MIRA INFORM REPORT

Report Date :

23.07.2014

IDENTIFICATION DETAILS

Name :	STRIDES ARCOLAB LIMITED
Registered Office :	201, Devavrata, Sector 17, Vashi, Navi Mumbai – 400705, Maharashtra
Country :	India
Financials (as on) :	31.03.2014
Date of Incorporation :	28.06.1990
Com. Reg. No.:	11-057062
Capital Investment / Paid-up Capital :	Rs. 588.656 Millions
CIN No.: [Company Identification No.]	L24230MH1990PLC057062
TAN No.: [Tax Deduction & Collection Account No.]	MUMS36534B
PAN No.: [Permanent Account No.]	AADCS8104P
Legal Form :	A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges.
Line of Business :	Manufacturing and Marketing of all types of Bulk Drugs, Pharmaceuticals, etc.
No. of Employees :	2700 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (50)

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

Status :	Good
Payment Behaviour :	Regular
Litigation :	Exist
Comments :	Subject is an established company having a fine track record. Financial position of the company seems to be decent. Trade relations are reported to be fair. Business is active. Payment terms are reported to be regular and as per commitments. The company can be considered for normal business dealings at usual trade terms and conditions. Note: The company has changed its financial year form 12 months to 15 months i.e. 01.01.2013 to 31.03.2014.

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

INDIAN ECONOMIC OVERVIEW

N E W S

The economy grew 4.7 %in 2013/14, marking a second straight year of sub-5 % growth – the worst slowdown in more than a quarter of a century. The data was below an official estimate of 4.9 % annual growth and compared with 4.5 % in the last fiscal year. However, the current account deficit narrowed sharply to $ 32.4 billion at 1.7 % of gross domestic product, in 2013/14 from a record high of $ 98.8 billion or 4.7 %, the year before.A sharp fall in gold imports due to restrictions on overseas purchases and muted import of capital goods helped shrink the current account deficit.

Online retailer Flipkart has acquired fashion portal Myntra as it prepares to battle with the rapidly expanding India arm of the global e-commerce giant Amazon. The company raised $ 210 million from Russian Investment firm DST Global which has also invested in companies like Facebook, Twitter and Alibaba Group.

General Motors will start exporting vehicles from its Talegaon plant near Pune in the second half of 2014. GM was one of the few global carmakers that was using its India plant only for the domestic market.

Google has overtaken Apple as the world’s top brand in terms of value, according to global market research agency Millward Brown. Google’s brand value shot up 40 % in a year to $ 158.84 billion. The top 10 of the 100 slots were dominated by US companies.

Infosys lost another heavy weight when B G Srinivas, a board member put in his papers. He is the third CEO-hopeful to quit after Chairman N R Narayana Murthy’s return to the company – Ashok Vemuri and V Balakrishnan being the other two.While Vemuri went on to lead IGate, Balakrishnan joined politics.

Naresh Goyal – promoted Jet Airways posted biggest quarterly loss – Rs 2153.37 crore – in the three months ended March 31, mainly because it has been offering discounts to passengers to fill planes.

William S Pinckney – Chairman and CEO of Amway India was arrested by the Andhra Pradesh Police in connection with a complaint against the direct selling firm. This is the second time that he has been taken into custody. A year, ago the Kerala Police had arrested Pinckney and two company directors on charges of financial irregularities.

China has told its state-owned enterprises to sever links with American consulting firms after the United States charged five Chinese military officers wih hacking US companies. China’s action which targets consultancies like McKinsey & Co. and the Boston Consulting Group, sterns from fears that the first are providing trade secrets to the US governments.

India has emerged as a country with some of the highest unregistered businesses in the world. Indonesia has the maximum number of shadow businesses, says a study of 68 countries by Imperial College Business School in London.

Pfizer has abandoned its attempt to buy AstraZeneca for nearly $ 118 billion after the latter refused an offer of 55 pounds a share.

EXTERNAL AGENCY RATING

Rating Agency Name	ICRA
Rating	Term Loan Facilities = A+
Rating Explanation	Having adequate degree of safety and carry low credit risk
Date	March, 2014

Rating Agency Name	ICRA
Rating	Fund Based Facilities = A4+
Rating Explanation	Having very strong degree of safety and carry lowest credit risk.
Date	March, 2014

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 31-03-2014.

INFORMATION DECLINED BY

Management Non Co-operative (91-22-27893199)

