MIRA INFORM REPORT

Report Date :

18.08.2011

IDENTIFICATION DETAILS

Name :	PARENTERAL DRUGS (INDIA) LIMITED
Registered Office :	340, Laxmi Plaza, Laxmi Industrial Estate, New Link Road, Andheri (West), Mumbai – 400053, Maharashtra
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	13.12.1983
Com. Reg. No.:	126481
Capital Investment / Paid-up Capital :	Rs.317.886 Millions
CIN No.: [Company Identification No.]	L99999MH1983PLC126481
TAN No.: [Tax Deduction & Collection Account No.]	MUMP19676G
PAN No.: [Permanent Account No.]	AAACP2820L
Legal Form :	A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchange.
Line of Business :	Manufacturer and Exporters of Pharmaceutical Products like Intravenous Transfusions, T.ablets Capsules and Water for Injections
No. of Employees :	1800 (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

Maximum Credit Limit :	USD 13000000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is an established company having fine track. Trade relations are reported as fair. Business is active. Payments are reported to be regular and as per commitments. The company can be considered normal for business dealings at usual trade terms and conditions.

NOTES:

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

INFORMATION PARTED BY

Name :	Mr. Amit Nagar
Designation :	Accountant
Contact No.:	91-731-3917834
Date :	17.08.2011

LOCATIONS

Registered Office :	340, Laxmi Plaza, Laxmi Industrial Estate, New Link Road, Andheri (West), Mumbai – 400053, Maharashtra, India
Tel. No.:	91-22-56943547 / 26304940 / 42762888
Fax No.:	91-22-26333763
E-Mail :	pdpl@pdindia.com
Website :	http://www.pdindia.com
Location :	Owned
Corporate Office :	Shree Ganesh Chambers, A.B. Road , Navlakha Crossing, Indore - 452001 Madhya Pradesh, India
Tel. No.:	91-731-4092000 / 2401108
Fax No.:	91-731-2401052 / 2401307
Plants (Manufacturing Location) :	· Village Asrawad, Post Dudhia, Nemawar Road, Indore – 453331, Madhya Pradesh, India Tel No.: 91-731-3917834 · Village Sura, Post Suranussi, Jalandhar – 144027, Punjab, India · Village Bhud, Tehsil Nalagarh, District Solan – 173205, Himachal Pradesh, India · Honda Industrial Estate, Plot No. 1, Phase III Sattari – 403530, Goa, India
Overseas Mauritius :	Old Moka Road, Bell Village, P. O. Box 770, Republic of Mauritius.

DIRECTORS

(As on 31.03.2010)

Name :	Mr. Manoharlal Gupta
Designation :	Chairman Cum Managing Director
Name :	Mr. Vinod Kuamr Gupta
Designation :	Managing Director
Name :	Mr. Govind Das Garg
Designation :	Whole Time Director
Name :	Mr. Anil Mittal
Designation :	Whole Time Director and Chief Executive
Name :	Mr. Satish Chandra Consul
Designation :	Non Executive Director – Independent Director
Name :	Mr. Dharam Pal Khanna
Designation :	Non Executive Director – Independent Director
Name :	Mr. Dilip Kumar Panchaity
Designation :	Non Executive Director – Independent Director
Name :	Mr. Dilip Kumar Sinha
Designation :	Non Executive Director – Independent Director

KEY EXECUTIVES

Name :	Ms. Archana Agar
Designation :	Company Secretary and Compliance Officer

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

(AS ON 30.06.2011)

Names of Shareholders	No. of Shares	Percentage of Holding
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Bodies Corporate	17,921,907	69.29
Sub Total	17,921,907	69.29
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	17,921,907	69.29
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	7,998	0.03
Financial Institutions / Banks	1,332	0.01
Foreign Institutional Investors	809,175	3.13
Sub Total	818,505	3.16
(2) Non-Institutions
Bodies Corporate	2,733,754	10.57
Individuals
Individual shareholders holding nominal share capital up to Rs.0.100 Million	1,592,983	6.16
Individual shareholders holding nominal share capital in excess of Rs.0.100 Million	2,713,038	10.49
Any Others (Specify)	86,644	0.33
Clearing Members	37,210	0.14
Non Resident Indians	41,094	0.16
Trusts	3,275	0.01
Directors & their Relatives & Friends	5,065	0.02
Sub Total	7,126,419	27.55
Total Public shareholding (B)	7,944,924	30.71
Total (A)+(B)	25,866,831	100.00
(C) Shares held by Custodians and against which Depository Receipts have been issued	-	-
(1) Promoter and Promoter Group	-	-
(2) Public	-	-
Sub Total	-	-
Total (A)+(B)+(C)	25,866,831	100.00

