MIRA INFORM REPORT

Report Date :

06.09.2013

IDENTIFICATION DETAILS

Name :	ARCH PHARMALABS LIMITED
Registered Office :	541/A, Arch House, Marol Maroshi Road, Marol, Andheri (East), Mumbai - 400059, Maharashtra
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	02.04.1993
Com. Reg. No.:	11-150891
Capital Investment / Paid-up Capital :	Rs. 247.840 Millions
CIN No.: [Company Identification No.]	U24231MH1993PLC150891
TAN No.: [Tax Deduction & Collection Account No.]	MUMA19603D
PAN No.: [Permanent Account No.]	AACCM0306Q
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer of Pharmaceuticals, API's and Intermediates.
No. of Employees :	3907 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ca (19)

RATING		STATUS	PROPOSED CREDIT LINE
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

Status :	Moderate
Payment Behaviour :	Slow and delayed
Litigation :	Clear
Comments :	Subject is a well established company having a moderate track record. The ratings take into consideration the delays in servicing of debts obligations due to its strained liquidity profile during 2012. However, business is active. Payment terms are reported as slow and delayed. The company can be considered for business dealings on a safe and secured 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 – March 31^st, 2013

Country Name	Previous Rating (31.12.2012)	Current Rating (31.03.2013)
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

We are living in a world where volatility and uncertainty have become the New Normal. We saw a change of government in countries like Tunisia, Egypt, Libya and Vietnam. Once powerful countries in Europe are now fighting for bankruptcy. We have taken growth in the developing part of the world for granted but economic growth in China and India has begun to slow. Companies that were synonymous with their product categories just a few years ago are now no longer in existence. Kodak, the inventor of the digital camera had to wind up its operations, HMV, the British entertainment retailing company and Borders, once the second largest bookstore have shut down due to their inability to evolve their business models with the changing time. Readers’ Digest, Thomson Register are no more !

There is another megatrend happening. The World order is changing as economic power shifts from West to East. According to McKinsey study, it took Britain more than 100 years to double its economic output per person during its industrial revolution and the US later took more than 50 years to do the same. More than a century later, China and India have doubled their GDP per capital in 12 and 18 years respectively. By 2020, emerging Asia will become the world’s largest consuming block, overtaking North America.

The years after the outbreak of the global financial crisis, the world economy continues to remain fragile. The Indian economy demonstrated remarkable resilience in the initial years of the contagion but finally lost ground last year. GDP growth slowed down. Currency has been weakening. There is a marked deceleration in agriculture, industry and services. Dampening sentiment led to a cut-back in investment as well as private consumption expenditure.  Inflation remained at high levels fuelled by the pressure from the food and fuel sectors. The large fiscal and current account deficit s continued to cause grave concern. It is imperative that India regains its growth trajectory of 8-9 % sooner than later. This is crucially important given the need to create gainful livelihood opportunities for the millions living in poverty as also the large contingent of young people joining the job market every year.

EXTERNAL AGENCY RATING

Rating Agency Name	CARE
Rating	Long term loans : D
Rating Explanation	Default or expected to be default soon.
Date	April 8, 2013

Rating Agency Name	CARE
Rating	Short term Bank facilities : D
Rating Explanation	Default or expected to be in default soon.
Date	April 8, 2013

RBI DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2012.

LOCATIONS

Registered/ Corporate Office :	541/A, Arch House, Marol Maroshi Road, Marol, Andheri (East), Mumbai - 400059, Maharashtra, India
Tel. No.:	91-22-28470555/ 33089200/ 33089400/ 40756789
Fax No.:	91-22-28471234/ 1002/ 29206363
Email :	info@archpharmalabs.com sudhir.nagar@archpharmalabs.com
Website :	http://www.archpharmalabs.com
Head Office :	H Wing, 4^th Floor, Tex Centre Chandivali, Andheri (East), Mumbai – 400072, Maharashtra, India
Tel. No.:	91-22-28560555
Plant :	1. Survey No.323, Gundlamachnur Village, Hathnoora Mandal, District Medak - 502296, Andhra Pradesh, India 2. Plot Nos. T-84, 85 and 86, MIDC, Tarapur, Boisar – 401506, Maharashtra, India 3. Plot No. G-3, G-4 and G-5, Kharvai MIDC, Badlapur, District Thane – 421503, Maharashtra, India 4. Vitalife Laboratories, Village Pathreri, Bilaspur Tauru Road, District Gurgaon – 122001, Haryana, India 5. Corporate R&D Centre Taloja, Plot No. 21, MIDC, Chemical Zone, Taloja Industrial Area, Village Navade, Taluka Panvel, District Raigad – 410208, Maharashtra, India 6. Survey No. 280, Mittapally Village, Siddipet – 502375, District Medak, Andhra Pradesh, India 7. Plot No. G-6, MIDC Taloja, Taloja Industrial Area Village Navade, Taluka Panvel, District Raigad, Maharashtra, India 8. E-64/ E-80/ E-81/ E-82, Tarapur Industrial Area, M.I.D.C. Salvad, Thane District, Maharashtra, India 9. Survey No. 10, Gadda Potharam, Jinaram Mandal, Kazipalli Industrial Area, Medak District – 500043 Andhra Pradesh, India 10. Plot No. TS – 21, TS – 22, F – 40, Phase II, Sagaon, Dombivali (East), Thane – 421204, Maharashtra, India
Branch Office 1 :	Sainath, 8-2-120 /86/ 10/2, Muncipal No.389, Road No.14, Banjara Hills, Hyderabad - 500034, Andhra Pradesh, India
Branch Office 2 :	Shop No.3, Village Pabhat, Chandigarh Road, Zirakpur District, Ropar, Punjab, India

DIRECTORS

AS ON 29.09.2012

Name :

Mr. Ajit Annu Kamath

Designation :

Managing director

Address :

404, Ila Apartments, Sector 4, R.D.P. 7, Charkop, Kandivali (West), Mumbai - 400067, Maharashtra, India

Date of Birth/Age :

12.12.1969

Qualification :

Bachelor of Commerce

Date of Appointment :

01.11.2003

PAN No.:

AACPK7261P

DIN No.:

00032799

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	U67190MH1994PTC078769	ANHITA FINANCIAL SERVICES (BOMBAY) PRIVATE LIMITED	Director	06/06/1994	06/06/1994	26/03/2006	Active	NO
2	U65993MH1997PTC107197	ARCH INVESTMENT PRIVATE LIMITED	Director	10/04/1997	10/04/1997	-	Active	NO
3	U24233MH2000PTC126987	ARCH HERBALS PRIVATE LIMITED	Director	05/06/2000	05/06/2000	-	Active	NO
4	U51900MH2000PTC127806	ARCH IMPEX PRIVATE LIMITED	Director	19/07/2000	19/07/2000	-	Active	NO
5	U15499MH2000PTC129255	ARCH PHYTOCHEMICALS PRIVATE LIMITED	Director	19/10/2000	19/10/2000	-	Amalgamated	NO
6	U24231MH2000PLC129882	ARCH PHARMACHEM LIMITED	Director	29/07/2003	29/07/2003	-	Active	NO
7	U24231MH1993PLC150891	ARCH PHARMALABS LIMITED	Managing director	01/11/2008	01/11/2003	-	Active	NO
8	U21000MH1996PTC103102	AVANT CAPITAL SERVICES PRIVATE LIMITED	Director	15/06/2005	15/06/2005	-	Amalgamated	NO
9	U45200AP2006PTC051039	MARM REALTY PRIVATE LIMITED	Director	01/09/2006	01/09/2006	-	Active	NO
10	U55204MH2007PTC166795	ACCENTURE HOSPITALITY PRIVATE LIMITED	Director	06/01/2007	06/01/2007	-	Strike off	NO
11	U24239AP2003PLC042232	ARCH LIFE SCIENCES LIMITED	Director	02/04/2007	02/04/2007	-	Active	NO
12	U65190MH2007PTC171972	A M R INVESTMENTS PRIVATE LIMITED	Director	25/06/2007	25/06/2007	-	Active	NO
13	U24100MH2000PLC125507	NIPRO TUBE GLASS LIMITED	Director	31/07/2007	31/07/2007	-	Active	NO
14	U24110AP1993PLC015533	ARCH FINECHEMICALS LIMITED	Director	29/09/2007	22/08/2007	-	Active	NO
15	U45200MH2007PLC175780	ARCH INFRA VENTURES LIMITED	Director	07/11/2007	07/11/2007	-	Active	NO
16	U24230MH2004PTC147388	BENZOCHEM LIFESCIENCES PRIVATE LIMITED	Director	10/07/2008	10/07/2008	12/03/2010	Active	NO
17	U24233MH2008PTC186600	ARISTO HERBOFARM PRIVATE LIMITED	Director	09/09/2008	09/09/2008	05/03/2009	Active	NO
18	U24233MH2008PTC186599	AIM HERBOFARM PRIVATE LIMITED	Director	09/09/2008	09/09/2008	05/03/2009	Active	NO
19	L24110AP1993PLC016112	AVON ORGANICS LIMITED	Managing director	01/08/2009	31/01/2009	-	Active	NO
20	U24239MH2011PLC213956	AMRA REMEDIES LIMITED	Director	23/02/2011	23/02/2011	-	Active	NO
21	U01403MH2011PTC218636	ARCH AGRO INDUSTRIES PRIVATE LIMITED	Director	14/06/2011	14/06/2011	-	Active	NO
22	U24100MH2011PLC223168	AMRA RENAL CARE LIMITED	Director	17/10/2011	17/10/2011	-	Active	NO
23	U24100MH1984PTC032849	SHRIYA CHEMICALS PRIVATE LIMITED	Additional director	19/03/2012	19/03/2012	31/03/2012	Active	NO

Name :

Mr. Manoj Tejraj Jain

Designation :

Whole-time director

Address :

Flat No. 4-A, Shefali, Mahim Makarand Society, 114, SVS Marg, Mahim, Mumbai – 400016, Maharashtra, India

Date of Birth/Age :

20.03.1970

Qualification :

Chartered Accountant and Bachelor of Commerce

Date of Appointment :

01.11.2008

PAN No.:

AABPJ8807B

DIN No.:

00034727

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	U67190MH1994PTC078769	ANHITA FINANCIAL SERVICES (BOMBAY) PRIVATE LIMITED	Director	06/06/1994	06/06/1994	26/03/2006	Active	NO
2	U65993MH1997PTC107197	ARCH INVESTMENT PRIVATE LIMITED	Director	10/04/1997	10/04/1997	-	Active	NO
3	U24233MH2000PTC126987	ARCH HERBALS PRIVATE LIMITED	Director	05/06/2000	05/06/2000	-	Active	NO
4	U51900MH2000PTC127806	ARCH IMPEX PRIVATE LIMITED	Director	19/07/2000	19/07/2000	-	Active	NO
5	U15499MH2000PTC129255	ARCH PHYTOCHEMICALS PRIVATE LIMITED	Director	19/10/2000	19/10/2000	-	Amalgamated	NO
6	U24231MH2000PLC129882	ARCH PHARMACHEM LIMITED	Director	29/07/2003	29/07/2003	-	Active	NO
7	U24231MH1993PLC150891	ARCH PHARMALABS LIMITED	Whole-time director	01/11/2008	01/11/2003	-	Active	NO
8	U21000MH1996PTC103102	AVANT CAPITAL SERVICES PRIVATE LIMITED	Director	15/06/2005	15/06/2005	-	Amalgamated	NO
9	U55204MH2007PTC166795	ACCENTURE HOSPITALITY PRIVATE LIMITED	Director	06/01/2007	06/01/2007	-	Strike off	NO
10	U24239AP2003PLC042232	ARCH LIFE SCIENCES LIMITED	Director	02/04/2007	02/04/2007	-	Active	NO
11	U65190MH2007PTC171972	A M R INVESTMENTS PRIVATE LIMITED	Director	25/06/2007	25/06/2007	-	Active	NO
12	U24100MH2000PLC125507	NIPRO TUBE GLASS LIMITED	Managing director	28/06/2010	31/07/2007	01/10/2011	Active	NO
13	U24110AP1993PLC015533	ARCH FINECHEMICALS LIMITED	Director	29/09/2007	22/08/2007	-	Active	NO
14	U45200MH2007PLC175780	ARCH INFRA VENTURES LIMITED	Director	07/11/2007	07/11/2007	-	Active	NO
15	U24230MH2004PTC147388	BENZOCHEM LIFESCIENCES PRIVATE LIMITED	Director	10/07/2008	10/07/2008	12/03/2010	Active	NO
16	U24233MH2008PTC186600	ARISTO HERBOFARM PRIVATE LIMITED	Director	09/09/2008	09/09/2008	05/03/2009	Active	NO
17	U24233MH2008PTC186599	AIM HERBOFARM PRIVATE LIMITED	Director	09/09/2008	09/09/2008	05/03/2009	Active	NO
18	L24110AP1993PLC016112	AVON ORGANICS LIMITED	Director	29/09/2009	31/01/2009	-	Active	NO
19	U24239MH2011PLC213956	AMRA REMEDIES LIMITED	Director	23/02/2011	23/02/2011	-	Active	NO
20	U01403MH2011PTC218636	ARCH AGRO INDUSTRIES PRIVATE LIMITED	Director	14/06/2011	14/06/2011	-	Active	NO
21	U24100MH2011PLC223168	AMRA RENAL CARE LIMITED	Director	17/10/2011	17/10/2011	-	Active	NO
22	U70102MH2008PTC185371	RIVERSIDE FARMLAND PRIVATE LIMITED	Director	16/02/2012	16/02/2012	-	Active	NO
23	U01403MH2008PTC185372	RIVERTOUCH FARMLAND PRIVATE LIMITED	Director	16/02/2012	16/02/2012	-	Active	NO
24	U70102MH2008PTC185373	RIVERVIEW REALTY PRIVATE LIMITED	Director	16/02/2012	16/02/2012	-	Active	NO
25	U24100MH1984PTC032849	SHRIYA CHEMICALS PRIVATE LIMITED	Additional director	19/03/2012	19/03/2012	31/03/2012	Active	NO

