MIRA INFORM REPORT

Report Date :

18.03.2011

Note :- Correct name of the company is “NECTAR LIFE SCIENCES LIMITED”

IDENTIFICATION DETAILS

Name :	NECTAR LIFE SCIENCES LIMITED (w.e.f. 26.03.2004)
Formerly Known As :	SURYA MEDICARE LIMITED
Registered Office :	Village Saidpura, Tehsil Dera Bassi, District: Patiala – 140 507, Punjab.
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	27.06.1995
Com. Reg. No.:	16-16664
CIN No. :	L24232PB1995PLC016664
TAN No.: (Tax Deduction & Collection Account No.)	PTLS10181D
PAN No.: (Permanent Account No.)	AABCS6468G
Legal Form :	A public limited liability company. The company’s shares are listed on the stock exchange.
Line of Business :	Manufacturing of medicines like Ampicillin, Trihydrate, S. Sterilite, Amoxycillin.

RATING & COMMENTS

MIRA’s Rating :

A (64)

RATING		STATUS	PROPOSED CREDIT LINE
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large

Maximum Credit Limit :	USD 24839000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is an established company having fine track. Financial position of the company appears to be sound. Directors are reported to be experienced, respectable businessmen. Trade relations are reported as fair. Payments are reported to be regular and as per commitment. The company can be considered normal for business dealings at usual trade terms and condition.

NOTES :

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

ECGC Country Risk Classification List – April 1, 2010

Country Name	Previous Rating (31.12.2009)	Current Rating (01.04.2010)
India	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

LOCATIONS

Registered Office :	Village Saidpura, Tehsil Dera Bassi, District Patiala - 140507, Punjab India
Tel. No.:	91-1762-308000/308001/231187/231287/231387
Fax No.:	91-1762-281187
E-Mail :	sales@suryamed.com sunderlal@neclife.com
Website :	http://www.suryamed.com http://www.neclife.com
Location :	Owned
Head Office :	#1596, Bhaigrath Place, Chandni Chowk, Delhi – 110048, India
E-Mail :	91-11-23866341, 23869202-03
Fax No.:	91-11-23866341
Factory :	110, Industrial Area, Phase-I, Chandigarh-16002, Haryana, India
Tel. No.:	91-172-2658317/2655166/2655438/2655775
Fax No.:	91-172-2655377
E-Mail :	sales@suryamed.com sales@neclife.com
Area :	2,500 sq.yds.
Location :	Owned
Corporate Office :	SCO 38-39, Sector – 9-D, Chandigarh – 160009, Punjab
Tel. No.:	91-172-3047777/3047701
Fax No.:	91-172-3047755
Factory :	Village: Saidpura, Tehsil: Derabassi, District Mohali (Punjab) Village: Saidpura, Tehsil: Derabassi, District Mohali (Punjab) Empty Hard Gelatin Capsule Unit Village Bhatoli Kalan, Pargana Dharmpur, Tehsil Nalagarh, District Solan, (Himachal Pradesh) Formulation Unit Village Bhatoli Kalan, Pargana Dharmpur, Tehsil Nalagarh, District Solan, (Himachal Pradesh) Narbada Industries Plot No. 2, Lane No. 4, Phase II, SIDCO INDUSTRIAL COMPLEX Bari Brahmana, Jammu (Jammu and Kashmir)
Branches :	Located at Indore Delhi
Administrative Office :	48/1 Dickmans Road, Colombo 4, Sri Lanka
E-Mail:	chempharma@neclife.com
Marketing Office :	D – 708, Crysral Plaza, Office New Link Road, Opposite Infinitti Mall, Andheri (w), Mumbai – 400053, India.
Tel. No.:	91-22-32060171
Fax No.:	91-22-26736793

DIRECTORS

AS ON 31.03.2009

Name :	Mr. Sanjiv Goyal
Designation :	Chairman and Managing Director
Qualification :	B. Com., LLB
Previous Employment :	Surya Pharmaceuticals Limited
Name :	Mr. Raman Kapur
Designation :	Independent Director
Name :	Mr. Ajay Swaroop
Designation :	Independent Director
Name :	Dr. S. S. Chauhan
Designation :	Independent Director
Name :	Mr. Vivek Seth
Designation :	Director
Name :	Mr. Vijay J Shah
Designation :	Director
Name :	Mr. Aryan Goyal
Designation :	Executive Director
Name :	Mr. Basant Kumar Goswami
Designation :	Independent Director
Name :	Mr. Saurabh Goyal
Designation :	Executive Director
Name :	Mr. Dinesh Dua
Designation :	Director and Chief Executive Officer

KEY EXECUTIVES

Name :	Mr. Sandeep Goel
Designation :	Vice President (Finance)
Name :	Mr. R. K. Aggarwal
Designation :	Vice President (Accounts)
Name :	Mr. Sunder Lal
Designation :	Vice President and Company Secretary
Qualification :	B. Com, F.C.S.