SHAREHOLDING BELONGING TO THE CATEGORY:

"Promoter and Promoter Group"

Name of the Shareholder	Total Shares held
	Number	As a % of grand total (A)+(B)+(C)
Parenteral Commercial Services Private Limited	30,986	0.12
Neptune Packaging Private Limited	22,133	0.09
Rajratan Exports Limited	1,333,333	5.15
Rajratan Exports Limited	1,726,666	6.68
Rajratan Exports Limited	3,606,666	13.94
PDPL Holdings Private Limited	3,217,120	12.44
PDPL Securities Private Limited	611,506	2.36
Mahaganpati Investments Private Limited	1,600,000	6.19
MVG Merchantile Private Limited	5,773,497	22.32
Total	17,921,907	69.29

"Public" and holding more than 1% of the Total No.of Shares

Name of the Shareholder	No. of Shares	Shares as % of Total No. of Shares
Systematix Finvest Private Limited	448,870	1.74
Mavi Investment Fund Limited	300,000	1.16
India Discovery Fund Limited	748,258	2.89
Madhukar Sheth	298,163	1.15
Madhukar Sheth	282,011	1.09
Systematix Fincorp India Limited	286,700	1.11
Total	2,364,002	9.14

Details of Locked-in Shares

Name of the Shareholder	No. of Shares	Locked-in Shares as % of Total No. of Shares
MVG Mercantile Private Limited	1,082,531	4.19
Total	1,082,531	4.19

BUSINESS DETAILS

Line of Business :

Manufacturer and Exporters of Pharmaceutical Products like Intravenous Transfusions, Tablets Capsules and Water for Injections

Products :

ITC Code No.	Product Description
30033900	Intravenous Transfusions
30049099	Tablets Capsules
30049076	Water for Injections

Exports :

Products :

Pharmaceutical Products

Countries :

· African Countries

· Russian

· Middle East

· Asian Countries

Terms :

Selling :

L/C, Cash and Credit (30 days)

Purchasing :

Cash and Credit (30 days)

PRODUCTION STATUS (AS ON 31.03.2010)

Particulars	Licensed Capacity (p.a)	Installed Capacity (p.a)	Actual Production (p.a)
I.V. Section (Large Volume)	2400.00*	2400.00*	1675.42
Tablet Section (Tablets and Capsules)	14250.00	14250.00	3077.54**
Opthalmics Section
Ampoules	4500.00	4500.00	2177.24
Injections	1080.00	1080.00	315.35**

* Increased during the year

** Tablets includes Trading Purchase for 91.79 lacs and Injections includes Trading Purchase for 73.21 lacs.

GENERAL INFORMATION

Customers :

Wholesalers, Retailers and End Users

No. of Employees :

1800 (Approximately)

Bankers :

· State Bank of India

· Punjab National Bank

Facilities :

Secured Loans	31.03.2010 Rs. in Millions	31.03.2009 Rs. in Millions
State Bank of India, Commercial Branch, Indore Term Loan I for Indore plant	--	2.389
State Bank of India, Commercial Branch, Indore Term Loan II for Baddi plant	25.221	40.143
State Bank of India, Commercial Branch, Indore Term Loan III for Baddi plant	70.747	106.074
State Bank of India, Commercial Branch, Indore Term Loan IV for Baddi plant	232.387	282.945
State Bank of India, Commercial Branch, Indore Term Loan V for Indore plant	498.826	--
State Bank of India, Commercial Branch, Indore Corporate Loan	64.708	127.763
Punjab National Bank, Chandigarh Term Loan for Baddi plant	16.402	23.973
Punjab National Bank, Chandigarh Term Loan for Indore plant	13.947	20.204
Punjab National Bank, Chandigarh Cash Credit	258.031	185.658
State Bank of India, Commercial Branch, Indore Cash Credit	614.453	466.764
ICICI Bank Limited Car Finance	--	0.032
Total	1794.722	1255.945
Unsecured Loans	31.03.2010 Rs. in Millions	31.03.2009 Rs. in Millions
From Directors and Relatives	5.541	4.560
Inter Corporate Deposits	73.003	72.953
Security Deposit from Dealers and Suppliers	119.573	104.600
Total	198.117	182.113

