date of Birth/Age :	25.07.1956
Qualification :	C.A.
Date of Appointment :	01.04.2012

KEY EXECUTIVES

Name :	Mr. V.S. Soma
Designation :	Company Secretary and Compliance Officer

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	107579245	44.01
Sub Total	107579245	44.01
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	107579245	44.01
(B) Public Shareholding
(1) Institutions
Financial Institutions / Banks	1939170	0.79
Sub Total	1939170	0.79
(2) Non-Institutions
Bodies Corporate	22195038	9.08
Individuals
Individual shareholders holding nominal share capital up to Rs. 0.100 Million	91486382	37.42
Individual shareholders holding nominal share capital in excess of Rs. 0.100 Million	18116911	7.41
Any Others (Specify)	3143237	1.29
Non Resident Indians	2706764	1.11
Trusts	960	0.00
Clearing Members	435513	0.18
Sub Total	134941568	55.20
Total Public shareholding (B)	136880738	55.99
Total (A)+(B)	244459983	100.00
(C) Shares held by Custodians and against which Depository Receipts have been issued	0	0.00
(1) Promoter and Promoter Group	0	0.00
(2) Public	0	0.00
Sub Total	0	0.00
Total (A)+(B)+(C)	244459983	0.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Bulk Drug Intermediates.

Products :

Item Code	Product Description
0.1	2,4 Dichloro 5 Fluoro Acetophenone
0.1	CIS(+) Hydroxy Lactum
0.1	Chlorohexan - 2-One

PRODUCTION STATUS AS ON 31.03.2011

Particulars	Unit	Actual Production
Bulk drugs and intermediates	MT	40883

As certified by the management. Being technical matter accepted by the auditors as correct

Note: a. Including contract manufacturing and purchases of finished goods.

b. Installed capacity is flexible as the plant is versatile; enabling the Company to produce in different capacities and therefore it varies depending on the product programmed.

GENERAL INFORMATION

Customers :

· Teva, Israel

· Tanabe

· Sanofi-aventis

· Mitsui

· Polpharma

· Zentiva

· Mitsubishi Tanabe

· Lusochimica

· Temad

· Chemagis

· Dr. Reddy's Laboratories Limited

· Sun Pharmaceuticals Limited

· Aurobindo Pharma Limited

· Neuland Laboratories Ltds

· Suven Life Sciences Limited

· Divi's Laboratories Limited

No. of Employees :

358 (Approximately)

Bankers :

· Andhra Pradesh State Financial Corporation

· Development Credit Bank

· IDBI Bank

· IFCI Venture Capital Funds Limited

· ING Vysya Bank Limited

· Karur Vysya Bank Limited

· State Bank of India

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2012	As on 31.03.2011
LONG-TERM BORROWINGS
Long-term loans - From banks	110.090
Long-term loans - Others	43.000
Long-term maturities of finance lease obligations	37.400	919.330
SHORT-TERM BORROWINGS
Working capital loans from banks	726.870
Total	917.360	919.330
Long-term loan from bank: The loan from ING Vysya Bank Limited is secured by way of exclusive first charge on fixed assets of the Company situated at Jawaharlal Nehru Pharma City, Parwada, Vizag. This facility is further secured by way of pari pasu first charge on all other fixed assets of the Company, both present and future, along with other term lenders. The loan is repayable in 12 quarterly installments and the last being October 2014 and carries rate of interest of 16%. Long-term loan from others: The loan from IFCI Venture Capital Funds Limited and is secured by way of exclusive first charge on fixed assets of the Company situated at Pydibhimavaram, Srikakulam District, Andhra Pradesh. This facility is secured by way of pledge of shares of promoters of the Company and also guaranteed by the Managing Director of the Company. The loan is repayable in 9 quarterly installments and the last installment being in January 2014 and carries rate of interest of 16%. Finance lease obligations are secured against leased assets

Banking Relations :	--
Auditors :
Name :	Karumanchi and Associates Chartered Accountants
Address :	Flat No. 301, 7-1-619/A, Swarganivas Enclave, Ameerpet, Hyderabad - 500 038, Andhra Pradesh, India
Associates :	Sambasiva Transport