LOCATIONS

Registered Office :	201, Devavrata, Sector 17, Vashi, Navi Mumbai – 400705, Maharashtra, India
Tel. No.:	91-22-27892924 / 27893199
Fax No.:	91-22-27892942
E-Mail :	kannan.n@stridesarco.com badree.komandur@stridesarco.com info@stridesarco.com
Website :	http://www.stridesarco.com
Corporate Office :	Strides House, Bilekahalli, Bannerghatta Road, Bangalore – 560076, Karnataka, India
Tel. No.:	91-80-26581343/ 44/ 67580738/ 39/ 67580000/ 66580751/ 66580000/ 66580600
Fax No.:	91-80-26583538/ 4330/ 67580700/ 800/ 66580800
E-Mail :	kannan.n@stridesarco.com strides@satyam.net.in info@stridesarco.com
R and D Centre	Strides Technology And Research, Bilekahalli, Bannerghatta Road, Bangalore 560076, Karnataka, India
Tel. No.:	91-80-67840290
Fax No.:	91-80-66580200/300
GLOBAL PLANTS :
Factory 1 :	Sterile Products Division – I Bilekahalli, Bannerghatta Road, Bangalore - 560076, Karnataka, India
Factory 2 :	Penicillins Facility Estrada Doutor Lorival Martins Beda, 926 – 968 28110-000- Donana – Campos dos, Goytacazes- Rio de Janeiro- Brazil
Factory 3 :	Sterile Products Division – II Plot No. 284-A, Bommasandra Jigani Link Road, Industrial Area, Jigani Village, Jigani, Hobli, Anekal Taluk, Bangalore - 562106, Karnataka, India
Factory 4 :	Strides Arcolab Polska Sp.Zo.o ul. Daniszewska 10 03-230 Warszawa NIP-813-34-15-000, Poland
Factory 5 :	Oral Dosage Form Facility – III Plot No. 9-12, Dewan and Sons Industrial Area, Veroor, Palghar, District Thane - 401404, Maharashtra, India
Factory 6 :	Onco Therapies Limited Plot No. 284-B, Bommasandra Jigani Link Road, Industrial Area, Jigani Village, Jigani Hobli, Anekal Taluk, Bangalore - 562106, Karnataka, India
Factory 7 :	Strides Vital Nigeria Limited Gate No. 02, Ladipo Oluwole Avenue, Opposite Cocoa Warehouse, Off Oba Akran Road, Ikeja Industrial Area, Ikeja Lagos, Nigeria
Factory 8 :	Beta-lactams Facility Bilekahalli, Bannerghatta Road, Bangalore-560076, Karnataka, India
Factory 9 :	Beltapharm SpA 20095 Cusano MIL. (MI) – Via Stelvio, 66 Italy.
Factory 10 :	Penems Facility Estrada Doutor Lorival Martins Beda, 926 – 968 28110-000- Donana – Campos dos, Goytacazes- Rio de Janeiro- Brazil
Factory 11 :	Oral Dosage Form Facility – II 'KRS Gardens', Suragajakanahalli, Anekal Taluk, Bangalore - 560106, Karnataka, India
Factory 12 :	Oral Dosage Form Facility – I 124, Sipcot Industrial Complex, Hosur - 635126, Tamilnadu, India
Factory 13 :	Beta-lactams Facility Bilekahalli, Bannerghatta Road, Bangalore - 560076, Karnataka, India
Factory 14 :	Star Drugs and Research Labs Limited Plot No. 14, Sipcot-II, Hosur - 635109, Tamilnadu, India
Factory 15 :	Cephalosporins Facility Bilekahalli, Bannerghatta Road, Bangalore - 560076, Karnataka, India
Factory 16 :	Penems Facility Estrada DoutorLorival Martins Beda, 926 - 968 28110-000- Donana - Campos dos Goytacazes- Rio de Janeiro- Brazil
Warehouse :	Plot No. 62, Sector – 1, Nerul, Navi Mumbai – 400706, Maharashtra, India
Global Offices :	Located at : USA 201 S. Main Street, Ste. 3, Lambertville, NJ 08530 Cameron BP 1834, Rue Dubois de Saligny, Akwa, Douala, Cameroon South Africa 4, Angus Cresent, Longmeadow East, Modderfontein-1644, Norway Sorkedalsveien, 10B 0369, Oslo, Norway. United Kingdom Unit 4, Metro Centre, Tolpits Lane,Watford, Hertfordshire, WD18 9SS, UK Singapore 8 Cross Street, No. 17-00 Singapore 048424

DIRECTORS

AS ON 31.12.2012

Name :	Mr. Deepak Vaidya
Designation :	Chairman and Independent Director
Name :	Mr. Arun Kumar
Designation :	Executive Vice Chairman and Managing Director
Qualification	B.Com., PGDBM
Name :	Mr. K.R. Ravishankar
Designation :	Non-Executive Director
Qualification	B.Sc. (Part)
Name :	Mr. Mukul Sarkar
Designation :	Independent Director
Name :	Mr. P M Thampi
Designation :	Independent Director
Name :	Mr. Venkat S Iyer
Designation :	Director
Name :	Mr. M.R. Umarji
Designation :	Independent Director
Name :	Mr. A.K. Nair
Designation :	Independent Director
Name :	Mr. S Sridhar
Designation :	Independent Director

KEY EXECUTIVES

Name :	Mr. Arun Kumar
Designation :	Founder and Group Chief Executive Officer
Name :	Mr. Venkat S Iyer
Designation :	Executive Director and Chief Executive Officer – Agila
Name :	Mr. T. S. Rangan
Designation :	Group Chief Executive Officer
Name :	Mr. Adam Levitt
Designation :	Chief Executive Officer Americas Operations
Name :	Dr. Anand Iyer
Designation :	Chief Executive Officer, Agila Biotech Division
Name :	Mr. D P Shrivastava
Designation :	Chief Executive Officer, Brazil
Name :	Mr. Manish Gupta
Designation :	Chief Executive Officer – pharma
Name :	Mr. Subroto Banerjee
Designation :	President, Agila (India Region)
Name :	Mr. Sihue B Noronha
Designation :	Chief Executive Officer – Africa
Name :	Mr. Joe Thomas
Designation :	Chief Corporate Development Officer
Name :	Mr. Venkatesh
Designation :	Account Manager
Name :	Ms. Manjula
Designation :	Company Secretary