Notes:

State Bank of India, Commercial Branch ,Indore

Term Loan I for Indore plant

(Secured by first pari-passu charge on fixed assets of the Company and second pari-passu charge on current assets of the Company and guaranteed by two managing directors, one director and by third parties i.e. by HUF of three Directors, by Smt. Alpana Gupta and by Diamond Crystal Private Limited.)

State Bank of India, Commercial Branch ,Indore

Term Loan II for Baddi plant

(Secured by first pari-passu charge on fixed assets of the Company and second pari-passu charge on current assets of the Company and guaranteed by two managing directors, one director and by third parties i.e. by HUF of three Directors, by Smt. Alpana Gupta and by Diamond Crystal Private Limited.)

State Bank of India, Commercial Branch ,Indore

Term Loan III for Baddi plant

(Secured by first pari-passu charge on fixed assets of the Company and second pari-passu charge on current assets of the Company and guaranteed by two managing directors, one director and by third parties i.e. by HUF of three Directors, by Smt. Alpana Gupta and by Diamond Crystal Private Limited.)

State Bank of India,Commercial Branch ,Indore

Term Loan I V for Baddi plant

(Secured by first pari-passu charge on fixed assets of the Company and second pari-passu charge on current assets of the Company and guaranteed by two managing directors, one director and by third parties i.e. by HUF of three Directors, by Smt. Alpana Gupta and by Diamond Crystal Private Limited.)

Punjab National Bank, Chandigarh

Term Loan

(Secured by first pari-passu charge on fixed assets of the Company and second pari-passu charge on current assets of the Company and guaranteed by two managing directors, one director and by third parties i.e. by HUF of three Directors, by Smt. Alpana Gupta and by Diamond Crystal Private Limited.)

Punjab National Bank, Chandigarh

Term Loan for Baddi plant

(Secured by first pari-passu charge on fixed assets of the Company and second pari-passu charge on current assets of the Company and guaranteed by two managing directors, one director and by third parties i.e. by HUF of three Directors, by Smt. Alpana Gupta and by Diamond Crystal Private Limited.)

Punjab National Bank, Chandigarh

Cash Credit

(Secured by first pari-passu charge on current assets of the Company and second pari-passu charge on fixed assets of the Company and guaranteed by two managing directors, one director and by third parties i.e. by HUF of three Directors and by Smt. Alpana Gupta and by Diamond Crystal Private Limited.)

State Bank of India, Commercial Branch ,Indore

Cash Credit

(Secured by first pari-passu charge on current assets of the Company and second pari-passu charge on fixed assets of the Company and guaranteed by two managing directors, one director and by third parties i.e. by HUF of three Directors and by Smt. Alpana Gupta and by Diamond Crystal Private Limited.)

State Bank of India, Commercial Branch ,Indore

Corporate Loan

(Secured by first pari-passu charge on fixed assets of the Company and specifically secured by pledge of 2.000 Millions BSE traded Shares of the Company held by Rajratan Exports Limited.)