Name :

Mr. Rajendra Padmanabhan Kaimal

Designation :

Whole-time director

Address :

Flat No. 1202, Sector R-3, C Wing, Orchid Enclave, Nahar’s Amrit Shakti, Chandivali, Andheri (East), Mumbai – 400072, Maharashtra, India

Date of Birth/Age :

23.06.1973

Qualification :

MBA and Cost Accountant

Date of Appointment :

01.11.2008

PAN No.:

AGIPP3698P

DIN No.:

00032839

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	U24231MH2000PLC129882	ARCH PHARMACHEM LIMITED	Director	29/07/2003	29/07/2003	-	Active	NO
2	U51900MH2000PTC127806	ARCH IMPEX PRIVATE LIMITED	Director	17/09/2003	17/09/2003	-	Active	NO
3	U24231MH1993PLC150891	ARCH PHARMALABS LIMITED	Whole-time director	01/11/2008	01/11/2003	-	Active	NO
4	U24239AP2003PLC042232	ARCH LIFE SCIENCES LIMITED	Director	02/04/2007	02/04/2007	-	Active	NO
5	U65190MH2007PTC171972	A M R INVESTMENTS PRIVATE LIMITED	Director	25/06/2007	25/06/2007	-	Active	NO
6	U24100MH2000PLC125507	NIPRO TUBE GLASS LIMITED	Director	31/07/2007	31/07/2007	24/05/2011	Active	NO
7	U24110AP1993PLC015533	ARCH FINECHEMICALS LIMITED	Director	29/09/2007	22/08/2007	-	Active	NO
8	U45200MH2007PLC175780	ARCH INFRA VENTURES LIMITED	Director	07/11/2007	07/11/2007	-	Active	NO
9	U24230MH2004PTC147388	BENZOCHEM LIFESCIENCES PRIVATE LIMITED	Director	10/07/2008	10/07/2008	12/03/2010	Active	NO
10	L24110AP1993PLC016112	AVON ORGANICS LIMITED	Additional director	30/05/2013	31/01/2009	-	Active	NO
11	U24239MH2011PLC213956	AMRA REMEDIES LIMITED	Director	23/02/2011	23/02/2011	-	Active	NO
12	U01403MH2011PTC218636	ARCH AGRO INDUSTRIES PRIVATE LIMITED	Director	14/06/2011	14/06/2011	-	Active	NO
13	U24100MH2011PLC223168	AMRA RENAL CARE LIMITED	Director	17/10/2011	17/10/2011	-	Active	NO
14	U24100MH1984PTC032849	SHRIYA CHEMICALS PRIVATE LIMITED	Additional director	19/03/2012	19/03/2012	31/03/2012	Active	NO
15	U65993MH1997PTC107197	ARCH INVESTMENT PRIVATE LIMITED	Additional director	15/02/2013	15/02/2013	-	Active	NO
16	U24233MH2000PTC126987	ARCH HERBALS PRIVATE LIMITED	Additional director	15/02/2013	15/02/2013	-	Active	NO

Name :

Mallikarjuna Reddy Tirumalareddy

Designation :

Whole-time director

Address :

B-13, Madhura Nagar, S.R. Nagar P.O., Hyderabad – 500038, Andhra Pradesh, India

Date of Birth/Age :

15.04.1960

Qualification :

Masters of Arts

Date of Appointment :

01.10.2008

PAN No.:

ABJPT1258P

DIN No.:

00298545

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	U24231MH1993PLC150891	ARCH PHARMALABS LIMITED	Whole-time director	01/10/2008	04/04/1993	-	Active	NO
2	U65993AP1995PTC019440	SAINATH INVESTMENTS PRIVATE LIMITED	Director	14/02/1995	14/02/1995	-	Active	NO
3	U99999AP1995PLC019510	PLANETWILDLIFE.COM (INDIA) LIMITED	Director	01/04/2010	21/02/1995	-	Active	NO
4	U85110KA1995PLC021495	ROSETTE AGRO-TECH LIMITED	Director	12/10/1995	12/10/1995	11/11/2011	Active	NO
5	L01122AP1995PLC019311	ROSETTE AGRO-TECH LIMITED	Director	12/10/1995	12/10/1995	-	Not Available for eFiling	NO
6	U51397AP1995PTC022674	SAINATH MEDICAL SYSTEMS PRIVATE LIMITED	Director	30/11/1998	30/11/1998	-	Active	NO
7	U45200AP2006PTC051039	MARM REALTY PRIVATE LIMITED	Director	01/09/2006	01/09/2006	-	Active	NO
8	U74900AP2008PTC059412	SAINATH HOSPITALITY PRIVATE LIMITED	Director	29/05/2008	29/05/2008	-	Active	NO

Name :

Hiroki Segawa

Designation :

Nominee director

Address :

2-23-22, Wakabayashi, Setagaya-ku Tokyo

Date of Birth/Age :

14.02.1967

Date of Appointment :

02.05.2013

DIN No.:

06396375

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	U24231MH1993PLC150891	ARCH PHARMALABS LIMITED	Nominee director	02/05/2013	18/01/2013	Active	NO

Name :

Takayuki Iwai

Designation :

Nominee director

Address :

5-4-6-306, Minamiaoyama, Minato-ku Tokyo

Date of Birth/Age :

24.02.1964

Date of Appointment :

18.01.2013

DIN No.:

06396363

KEY EXECUTIVES

Name :	Mr. Vikas Kedia
Designation :	Secretary
Address :	Flat No. 201, C-Wing, Krishna Building, Vasant Sagar Complex, Thakur Village, Kandivali (East), Mumbai – 400101, Maharashtra, India
Date of Birth/Age :	08.07.1976
Date of Appointment :	26.12.2003
PAN No.:	AMZPK9885E

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 29.09.2012

NOT AVAILABLE

AS ON 16.10.2012

Names of Allottee	No. of Shares
AMR Investments Private Limited, India	3061224
Total	3061224

AS ON 29.09.2012

Equity Share Breakup	Percentage of Holding
Category
Venture capital	40.57
Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others]	11.63
Bodies corporate	40.94
Other top fifty shareholders	4.62
Others	2.24
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Pharmaceuticals, API's and Intermediates.