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 30.06.2014

Category of Shareholder	No. of Shares	Percentage of Holding
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	3387326	5.69
Bodies Corporate	13096876	21.99
Sub Total	16484202	27.67
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	16484202	27.67
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	2630043	4.42
Financial Institutions / Banks	22888	0.04
Insurance Companies	397073	0.67
Foreign Institutional Investors	27072732	45.45
Qualified Foreign Investor	97263	0.16
Sub Total	30219999	50.73
(2) Non-Institutions
Bodies Corporate	1908358	3.20
Individuals
Individual shareholders holding nominal share capital up to Rs. 0.100 Million	4243172	7.12
Individual shareholders holding nominal share capital in excess of Rs. 0.100 Million	4156091	6.98
Qualified Foreign Investor	5000	0.01
Any Others (Specify)	2548799	4.28
Non Resident Indians	1877888	3.15
Hindu Undivided Families	180884	0.30
Directors & their Relatives & Friends	290750	0.49
Clearing Members	96797	0.16
Foreign Nationals	80000	0.13
Foreign Corporate Bodies	21005	0.04
Trusts	1475	0.00
Sub Total	12861420	21.59
Total Public shareholding (B)	43081419	72.33
Total (A)+(B)	59565621	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)	59565621	0.00

Shareholding belonging to the category "Promoter and Promoter Group"

Sl.No.	Name of the Shareholder	Details of Shares held		Encumbered shares (*)			Total shares (including underlying shares assuming full conversion of warrants and convertible securities) as a % of diluted share capital
		No. of Shares held	As a % of grand total (A)+(B)+(C)	No	As a percentage	As a % of grand total (A)+(B)+(C) of sub-clause (I)(a)
1	Pronomz Ventures Llp	1,26,65,000	21.26	1706167	13.47	2.86	21.26
2	Arun Kumar	6,70,797	1.13	0	0.00	0.00	1.13
3	K R Ravishankar	12,35,906	2.07	0	0.00	0.00	2.07
4	Agnus Holdings Private Limited	1,20,816	0.20	110500	91.46	0.19	0.20
5	Chayadeep Properties Private Limited	2,61,060	0.44	60000	22.98	0.10	0.44
6	Triumph Venture Holdings Llp	30,000	0.05	0	0.00	0.00	0.05
7	Agnus Capital Llp	20,000	0.03	0	0.00	0.00	0.03
8	Padma Kumar	1,71,485	0.29	0	0.00	0.00	0.29
9	Deepa Arun Kumar	2,01,000	0.34	0	0.00	0.00	0.34
10	Tarini Arun Kumar	2,00,000	0.34	0	0.00	0.00	0.34
11	Aditya Arun Kumar	2,00,000	0.34	0	0.00	0.00	0.34
12	Vineetha Mohanakumar Pillai	1,75,000	0.29	0	0.00	0.00	0.29
13	K R Lakshmidevi	1,30,365	0.22	0	0.00	0.00	0.22
14	Rajeswari Amma	93,760	0.16	0	0.00	0.00	0.16
15	Sajitha Pillai	80,000	0.13	0	0.00	0.00	0.13
16	Gayatri Nair	50,000	0.08	0	0.00	0.00	0.08
17	Lakshmi Gopalakrishnan	50,000	0.08	0	0.00	0.00	0.08
18	Hemalatha Pillai	48,000	0.08	0	0.00	0.00	0.08
19	Rajitha Gopalakrishnan	45,000	0.08	0	0.00	0.00	0.08
20	G Purushothaman Pillai	33,013	0.06	0	0.00	0.00	0.06
21	Rahul Nair	3,000	0.01	0	0.00	0.00	0.01
	Total	1,64,84,202	27.67	1876667	11.38	3.15	27.67

Shareholding belonging to the category "Public" and holding more than 1% of the Total No. of Shares

Sl. No.	Name of the Shareholder	No. of Shares held	Shares as % of Total No. of Shares	Total shares (including underlying shares assuming full conversion of warrants and convertible securities) as a % of diluted share capital
1	Morgan Stanley Asia (Singapore) Ltd	5474925	9.19	9.19
2	DB International (Asia) Limited	2595097	4.36	4.36
3	DVI Fund Mauritius Limited	2567776	4.31	4.31
4	Brookdale India Value Fund Limited	2385773	4.01	4.01
5	Macquaire Bank Limited	2146355	3.60	3.60
6	Route One Investment Company Lp A/c Route One Fund LP	1979172	3.32	3.32
7	Route One Investment Company LP A/c Route One Offshore Master Fund LP	1762697	2.96	2.96
8	Satpal Khattar	1560032	2.62	2.62
9	Laxmi Shivanand Manekekar	1306678	2.19	2.19
10	Goldman Sachs Investments (Mauritius) I Limited	1157443	1.94	1.94
11	Elara India Opportunities Fund Limited	947794	1.59	1.59
12	Shivanand Shankar Mankekar	885278	1.49	1.49
13	Birla Sun Life Trustee Company Limited A/c	777445	1.31	1.31
14	HDFC Trustee Company Limited A/C HDFC MID Capopportunities Fund	663000	1.11	1.11
15	Macquarie Fund Solutions A/C Macquarie Fund Solutions Macquarie Asia New Stars Fund	649546	1.09	1.09
16	Kedar Shivanand Mankekar	609556	1.02	1.02
	Total	27468567	46.11	46.11

Shareholding belonging to the category "Public" and holding more than 5% of the Total No. of Shares

Sl. No.	Name(s) of the shareholder(s) and the Persons Acting in Concert (PAC) with them	No. of Shares	Shares as % of Total No. of Shares	Total shares (including underlying shares assuming full conversion of warrants and convertible securities) as a % of diluted share capital
1	Morgan Stanley Asia (Singapore) Pte	5474925	9.19	9.19
	Total	5474925	9.19	9.19

BUSINESS DETAILS

Line of Business :

Manufacturing and Marketing of all types of Bulk Drugs, Pharmaceuticals, etc.