Punjab National Bank, Chandigarh

Loan against Fixed Deposit

(Secured against Fixed Deposit of Rs.10.000 Millions)

ICICI Bank Limited

Car Finance

(Secured by hypothecation of car)

Banking Relations :	--
Auditors :
Name :	T.N. Unni and Company Chartered Accountant
Address :	402, Alankar Point, Geeta Bhawan Square, Indore – 452001, Madhya Pradesh, India
Subsidiaries :	· Parenteral Biotech Limited · Abhay Drugs Limited · Parenteral Impex Limited · Anjaney Pharmaceuticals Limited · Parentech Healthcare Limited · Parenteral Surgical Limited · Punjab Formulations Limited · Goa Formulations Limited
Enterprise Controlled by Key Management :	· Rajratan Exports Private Limited · Mahaganpati Investments Private Limited · PDPL Holdings Private Limited · PDPL Securities Private Limited · Parenteral Medicines Limited · Panorama Remedies Limited · Anitas Exports Private Limited · Lalit Media and Education Limited · Orissa Formulations Private Limited · Anitas Management Private Limited · MVG Mercantile Private Limited · Vino Infratech Private Limited · Chiron Metco Limited · Chetan Medicaments Private Limited · Diamond Crystal Private Limited · Earawat Steels Private limited · Neptune Packaging Private Limited · Prem Pharmaceuticals · Parenteral Commercial Services Private Limited · Manish Medicates Private Limited · AGT Mercantile Private Limited · Simtrad Overseas Private Limited · KRM Holdings Private Limited

CAPITAL STRUCTURE

AS ON 30.09.2010

Authorised Capital : Rs.500.000 Millions

Issued, Subscribed & Paid-up Capital : Rs.323.289 Millions

AS ON 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
26500000	Equity Shares	Rs.10/- each	Rs.265.000 Millions
3500000	Redeemable, Non Cumulative, Non Convertible Preferences Shares	Rs.10/- each	Rs.35.000 Millions
2962102	0% Optionally Convertible Redeemable Preferences Shares	Rs.10/- each	Rs.29.621 Millions
7037898	Redeemable Preference Shares	Rs.10/- each	Rs.70.379 Millions
	Total		Rs.400.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
19400123	Equity Shares of Rs.10/- each (including 6284720 Equity Shares of Rs.10 /- each Bonus shares issued as fully paid up out of free reserve & 1042560 Equity shares of 10 each issued as fully paid up out of revaluation reserves)	Rs.10/- each	Rs.194.001 Millions
3500000	Redeemable, Non Cumulative, Non Convertible Preferences Shares	Rs.10/- each	Rs.35.000 Millions
2962102	0% Optionally Convertible Redeemable Preferences Shares	Rs.10/- each	Rs.29.621 Millions
--	Share Application Money for Preferences Shares Capital	--	Rs.59.264 Millions
	Total		Rs.317.886 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2010	31.03.2009	31.03.2008
SHAREHOLDERS FUNDS
1] Share Capital		317.886	309.686	236.764
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		2887.632	2444.073	1070.205
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		3205.518	2753.759	1306.969
LOAN FUNDS
1] Secured Loans		1794.722	1255.945	871.306
2] Unsecured Loans		198.117	182.113	146.439
TOTAL BORROWING		1992.839	1438.058	1017.745
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		5198.357	4191.817	2324.714
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		2259.687	1347.784	1030.455
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		1395.335	1390.885	5.275
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	669.514	624.730	429.371
	Sundry Debtors	1017.134	743.352	644.905
	Cash & Bank Balances	96.940	94.446	221.514
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	371.255	368.180	286.524
Total Current Assets		2154.843	1830.708	1582.314
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditor	380.764	188.310	134.688
	Other Current Liabilities	101.069	99.950	88.516
	Provisions	129.739	89.364	70.126
Total Current Liabilities		611.572	377.624	293.330
Net Current Assets		1543.271	1453.084	1288.984
MISCELLANEOUS EXPENSES		0.064	0.064	0.000
TOTAL		5198.357	4191.817	2324.713