MAJOR SHAREHOLDERS

As on 31.12.2010

Names of Shareholders	No. of Shares	Percentage of Holding
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	99,014,000	55.54
Sub Total	99,014,000	55.54
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	99,014,000	55.54
(B) Public Shareholding
(1) Institutions
Financial Institutions / Banks	53,804	0.03
Insurance Companies	4,431,505	2.49
Foreign Institutional Investors	4,865,509	2.73
Any Others (Specify)	26,000,000	14.59
Foreign Companies	26,000,000	14.59
Sub Total	35,350,818	19.83
(2) Non-Institutions
Bodies Corporate	19,077,821	10.70
Individuals
Individual shareholders holding nominal share capital up to Rs. 0.100 million	19,357,954	10.86
Individual shareholders holding nominal share capital in excess of Rs. 0.100 million	3,311,195	1.86
Any Others (Specify)	2,149,182	1.21
Non Resident Indians	1,909,141	1.07
Clearing Members	197,666	0.11
Trusts	42,375	0.02
Sub Total	43,896,152	24.62
Total Public shareholding (B)	79,246,970	44.46
Total (A)+(B)	178,260,970	100.00
(C) Shares held by Custodians and against which Depository Receipts have been issued	-	-
(1) Promoter and Promoter Group	-	-
(2) Public	46,000,000	-
Sub Total	46,000,000	-
Total (A)+(B)+(C)	224,260,970	-

BUSINESS DETAILS

Line of Business :

Manufacturing of medicines like Ampicillin, Trihydrate, S. Sterilite, Amoxycillin, etc.

Products :

Item Code No.	Product Description
300420.19	Cefixine Trihydrate
300420.19	Cefataxime Sodium Sterile
300420.19	Celtriaxone Sodium Sterile

Exports to :

• Singapore
• Taiwan
• Germany Nigeria
• Hong Kong

Import from :

• Germany
• Korea

Terms :

Selling :

L/C, Cash or Credit (60 days) terms

Purchasing :

L/C or Credit (45 days) terms

GENERAL INFORMATION

No. of Employees :	340 persons -- 40 persons in office and 300 persons in factory
Bankers :	Punjab National Bank, Sector 16D, Chandigarh State Bank of India, Specialised Commercial Branch, Sector 17B, Chandigarh Vijaya Bank, Barakhamba Road, New Delhi Exim Bank, Mumbai HSBC, Barakhamba Road, New Delhi

Facilities :

SECURED LOANS	31.03.2010 Rs in millions	31.03.2009 Rs in millions
Terms loan	2915.970	1986.530
Working capital limits	1605.480	3035.790
Total	4521.450	5022.330
Unsecured Loan	31.03.2010 Rs in millions	31.03.2009 Rs in millions
Foreign Currency Convertible Bonds	1487.480	1671.120
Inter Corporate Deposits	0.000	350.000
Total	1487.480	2021.120

Banking Relations :

--

Auditors :

Name :

Datta Singla and Company

Chartered Accountants

Address :

SCO No. 2935 -36, 1st Floor, Sector 22-C, Chandigarh

Associates/Subsidiaries :

• Chempharma Private Limited - Sri Lanka
• Surya Narrow Fabrics - New Delhi
• Nectar Lifestyles Limited- New Delhi
• Nectar Organics Limited – New Delhi

CAPITAL STRUCTURE

As on 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
350000000	Equity Shares	Rs.1 /- each	Rs. 350.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
224260970	Equity Shares	Rs.1 /- each	Rs. 224.260 Millions

Notes:

1. During the year Company issued 26000000 equity shares of Re. 1/- each as private placement at a premium of Rs. 34/- each
2. During the year Company allotted 46000000 Global Depository Receipts (GDRs) representing 46000000 equity shares of Re.1/- each at a premium of Rs. 34.02 per share.

