Global Absolute is one of the few research based brokerages world-wide that produces bottom-up

research covering the Asian CB universe. As there are few players providing this service we have been
able to capture significant market share as an organisation with sales/trading footprints in UK and
Singapore and research centre in India under our CBs specialist Mr. Rajinder Singh. We provide credit,
asset cover, liquidation, price point discovery analysis for the entire Asian CBs Universe. We are pretty
confident this market will continue to grow from $60bn and the CBs will become the instrument of
choice for new issuance. We attach the initiative coverage report of “Aftek Ltd”.

AFTEK LTD. - Ability to repay o/s FCCBs in June 2010

AFTEK INFOSYS USD 1.000 '10 Iss'd 4/25 USD35m: Superior Yield/ Good Credit.
Yield to Redemption 140%:”BUY”

Aftek Ltd. (Aftek) provides IT & ITES solutions for home and industrial automation, product and
application design and development, offshore application development and outsourcing services for
engineering and testing activities. It has seven subsidiaries that include Mihir Properties (its BPO centre),
Aftek Sales & Services, Opdex Inc., Aftek (Mauritius) Ltd. Arexera Information Technologies GmbH,
Arexera Information Technologies AG and Digihome Solutions. Opdex Inc. is engaged in creating and
developing software products and intellectual property rights.

Our View:
With an improvement in the global economy, IT has been and will continue to be a beneficiary and we
expect a reasonable recovery in the company’s performance going forward despite the upturn not being
reflected in the last six months (September ended) FY 10 results. We have seen and will continue to
expect to see control on the cost side with salaries, administrative, and other expenses expected to
decline significantly in the last 2Q’s of 2010. The Company has confirmed their intentions to concentrate
on its products sales business and domestic growth. Furthermore, we feel reasonably comfortable with
the asset strength of the company and understand that their current loan has been given on the back of
the core asset value form their Mumbai offices and Pune development. The Company expects to finalise
development of the Pune site within the next 6-9 months and we expect this site to be sold rather than
used internally providing considerable realization and cash should the company not be able to redeem
the bonds from internal accruals alone. As such we believe the bonds provide an excellent yield on an
annualized basis of 140% at the indicative offer price based on a short dated maturity of June 2010 and
good credit based on the current liquid assets and growth prospects. Therefore, we recommend a on
FCCBs -AFTEK INFOSYS USD 1.000 '10 Iss'd 4/25 USD35m, BUY as a Superior Yield/ Good Credit.

Please contact for the detail research report: research@globalabsolute.com

Global Absolute is one of the few research based brokerages world-wide that produces bottom-up
research covering the Asian CB universe. As there are few players providing this service we have been
able to capture significant market share as an organisation with sales/trading footprints in UK and
Singapore and research centre in India under our CBs specialist Mr. Rajinder Singh. We provide credit,
asset cover, liquidation, price point discovery analysis for the entire Asian CBs Universe. We are pretty
confident this market will continue to grow from $60bn and the CBs will become the instrument of
choice for new issuance. We attach the initiative coverage report of “”Nectar Life Sciences Ltd”.

NECTAR LIFE SCIENCES LTD: USD 0.000’11

(NLSC IN) Issd 5/26 USD 35m: Significant Downside Protection
EQUITY PLAY/GOOD YIELD AND GOOD CREDIT:”BUY”

Nectar Life sciences Ltd (Nectar) is one of the leading global manufacturers in the specialized Sterile
Cephalosporins, Semi Synthetic Penicillins and other Active Pharmaceutical Ingredients (APIs) market.
The company has the majority of its order book as repeat orders and the use of these products have
been steadily improving. Even when many pharma co’s with exports were hit by the downturn for FY09
the company has kept its sales in line with FY08 and is set to improve in FY10 as its expanded capacity
has now come on line and is generating additional revenues from 1H10.

Investment Rational:

Emerging as integrated pharma company:

Nectar is emerging as an integrated pharma company by presenting across the entire value chain from
intermediates, APIs (CRAMs) and formulations to capsule manufacturing with an advantage over other
API and contract manufacturing companies. The company is moving up the value chain from solely
focused on APIs to cephalosporins, unorganized natural mint (menthol) space, contract manufacturing,
empty hard gelatine capsule and formulations. Over the next few years, the management intends to
concentrate developing high-end cephalsorins for the regulated markets, adding high- value products
like anti-infectives to rapidly-growing therapeutic areas of oncology, cardiovascular, anti-diabetic, HIV,
female hormones and biotechnology. The company would also likely to strengthen in contract
manufacturing by expanding its capacity to 1100MT from current 650MT.

Largest organised menthol manufacturer:

Nectar is emerging as an integrated pharma company by presenting across the entire value chain from
intermediates, APIs (CRAMs) and formulations to capsule manufacturing with an advantage over other
API and contract manufacturing companies. The company is moving up the value chain from solely
focused on APIs to cephalosporins, unorganized natural mint (menthol) space, contract manufacturing,
empty hard gelatine capsule and formulations. Over the next few years, the management intends to
concentrate developing high-end cephalsorins for the regulated markets, adding high- value products
like anti-infectives to rapidly-growing therapeutic areas of oncology, cardiovascular, Anti-diabetic, HIV,
female hormones and biotechnology. The company would also likely to strengthen in contract
manufacturing by expanding its capacity to 1100MT from current 650MT .Nectar is the world largest
producer of menthol flake and crystal, and has 25% market share. With the key approval from kosher
and Halaal industries for mint derivative product, Nectar’s products are allowed to sell across the globe.
Nectar’s phytochemical business is fully integrated; it sources menthol oil from farmers (mint crop),
converts into flakes, and powders into fine diamond-shaped crystals. The Company has moved up the
value chain from the manufacturer of mint intermediates to value-added products like menthol crystals
and high-grade derivatives to cater to the high-growth neutraceutical market with a focus on
international (the US, EU and Japan) and domestic markets. This would reduce its dependency on China.
Nectar has filed DMFs with the USFDA for menthol used in pharmaceutical applications, which will
enable it to enhance realisations in regulated markets.

Tapping formulation market-High margin business segment:

Nectar is looking to enter the regulated markets for its formulations by 2010 and will file four
Abbreviated New Drug Applications for US FDA and EDQM approvals by 2009-10. The Company is
planning to introduce new niche molecules like Cefcapene Pivoxil HCL and Cefditoren Pivoxil during
2009-10 in Indian market as a first mover. This first mover strategy will give an edge in the formulation
business. Nectar also intends to file around 100 dossiers for the semi-regulated and other markets
during the next five years. In addition, the company is looking to leverage on its existing APIs client base
to foray into contract manufacturing formulation. This would give a steady revenue growth and help in
improving the profit margins (which is high margin segment).

Valuation:
At the CMP of Rs.24.35, the stock is trading at 5.97x in FY10E EPS (diluted) of Rs. 3.9 and 4.76x in FY11E
EPS of Rs. 4.8. Considering the strong visibility in earning over the next few years, leadership in key
vertical` and revamping towards the high margin value chain formulation, we have valued Nectars
shares at Rs. 34.43 based on a P/E 9x on FY10E although its peer mid-cap pharma companies are trading
in negative earnings and much higher earnings multiples. We recommend a “ BUY” on the stock with
around 50% upside potential from CMP.
Please contact for the detail research report: research@globalabsolute.com