MIRA INFORM REPORT

Report Date :

30.05.2013

IDENTIFICATION DETAILS

Name :	MICRO LABS LIMITED
Registered Office :	27, Race Course Road, Bangalore - 560001, Karnataka
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	07.09.1973
Com. Reg. No.:	08-002401
Capital Investment / Paid-up Capital :	Rs. 252.000 Millions
CIN No.: [Company Identification No.]	U24232KA1973PLC002401
TAN No.: [Tax Deduction & Collection Account No.]	BLRM02191A
PAN No.: [Permanent Account No.]	AGTPS0938C
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturers, Importers, Exporters and Traders of pharmaceuticals, medicines and allied health care products.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

A (67)

RATING		STATUS	PROPOSED CREDIT LINE
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

Maximum Credit Limit :	USD 50250000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well established and a reputed company having good track record. The financial position seems to be strong. Fundamentals are healthy. Liquidity position appears to be good. Trade relations are reported to be fair. Business is active. Payments are reported to be regular and as per commitment. 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

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 :	27 , Race Course Road , Bangalore-560001, Karnataka, India
Tel. No.:	91-80-22370451
Fax No.:	91-80-22370463
E-Mail :	yogesh@microlabs.in yog-krish@yahoo.co.in
Website :	www.microlabslimited.com

DIRECTORS

As on 27.09.2012

Name :

Mr. Dilip Surana

Designation :

Managing Director

Address :

45/3, Fair Field Layout, Race Course Road, High Grounds, Bangalore-560001, Karnataka, India

Date of Birth/Age :

18.01.1966

Date of Appointment :

01.09.2007

Qualification :

B.Com

PAN No.:

AFKPS0253G

DIN No.:

00083030

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	U24232KA1973PLC002401	MICRO LABS LIMITED	Managing director	01-09-07	18-07-94	-	Active	NO
2	L70101TN1992PLC022299	ARIHANT FOUNDATIONS & HOUSING LIMITED	Director	30-12-05	30-12-05	05-05-10	Active	NO
3	U74999MH2007NPL168975	JAIN INTERNATIONAL TRADE ORGANISATION	Additional director	03-04-07	03-04-07	11-12-10	Active	NO
4	U45201KA2007PTC042509	MICRO INFRASTRUCTURE INDIA PRIVATE LIMITED	Director	17-04-07	17-04-07	-	Active	NO
5	U24232KA2009PTC049781	Micro Carsyson Private Limited	Director	07-05-09	07-05-09	-	Active	NO
6	U24232KA2009PTC049861	Micro Dermaceuticals Private Limited	Director	15-05-09	15-05-09	-	Active	NO
7	U24232KA2009PTC049994	Micro Eros Pharmaceuticals Private Limited	Director	29-05-09	29-05-09	-	Active	NO
8	U24232KA2009PTC049993	Micro Nutraceuticals Private Limited	Director	29-05-09	29-05-09	-	Active	NO
9	U24232KA2009PTC050066	Micro Nova Pharmaceutical Private Limited	Director	08-06-09	08-06-09	-	Active	NO
10	U24232KA2009PTC050065	Micro Opthalmic Private Limited	Director	08-06-09	08-06-09	-	Active	NO
11	U40101KA2010PTC054250	Micro Infra Power Corporation Private Limited	Director	28-06-10	28-06-10	-	Active	NO

Name :

Mr. Anand Surana

Designation :

Whole-time Director

Address :

45/3, Fair Field Layout, Race Course Road, High Grounds, Bangalore-560001, Karnataka, India

Date of Birth/Age :

24.03.1971

Date of Appointment :

01.04.2010

Qualification :

B.Com

PAN No.:

AMGPS5511A

DIN No.:

00192343

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	U24232KA1973PLC002401	MICRO LABS LIMITED	Whole-time director	01-04-10	25-02-03	-	Active	NO
2	U72300KA1997PTC022610	VIM SOFT PRIVATE LIMITED	Director	11-11-05	11-11-05	-	Active	NO
3	U45201KA2007PTC042509	MICRO INFRASTRUCTURE INDIA PRIVATE LIMITED	Director	17-04-07	17-04-07	-	Active	NO
4	U45201KA2007PTC044602	DNR Corporation Private Limited	Director	21-10-11	07-12-07	-	Active	NO
5	U24232KA2009PTC049781	Micro Carsyson Private Limited	Director	07-05-09	07-05-09	-	Active	NO
6	U24232KA2009PTC049861	Micro Dermaceuticals Private Limited	Director	15-05-09	15-05-09	-	Active	NO
7	U24232KA2009PTC049994	Micro Eros Pharmaceuticals Private Limited	Director	29-05-09	29-05-09	-	Active	NO
8	U24232KA2009PTC049993	Micro Nutraceuticals Private Limited	Director	29-05-09	29-05-09	-	Active	NO
9	U24232KA2009PTC050066	Micro Nova Pharmaceutical Private Limited	Director	08-06-09	08-06-09	-	Active	NO
10	U24232KA2009PTC050065	Micro Opthalmic Private Limited	Director	08-06-09	08-06-09	-	Active	NO
11	U40101KA2010PTC054250	Micro Infra Power Corporation Private Limited	Director	28-06-10	28-06-10	-	Active	NO
12	U45200KA2011PTC060147	Indu Infracon India Private Limited	Director	25-08-11	25-08-11	-	Active	NO

Name :

Mr. Prasanna Subbarao

Designation :

Director

Address :

92, 17^th Main Road, Banashankari Stage1, Srinagar, Bangalore-560050, Karnataka, India

Date of Birth/Age :

20.07.1948

Date of Appointment :

09.06.2007

DIN No.:

00084602

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	L85110KA1987PLC008368	BAL PHARMA LIMITED	Whole-time director	06-08-94	06-08-94	-	Active	NO
2	U73100KA2001PTC029393	NOVOSYNTH RESEARCH LABS PRIVATE LIMITED	Director	10-08-01	10-08-01	-	Strike off	NO
3	U24232KA1973PLC002401	MICRO LABS LIMITED	Director	09-06-07	09-06-07	-	Active	NO

Name :

Mr. Amar Singh Sisodia

Designation :

Whole-time director

Address :

No. 245, 53^rd Cross, 4^th Block, Rajajinagar, Bangalore – 560010, Karnataka, India

Date of Birth/Age :

25.05.1949

Date of Appointment :

18.07.2011

DIN No.:

03584503

KEY EXECUTIVES

Name :	Mr. Yogesh Krishna Shenoy
Designation :	Secretary
Address :	51/16 20^th Cross, 20^th Main, Marena Halli, Vijaynagar, Bangalore-560040, Karnataka, India
Date of Birth/Age :	26.09.1951
Date of Appointment :	21.03.2005
PAN No.:	AGTPS0938C

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 27.09.2012

Names of Shareholders	No. of Shares
Ghewarchand Surana - HUF - B	950250
Dilip Surana	2039625
Dilip Surana HUF	2777250
Anand Surana	4816875
Bhawari Bai Surana	4982250
Archana Surana	4816875
Monica Surana	4811625
Anita Shiroya	5000
Shailesh Shiroya	250
Total	25200000

As on 27.09.2012

Equity Share Break up (Percentage of Total Equity)

Category	Percentage
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturers, Importers, Exporters and Traders of pharmaceuticals, medicines and allied health care products.

Products :

Product Description	ITC Code
Pharmaceutical Formulations	2942, 2309
Pharmaceutical Products	99884300

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

• Canara Bank, Prime Corporate Branch, No. 25, Shankarnarayana Building, M G Road, Bangalore – 560001, Karnataka, India
• Standard Chartered Bank
• HSBC Bank
• Citi Bank
• IDBI Bank
• Barclays Bank
• DBS Bank
• City Union Bank
• Lakshmi Vilas Bank
• Axis Bank

Facilities :

Secured Loan	31.03.2012 (Rs. In Millions)	31.03.2011 (Rs. In Millions)
Rupee term loans from banks	864.628	234.137
Loans Repayable on Demand	3712.357	3578.102
Total	4576.985	3812.239