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		224.260	152.260	152.260
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		5985.520	2879.000	2679.290
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		6209.780	3031.260	2831.550
LOAN FUNDS
1] Secured Loans		4521.450	5022.330	3423.970
2] Unsecured Loans		1487.480	2021.120	1424.390
TOTAL BORROWING		6008.930	7043.450	4848.370
DEFERRED TAX IALBILITIES		501.860	401.840	303.780
TOTAL		12720.570	10476.550	7983.700
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		6272.600	5260.680	3615.850
Capital work-in-progress		555.130	740.300	576.350
INVESTMENT		256.930	56.160	66.140
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	3963.540	3496.200	1996.750
	Sundry Debtors	2224.550	1672.570	1595.160
	Cash & Bank Balances	305.170	346.560	260.100
	Loans & Advances	1229.060	1324.880	1400.970
Total Current Assets		7722.320	6840.210	5252.980
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	1437.140	2424.160	1533.500
	Provision	649.630	0.000	0.000
Total Current Liabilities		2086.770	2424.160	1533.500
Net Current Assets		5635.550	4416.050	3719.480
MISCELLANEOUS EXPENSES		0.360	3.360	5.880
TOTAL		12720.570	10476.550	7983.700

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	8457.990	7279.680	7359.460
		Other Income	189.530	60.660	129.450
		TOTAL (A)	8647.520	7340.340	7488.910
Less	EXPENSES
		Raw Material Consumed	5349.170	4933.280	5250.300
		Manufacturing Expenses	349.810	334.940	275.070
		Personnel Expenses	318.770	277.250	189.070
		Administrative Expenses	113.790	160.140	105.090
		Repair and Maintenance	57.380	36.000	28.170
		Selling and Distribution Expenses	224.660	216.460	161.600
		Preliminary Expenses Written Off	0.080	0.080	0.080
		Increased decreased in stock	93.940	(73.430)	95.270
		TOTAL (B)	6507.600	5884.720	6104.650
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		2139.920	1455.620	1384.260
Less	FINANCIAL EXPENSES (D)		602.840	496.060	273.670
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		1537.080	959.560	1110.590
Less/ Add	DEPRECIATION/ AMORTISATION (F)		387.460	301.890	193.430
	PROFIT BEFORE TAX (E-F) (G)		1149.620	657.670	917.160
Less	TAX (I)		229.880	111.890	80.130
	PROFIT AFTER TAX (G-I) (J)		919.740	545.780	837.030
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		2345.430	1817.470	NA
Less	APPROPRIATIONS
		Transfer to General Reserve	100.000	0.000	NA
		Interim Dividend	38.070	0.000	NA
		Tax on Interim Dividend	6.470	0.000	NA
		Proposed Dividend	0.000	15.230	NA
		Tax on Proposed Dividend	0.000	2.590	NA
	BALANCE CARRIED TO THE B/S		3120.630	2345.430	NA
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	3245.180	4199.590	3842.010
		Dividend Received	0.000	0.000	90.320
	TOTAL EARNINGS		3245.180	4199.590	3932.330
	IMPORTS
		Raw Materials	3187.140	3096.210	2187.970
		Capital Goods and Stores & Spares	43.990	176.490	17.660
	TOTAL IMPORTS		3231.130	3272.700	2205.630
	Earnings Per Share (Rs.)
	Basic		5.81	3.57	5.57
	Diluted		4.28	2.60	4.00

QUARTERLY RESULTS

PARTICULARS	30.06.2010 1^st Quarter	30.09.2010 2^nd Quarter	31.12.2010 3^rd Quarter
Net Sales	1820.430	2170.180	3228.010
Total Expenditure	1371.800	1626.860	2544.570
PBIDT (Excl OI)	448.630	543.320	683.440
Other Income	0.500	0.070	1.250
Operating Profit	449.130	543.390	684.690
Interest	127.660	134.180	156.730
Exceptional Items	0.000	0.000	0.000
PBDT	321.470	409.210	527.960
Depreciation	112.560	114.560	116.430
Profit Before Tax	208.910	294.650	411.530
Tax	52.120	53.140	109.390
Provisions and contingencies	0.000	0.000	0.000
Profit After Tax	156.790	241.530	302.150
Extraordinary Items	0.000	0.000	0.000
Prior Period Expenses	0.000	0.000	0.000
Other Adjustments	0.000	0.000	0.000
Net Profit	156.790	241.530	302.150