CAPITAL STRUCTURE

As on 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
500000000	Equity Shares	Re.1/- each	Rs.500.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
244459983	Equity Shares	Rs.1/- each	Rs.244.460 Millions

Details of shareholders holding more than 5% shares

Name of the shareholder	No. of shares	% held
Kosaraju Hari Babu	42,760,419	17.49%
Kosaraju Padmaja Rani	48,815,751	19.97%

The reconciliation of the number of shares outstanding is set out below:

Particulars	No. of shares
Equity shares at the beginning of the year	244.460
Add: Shares issued on merger to share holders of Nitya Laboratories Limited on consideration other than cash	--
Equity shares at the end of the year	244.460

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2012	31.03.2011	31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		244.460	244.460	241.520
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		1409.730	1375.340	1368.770
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		1654.190	1619.800	1610.290
LOAN FUNDS
1] Secured Loans		917.360	919.330	701.340
2] Unsecured Loans		186.340	175.190	51.010
TOTAL BORROWING		1103.700	1094.520	752.350
DEFERRED TAX LIABILITIES		92.800	0.000	51.010
TOTAL		2850.690	2714.320	2472.990
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		969.510	1158.000	812.140
Capital work-in-progress		319.000	0.000	0.000
INVESTMENT		0.130	0.320	26.920
DEFERREX TAX ASSETS		88.800	10.600	0.000
Other Non-Current Assets		16.570	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	664.040	691.930	744.950
	Sundry Debtors	833.560	551.720	670.130
	Cash & Bank Balances	35.630	67.970	45.260
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	501.310	403.290	453.400
Total Current Assets		2034.540	1714.910	1913.740
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	59.860	109.030	259.610
	Other Current Liabilities	505.510	0.000	0.000
	Provisions	12.490	95.620	85.540
Total Current Liabilities		577.860	204.650	345.150
Net Current Assets		1456.680	1510.260	1568.590
MISCELLANEOUS EXPENSES		0.000	35.140	65.340
TOTAL		2850.690	2714.320	2472.990

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	2680.420	2694.140	2038.210
		Job work	0.000	2.290	6.430
		Other Income	5.760	30.240	22.610
		TOTAL (A)	2686.180	2726.670	2067.250
Less	EXPENSES
		Stock Increase/ (Decrease)	24.200	136.420	(45.600)
		Cost of materials consumed	538.540	--	--
		Purchase of stock-in-trade	1228.940	--	--
		Employee benefit expense	119.970	--	--
		Raw Material Consumption	--	1635.680	1364.090
		Manufacturing Expenses	--	210.480	164.910
		Payments and Benefits to Employees	--	94.960	52.220
		Administrative and Selling Expenses	--	188.020	129.940
		Preliminary Expenses written off	--	16.880	16.680
		Exceptional items	5.620	--	--
		Other expenses	373.260	--	--
		TOTAL (B)	2290.530	2282.440	1682.240
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		395.650	444.230	385.010
Less	FINANCIAL EXPENSES (D)		255.430	165.030	105.870
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		140.220	279.200	279.140
Less/ Add	DEPRECIATION/ AMORTISATION (F)		76.760	27.640	19.240
	PROFIT BEFORE TAX (E-F) (G)		63.460	251.560	259.900
Less	TAX (H)		29.070	78.580	48.250
	PROFIT AFTER TAX (G-H) (I)		34.390	172.980	211.650
	PRIOR PERIOD		0.000	41.070	32.170
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		414.390	317.070	378.860
Less	APPROPRIATIONS
		Transfer to General Reserve	0.000	34.590	42.340
		Dividend	0.000	0.000	24.150
		Provision for Dividend Tax	0.000	0.000	4.100
	BALANCE CARRIED TO THE B/S		448.780	414.390	487.750
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	127.200	358.730	298.680
	TOTAL EARNINGS		127.200	358.730	298.680
	IMPORTS
		Raw Materials	NA	485.420	381.930
	TOTAL IMPORTS		NA	485.420	381.930
	Earnings Per Share (Rs.)		0.14	0.71	0.88