Products/ Services :

ITC Code No.	Product Descriptions
29094400	Other Monoalkyl Ethrs of Ethylene Glycol or of Diethylene Glycol
29159090	Other Satrtd Acrylic Mnocrbixylc Acids etc and the Drvtvs Unsaturated Acyclic Monocarboxylic Acids, Cyclic Monocarboxylic Acids, their
29420090	Other Diloxanide Furoate, Cimetidine, Famotidine Nes Glands and Other Organs for Organotherapeutic Uses, Dried, whether or not
29141990	Other Acrylic Ketones Without Other Oxygen FN.

GENERAL INFORMATION

No. of Employees :

3907 (Approximately)

Bankers :

· Central Bank of India, Corporate Finance Branch, 1st Floor, MMO Building, M G Road, Fort, Mumbai - 400023, Maharashtra, India

Axis Bank Limited, Axis House, Ground Floor, C-2, Wadia International Centre, P.B. Marg, Worli, Mumbai - 400025, Maharashtra, India

Bank of Maharashtra, Industrial Finance Branch, 1, Dr. V B Gandhi Marg, Fort, Mumbai - 400001, Maharashtra, India

· IDBI Bank Limited, IDBI Tower, WTC Complex, Cuffe Parade, Mumbai - 400005, Maharashtra, India

· Bank of Bahrain & Kuwait B.S.C, 225, Jolly Maker Chambers II, Nariman Point, Mumbai - 400021, Maharashtra, India

· UCO Bank, Flagship Corportae Branch, 1st Floor, Mafatlal Centre, Nariman Point, Mumbai - 400021, Maharashtra, India

· Canara Bank, Prime Corporate Branch - 1, Maker Towers, F Wing, 20th Floor, Cuffe Parade, Mumbai - 400005, Maharashtra, India

· State Bank of Mauritius Limited, 101, Raheja Centre, Free Press Journal Road, Nariman Point, Mumbai - 400021, Maharashtra, India

· State Bank of Hyderabad, Overseas Branch, 1204, Ashok Mahal, Tulloch Road, Colaba, Mumbai - 400039, Maharashtra, India

Facilities :

Secured Loans	31.03.2012	31.03.2011
	(Rs. In Millions)
LONG-TERM BORROWINGS
Non-convertible debentures others [Non convertible debentures are further secured by personal guarantee of the Company's Promoter Directors. i.e. Mr. Ajit A. Kamath, Mr. Manoj T. Jain and Mr. Rajendra P. Kaimal.]	800.000	0.000
Term loans from banks [Term Loan from Banks are secured by personal guarantee of the Company's Promoter Directors.]	6258.028	5011.384
Other loans and advances [Secured by hypothecation of respective vehicles purchased under such financing.]	1.169	2.532
SHORT TERM BORROWINGS	0.0	0.0
Working capital loans from banks [Secured by first pari passu charge on the current assets and second pari-passu charge on the fixed assets.]	5289.621	2981.490
Total	12348.818	7995.406

Banking Relations :	--
Financial Institutions :	· IL and FS Trust Company Limited, Il and FS Financial Centre, Plot No C 22, G Block Bandra, Kurla Complex Bandra [East], Mumbai - 400051, Maharashtra, India Axis Trustee Services Limited, Axis House, 2nd Floor, Bombay Dyeing Mills Compound, Pandurang Budhkar Marg, Worli, Mumbai - 400025, Maharashtra, India Sicom Limited, Solitaire Corporate Park, Building No. 4, Guru, Hargovindji Road, Andheri (East), Mumbai - 400093, Maharashtra, India
Auditors 1 :
Name :	Chaturvedi and Shah Chartered Accountants
Address :	714-715, Tulsiani Chambers, 212, Nariman Point, Mumbai – 400021, Maharashtra, India
Income-tax PAN of auditor or auditor's firm :	AAAFC0662N
Auditors 2 :
Name :	Nayak and Rane Chartered Accountants
Address :	501, Siddhivinayak Annexe, C – Wing, S.J. Marg, Lower Parel, Mumbai – 400013, Maharashtra, India
Income-tax PAN of auditor or auditor's firm :	AACFN4326J
Subsidiaries :	· Arch Pharmalabs USA Inc Arch Life Sciences Limited [U24239AP2003PLC042232] Arch Finechemicals Limited [U24110AP1993PLC015533] Avon Organics Limited [L24110AP1993PLC016112] Regal Pharma PTE Limited
Enterprises which are owned, or have significant influence of or are partners with Key management personnel and their relatives :	· Arch Impex Private Limited [U51900MH2000PTC127806] Arch Pharmachem Limited [U24231MH2000PLC129882] A M R Investments Private Limited [U65190MH2007PTC171972] Sainath Investments Private Limited [U65993AP1995PTC019440]

CAPITAL STRUCTURE

AFTER 29.09.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
40,000,000	Equity Shares	Rs. 10/- each	Rs. 400.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
27,845,246	Equity Shares	Rs. 10/- each	Rs. 278.452 Millions

AS ON 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
40,000,000	Equity Shares	Rs. 10/- each	Rs. 400.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
24,784,022	Equity Shares	Rs. 10/- each	Rs. 247.840 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2012	31.03.2011
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	247.840	247.840
(b) Reserves & Surplus	7541.541	6530.280
(c) Money received against share warrants	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000
Total Shareholders’ Funds (1) + (2)	7789.381	6778.120
(3) Non-Current Liabilities
(a) long-term borrowings	7102.293	6061.839
(b) Deferred tax liabilities (Net)	584.731	521.042
(c) Other long term liabilities	0.000	0.000
(d) long-term provisions	0.000	0.000
Total Non-current Liabilities (3)	7687.024	6582.881
(4) Current Liabilities
(a) Short term borrowings	6636.496	4680.982
(b) Trade payables	4135.351	3176.908
(c) Other current liabilities	1824.450	1970.988
(d) Short-term provisions	82.722	119.255
Total Current Liabilities (4)	12679.019	9948.133
TOTAL	28155.424	23309.134
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	6724.324	6080.640
(ii) Intangible Assets	666.754	409.127
(iii) Capital work-in-progress	480.028	218.421
(iv) Intangible assets under development	14.668	84.053
(b) Non-current Investments	491.935	492.435
(c) Deferred tax assets (net)	0.000	0.000
(d) Long-term Loan and Advances	3498.833	1887.202
(e) Other Non-current assets	0.000	0.000
Total Non-Current Assets	11876.542	9171.878
(2) Current assets
(a) Current investments	0.000	0.000
(b) Inventories	5771.026	4497.449
(c) Trade receivables	5915.139	5348.858
(d) Cash and cash equivalents	656.765	603.599
(e) Short-term loans and advances	3935.952	3687.350
(f) Other current assets	0.000	0.000
Total Current Assets	16278.882	14137.256
TOTAL	28155.424	23309.134