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	3372.821	2269.517	2129.763
		Other Income	13.388	2.801	21.353
		TOTAL (A)	3386.209	2272.318	2151.116
Less	EXPENSES
		Material Consumed	1848.322	1206.563	1008.621
		Manufacturing Expenses	221.351	193.093	218.018
		Expenditure on Employees	107.334	92.554	84.676
		Administrative Expenses	183.338	142.713	176.622
		Selling and Distribution Expenses	458.833	383.027	390.837
		Increase/ (Decrease) in Finished Goods	1.869	(93.360)	(114.942)
		TOTAL (B)	2821.047	1924.590	1763.832
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		565.162	347.728	387.284
Less	FINANCIAL EXPENSES (D)		138.026	123.055	107.817
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		427.136	224.673	279.467
Less/ Add	DEPRECIATION/ AMORTISATION (F)		76.660	57.119	44.635
	PROFIT BEFORE TAX (E-F) (G)		350.476	167.554	234.832
Less	TAX (H)		77.578	59.860	43.433
	PROFIT AFTER TAX (G-H) (I)		272.898	107.694	191.399
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		306.737	313.325	177.785
Less	APPROPRIATIONS
		Transfer to General Reserve	40.935	21.539	40.585
		Income Tax Paid for Earlier years	0.000	0.000	(4.843)
		Proposed Dividend	37.847	20.805	17.195
		Tax on Dividend	6.432	3.536	2.922
	Issue of shares as per Amalgamation scheme		--	72.722	--
Add	Balance of Profit and Loss Account of Amalgamating Company		--	4.320	--
	BALANCE CARRIED TO THE B/S		494.421	306.737	313.325
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	45.490	63.202	26.811
	TOTAL EARNINGS		45.490	63.202	26.811
	IMPORTS
		Raw Materials	428.970	60.483	136.484
		Packing Material	0.000	1.560	0.000
		Capital Goods	0.145	0.422	1.841
	TOTAL IMPORTS		429.115	62.465	138.325
	Earnings Per Share (Rs.)		14.44	6.87	16.76

QUARTERLY RESULTS

PARTICULARS	30.06.2010	30.09.2010	31.12.2010	31.03.2011	30.06.2011
Type	1^st Quarter	2^nd Quarter	3^rd Quarter	4^th Quarter	5^th Quarter
Net Sales	989.160	1317.270	1277.020	388.870	454.350
Total Expenditure	800.810	1045.390	1011.900	666.390	397.220
PBIDT (Excl OI)	188.350	271.880	265.120	(277.520)	57.130
Other Income	0.000	0.000	0.000	0.000	0.000
Operating Profit	188.350	271.880	265.120	(277.520)	57.130
Interest	41.130	56.630	55.990	74.600	80.270
Exceptional Items	0.000	0.000	0.000	0.000	0.000
PBDT	147.220	215.240	209.120	(352.120)	(23.140)
Depreciation	19.700	19.700	19.700	24.700	25.950
Profit Before Tax	127.520	195.540	189.420	(376.810)	(49.090)
Tax	42.060	38.970	39.450	1.700	5.180
Provisions and contingencies	0.000	0.000	0.000	0.000	0.000
Profit After Tax	85.490	156.570	149.970	(378.510)	(54.260)
Extraordinary Items	0.000	0.000	0.000	0.000	0.000
Prior Period Expenses	0.000	0.000	0.000	0.000	0.000
Other Adjustments	0.000	0.000	0.000	0.000	0.000
Net Profit	85.490	156.570	149.970	(378.510)	(54.260)

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	8.06	4.74	8.90
Net Profit Margin (PBT/Sales)	(%)	10.39	7.38	11.03
Return on Total Assets (PBT/Total Assets}	(%)	7.94	5.27	8.99
Return on Investment (ROI) (PBT/Networth)		0.11	0.06	0.18
Debt Equity Ratio (Total Liability/Networth)		0.81	0.66	1.00
Current Ratio (Current Asset/Current Liability)		3.52	4.85	5.39

LOCAL AGENCY FURTHER INFORMATION

SUNDRY CREDITORS DETAILS:

Particulars	31.03.2010	31.03.2009	31.03.2008
	(Rs. In Millions)
Sundry Creditors	380.764	188.310	134.688

BUSINESS OVERVIEW

The Indian pharmaceutical market has seen a Compounded Annual Growth Rate (CAGR) of about 14% in the last five years. It continues to be highly fragmented and dominated by Indian companies. The domestic pharmaceutical industry grew by 18% in March, 2010 versus 10% in March, 2009. The industry is on the threshold of exponential growth and is imperative for us to mobilize our resources to capitalize on the opportunities ahead.