QUARTERLY RESULTS

PARTICULARS	30.06.2012 1^st Quarter	30.09.2012 2^nd Quarter
Type	UnAudited	UnAudited
Net Sales	375.800	226.400
Total Expenditure	357.500	212.400
PBIDT (Excl OI)	18.300	14.000
Other Income	0.300	0.100
Operating Profit	18.600	14.100
Interest	52.700	50.700
Exceptional Items	(4.200)	0.000
PBDT	(38.300)	(36.600)
Depreciation	14.600	22.500
Profit Before Tax	(52.900)	(59.100)
Tax	0.000	0.000
Provisions and contingencies	0.000	0.000
Profit After Tax	(52.900)	(59.100)
Extraordinary Items	0.000	0.000
Prior Period Expenses	0.000	0.000
Other Adjustments	0.000	0.000
Net Profit	(52.900)	(59.100)

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	1.28	6.34	10.24
Net Profit Margin (PBT/Sales)	(%)	2.37	9.34	12.75
Return on Total Assets (PBT/Total Assets}	(%)	2.11	8.76	7.76
Return on Investment (ROI) (PBT/Networth)		0.04	0.16	0.16
Debt Equity Ratio (Total Liability/Networth)		1.02	0.80	0.68
Current Ratio (Current Asset/Current Liability)		3.52	8.38	5.54

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	Yes
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	Yes
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	No
31]	Date of Birth of Proprietor/Partner/Director, if available	No
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	Yes

REVIEW OF OPERATIONS

The year was critical for the Company in view of the severe liquidity constraints faced resulting from aggressive expansion in the last two years; PCB cap on the production capacities; delay in stabilising the operations at Unit 3; non-commencement of operations at Unit 4 and unrest due to agitations in the State. All these factors have contributed to mismatch of cash flows, which in turn resulted in defaults to various stakeholders.

During the year, the material consumption as a percentage of income at Rs.1767.480 millions constituted 66.40% of income, while it was lower at 64.23% in 2010-11. With marginal increases in manufacturing and employee costs, the operating margin was lower at 14.40% as against 17.17% reported in the previous year. Hence, the operating profit was lower at Rs.383.300 millions as against Rs.444.810 millions in the previous year.

Further, the year witnessed inflationary pressures which impacted raw material prices, all of which could not be passed on to the customers. The tight money policy followed by the central bank, tended to firm up the interest rates affecting finance costs. The Company incurred finance costs of Rs.255.430 millions, approximately 54% higher than the previous year. The impact of the prevailing external challenging conditions did impact the Company's business, and despite being productivity oriented and raising the level of cost consciousness, the profit after tax was Rs.34.390 millions for the year, lower than Rs.131.900 millions reported in 2010-11.

SALE OF UNIT 2

The Company has taken systemic initiative to set right the tight cash flow situation by deciding to dispose of Unit 2 situated at Pashamylaram, Medak District Andhra Pradesh. A postal ballot process has already been initiated in this regard for the approval of the Members and the result will be announced on August 31, 2012. With the funds realised from sale of Unit 2, the Company expects to ease the tight cash flow situation and meet the various commitments to stakeholders and scale up the production in the remaining two units. The Company has drawn a multipronged action plan to tackle the PCB issue and is confident of resolving the same at the earliest.

The proceeds of sale shall be utilised to reduce debt burden; bring idle assets to operation; and improve liquidity. These measures are expected to make up for the loss of revenue by sale of Unit 2 through higher capacity utilisation.

EXPORTS

In 2011-12, the Company has achieved an export turnover of Rs.132.410 millions. The Company is trying to consolidate its presence in global markets, while efforts to widen the depth and penetration of the existing markets are being taken up and new markets are being explored.

MANAGEMENT DISCUSSION AND ANALYSIS

INDUSTRY OVERVIEW

A highly organized sector, the Indian pharmaceutical industry is estimated to be worth US$ 4.5 billion, growing at about 8 to 9% annually. It ranks very high amongst all the third world countries, in terms of technology, quality and the vast range of medicines that are manufactured. It ranges from simple headache pills to sophisticated antibiotics and complex cardiac compounds with almost every type of medicine is now made in the country. The Indian pharmaceutical industry currently tops the chart amongst India's science-based industries with wide ranging capabilities in the complex filed of drug manufacture and technology.