SOURCES OF FUNDS		31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		212.340
2] Share Application Money		300.000
3] Reserves & Surplus		4158.145
4] (Accumulated Losses)		0.000
NETWORTH		4670.485
LOAN FUNDS
1] Secured Loans		9001.345
2] Unsecured Loans		2259.514
TOTAL BORROWING		11260.859
DEFERRED TAX LIABILITIES		425.104
TOTAL		16356.448
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		5770.743
Capital work-in-progress		674.161
INVESTMENT		492.435
DEFERRED TAX ASSETS		0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	3743.398
	Sundry Debtors	4771.513
	Cash & Bank Balances	501.349
	Other Current Assets	0.000
	Loans & Advances	2889.176
Total Current Assets		11905.436
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	821.739
	Other Current Liabilities	1646.908
	Provisions	18.352
Total Current Liabilities		2486.999
Net Current Assets		9418.437
MISCELLANEOUS EXPENSES		0.000
OTHER ASSETS		0.672
TOTAL		16356.448

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Revenue from operations	14939.108	12779.004	10233.723
		Other Income	252.164	88.000	64.474
		TOTAL (A)	15191.272	12867.004	10298.197
Less	EXPENSES
		Cost of materials consumed	6082.254	5273.647
		Purchases of stock-in-trade	3109.147	2172.376
		Changes in inventories of finished goods, work-in-progress and stock-in-trade	(392.389)	237.774
		Employee benefit expense	815.218	609.099
		Other expenses	1231.427	1249.219
		TOTAL (B)	10845.657	9542.115	7812.388
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		4345.615	3324.889	2485.809
Less	FINANCIAL EXPENSES (D)		2232.316	1542.442	1312.429
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		2113.299	1782.447	1173.380
Less/ Add	DEPRECIATION/ AMORTISATION (F)		728.348	600.407	458.659
	PROFIT BEFORE TAX (E-F) (G)		1384.951	1182.040	714.721
Less	TAX (H)		373.690	348.610	205.916
	PROFIT AFTER TAX (G-H) (I)		1011.261	833.430	508.805
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		2602.232	1683.482	1138.581
Less	APPROPRIATIONS
		Debenture Redemption Reserve Account	(95.283)	(85.320)	(36.096)
		Transfer to General Reserve	50.000	0.000	0.000
	BALANCE CARRIED TO THE B/S		3658.776	2602.232	1683.482
	EARNINGS IN FOREIGN CURRENCY
		FOB value of exports	7221.849	4915.525	3474.213
		Other Earnings	506.311	772.719	484.847
	TOTAL EARNINGS		7728.160	5688.244	3959.060
	IMPORTS
		Raw Materials	4177.425	3471.313	2228.227
		Capital Goods	7.643	50.618	5.329
	TOTAL IMPORTS		4185.068	3521.931	2233.556
	Earnings Per Share (Rs.)		40.80	36.20	23.96

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	6.66	6.48	4.94
Net Profit Margin (PBT/Sales)	(%)	9.27	9.25	6.98
Return on Total Assets (PBT/Total Assets}	(%)	5.10	4.63	4.04
Return on Investment (ROI) (PBT/Networth)		0.18	0.17	0.15
Debt Equity Ratio (Total Debt/Networth)		1.76	1.58	2.41
Current Ratio (Current Asset/Current Liability)		1.28	1.42	4.79

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	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	Yes