Products :

Item Code No.	Product Description
30039090	Lamivudine
30039090	Efavirenz
30039090	Nevirapine

PRODUCTION STATUS (AS ON 31.12.2011)

Particulars	Unit	Installed Capacity	Actual Production
Soft Gelatin Plant Softgel Capsules	Numbers in Millions	2645	--
Hard Gelatin Plant Capsules	Numbers in Millions	450	699734
Tablet Plant Tablets	Numbers in Millions	2160	2115452
Others	Numbers in Millions	--	2105

Note:

Installed Capacities are as certified by the management and relied upon by the Auditors. The installed capacities serve multiple purposes and will vary according to product mix.

** Not applicable as the products have been de-licensed.

GENERAL INFORMATION

No. of Employees :

2700 (Approximately)

Bankers :

· Axis Bank Limited

· Central Bank of India

· HDFC Bank Limited

· Indian Overseas Bank

· Ratnakar Bank Limited

· Syndicate Bank

· Yes Bank Limited

· Citi Bank

· Exim Bank

Facilities :

Secured Loans	31.03.2014	31.12.2012
	(Rs. In Millions)
LONG-TERM BORROWINGS
Term loan from banks		244.160
SHORT-TERM BORROWINGS
Working capital loans		2709.350
Short term loans	NA	0.000
Cash credit facilities		226.460
Total	NA	3179.970

Banking Relations :	--
Statutory Auditors :
Name :	Deloitte Haskins and Sells Chartered Accountants
Address :	Deloitte Centre, Anchorage II, 100/2, Richmond Road, Bangalore – 560025, Karnataka, India
Tel. No.:	91-80-66276000
Fax No.:	91-80-66276011
Internal Auditors :
Name :	Grant Thornton International Chartered Accountants
Address :	Wings, 1^st Floor, 16/1, Cambridge Road, Halasuru, Bangalore-560008, Karnataka, India
Wholly Owned Subsidiaries : (As on 31.03.2013)	Direct Holding · Arcolab Limited SA, Switzerland · Agila Biotech Private Limited, India (w.e.f. May 16, 2012) · Agila Specialties Asia Pte. Limited, Singapore (w.e.f. August 4, 2012) · Agila Specialties Private Limited, India · Agila Specialties Limited (formerly Starsmore Limited), Cyprus · Strides Africa Limited, British Virgin Islands (upto December 25, 2012) · Strides Arcolab International Limited, U.K (SAIL) · Strides Emerging Markets Private Limited, India (w.e.f. June 1, 2012 upto November7, 2012) · Strides Pharma International Limited, Cyprus (formerly Strides Specialty (Cyprus) Limited) · Strides Technology and Research Private Limited, India (Under the process of striking off) Indirect Holding · Agila Australasia Pty Limited, Australia (w.e.f. March 22, 2012) · Agila Biotech (Malaysia) SDN BHD, Malaysia (Formerly Agila Specialties (Malaysia) SDN BHD) · Agila (NZ) Pty Limited, New Zealand (w.e.f. February 8, 2012) · Agila Pharma Canada Corporation, Canada (formerly Pharma Strides Canada Corporation) · Agila Specialties Americas Limited, Cyprus (w.e.f. September 28, 2012) (Formerly Agila Specialties Latina Limited) · Agila Specialties Asia Pte. Limited, Singapore (upto August 3, 2012) · Agila Specialties Global Pte. Limited, Singapore (w.e.f. September 28, 2012) · Agila Specialties UK Limited, UK (w.e.f. December 14, 2012) · Agila Specialties Polska Sp. Z.o.o, Poland (Formerly Strides Arcolab Polska Sp.Z.o.o.) · Co Pharma Limited, UK · Farma Plus AS , Norway · Onco Laboratories Limited, Cyprus · Onco Therapies Limited, India · Plus Farma ehfi, Iceland · Scentia Pharmaceuticals Pty Limited, Australia (formerly Linkace Investments Pty Limited), · Strides Africa Limited, British Virgin Islands (w.e.f. December 26, 2012) Strides Australia Pty Limited, Australia · Strides Emerging Markets Private Limited, India (w.e.f. November 8, 2012) · Strides Inc., USA · Strides Pharma (Cyprus) Limited, Cyprus (upto June 28, 2012) Strides Pharma Limited, Cyprus (formerly Linkace Limited) · Strides Pharmaceuticals (Holdings) Limited, Mauritius · Strides Pharmaceuticals (Mauritius) Limited, Mauritius · Strides S.A. Pharmaceuticals Pty. Limited, South Africa (w.e.f. December31, 2012) · Strides Specialties (Holdings) Cyprus Limited, Cyprus · Strides Specialties (Holdings) Limited, Mauritius
Other Subsidiaries : (As on 31.03.2013)	Indirect Holding · African Pharmaceuticals Development Company, Cameroon · Agila Marketing e distribicao de Productos Hospitalaries Limited. (formerly Ephos – 106 Produtos Hospitalaries Limited Me), Brazil · Beltapharm S.p.A., Italy · Congo Pharma SPRL, Congo · Inbiopro Solutions Private Limited, India · Sorepharm SA, Burkinofaso · SPC Company Limited, Sudan · Strides CIS Limited, Cyprus · Strides Farmaceutica Participacoes Limited, Brazil · Agila Jamp Canada Inc., Canada (w.e.f. March 20, 2012) · Strides Pharma Cameroon Limited, Cameroon · Strides Pharma (Cyprus) Limited, Cyprus · Strides Pharma Namibia (Pty) Limited, Namibia · Strides S.A. Pharmaceuticals Pty. Limited, South Africa · Strides Vital Nigeria Limited, Nigeria · Ascent Pharmahealth Asia Pte., Limited, Singapore · Ascent Pharma Pty Limited (formerly Genepharm Pty Limited), Australia · Ascent Pharmacy Services Pty Limited, Australia · Ascent Pharmaceuticals Limited (formerly Genepharm (New Zealand) Limited), New Zealand · Ascent Pharmahealth Asia (Hong Kong) Limited (formerly Strides Arcolab Hong Kong Limited), Hong Kong · Ascent Pharmahealth Asia (Malaysia) SDN BHD (formerly Strides Arcolab Malaysia SDN. BHD) , Malaysia · Drug Houses of Australia (Asia) Pte. Limited, Singapore · Pharmasave Australia Pty Limited, Australia
Joint Ventures : (As on 31.03.2013)	· Akorn Strides LLC, USA · Sagent Agila LLC, USA
Enterprises owned or significantly influenced by key management personnel and relative of key management personnel : (As on 31.03.2013)	· Atma Projects, India · Agnus Holdings Private Limited, India · Agnus Global Holdings Pte Limited, Singapore · Agnus IPCO Limited, BVI · Mandala Valley Vineyards Private Limited, India · Nous Infosytems Private Limited, India · Patsys Consulting Private Limited, India · Santo Properties Private Limited, India · Sequent Scientific Limited, India · Sequent Research Limited, India · Sequent Penems Private Limited, India · Sequent Global Holdings Limited, Mauritius · Sequent Antibiotics (Private) Limited, India · Sequent Oncolytics (Private) Limited, India · Skanray Healthcare Private Limited, India (Formerly known as Triumph Fincap Ventures Private Limited) · Karuna Ventures Private Limited, India · Paradime Infrastructure Development Company · Deesha Properties, India · Agnus Capital LLP, India · Atma Enterprises LLP India · Chayadeep Ventures LLP India · Qualichem Remedies LLP India · Triumph Venture Holdings LLP, India · Chayadeep Properties Private Limited, India · Higher Pharmatech Private Limited, India · Pronomz Ventures LLP, India