Banking Relations :	--
Auditors :
Name 1 :	Dagliya and Company Chartered Accountants
Address :	No.5 and 6, ‘L’ Block Unity Building, J C Road, Bangalore-560002, Karnataka, India
PAN.:	AAAFD6954E
Name 2 :	T D Jain and D I Sakaria Chartered Accountants
Address :	No.34, Keshava Nivas, 3^rd Floor, 1^st Main Road, Gandhi Nagar, Bangalore – 560009, Karnataka, India
PAN.:	AAAFO2177L
Subsidiaries :	Micro Infrastructure (India) Private Limited, India PAN No.: AAFCM2489K CIN No.: U45201KA2007PTC042509 Indu Infracon India Private Limited PAN No.: AACC17207C Micro Pharmaceuticals, Mexico Micro Labs GMBH IG Brown and Burk (UK) Limited, United Kingdom DNR Corporation Private Limited, India PAN No.: AACCD8007D CIN No.: U45201KA2007PTC044602 Micro Nova Pharmaceuticals India Limited, Nigeria Micro Labs USA Inc.

CAPITAL STRUCTURE

As on 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
34000000	Equity Shares	Rs.10/- each	Rs. 340.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
25200000	Equity Shares	Rs.10/- each	Rs. 252.000 Millions

Terms/ Rights attached to Equity Shares

The Company has only one class of equity shares having a par value of Rs.10 per share. Each holder of equity shares is entitled to one vote per share. The Company declares and pays dividends in Indian Rupees. The dividend proposed by the Board of Directors is subject to the approval of the share holders in the ensuing Annual

General Meeting.

During the year ended March 31, 2012, final dividend proposed for distribution to equity share holders was Rs.10 per equity share (March 31, 2011 – Rs.10 per equity share)

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts, if any. The distibution will be in proportion to the number of equity shares held by the share holders.

Details of share holding more than 5% shares in the company

Name of the Shareholders	No. of Shares	% of Holding
Dilip Surana – Individual	2030625	08.90
Dilip Surana – HUF	2777260	11.02
Anand Surana	4816875	19.11
Bhawari Bai Surana	4982250	19.77
Archana Surana	4816875	19.11
Monica Surana	4811625	19.09

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		252.000	252.000	252.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		12310.646	10004.972	7885.522
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		12562.646	10256.972	8137.522
LOAN FUNDS
1] Secured Loans		4576.985	3812.239	2129.772
2] Unsecured Loans		246.661	73.959	134.692
TOTAL BORROWING		4823.646	3886.198	2264.464
DEFERRED TAX LIABILITIES		60.743	68.926	50.245
TOTAL		17447.035	14212.096	10452.231
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		4266.467	4211.537	3709.746
Capital work-in-progress		1256.623	447.630	160.275
INVESTMENT		1444.453	1288.808	325.465
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	2924.836	2532.562	2270.610
	Sundry Debtors	4147.955	3345.728	2793.504
	Cash & Bank Balances	1327.864	1364.758	1445.867
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	5498.721	3870.007	2268.700
Total Current Assets		13899.376	11113.055	8778.681
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	2687.878	2221.245	2085.955
	Other Current Liabilities	367.025	252.920	136.011
	Provisions	364.981	374.769	381.115
Total Current Liabilities		3419.884	2848.934	2603.081
Net Current Assets		10479.492	8264.121	6175.600
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
FOREIGN CURRENCY MONETARY ITEMS		0.000		81.145
TOTAL		17447.035	14212.096	10452.231

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	16525.178	14656.135	12074.570
		Other Income	737.880	647.212	411.568
		TOTAL (A)	17263.058	15303.347	12486.138
Less	EXPENSES
		Cost of material consumed	4507.661	4626.570
		Purchase of Stock-in-trade	1687.639	1289.587
		Changes in inventories of finished goods, work-in-progress and stock-in-trade	(199.650)	(105.500)
		Employee benefit	2528.679	2003.774
		Expenditure on production, transportations and other expenditure pertaining to E and P activities	199.770	140.703
		Other expenses	4425.854	3534.774
		TOTAL (B)	13149.953	11489.908	9556.745
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		4113.105	3813.439	2929.393
Less	FINANCIAL EXPENSES (D)		196.489	159.358	85.299
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		3916.616	3654.081	2844.094
Less/ Add	DEPRECIATION/ AMORTISATION (F)		495.987	454.651	0.000
	PROFIT BEFORE TAX (E-F) (G)		3420.629	3199.430	2844.094
Less	TAX (H)		0.000	0.000	450.015
	PROFIT AFTER TAX (G-H) (I)		3420.629	3199.430	2394.079
	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		8168.470	6552.020	NA
	APPROPRIATIONS
		Transfer to General Reserve	500.000	500.000
		Provision for Current Tax	614.260	614.030
		Provision for Deferred Tax	(8.180)	18.680	593.854
		Proposed Dividend and Tax	292.880	292.880
	BALANCE CARRIED TO THE B/S		9974.150	8168.470	NA
	EARNINGS IN FOREIGN CURRENCY
		FOB Value of Export	4772.263	4975.457	4099.316
		Product Development Charges	35.394	103.659	0.000
		Others Earnings	0.000	0.000	21.372
	TOTAL EARNINGS		4807.657	5079.116	4120.688
	IMPORTS
		Raw Materials	1219.392	1256.109	705.419
		Packing Materials	13.074	17.460	30.241
		Capital Goods and Spares	475.581	184.155	65.845
		Components and Spare Parts	66.764	20.485	0.000
	TOTAL IMPORTS		1774.811	1478.209	801.505
	Earnings Per Share (Rs.)		103.12	95.61	95.00