INDEX OF CHARGES

S.NO.	CHARGE ID	DATE OF CHARGE CREATION/MODIFICATION	CHARGE AMOUNT SECURED	CHARGE HOLDER	ADDRESS	SERVICE REQUEST NUMBER (SRN)
1	10442042	16/07/2013	110,000,000.00	AXIS BANK LIMITED	AXIS HOUSE, GROUND FLOOR, C-2, WADIA INTERNATIONAL CENTRE, P.B. MARG, WORLI, MUMBAI - 400025, MAHARASHTRA , INDIA	B81691909
2	10420997	24/04/2013	750,000,000.00	IL & FS TRUST COMPANY LIMITED	IL & FS FINANCIAL CENTREPLOT NO C22 G BLOCK BANDRA, KURLA COMPLEX BANDRA [EAST], MUMBAI - 400051, MAHARASHTRA , INDIA	B73539603
3	10416734	21/03/2013 *	1,000,000,000.00	CENTRAL BANK OF INDIA	CORPORATE FINANCE BRANCH, 1ST FLOOR, MMO BUILDING, M G ROAD, FORT, MUMBAI - 400023, MAHARASHTRA, INDIA	B72910029
4	10412345	05/02/2013	250,000,000.00	BANK OF MAHARASHTRA	INDUSTRIAL FINANCE BRANCH, 1, DR. V B GANDHI MARG, FORT, MUMBAI - 400001, MAHARASHTRA, INDIA	B70966809
5	10410251	14/01/2013	121,500,000.00	STATE BANK OF HYDERABAD	OVERSEAS BRANCH,1204, ASHOK MAHAL, TULLOCH ROAD, COLABA, MUMBAI - 400039, MAHARASHTRA, INDIA	B70244298
6	10378613	27/09/2012	1,000,000,000.00	BANK OF MAHARASHTRA	INDUSTRIAL FINANCE BRANCH, 1, DR. V B GANDHI MARG, FORT, MUMBAI – 400001, MAHARASHTRA, INDIA	B58938572
7	10372485	27/07/2012	150,000,000.00	STATE BANK OF MAURITIUS LIMITED	101, RAHEJA CENTRE, FREE PRESS JOURNAL ROAD, NARIMAN POINT, MUMBAI - 400021, MAHARASHTRA, INDIA	B56362247
8	10369965	12/07/2012	200,000,000.00	AXIS TRUSTEE SERVICES LIMITED	AXIS HOUSE, 2ND FLOOR, BOMBAY DYEING MILLS COMPOUND, PANDURANG BUDHKAR MARG, WORLI, MUMBAI - 400025, MAHARASHTRA, INDIA	B45334802
9	10437722	20/06/2012	250,000,000.00	BANK OF MAHARASHTRA	INDUSTRIAL FINANCE BRANCH, 1, DR. V B GANDHI MARG, FORT, MUMBAI - 400001, MAHARASHTRA, INDIA	B56965015
10	10356919	02/05/2012	100,000,000.00	CANARA BANK	PRIME CORPORATE BRANCH - 1, MAKER TOWERS, F WING, 20TH FLOOR, CUFFE PARADE, MUMBAI - 400005, MAHARASHTRA, INDIA	B40069528
11	10351928	28/03/2012	300,000,000.00	SICOM LIMITED	SOLITAIRE CORPORATE PARK, BUILDING NO. 4, GURU, HARGOVINDJI ROAD, ANDHERI (EAST), MUMBAI - 400093, MAHARASHTRA, INDIA	B38291241
12	10333606	30/01/2012	1,000,000,000.00	UCO BANK	FLAGSHIP CORPORTAE BRANCH, 1ST FLOOR, MAFATLAL CENTRE, NARIMAN POINT, MUMBAI - 400021, MAHARASHTRA, INDIA	B31263585
13	10325469	20/12/2011	500,000,000.00	AXIS BANK LIMITED	TRISHUL, 3RD FLOOR, OPPOSITE SAMARTHESHWAR TEMPLE, LAW GARDEN ELLISBRIDGE, AHMEDABAD - 380006, GUJARAT, INDIA	B28703981
14	10330785	14/12/2011	1,000,000,000.00	PUNJAB NATIONAL BANK	MAKER TOWERS 'E', GROUND FLOOR, CUFFE PARADE, MUMBAI - 400005, MAHARASHTRA, INDIA	B30230999
15	10314741	21/10/2011	500,000,000.00	EXPORT-IMPORT BANK OF INDIA	CENTRE ONE BUILDING, FLOOR-21, WORLD TRADE CENTRE COMPLEX, CUFFE PARADE, MUMBAI - 400005, MAHARASHTRA, INDIA	B73890949
16	10308055	07/05/2012 *	498,000,000.00	BANK OF BAHRAIN & KUWAIT B.S.C	225, JOLLY MAKER CHAMBERS II, NARIMAN POINT, MUMBAI - 400021, MAHARASHTRA, INDIA	B38654877
17	10309033	19/08/2011	200,000,000.00	SICOM LIMITED	SOLITAIRE CORPORATE PARK, BUILDING NO. 4, GURU, HARGOVINDJI ROAD, ANDHERI (EAST), MUMBAI - 400093, MAHARASHTRA, INDIA	B22058929
18	10302745	23/01/2012 *	1,000,000,000.00	AXIS TRUSTEE SERVICES LIMITED	AXIS HOUSE, 2ND FLR, BOMBAY DYEING MILLS COMPOUND, PANDURANG BUDHKAR MARG, WORLI, MUMBAI - 400025, MAHARASHTRA, INDIA	B31521073
19	10284060	12/12/2011 *	1,000,000,000.00	ICICI BANK LIMITED	LANDMARKRACE COURCE CIRCLE, ALKAPURI, BARODA - 390015, GUJARAT, INDIA	B27173582
20	10280176	07/04/2011	500,000,000.00	EXPORT-IMPORT BANK OF INDIA	CENTRE ONE BUILDING, FLOOR 21, WORLD TRADE CENTRE, CUFFE PARADE, MUMBAI - 400005, MAHARASHTRA, INDIA	B10485381
21	10277742	31/03/2011	500,000,000.00	ICICI BANK LIMITED	LANDMARKRACE COURCE CIRCLE, ALKAPURI, BARODA - 390015, GUJARAT, INDIA	B09737545
22	10313029	28/02/2011	1,000,000,000.00	STATE BANK OF INDIA	OVERSEAS BRANCH, WORLD TRADE CENTRE, CUFFE PARADE, MUMBAI - 400005, MAHARASHTRA, INDIA	B16331464
23	10259226	27/12/2010	2,500,000,000.00	ICICI BANK LIMITED	LANDMARKRACE COURCE CIRCLE, ALKAPURI, BARODA - 390015, GUJARAT, INDIA	B02456358
24	10256576	04/10/2010	500,000,000.00	PUNJAB NATIONAL BANK	ECE HOUSE, K G HOUSE, NEW DELHI - 110001, INDIA	A99722118
25	10252029	28/09/2010	700,000,000.00	UNITED BANK OF INDIA	UNITED BANK OF INDIA BUILDING, 25, SIR PHEROZ SHAH MEHTA ROAD, FORT, MUMBAI - 400001, MAHARASHTRA, INDIA	A98903156
26	10220633	17/03/2010	77,500,000.00	INDUSIND BANK LTD.	2401 GEN THIMMAYYA ROAD, CONTONMENT, PUNE - 411001, MAHARASHTRA, INDIA	A85148054
27	10217401	17/12/2010 *	327,500,000.00	INDUSIND BANK LTD.	DR. GOPAL DAS BHAWAN 28,, BARAKHAMBA ROAD, NEW DELHI - 110001, INDIA	B05424122
28	10208613	09/03/2010	350,000,000.00	UNION BANK OF INDIA	MUMBAI SAMACHAR MARG BRANCH, 66/80, MUMBAI SAMACHAR MARG,FORT, MUMBAI - 411001, MAHARASHTRA - 400023, INDIA	A81620965
29	10195697	20/01/2010	200,000,000.00	LAKSHMI VILAS BANK LIMITED	ANDHERI (EAST) BRANCH, SWAPNA SADAN, GROUND FLOOR, AZAD ROAD,GUNDAVALI NAGAR, ANDHERI EAST, MUMBAI - 400069, MAHARASHTRA, INDIA	A76829837
30	10182487	31/03/2010 *	487,700,000.00	KOTAK MAHINDRA BANK LIMITED	36-38A, NARIMAN BHAVAN, 227,D, NARIMAN POINT, MUMBAI - 400021, MAHARASHTRA, INDIA	A86087020
31	10179653	14/12/2010 *	400,000,000.00	STATE BANK OF BIKANER & JAIPUR	COMMERCIAL NETWORK BRANCH, 239, P D MELLO ROAD, NEAR GPO, MUMBAI - 400001, MAHARASHTRA, INDIA	B05244744
32	10178818	31/03/2010 *	250,000,000.00	ALLAHABAD BANK	FORT BRANCH, 37, MUMBAI SAMACHAR MARG, FORT, MUMBAI - 400023, MAHARASHTRA, INDIA	A86075306
33	10168628	03/02/2011 *	550,000,000.00	STATE BANK OF TRAVANCORE	112-115, FIRST FLOOR, WEST WING, TULSIANI CHAMBERS, 212, NARIMAN POINT, MUMBAI - 400021, MAHARASHTRA, INDIA	B06395842
34	10151719	19/10/2010 *	600,000,000.00	BARCLAYS BANK PLC	601/603, CEEJAY HOUSE, SHIVSAGAR ESTATE, DR. ANNIE BESANT ROAD, WORLI, MUMBAI - 400018, MAHARASHTRA, INDIA	A96850623
35	10141812	17/03/2010 *	750,000,000.00	IL & FS TRUST COMPANY LIMITED	IL & FS FINANCIAL CENTREPLOT NO C22 G BLOCK BANDRA, KURLA COMPLEX BANDRA EAST, MUMBAI - 400051, MAHARASHTRA, INDIA	A81890352
36	10139458	17/03/2010 *	100,000,000.00	STANDARD CHARTERED BANK	90, M G ROAD, FORT, MUMBAI - 400001, MAHARASHTRA, INDIA	A84941749
37	10141795	18/01/2011 *	500,000,000.00	THE LAKSHMI VILAS BANK LIMITED	SWAPNA SADAN, GROUND FLOOR, AZAD ROAD, ANDHERI (EAST), MUMBAI - 400069, MAHARASHTRA, INDIA	B05596507
38	10143830	09/10/2012 *	1,500,000,000.00	IDBI BANK LIMITED	IDBI TOWER, WTC COMPLEX, CUFFE PARADE, MUMBAI - 400005, MAHARASHTRA, INDIA	B61593331
39	10069156	31/03/2010 *	400,000,000.00	CANARA BANK	PRIME CORPORATE BRANCH - I, DALAMAL TOWERS, NARIMAN POINT, MUMBAI - 400021, MAHARASHTRA, INDIA	A86048782
40	10059452	04/07/2007	100,000,000.00	CENTURION BANK OF PUNJAB	25/26 MAKER CHAMBERS III, NARIMAN POINT, MUMBAI - 400021, MAHARASHTRA, INDIA	A18708198
41	10033687	16/07/2012 *	20,355,900,000.00	AXIS TRUSTEE SERVICES LIMITED	AXIS HOUSE, 2ND FLR, BOMBAY DYEING MILLS COMPOUND, PANDURANG BUDHKAR MARG, WORLI, MUMBAI - 400025, MAHARASHTRA, INDIA	B43999770
42	10014877	31/03/2010 *	345,000,000.00	STATE BANK OF INDORE	EMPIRE HOUSE, 214, D. N. ROAD, FORT, MUMBAI - 400001, MAHARASHTRA, INDIA	A86075702
43	80009718	07/12/2010 *	620,000,000.00	THE KARUR VYSYA BANK LIMITED	KAMANWALA CHAMBERS, SIR. P.M. ROAD, FORT, MUMBAI - 400001, MAHARASHTRA, INDIA	B04540373
44	80010619	17/11/2011 *	500,000,000.00	STATE BANK OF MYSORE	3,4 & 5, D.D.A. BUILDING, NEHRU PLACE, NEW DELHI - 110019, INDIA	B25098732
45	80010762	17/11/2011 *	500,000,000.00	STATE BANK OF MYSORE	NO. 3, 4, OR 5, D.D.A. BUILDING, NEHRU PLACE, NEW DELHI - 110019, INDIA	B25080193
46	80009270	31/03/2010 *	865,800,000.00	STATE BANK OF INDIA	OVERSEAS BRANCH, WORLD TRADE CENTRE, CUFFE PARADE, MUMBAI - 400005, MAHARASHTRA, INDIA	A86057189
47	80006999	03/08/2010 *	1,630,000,000.00	AXIS BANK LIMITED	FORT BRANCH, UNIVERSAL INSURANCE BUILDING, FORT, MUMBAI - 400023, MAHARASHTRA, INDIA	A94943065