CAPITAL STRUCTURE

AS ON 31.03.2014

Authorised Capital : Not Available

Issued, Subscribed & Paid-up Capital : Rs.595.656 Millions

AS ON 31.12.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
89750000	Equity Shares	Rs.10/- each	Rs. 897.500 Millions
620000	Cumulative Redeemable Preference Shares	Rs.1000/- each	Rs. 620.000 Millions
	TOTAL		Rs. 1517.500 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
58803721	Equity Shares	Rs.10/- each	Rs. 588.040 Millions

NOTE:

Reconciliation of the number of shares and amount outstanding at the beginning and at the end of the reporting period:

PARTICULARS	31.12.2012
	No. of shares	(Rs. In Millions)
Equity share of Rs.10/- each
Opening balance	58380171	583.800
Issued pursuant to employee stock option plan	423550	4.240
Closing balance	58803721	588.040

Detail of the rights, preferences and restrictions attaching to each class of shares outstanding Equity shares of Rs. 10/- each:

The Company has only one class of equity shares, having a par value of Rs.10/-. The 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 approval by the shareholders at the ensuing Annual General Meeting. In the event of liquidation of the Company, the holders of the equity shares will be entitled to receive any of the remaining assets of the Company, after distribution to all other parties concerned. The distribution will be in proportion to number of equity shares held by the shareholders.

Details of equity shares held by each shareholder holding more than 5% of shares:

PARTICULARS	31.12.2012
	No. of shares	%
Pronomz Ventures LLP	12665000	21.54%

Details of aggregate number of equity shares allotted as fully paid-up pursuant to contract without payment being received in cash for the period of five year immediately preceding the balance sheet date:

PARTICULARS	31.12.2012
	No. of shares
Equity shares of Rs.10- issued pursuant to a scheme of amalgamation in 2009	13524

Details of equity shares ofRs.10/- each reserved for issuance:

PARTICULARS	31.12.2012
	No. of shares
Towards Employee stock options under the various Strides Stock option plans	2702350

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2014 (15 Months)	31.12.2012 (12 Months)	31.12.2011
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	595.656	588.040	583.800
(b) Reserves & Surplus	15713.472	13126.100	13008.360
(c) Money received against share warrants	0.000	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000	0.000
Total Shareholders’ Funds (1) + (2)	16309.128	13714.140	13592.160
(3) Non-Current Liabilities
(a) long-term borrowings	3.522	2846.610	3639.350
(b) Deferred tax liabilities (Net)	43.900	0.000	0.000
(c) Other long term liabilities	99.509	79.940	45.860
(d) long-term provisions	94.313	504.290	588.640
Total Non-current Liabilities (3)	241.244	3430.840	4273.850
(4) Current Liabilities
(a) Short term borrowings	1937.118	2935.810	4142.280
(b) Trade payables	2159.804	1429.370	2096.120
(c) Other current liabilities	3086.256	1104.260	7684.170
(d) Short-term provisions	657.154	373.390	833.840
Total Current Liabilities (4)	7840.332	5842.830	14756.410
TOTAL	24390.704	22987.810	32622.420
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets		2285.870	2354.360
(ii) Intangible Assets	4179.825	776.740	884.660
(iii) Capital work-in-progress		81.200	54.710
(iv) Intangible assets under development		214.470	15.420
(b) Non-current Investments	6594.370	12953.230	7868.180
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	1491.144	922.580	5835.170
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	12265.339	17234.090	17012.500
(2) Current assets
(a) Current investments	3871.064	0.380	0.000
(b) Inventories	1368.004	1043.540	1303.190
(c) Trade receivables	2732.864	1930.960	2642.830
(d) Cash and cash equivalents	1749.642	293.300	814.610
(e) Short-term loans and advances	2273.139	2343.170	10520.270
(f) Other current assets	130.652	142.370	329.020
Total Current Assets	12125.365	5753.720	15609.920
TOTAL	24390.704	22987.810	32622.420