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	10.63	7.43	11.18
Net Profit Margin (PBT/Sales)	(%)	13.59	9.03	12.46
Return on Total Assets (PBT/Total Assets}	(%)	8.21	5.43	10.34
Return on Investment (ROI) (PBT/Networth)		0.18	0.22	0.32
Debt Equity Ratio (Total Liability/Networth)		1.30	3.12	2.25
Current Ratio (Current Asset/Current Liability)		3.70	2.82	3.42

LOCAL AGENCY FURTHER INFORMATION

Operations

During the Year:

Sales and other income are up by 15.11%.

Profit before interest and depreciation is up by 47.01%.

Profit before tax is up by 74.80%.

MANAGEMENT DISCUSSION AND ANALYSIS

Subject (hereinafter referred to as 'Neclife', 'Nectar', 'NLL' or 'the Company') is an integrated pharmaceutical organization based in Chandigarh, India. The Company manufactures Cephalosporin Active pharmaceutical ingredients, Finished dosage forms, Phytochemicals, and Hard gelatin capsules at its facilities spread across three Indian states of Punjab, Himachal Pradesh and Jammu. Nectar has developed sustainable production systems to manufacture high quality intermediates and APIs to meet the diverse requirements of its customer base in India and over 45 countries worldwide.

INDIAN PHARMA AND HEALTHCARE

Indian pharmaceutical industry looks set for a solid long term growth, currently it ranks 14th by value and 2nd in volume globally. It is estimated to be amongst top 10 markets by 2020. Key happenings of 2009 are:

• Sustained 18% growth rate
• 2nd largest market in terms of consumption
• Tier II cities and rural areas constituted 40% of the market
• 85% of Formulations produced are sold in the domestic market wherein domestic formulation market was valued at USD 3.6Bio growing at 10% p.a

During last few years Indian pharma has emerged as a key destination for global pharma companies due to its high growth prospects and conducive regulatory environment. 2009 witnessed substantial change in strategy for MNCs who are aggressively scouting Indian markets with multi-pronged strategy to establish their stronghold in Indian market by introducing patented products, divesting non core businesses, merger and acquisitions, Strengthening sales and distribution network as well as developing India-centric portfolios.

The domestic formulations market curtailed a bit on account of the global economic crises due to cutback in the inventory levels at the retail levels as distributors and retailers went cautious. In 2010 however the domestic market is expected to pick up rapidly with the economy rolling over again.

The government has recently announced the setting up of a venture fund that will target the infusion of INR 20 Billion into the pharma sector to facilitate growth. The Government of India's big picture Vision 2015 expects 18% plus CAGR growth for the pharma sector, translating to a doubling of revenues to USD 40 Billion over the next 5 years.

Rural India home to 72% of India's population, have increasingly started enjoying continuous focus from pharma companies on account of sufficient buying power. Many Indian pharma companies including global MNCs have started dedicated divisions to tap this huge un-explored market, even new innovative model public private partnership like Arogya Parivar are fast gaining base.

Compared to developed and developing countries, India has one of the lowest health expenditure as % of GDP (3.6%). Only 25% of all healthcare expenditure in India is contributed by the government, the remaining is private expenditure of which 92% is out of the pocket expenses for patient. The Indian health insurance industry has undergone sea change recording phenomenal growth rate. There are around 50 health insurers that are contemplating entry in the Indian market. The entrance of foreign players will increase the competition and should

result in increased penetration further helping favourable growth for the pharma industry. This segment in India was worth around US$ 605 Mio in 2008 and is further expected to reach around US$ 915 Million in 2010.

India has highest number of US FDA approved manufacturing sites (145) , more than any other country except the US. Among six offices that the US FDA has overseas, two are located in India(Delhi and Mumbai) which will facilitate faster audit and further approvals pushing growth of Indian pharma industry to next level .

Medical Devices

This segment is at a nascent stage in India and is estimated to be at US$ 2.75 Billion in 2008, which is 1.25% of the global medical devices and supplies market of US$ 220 Billion. By 2012 it is expected to double at around US$ 5 Billion, the drivers of this growth would be the Improving Health Infrastructure such as increasing number of hospitals, clinics, and telemedicine services.