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	19.81	20.91	19.17
Net Profit Margin (PBT/Sales)	(%)	20.70	21.83	23.55
Return on Total Assets (PBT/Total Assets}	(%)	18.83	20.88	22.77
Return on Investment (ROI) (PBT/Networth)		0.27	0.31	0.35
Debt Equity Ratio (Total Debt /Networth)		0.38	0.38	0.28
Current Ratio (Current Asset/Current Liability)		4.06	3.90	3.37

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

NOTE: The registered office of the company has been shifted from No. 303, 3^rd Floor, A Wing, Queens Corner Apartments, No. 3, queens Road, Bangalore – 560001, Karnataka, India to the present address w.e.f. 22.06.2006

UNSECURED LOAN:

Particulars	31.03.2012 (Rs. In Millions)	31.03.2011 (Rs. In Millions)
Loans Repayable on Demand from Bank	235.661	0.000
Loans and Advances from Related Parties	11.000	73.959
Total	246.661	73.959

BANKER CHARGES REPORT AS PER REGISTRY:

Corporate identity number of the company	U24232KA1973PLC002401
Name of the company	Micro Labs Limited
Address of the registered office or of the principal place of business in India of the company	27, Race Course Road, Bangalore - 560001, Karnataka, India E-Mail yogeshs@microlabs.in
This form is for	Modification of charge
Charge identification (ID) number of the charge to be modified	90193872
Type of charge	Book debts Movable property (not being pledge) Floating charge
Particular of charge holder	Canara Bank, Prime Corporate Branch, No. 25, Shankarnarayana Building, M G Road, Bangalore – 560001, Karnataka, India E-Mail cbadv2636@canarabank.com
Nature of instrument creating charge	Supplemental Common Hypothecation Agreement
Date of instrument Creating the charge	18.03.2013
Amount secured by the charge	Rs. 2000.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of interest: OCC/ODBD - Base Rate+0.50% i.e., Presently 10.75% p.a. ILC/FLC/BG Commission - 50% of the applicable charges and interest as per bank rules Term of Payment: OCC/ ODBD - Running account repayable on demand ILC/FLC (DA/DP) - LC Period 180 days PC/ PCFC/ FBE Period - 270 days BG - Period 3 years excluding claim period of 3 months Margin: OCC/ODBD - 25% PC/PCFC - 10% LC/ FLC/BG - 5% Extent and operation of the charge: The charge shall operate to the extent of entire loan amount plus interest, commission, costs, expenses and other charges thereon. Others: The said amount of Rs.2000.000 millions comprises OCC/ODBD of Rs.1250.000 millions; (with a sublimit of Rs.600.000 millions for PC/PCFC/FDB/FBE/BRD; Rs.750.000 millions for ODBD; Rs.200.000 millions for CDB/LCDB); ILC/FLC (DA/DP) Rs.700.000 millions (with a sublimit of Rs.300.000 millions for FLC (Machinery); and Bank Guarantee of Rs.50.000 millions
Short particulars of the property charged (Including location of the property)	Hypothecation by way of pari - passu first charge on bookdebts, stocks and other current assets, present and future and exclusive charge on plant and machinery at Hosur Unit I, pant and machinery of the company, plant and machinery, existing and any addition made thereto, fixed assets of the company excluding fixed assets charged to SBI and EXIM Bank Plant and machinery of the Hosur unit II, plant and machinery of Veera Sandra Unit and R & D unit building (Hosur Unit II) plant and machinery
Date of last modification prior to the present modification	16.03.2013
Particulars of the present modification	By the above, the extent of charge on the bookdebts, stocks and other current assets and plant, machinery and other fixed assets morefully described at Sl.No.15 above, shall cover the present modified limits aggregating Rs.2000.000 millions (All other terms and conditions remain unchanged)