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2014 (15 Months)	31.12.2012 (12 Months)	31.12.2011
	SALES
		Revenue from operations	10638.456	7120.070	7496.200
		Other Income	1209.336	1189.080	195.990
		TOTAL	11847.792	8309.150	7692.190
Less	EXPENSES
		Cost of materials consumed	4849.714	2815.420	3178.380
		Purchase of stock in trade	1450.669	1003.070	1072.110
		(Increase)/Decrease in stock	(82.175)	66.760	66.180
		Employees benefits expenses	1113.753	709.190	629.760
		Other Expenses	1822.020	1568.570	1061.020
		Exceptional Item	(44948.420)	(644.090)	559.060
		TOTAL	(35794.439)	6807.100	5448.390
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		47642.231	1502.050	2243.800
Less	FINANCIAL EXPENSES (D)		1050.315	712.200	805.900
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		46591.916	789.850	1437.900
Less/ Add	DEPRECIATION/ AMORTISATION (F)		472.505	190.990	176.150
	PROFIT BEFORE TAX (E-F) (G)		46119.411	598.860	1261.750
Less	TAX (H)		10990.209	39.000	82.500
	PROFIT AFTER TAX (G-H) (I)		35129.202	559.860	1179.250
	EARNINGS IN FOREIGN CURRENCY
		FOB Value of Exports of Goods		5098.960	5404.610
		Development Income		30.170	447.590
		Management advisory service fees		507.150	332.64
		Interest	NA	516.340	10.230
		Profit on sale of investment		308.460	0.000
		Share of Profit on Sale of Product		11.610	0.000
		Other Income		9.200	131.260
	TOTAL EARNINGS		NA	6481.890	6326.330
	IMPORTS
		Raw Materials	NA	1379.150	1241.020
		Capital Goods	NA	69.290	37.120
		Others	NA	66.070	11.560
	TOTAL IMPORTS		NA	1514.510	1289.700
	Earnings Per Share (Rs.)
	Basic		593.65	9.55	20.30
	Diluted		591.14	5.84	20.13

1. The above audited results of the Company has been reviewed by the Audit Committee and token on record by the Board of Directors at their meeting held on May 23, 2014.

2. The previous period's figures have been regrouped/ reclassified wherever necessary to conform to the classification of the current period.

3. Figures for the quarter ended March 31, 2014 are the balancing figures between (a) the audited figures of the financial year ended March 31, 2014 and (b) the published year to date figures upto the quarter ended December 31, 2013 which have been reclassified as per the classification followed in the year end.

4. During the period ended March 31, 2014, 761,900 equity shares were allotted by the Company [326,000 shares under Strides Arcolab ESOP 2006 Scheme, 385,900 shares under Strides Arcolab ESOP 2008 and 50,000 shares under Strides Arcolab ESOP 2008 (Director) Scheme] on exercising equal number of options. During the current period, 400,000 equity shares were granted under Strides Arcolab ESOP 2011 Scheme.

5. As part of the ongoing restructuring in the group, the following changes have been made during the period:

a. Agila Australasia Pty Limited, Australia has acquired 100% stake in Catalist Pty Limited with effect from January 1, 2013

b. Agila Specialties Private Limited has acquired balance 3.21% stake in Inbiopro Solutions Private Limited, making Inbiopro Solutions Private Limited a wholly owned subsidiary of the group

c. Strides Specialties (Holdings) Limited, Mauritius has been transferred from Agila Specialties Private Limited, India to Strides Pharmaceuticals Limited, Cyprus

d. Inbiopro Solutions Private Limited, India has been transferred from Agila Specialties Private Limited, India to Strides Arcolab Limited, India

e. Agila Marketing e dlstribicao de Products Hospitalaries Limiteda, has been transferred from Strides Pharmaceuticals Limited, Cyprus to Agila Specialties Americas, Cyprus

f. Agila Specialties Global Pte Limited, Singapore has acquired balance 49% stake in Agila Australasia Pty Limited from JNZ Tango Ply Limited., Australia, making Agila Australasia Pty Limited a wholly owned subsidiary of the group

g. Strides Inc. USA has been renamed as Agila Specialties Inc., USA

h. Strides Specialties (Holdings) Cyprus Limited, Cyprus has been renamed as Agila Specialties (Holdings) Cyprus Limited, Cyprus

i. Agila Specialties Limited, Cyprus has been renamed as Strides Pharmaceuticals (Holdings) Limited, Cyprus

j. Agila Biotech (Malaysia) SDN. BHD has been renamed as Stelis Biopharma (Malaysia) SDN. BHD

k. Agila Biotech Private Limited has been renamed as Stelis Biopharma Private Limited

l. Akorn Strides LLC has been transferred from Strides Inc., USA to Strides Pharma Inc. USA

m. Stelis Biopharma Private Limited has been transferred from Strides Arcolab Limited, India to Inbiopro Solutions Private Limited, India

6. During the period, Strides Pharma Limited, Cyprus has divested its stake in Scentia Pharmaceuticals Pty Limited, Australia to Amneai Pharma Australia Pty Limited.. Australia.