In India the low value medical supplies are produced by domestic manufacturers whereas the high end equipment is generally imported. The segment is constituted as follows:

• Large Medical-Dental-Surgical equipment 50-60%
• Implantable Devices - 20-30%
• Plastic Disposables - 20%

The Indian medical services sector lacks the essential regulatory and R and D support. Also required is the institutional support for testing and validating facilities, as well as human resource development. Stricter competition is expected in the industry in the future from Europe and China.

Biotechnology and Biosimilars

The Indian biotechnology industry is based largely in Karnataka with other clusters of activity in West Bengal, Maharashtra, Andhra Pradesh, Hyderabad, Kerala and Ahmedabad. The sector sales in 2008-09 were US$ 2.64Billion growing at CAGR of 26%. Both the central and state governments have been supporting this sector and are targeting revenues of US$ 5 billion by 2010- 11 to help India to get a share of the global opportunity emerging around biosimilars.

The biosimilar market is likely to grow around by US$ 2 billion by 2014, to reach a total of US$ 19.4 billion globally, following key patent expiration. The Indian biotechnology companies are slowly building capabilities in development and manufacturing of biosimilars to capture share of this huge opportunity.

GLOBAL PHARMA

Global pharma has seen consolidation during the past few years on account of acquisitions and urge to prune cost on account of recession. Added to this is the fact that most of the developed economies of the world are focusing on curtailing their healthcare expenditures.

As a result three key themes have emerged over the past few years that are shaping the Indian pharmaceutical landscape.

1. Cost control measures being implemented by developed economies
2. Growing importance of emerging markets
3. Growing significance of India's domestic market

Global pharma was valued at USD 820 Billion during 2009 and has reported 5% plus growth. US, Europe and Japan contributed 85% of the global sales. The top three Therapeutic segment contributed 36% of the total global market by value.

Top Three Therapeutic Category

Therapeutic Area	Market Size
CNS	US $ 118 billion
Cancer Drugs	US $ 70 billion
CBS	US $ 105 billion

The global generic market is worth USD 80 Billion and is experiencing 8% growth, up from last year's 3% (2008). In the US and UK, growth of generics is back to positive territory post 2008, which recorded huge plunge in topline for both the regions concerned.

For the first time ever, generics make up over half of the volume of total pharmaceutical sales in unit terms, though there continue to be dramatic difference in terms of market share in key markets ranging from over 60% in US and UK to less than 30% in Italy and Spain.

Upcoming patent expirations will offer significant opportunities for generics in many major markets. In the US alone, over USD 90 Billion in brand sales is at risk from patent expires taking place between 2009-13. The sharpened focus of global pharma on the generics market will also lead to greater outsourced manufacturing volumes in order to control costs. This could be either through higher contract manufacturing volumes, or through longer terms relationships/ alliances. India is well placed to benefit from this shift, with the country's strong manufacturing base, both in formulations, as well as in key inputs (bulk drugs and API's).

Market scenario for menthol

Domestic menthol consumption figures across the last few years demonstrate an upward trend. Currently, India is the world's largest menthol consumer. The important menthol consuming countries are:

• India
• China
• EU and the US
• Japan
• ROW

There was a tremendous demand surge in mid-2006-07, a major factor which marked NLL's entry into this venture. Menthol finds application mainly in pharmaceuticals, cosmetics, perfumes, confectioneries and beverages, among others. Menthol demand is ever increasing, fuelled by the burgeoning middle class which also explains the growth trajectory for exponential demand growth in demand.