The industry is highly fragmented with more than 20,000 registered units. It has expanded drastically in the last two decades, with severe price competition and government price control. The industry meets around 70% of the country's demand for bulk drugs, drug intermediates, pharmaceutical formulations, chemicals, tablets, capsules, orals and injectibles. There are approximately 250 large units and about 8000 small scale units, which form the core of the pharmaceutical industry in India (including 5 Public Sector Units).

Indian pharmaceutical market is expected to grow at a CAGR of 15.3% between 2011-12 and 2013-14, according to a Barclays Capital Equity Research report on India Healthcare and Pharmaceuticals. The outlook on the Indian pharmaceutical industry remains favourable, according to a report by ICRA and Moody's. Domestic formulation market stood at Rs.583000.000 Millions (US$ 10.54 billion) and has been ranked third in terms of volume and tenth in terms of value, globally. From 2011, trends are changing. MNCs are focusing on chronics, branded generics and launching patented products, besides expanding their field force and focusing on tier-II as well as tier- IV towns. Domestic market grew at 15%, while pharma multinational companies (MNCs) revenue grew at 18.7%.

Generics will continue to dominate the market while patent-protected products are likely to constitute 10% of the pie till 2015, according to McKinsey report 'India Pharma 2015 - Unlocking the potential of Indian Pharmaceuticals market'. India tops the world in exporting generic medicines worth US$ 11 billion. India's exports of drugs, pharmaceutical and fine chemicals grew by 27% to Rs.600000.000 Millions (US$ 10.85 billion) for the year ended March 2012, according to data compiled by Pharmaceutical Exports Council of India (Pharmaxcil).

India is expected to witness largest number of merger and acquisitions (M and As) in the pharmaceutical and healthcare sector, according to consulting firm Grant Thornton. A survey conducted across 100 companies has revealed that one-fourth of the respondents were optimistic about acquisitions in the pharmaceutical sector.

'Pharma Vision 2020' prepared by the Department of Pharmaceuticals, Government of India encourages making India one of the leading destinations for end-to end drug discovery and innovation and for that purpose, the Department promises to provide requisite support by way of world class infrastructure, internationally competitive scientific manpower for pharma research and development (R and D), venture fund for research in the public and private domain and so on.

FINANCIAL PERFORMANCE

During the year 2011-12, the Company achieved a turnover of Rs.2686.190 millions compared to Rs.2726.670 millions for the year 2010-11 constituting a marginal decrease. Net profit after tax for the year was Rs.34.390 millions, when compared with a profit after tax of Rs.131.900 millions during the year 2010-11.

CONTINGENT LIABILITIES

Rs. In Millions

Particular	31.03.2012	31.03.2011
A. Bank guarantees and letter of credit given by banks	11.670	413.980
B. Details of statutory authorities disputed by the Company in appeals with higher authorities in respect of:
Disputed sales tax demands
A.Y. 2001-02	1.000	1.000
A.Y. 2003-04	0.680	0.680
A.Y. 2004-05	1.820	1.820
A.Y. 2005-06	2.210	2.210
c. Other legal claims M/s. Sun Moon Chemicals Private Limited filled a suit against the Company for a demand of `4.68 million.	4.680	4.680

Rs. In Millions

Unsecured Loan	As on 31.03.2012	As on 31.03.2011
LONG-TERM BORROWINGS
Long-term loans	186.340	175.190
Total	186.340	175.190
The long term unsecured loan of Rs.170.000 millions from Shri Ram City Union Finance Limited secured against personal property of the promoters and repayable in one year and carrying rate of interest @ 24% p.a.

FIXED ASSETS

· Land

· Buildings

· Plant and Machinery

· Electrical Equipment

· Lab Equipment

· Vehicle

· Data Processing Equipment

· Software Package

· Office Equipment

· Furniture and Fixtures

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 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.54.54
UK Pound	1	Rs.88.05
Euro	1	Rs.72.29

INFORMATION DETAILS

Report Prepared by :

NTH

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
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	3
--CREDIT LINES	1~10	3
--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	YES
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		27

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.