PRESS RELEASES

MERCK IN TALKS TO BUY MICRO LABS

JUNE 21, 2012

American drug maker Merck has begun talks with the Suranas, the promoters of the unlisted Micro Labs, to purchase the company, a person with direct knowledge of the development said. “Micro Labs and Merck have shared information,” the person said.

Companies share information when they are willing to negotiate a future deal and are followed later by due diligence.

“As a policy we do not comment on rumours or speculations,” a Merck (named MSD in India) spokesperson said in an email response. Micro Labs did not respond to an FE questionnaire mailed to an address on its website.

Micro Labs, founded in 1973 by GC Surana, a pharmaceutical dealer, has a strong presence in active pharmaceutical ingredients (APIs) and finished formulations with a marketing and distribution network in both India and overseas. APIs refer to the raw materials used to make finished products.

The company, now managed by Surana’s two sons Dileep and Anand has been growing at a compound annual growth rate of 14% to achieve a sales of Rs.15000.000 millions, roughly one-fourth from exports, the company website said. The company has set a target to achieve sales of $1 billion by 2015.

A deal, if signed, could add strength to Merck’s therapeutic areas like cardiology, diabetology, ophthalmology and dermatology along with many US Food and Drug Administration-approved plants and dedicated research and development centres.

The New York-listed seventh largest drug maker by revenue and market value can also build scale to its global operations in 30 countries. Micro Labs operates

MICRO LABS IN THE LIMELIGHT OF TAKE-OVER TALKS

After Ranbaxy Labs and Piramal Healthcare, another billion-dollar-plus deal might be in the works in the Indian pharmaceutical space. Israel’s Teva Pharmaceutical Industries Ltd, the world’s largest generic drug-maker, and Pfizer, the world’s biggest pharmaceutical company, as well as other private equity buyout firms, are eyeing Bangalore-based privately held Micro Labs Ltd, VCCircle has reported.

Micro Labs is said to be one of the first companies to start the concept of branded generics in India in the 1980s. It grossed Rs 14000.000 millions in revenue and Rs 2250.000 millions in profit for the year ended March 2011, according to VCCEdge, the financial research platform of VCCircle.

Quoting sources with knowledge of the development, VCCircle reports that the company is seeking a valuation close to $2 billion, and Teva Pharma, Pfizer, and a host of private equity players are looking at the company. However, none of these companies have confirmed the market rumours.

Micro Labs sources also denied reports about such talks.

For global firms, Micro Labs could be yet another opening to expand into or enter the Indian pharma market which has been consistently growing in the 15-20 per cent range annually.

According to IMAP’s Pharma & Biotech Industry Global Report 2011, Brazil, Russia and India belong to the tier II of so called ‘pharmerging’ markets and each is expected to add $5 billion-$15 billion to the pharmaceutical market through 2013.

SECOND INDIAN GENERICS DEAL FOR SA’S LITHA, THIS ONE WITH MICRO LABS

October 18, 2011

In a second deal with an Indian drugmaker, South Africa’s Litha Healthcare has signed an exclusive agreement with Micro Labs, a leading Indian generic pharmaceutical manufacturer which boasts a network of 11 manufacturing sites in India.

The accord includes a range of quality generic pharmaceutical products developed and manufactured by Micro Labs. Explaining Litha’s rationale in partnering with the Indian manufacturer, chief executive, Selwyn Kahanovitz, said: “We have been anticipating this deal which will enable us not only to expand our pharma product portfolio, but to offer the South African public access to more quality medicines targeting infectious as well as chronic diseases.”

He added:”The strategic significance of this agreement is substantial. Litha Pharma will now be able to target a wider range of therapeutic areas, specifically where there is scope for growth and a need for NDDS’s (Novel Drug Delivery Systems).”