THE YEAR IN RETROSPECT

The financial year 2009-10 was a challenging year as we had to adapt quickly to the changing economic scenario. At the start of the year, the global economy was still reeling under the impact of the financial crisis and hence, the outlook was subdued. As the year went by, several other regions around the world began to report an improvement in economic performance. As your Company caters to various markets globally, it was faced with markets that were recovering in different ways and at different speeds.

The Company has responded well to the challenges thrown up by changes in the world economy, it has also taken several initiatives to take its performance forward resulting in posting yet another year of impressive performance with a healthy top line growth and high quality earnings, reflecting the robustness of its corporate strategy of creating multiple drivers of growth. The new orders booked during the year were also on a positive note despite tough market conditions.

Financial year 2009-10 has been eventful year for the Company. The consolidated turnover for the year was Rs.4163.200 Millions compared to Rs.2697.600 Millions in the previous year which is 1.54 times in comparison with the previous year. The Company has been able to increase the quantitative Volumes by more than 54.33 % compared to previous year.

The turnover on standalone basis stood Rs.3386.200 Millions as against Rs.2272.300 Millions in the previous year. On a consolidated basis, The Company earned a gross income of Rs.662.400 Millions during the year as against Rs.413.100 Millions in the previous year and the profit before tax of Rs.397.300 Millions as against the profit before tax of Rs.188.300 Millions during the previous year.

On a standalone basis, the Company earned a higher gross income of Rs.565.200 Millions during the year as against Rs.347.700 Millions in the previous year and profit before tax of Rs.350.500 Millions as against Rs.167.600 Millions during the previous year.

CHANGES IN CAPITAL STRUCTURE

The Company has converted 12,00,000 warrants into equity shares of Rs.10/-each, which were issued by way of preferential allotment on 24th day of August, 2009. The warrants were allotted to M/s. Mahaganpati Investments Private Limited, a Company under promoter category.

Post-conversion of warrants, the issued, subscribed and paid-up share capital of your Company has increased from Rs.18,20,01,230 divided into 1,82,00,123 equity shares of Rs.10/-each to Rs.19,40,01,230 divided into 1,94,00,123 equity shares of Rs.10/-each.

FINANCIAL FACILITIES

The Company is focused on more effective working capital management in recent years which has resulted into improved cash flows. The improved performance of the Company is resulting in higher internal accruals. During the year, the Company repaid the term loan installments of Rs.180.000 Millions. Term loan of Rs.498.800 Millions was availed during the year.

The total outstanding fund based and non fund based borrowings of the Company stand to the tune of Rs.2022.600 Millions. Out of which a sum of Rs.1702.200 Millions is sanctioned by State Bank of India and Rs.320.400 Millions sanctioned by the Punjab National Bank.

The Company has received proceeds of Rs.201.300 Millions towards conversion of 12,00,000 warrants into equity shares by M/s. Mahaganpati Investments Private Limited. The proceeds have been utilized for the purpose of funding of various expansion activities including the overseas initiatives.

SUBSIDIARY COMPANIES

As on date of the report, the Company has eight(8) Indian and two (2) foreign subsidiaries viz: M/s. Punjab Formulations Limited, M/s. Goa Formulations Limited, M/s. Parentech Healthcare Limited, M/s. Parenteral Surgicals Limited, M/s. Anjaney Pharmaceuticals Limited, M/s. Abhay Drugs Limited, M/s. Parenteral Biotech Limited, M/s. Parenteral Impex Limited, M/s. Parenteral Drugs Kazakhstan and M/s. Mascareignes Pharmaceutical Manufacturing Company Limited.

M/s. Mascareignes Pharmaceutical Manufacturing Company Limited, a Mauritius based pharmaceutical company has become a subsidiary of the Company after the financial year ended on 31st March, 2010.

MANAGEMENT DISCUSSION AND ANALYSIS REPORT

2009-2010 Road to Recovery

Indian Economy shows resilience

The worst phase of the global financial crisis is behind and they are on the road to recovery. Global financial markets have stabilized and equity markets around the world have started moving upwards as the global economy is showing signs of recovery. India has emerged largely unscathed from the crisis due to its domestic consumption led economy. This has helped it to register fairly healthy growth in an extremely volatile year.