7. During the period, the following entities have been incorporated within the Strides Group:

a. Strides Pharma Inc, USA

b. Strides Actives Private Limited, India

c. Strides Pharma Botswana (Pty) Limited

8. During the period, the 'following entities have been wound-up:

a. Strides Pharmaceuticals (Holdings) Limited, Mauritius

b. Strides Pharmaceuticals (Mauritius) Limited

9. In February 2013, the Company and its subsidiary. Strides Pharma Asia Pte. Limited (Strides Pharma Asia), had entered into definitive agreements with Mylan Inc. for hiving off its Specialty products business. The hive off of the Specialty products business was by way of sale of shares of (a) Agila Specialties Private Limited ("ASPL", which was a wholly owned subsidiary of the Company) and (b) Agila Specialties Global Pte Limited, ("Agila Global", which was a wholly owned subsidiary of Strides Pharma Asia Pte. Limited, Singapore, a wholly owned subsidiary of the Company).The Company and Strides Pharma Asia have completed the sale of shares in ASPL to Mylan Laboratories Limited (MLL', a subsidiary of Mylan Inc.) and that of Agila Global to Mylan Inc respectively vide Share purchase agreements dated December 5, 2013. Exceptional items in the above results for the 15 months ended March 31, 2014 include profit from sale of investments in ASPL to the extent of Rs.31600.282 Millions net of transaction costs and special bonus of Rs. 2127.562 Millions.

Consequent to the above, with effect from December 5, 2013, following entities cease to be the subsidiaries of the Strides Group:

a. Agila Specialties Private Limited, India,

b. Onco Therapies Limited. India

c. Agila Specialties Global Pte Lted, Singapore

d. Agila Australia Pty Limited, Australia

e. Agila (NZ) Pty Limited, New Zealand

f. Catalist Pty Limited, Australia

g. Agila Specialties Americas Limited, Cyprus

h. Agila Farmaceutica Participacoes Limited, Brazil

i. Agila Especialidades Farmaceuticas Ltda, Campos

j. Agila Marketing e Distribuicao De Producos Hospitalares Ltda, Brazil

k. Agila Specialties Inc, USA

l. Sagent Agila LLC

m. Agila Specialties Pharma Corporation, Canada 

n. Agila - Jamp JV

o. Agila Specialties (Holdings), Cyprus

p. Onco Laboratories Limited, Cyprus

q. Farma Plus, Norway

r. Agila Specialties Limited, Poland

s. Agila Specialties UK Limited, UK 

t. Agila Specialties Investments, UK

10. The Board of Directors of the Company in the Meeting held on December 10, 2013 have approved change of financial year of the Company from January-December to that of April-March. Consequently, the current financial year is for a period of 15 months i.e., from January 1, 2013 to March 31, 2014.

11. The Board of Directors of the Company in the Meeting held on December 10, 2013 declared a special dividend of Rs. 500/- per share.

12. Exchange fluctuation gain/loss (net) included under Exceptional Items comprises the exchange gain / loss arising on account of restatement and settlement of long term foreign currency loans and intra-group loans & advances given and gain/ loss on related derivative contracts.

13. Write down of inventory considered under exceptional items relates to products which are discontinued.

14. The Company's operations fall within a single business segment viz. "Pharmaceutical Products" and as such there is no reportable segment information as per Accounting Standard 17 issued under the relevant provisions of the Companies Act, 1956.

15. The Board of Directors have recommended an equity dividend of Rs. 5 per share for the 15 months period ended March 31, 2014.

KEY RATIOS

PARTICULARS		31.03.2014 (15 Months)	31.12.2012 (12 Months)	31.12.2011
PAT / Total Income	(%)	296.50	6.74	15.33
Net Profit Margin (PBT/Sales)	(%)	433.52	8.41	16.83
Return on Total Assets (PBT/Total Assets}	(%)	259.15	6.15	5.11
Return on Investment (ROI) (PBT/Networth)		2.83	0.04	0.09
Debt Equity Ratio (Total Debt /Networth)		0.12	0.42	0.57
Current Ratio (Current Asset/Current Liability)		1.55	0.98	1.06

FINANCIAL ANALYSIS

[all figures are in Rupees Millions]

DEBT EQUITY RATIO

Particular	31.12.2011	31.12.2012	31.03.2014
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Share Capital	583.800	588.040	595.656
Reserves & Surplus	13008.360	13126.100	15713.472
Net worth	13592.160	13714.140	16309.128
long-term borrowings	3639.350	2846.610	3.522
Short term borrowings	4142.280	2935.810	1937.118
Total borrowings	7781.630	5782.420	1940.640
Debt/Equity ratio	0.573	0.422	0.119

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.12.2011	31.12.2012	31.03.2014
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Sales	7496.200	7120.070	10638.456
		(5.018)	49.415

NET PROFIT MARGIN

Net Profit Margin	31.12.2011	31.12.2012	31.03.2014
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Sales	7496.200	7120.070	10638.456
Profit	1179.250	559.860	35129.202
	15.73%	7.86%	330.21%

LOCAL AGENCY FURTHER INFORMATION

CURRENT MATURITIES OF LONG-TERM DEBT

Rs. In Millions

Particular	31.03.2014 (15 Months)	31.12.2012 (12 Months)	31.12.2011
Current maturities of
Foreign Currency Convertible Bonds	NA	0.000	585.424
Fair Value of option embedded in FCCBs	NA	0.000	0.209
Secured term form banks	NA	263.418	318.134

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	No
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	Yes
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	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

LITIGATION DETAILS
Bench:- Bombay
Stamp No:-	ITXAL/2454/2010	Failing Date:-	07/12/2010	Reg. No.:-	ITXA/46/2011	Reg. Date:-	15/01/2011
		Main Matter
Petitioner:-	COMMISSIONER OF INCOME TAX		Respondent:-	STRIDES ARCOLAB LIMITED
Petn.Adv:-	PADAM DIVAKAR
District:-	Mumbai
Bench:-	Single		Category:-	TAX APPEALS
Status:-	Admitted(Unready)		Stage:-	FOR ADMISSION - FRESH
Last Date:-	23/11/2011
Last Coram:-	HON'BLE SHRI JUSTICE J.P. DEVADHAR HON'BLE SHRI JUSTICE A.R. JOSHI
Act:-	Income Tax Act, 1961