Micro Labs Limited, which is recognised for its well-defined research and development programs for the generics market, has approvals from the regulatory authorities in the USA, UK, European Union, Canada, Australia and South Africa, as well as from others in Asia and Latin America. This will enable Litha to access well defined research and development programs which include NDDS platforms and novel moiety combinations.

Last month, Litha signed an exclusive agreement with Indian generic drugmaker Natco Pharma for a range of generic drugs made by the latter for distribution in the South African market (The Pharma Letter September 26).

BAUSCH + LOMB SIGNS PACT WITH MICRO LABS TO LAUNCH BUSINESS IN INDIA

June 30, 2011

Bausch + Lomb, the global eye health company, today announced plans to launch a pharmaceutical business in India through a strategic agreement with Micro Labs, a leading provider of quality healthcare products. The partnership will provide Bausch + Lomb with high-quality manufacturing capabilities in the region that will speed the introduction of new prescription and over-the-counter medicines targeted at a wide range of eye diseases.

Through the agreement with Micro Labs, Bausch + Lomb aims to capture part of the rapidly expanding ophthalmic pharmaceuticals market in India which is expected to reach US$ 300 million by 2015. In addition to gaining access to world class manufacturing capabilities, Bausch + Lomb will establish dedicated sales and marketing teams, and deliver practitioner and patient education programs designed to improve the quality of, and access to, eye care.

“With as many as 76 per cent of patients suffering from eye disease in India going untreated, Bausch + Lomb believes this is a critical time to enter the market with medicines and education designed to improve patient outcomes and overall quality of life,” said Rodney W Unsworth, president, Bausch + Lomb, Asia-Pacific. “Today ophthalmic pharmaceuticals represent the fastest-growing segment of our business globally, and our collaboration with Micro Labs will enable us to enter one of the world’s most vibrant yet underserved markets in the world with high-quality and dependable products developed to help people see and live better.”

“It gives us immense pleasure to partner with Bausch + Lomb, the most powerful brand in eye health as they enter into the Pharmaceutical segment in India,” said Anand Surana, director, Micro Labs, India. “Our collaboration demonstrates that pharmaceutical manufacturing in India has come of age and our products meet the most stringent global quality standards.”

“Bausch + Lomb is committed to improving the quality of eye care in India, and to helping doctors grow their practices and expand the range of offerings they provide,” said Harish Natarajan, managing director, Bausch + Lomb India. “Our collaboration with Micro Labs will help us do both quickly and with quality.”

The companies will introduce up to six new pharmaceuticals eye drops including Moxisurge, Aquasurge, Aquasurge Max, Bromvue, Ketovue and Moxisurge-KT.

Furthermore, the companies have also agreed to explore other areas of possible collaboration including: sourcing of ophthalmic solution products from Micro Labs to be marketed and sold by Bausch + Lomb in India and other markets in Asia Pacific. Collaboration between the companies with respect to manufacturing technology for the production of eye drops. Joint research & development of Ophthalmic Pharmaceutical products specifically for emerging markets.

Bausch + Lomb is one of the best-known and most respected healthcare companies in the world. Its core businesses include contact lenses and lens care products, ophthalmic surgical devices and instruments, and ophthalmic pharmaceuticals.

FIXED ASSETS

• Land
• Factory and Other Building
• Lease Hold Building
• Plant and Machinery
• Electrical Installations
• Material Handling Equipments
• Air conditioner
• Boilers and Generators
• Effluent Treatment Plant
• Weighing Balances
• Furniture and Fixtures
• General Ventilation Systems
• Laboratory Equipment
• Office Equipments
• Pollution Control Equipments
• Refrigerators
• Trade Marks
• Computer
• Vehicle
  

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.56.24
UK Pound	1	Rs.84.54
Euro	1	Rs.72.32

INFORMATION DETAILS

Report Prepared by :

ANK

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	7
PAID-UP CAPITAL	1~10	7
OPERATING SCALE	1~10	7
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	7
--PROFITABILIRY	1~10	8
--LIQUIDITY	1~10	8
--LEVERAGE	1~10	8
--RESERVES	1~10	8
--CREDIT LINES	1~10	7
--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
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		67

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.