While the market witnessed slowdown in new investments, the rise in inflation, high interest rates and liquidity crunch also led to cancellation, renegotiation and delay of many planned projects in India. To counter this negative fallout of the global economic slowdown, the Indian Government implemented fiscal stimulus packages to boost demand, maintaining liquidity in the financial system, limiting the spill over impact on the real economy and underpinning a widespread confidence that the Indian economy was well placed to weather the storm and emerge from the downturn in a strong position.

Industry Structure and Development

Healthcare forms the key area for the nation and is one of the most important indicators of a country's growth and development. The Challenges in the market have multiplied to many folds, as economic contraction and tightening of credit began to spread from the U.S. into the global economy. The main economic concerns have been the rising rate of inflation and the slow down in the growth of industries.

According to IMS Health Inc, the size of the global market for pharmaceuticals is expected to grow nearly $300 billion over the next five years, reaching $1.1 trillion in 2014. The 5-8 percent compound annual growth rate during this period reflects the impact of leading products losing patent protection in developed markets, as well as strong overall growth in the world's emerging countries. In India, the new product introduction has always remained a force to reckon with as the same provides better armamentarium to the medical fraternity in their fight against the illness and at the same time allows the organizations to withstand the storms of crisis.

Indian Pharmaceuticals industry achieved a significant growth of 13.44% during 2004-09 due to strong internal demand and continuous focus in the global generics market and active share in the export of Active Pharmaceuticals Ingredients (API). As per estimate Indian pharmaceutical industry reached at US$10.88 billion in 2008-09 and it is likely to double its value to US$20.95 billion in 2014. The investment in R&D, filling of higher number of ANDAs and DMFs in highly regulated market, mergers and acquisitions, in-licensing, skilled labour force, high standard scientific base and revenues from CRAMS are expected to give necessary edge to Indian pharma companies in the coming years. The pharmaceutical exports in 2008-09 were valued at Rs.394.59 billion as compared to Rs.302.73 billion in 2007-08, thus growing at 30.34% higher than 2007-08. Global recession could not impact Indian pharma industry and pharma companies are bullish about demand generated from the overseas market along with stronger growth in internal demand in the near future. The similar scenario prevailed in the year 2009-10.

Net growth over the next five years is expected to be strong-even as the industry faces the peak years of patent expiries for innovative drugs introduced 10-15 years ago and subsequent entry of lower-cost generic alternatives.

OUTLOOK

The domestic pharma market will outshine the global market, growing at a compounded annual rate of 12-15% as against a global average of 4-7% during 2008-2013.

In fact the seven emerging markets of China, Brazil, India, South Korea, Mexico, Turkey and Russia are expected to collectively see drug sales grow by 12-14% in 2010, says market research firm IMS. India alone will grow 12-14% next year. The global pharmaceutical market will grow 4-6% next year, exceeding $825 billion on strong prescription sales in the US - higher than initially perceived.

Though the growth is historically low compared with high single-to low double-digit growth seen in the past, but "they're seeing a slightly more positive outlook for the pharmaceutical sector mainly driven by stronger growth in the US market, which has proved to be more resilient than expected to the economic downturn," Murray Aitken, senior vice president for Healthcare Insight at IMS said.

CONTINGENT LIABILITIES AS ON 31.03.2010

a) Counter Guarantee given to Bank against guarantee issued by it to the tune of Rs.50.146 Millions (Previous year Rs.74.890 Millions).

b) Two group companies have offered collateral securities –

(1) By mortgage of one company immovable properties and

(2) By pledge of shares in favour of the Company against credit facilities and corporate loan. Amount involved is uncertain.

c) Corporate Guarantee given to one subsidiary company to the tune of Rs.153.000 Millions.

d) Certain show-causes notices are pending to be adjudicated by the Central excise department. The challenged demand under the notices is Rs.230.20 Millions.

e) Gratuity fund contribution towards past service liability to the tune of Rs.11.890 Millions.

FIXED ASSETS:

· Land

· Factory Building

· Office Premises

· Vehicles

· Office Equipments

· Electrical Installation

· Plant and Machinery

· Furniture and Fittings

· Computer and Software

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 records 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 records 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.45.37
UK Pound	1	Rs.74.56
Euro	1	Rs.65.34

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	6
--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	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		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.