* Date of charge modification

UNSECURED LOANS

Unsecured Loans	31.03.2012	31.03.2011
	(Rs. In Millions)
LONG-TERM BORROWINGS
Term loans from banks	0.000	1000.000
Deferred payment liabilities	43.096	47.923
SHORT TERM BORROWINGS
Other loans and advances	1346.875	1699.492
Total	1389.971	2747.415

Note:

The registered office of the company has been shifted from H-Wing, 4^th Floor, Tex Centre, Narayan Properties, Chandivali, Off. Saki Vihar Road, Andheri (East), Mumbai – 400072, Maharashtra, India to the present w.e.f.03.01.2012

MANAGEMENT’S DISCUSSION AND ANALYSIS

GLOBAL PHARMACEUTICAL INDUSTRY OVERVIEW

The global demand for pharmaceutical products has witnessed an uptrend and is expected to continue to grow in line with longer life expectancy and higher prevalence of infectious and chronic diseases.

According to a study by IMS Healthcare, the global pharmaceutical market has grown at a 7% CAGR over the past six years to reach a size of USD $880 million. A growth rate of 5% has been forecasted by IMS Health over the next four years to reach a size of USD $1,100mn by 2015E.

Generics market has been the key player in this growth story for pharmaceuticals on a global basis. The generics market has grown at a much faster pace of 13.8% CAGR over the period, driven by large-scale patent expiries and global demand for lower-cost drugs. The forecast for the growth of the generic market is a rate of 12%-15% CAGR, which is largely attributable to continuing patent expiries in the US and the faster growth in the pharmerging markets (including Brazil, Russia, India, Mexico, and Turkey).

The world merchant API market as a whole, both generic and branded/innovator APIs, is projected to increase at an average rate of 5.1% during the next five years to reach $50 billion by 2015, up from $39 billion in 2010, according to Chemical Pharmaceutical Generic Association (CPA).

The growth of generics market worldwide will result in a marked increase in the market for Merchant API worldwide. The generic API market is stronger as recent and projected growth rates are expected to outpace growth of innovator/branded APIs. The merchant market for generic APIs is projected to increase at an annual rate of 7.3% to reach $27 billion by 2015.

According to CPA, highly priced competitive generics require cost cutting and sourcing of lower cost raw materials, thereby increasing demand on Merchant API worldwide. India, China, and Italy will continue to be major suppliers of APIs to the global market, with Indian suppliers expected to see strong growth during the next five years. India is expected to be the fastest growing API supplier during the next five years and will keep its position above China. Although China remains the largest API supplier on a global basis, growth rates from 2005–2010 of Chinese API suppliers were less than those of Indian suppliers. For the global generic API merchant market, sales by Indian API manufactures between the forecast period of 2010 to 2015 are expected to rise at an annual rate of 16.5%, according to CPA.