UNSECURED LOANS

Unsecured Loans	31.03.2014	31.12.2012
	(Rs. In Millions)
LONG-TERM BORROWINGS
Term loan from banks		2605.450
SHORT-TERM BORROWINGS	NA
Unsecured loan repayable on demand from others		0.000
Total	NA	2605.450

FIXED ASSETS

· Freehold Land

· Leased Hold Land

· Buildings

· Furniture and Fixtures

· Office Equipment and Computers

· Plant and Machinery

· Motor Vehicles

· Registration and Brands

· Software Licences

PRESS RELEASE

CONTINUED US FDA APPROVAL STATUS FOR ORAL DOSAGE FACILITY

April 25, 2014: Strides Arcolab is pleased to announce that its Oral Dosage Forms manufacturing site (KRS Gardens) in Bangalore was recently inspected by the USFDA as part of GMP compliance audit and the facility continues to be approved.

The last USFDA inspection and approval for this facility was in the year 2011.

The KRS Gardens facility in Bangalore manufactures oral dosage forms such as tablets, capsules (both hard gelatine and soft gelatine) and sachets. The manufacturing plant supports important current and future submissions for the US Market.

About Strides Arcolab

Strides Arcolab, listed on the Bombay Stock Exchange Limited (532531) and National Stock Exchange of India Limited (STAR), is a global pharmaceutical Company headquartered in Bangalore, India that develops and manufactures a wide range of IP-led niche pharmaceutical products.

The Company has 5 manufacturing facilities presence in more than 75 countries in developed and emerging markets.

Global Pharma business meets FY 2013-14 Guidance,

Revenues at Rs.13750.000 Millions with an EBITDA of Rs.2610.000 Millions*

EBITDA Margin at 19% against 11% in 2012

Board Recommends Dividend of Rs.5 per share (50%)

*Adjusted for Exchange Loss, FY 2013-14 EBITDA at Rs.2890.000 Millions, EBITDA Margin at 21%

Bangalore, May 23, 2014 Strides Arcolab (BSE: 532531, NSE: STAR) today announced its financial results for the Quarter ending March 31, 2014 and Financial Year ending March 31, 2014.

Highlights

Global Pharma

· Meets Revenue Guidance of Rs.12800.000 Millions and EBITDA guidance of Rs.2600.000 Millions

· Global Pharma Revenues for FY 2013-14 at Rs.13750.000 Millions with an EBITDA of Rs.2610.000 Millions, impacted by an Exchange Loss of Rs.270.000 Millions (EBITDA Margin of 19%)

· Adjusted for Exchange Loss, FY 2013-14 EBITDA at INR 2890.000 Millions, EBITDA Margin of 21%

· Q5’14 Consolidated Pharma Revenues at Rs.3400.000 Millions with an EBITDA of Rs.590.000 Millions

· Adjusted for Exchange Loss, Q5’14 EBITDA at Rs.640.000 Millions, EBITDA Margin of 19%

· Revenues driven by a strong quarter for Institutional business

· Continued US FDA approval status for Oral Dosage Facility, Bangalore

· 26 USFDA filings with 17 pending approvals. 19 USFDA PEPFAR filings with 16 tentative approvals

Global Pharma Revenues and EBITDA exclude Rs.270.000 Millions of Interest and Investment Income earned by the group during FY 2013-14.

Business Highlights

· Regulated Markets’ Revenues grew from Millions 3560.000 Millions in 2012 to Rs.5060.000 Millions in FY 2013-14 in spite of delayed approvals in the US market

· Emerging Markets’ Revenues grew from Rs.2180.000 Millions in 2012 to Rs.3350.000 Millions in FY 2013-14 driven by strong expansion in the African business with addition of 5 new countries and over 100 new field staff. Total Africa business spans 27 countries with 350 Employees

· Institutional Business’ Revenues grew from Rs.3520.000 Millions in 2012 to Rs.5340.000 Millions in FY 2013-14. During the year the company also launched its Anti-Malarial product in the Institutional business.

Biotech

· Stelis Biopharma the wholly owned division of Strides commenced R&D activities in its new centre in Bangalore

· Commencement of construction activities at its greenfield site in Malaysia is deferred to Q3’2015 due to delays in local approvals EBITDA negative of Rs.41.000 Millions for FY 2013-14.

Guidance

· The company has decided to defer guidance due to

o Consequent to the recent successful facility approval by USFDA, the company expects important product approvals which could result in significant upsides in the US market.

o The Anti-Malarial business is undergoing a change in procurement mechanism and could have significant impacts on the future of this business.

· The company will revisit its guidance policy at the end of H1 of the financial year.

Commenting on the results, Arun Kumar, Founder and Group CEO, stated “Post the divestment of Agila, I am pleased with the improved quality of our continuing pharmaceutical business and improvements in our EBITDA margins and cash flows. We are committed to build a sustainable and scalable business in niche products for the regulated markets and a powerful emerging market platform in the near term”.

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.60.24
UK Pound	1	Rs.102.87
Euro	1	Rs.81.44

INFORMATION DETAILS

Information Gathered by :	PRT
Analysis Done by :	RAS
Report Prepared by :	NTH

SCORE RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	6
--CREDIT LINES	1~10	5
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	YES
--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
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		50

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.