Another key area of the pharmaceutical market is the CRAMS (Contract Research and Manufacturing Services) which pertains to outsourcing research services, manufacturing products to low cost providers with world class standards. The evolving dynamics of the existing pharmaceutical industry are in favour of outsourcing and Indian pharmaceutical market is expected to grow at a substantial rate.

Factors driving growth in CRAMS –

1. Increasing outsourcing trends in niche and high value segments.

2. US healthcare reforms.

3. Government support for the development of infrastructure and SEZ policy.

4. Requirement of affordable medications.

5. Strategic alliances.

Major business motives to outsource include:

1. Cost reduction

2. Focus on core business

3. Service improvement

4. Reduce time to market

5. Technology renewal

INDIAN PHARMACEUTICALS INDUSTRY

The year 2011 was probably one of the toughest years for the Indian economy in recent times. The adverse performance of all the key economic indicators weighed heavily on the Indian economy throughout the year. Headline and food inflation indices were at high single digit levels and showed no signs of cooling off throughout the year. India continues to battle inflation even in the year 2012.

In the fiscal, 2012, India’s GDP grew at 6.9% compared to an average of 8.7% growth from 2005-06 to 2010-11. During the current year, the inflation continued to remain at higher levels with headline Wholesale Price Index (WPI) staying at above 9% during April-November, 2011 and moderated to 6.9% by end March, 2012.

The pharmaceutical industry is presently facing many challenges and uncertainties worldwide. The industry continues to grow modestly, while adapting to unparalleled changes. This is putting pressure on the companies to focus on ways to increase the productivity and streamline the significant overheads.

India, being the third largest market in the world pharmaceutical scenario, in terms of volume, it is gaining its position as a global leader clearly topping the charts among the Indian science based industries with significant expertise in the complex field of drug manufacture and technology.

The Indian pharmaceutical market is expected to witness rapid and significant growth on the back of greater acceptance and penetration of generics, enhanced export opportunities, increasing global demand, and a large share of off-patent drugs in the future.

EXPORT SCENARIO

According to DGCIS, Pharmexcil Research data, India’s exports of Drugs, pharmaceutical & fine chemicals stood at Rs.451380.000 Millions for the Nine month period from April, 2011 – December, 2011 with a growth rate of 32.3% compared to the same period during the previous year. In US$ terms also the exports have recorded 28.2% growth increasing to US$9573mn as against US$7467mn for the corresponding period. In the month of December 2011 exports have been of highest value recording USD 1254 million and Rs. 66070.000 Millions for the period April-Dec 2011 surpassing the previous high figure recorded in July 2011.

PHARMACEUTICAL SECTORS- OVERVIEW

API

· The global API market can broadly be divided into regulated markets (RMs) and less regulated markets (LRMs)

The less regulated markets offer minimal entry barriers in terms of regulatory requirements, including with respect to qualification process and intellectual property rights

The regulated markets such as the US, EU and Japan, on the other hand, have high regulatory entry barriers. As a result, there is a premium for quality and regulatory compliance along with greater stability for both volumes and prices

The API business in India is a mature business and hence intensely competitive. Although the API is business is highly fragmented with numerous small and medium sized players, there are only a small number of companies with the infrastructure and skill-set required to enter regulated markets

Growth drivers

Growth in International Generics Industry

Growth in generics is expected to continue on the back of patent expiry Patent expiries in Developed Markets

Higher share of Merchant API

Chemical Pharmaceutical Generic Association (CPA) expects merchant API to constitute up to 45% of the total API demand on a global basis.

Increasing share of Indian companies in DMF filings / Approved Plants

India has the highest number of FDA approved facilities outside the US.

Increasing share of DMF filings. Proportion of DMF filings by Indian players have increased from 14% in 2000 to 46% in 2008. Even though a DMF filing does not necessarily result in business, it provides an indication about the capabilities of players.

Contract manufacturing opportunities

India is one of the largest API producers for US market outside USA with largest number of US FDA approved plants outside USA

CRAMS

On the CRAMS front, Indian players are focusing on providing services across the value chain spanning from development stage to commercial scale production. With several drugs going off-patent and big pharma increasing exposure to cost efficient sourcing locations, opportunities remain favourable for CRAMS players to provide developmental services and subsequently graduate to commercial scale production.

OUTLOOK:

India remains a market with huge long term potential given the large population with low healthcare penetration and rising urbanization. The Indian Pharmaceutical market is projected to witness strong growth over the next couple of years driven by growing disposable income, changing disease profile with increase in lifestyle diseases and market penetration across all markets.

CONTINGENT LIABILITIES:

Particulars	31.03.2012	31.03.2011
	(Rs. in Millions)
a) Estimated amount of Contracts remaining to be executed on capital amount to be executed on capital account to the extent not provided.	18.403	91.326
b) Bank Guarantees	9.559	9.875
c) Corporate Guarantee given for loan taken by subsidiary	789.777	1045.000
d) Letter of Credits	1046.930	1297.533
e) Liability in respect of bills discounted	529.896	409.539
f) Claim against the company/ disputed liabilities not acknowledge as debts	1.135	2.110
Total	2395.700	2855.383

FIXED ASSETS:

· Land

· Buildings

· Plant and equipment

· Furniture and fixtures

· Vehicles

· Motor vehicles

· Office equipment

· Computer equipments

· Other equipments

· Computer software

· Know-how

PRESS RELEASE:

ARCH PHARMA ASKED TO EXPLAIN WHY IT SHOULD NOT BE TREATED AS WILFUL DEFAULTER

Mumbai May 8, 2013

The public sector lender has an exposure of Rs 530.000 Millions to Arch Pharma, which is classified as non-performing

Kolkata-based United Bank of India (UBI) has slapped a showcause notice to Arch Pharmalabs, asking the company to explain why it should not be treated as wilful defaulter.

The public sector lender has an exposure of Rs 530.000 Millions to Arch Pharma, which is classified as non-performing.

The move comes amid the company's proposal to restructure its debt and a consortium of banks has referred the account to the corporate debt restructuring cell. Banks have around Rs 18000.000 Millions exposure to Arch Pharma.

It is not immediately known whether some of the other consortium members have also classified the account as an NPA.

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. 66.04
UK Pound	1	Rs. 103.11
Euro	1	Rs. 86.99

INFORMATION DETAILS

Report Prepared by :

BVA

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	2
--LIQUIDITY	1~10	1
--LEVERAGE	1~10	1
--RESERVES	1~10	2
--CREDIT LINES	1~10	1
--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
DEFAULTERS
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		19

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.