UNAUDITED FINANCIAL RESULTS FOR THE QUARTER ENDED 31.12.2010

Particulars	31.12.2010 Quarter Ended	31.12.2010 9 Months Ended
Gross Sales	3378.646	7593.212
Less: Excise Duty	174.321	419.148
Income
a) Net Sales / Income from Operations	3204.325	7174.064
b) Other Operating Income	23.682	44.554
Total Operating Income	3228.007	7218.618
Expenditure
(a) (Increase)/decrease in Stock in Trade	(80.390)	(249.208)
(b) Consumption of Raw Materials	2281.712	4904.453
(c) Employees Cost	109.045	286.853
(d) Depreciation	116.431	343.550
(e) Other Expenditure	234.195	601.118
Total Expenditure	2660.993	5886.766
Profit / (Loss) From Operations before other Income Interest & Exceptional Items	567.014	1331.852
Other Income	1.253	1.824
Profit/(Loss) before Interest and Exceptional items	568.267	1333.676
Interest	156.730	418.567
Profit / (Loss) after interest before Exceptional items	411.537	915.109
Exceptional Items	0.000	0.000
Profit / (Loss) From Ordinary activities before Tax	411.537	915.109
Tax Expenses	109.385	214.637
Net Profit/(Loss) From Ordinary activities after Tax	302.152	700.472
Extraordinary Items	0.000	0.000
Net Profit/(Loss) for the period	302.152	700.472
Paid Up Equity Share Capital ( Face Value of the share Rs.1/- each )	224.261	224.261
Reserves (Excluding Revaluation Reserves)	--	--
Earning Per Share (EPS)
Before Extraordinary Items
-Basic	1.35	3.12
-Diluted	1.07	2.49
After Extraordinary Items
-Basic	1.35	3.12
-Diluted	1.07	2.49
Public Share Holding
- Number of Shares	125246970	125246970
- Percentage of shareholding	55.85	55.85
Promoters and Promoter group share holding
a) Pledged / Encumbered
- Number of Shares	0	0
- Percentage of share (as a % of the total shareholding of promoter and promoter group)	0.00	0.00
- Percentage of shares(as a % of the total share capital of the company)	0.00	0.00
b) Non-encumbered
- Number of Shares	99014000	99014000
- Percentage of Share (as a % of the total shareholding of promoter and promoter group)	100.00	100.00
- Percentage of Share (as a % of the total share capital of the company)	44.15	44.15

Notes :

1. During the quarter, they have made 7 DMF filings.
2. During the quarter, 2 International Patents have been filed by the company.
3. The above financial results were reviewed by Audit Committee on 14.01.11 and approved by the Board in its meeting held on even date i.e. 14 01.11 and further limited reviewed by the Statutory Auditors of the Company.
4. The above financial results are on standalone basis.
5. The company is exclusively in the pharmaceutical business segment,
6. The Company has allotted 26,000,000 equity shares on preferential basis on 20.02.2010 to non-promoters and 46,000 .000 equity shares underlying Global Depository Receipts (GDRs) on 26.02 2010. After said allotments, the paid up equity capital of the company stands increased from 152260,970/-to 224,260,970t-comprising of 224,260,970 equity shares of 1/-each. This is the reason of decrease in the % age of holding of the promoters, increase in the public shareholding and decrease in EPS,
7. Gross Sales and Consumption of Raw Material figures for 2009-10 - Q3 and 9 months ended 31.12.2009 have been restated being net of Inter Unit Sales of 177.300 millions and 1012.000 millions respectively so as to make it comparable with current period figures.
8. Tax Expense Figures for 2009-10. 03 and 9 months ended 31.12.2009 have been restated after providing for proportionate tax of Rs. 64.282 millions and Rs. 163.345 millions respectively, so as to make it comparable with current period figures. The Tax expense for the year 2009-10 was provided in the audited financial results. Accordingly, previous years 03 and 9 months ended 31.12.09 EPS has also been restated
9. Status of Complaints: a) Pending at the beginning of Quarter – Nil

b) Received During the Quarter – 6

c) Disposed off during the Quarter – 6

d) Pending at the end of Quarter - Nil

Fixed Assets:

• Freehold Land and Site Development
• Leasehold Land
• Buildings
• Tube Well,
• Plant and Machinery
• Boiler
• Pollution Control Equipment
• Laboratory Equipment
• Miscellaneous Fixed Assets,
• Furniture and Fixture,
• Motor Vehicles,
• Computer

AS PER WEBSITE

HISTORY

Evolution

NLL has evolved from the manufacturer of oral and sterile range of APIs and FDFs to a composite pharmaceutical organisation promoted by Visionary Mr. Sanjiv Goyal who is a first generation entrepreneur. With a rare combination of experience, skill, knowledge, infrastructure and people Mr.Goyal has taken NLL to his new penultimate height.

Milestones

1995 – Incorporation

1997-2004 - API manufacturer with a single facility

• Focused on Betalactum: Cepalosporins and SSP’s
• Operations in India and less reuIatedmarlcets

2004 - Integrated Cephalosporin manufacturer with presence across the value chain

• Emphasis on Customized and Tailor made research for
• Custom Synthesis related to Betalactarns

2006 - Launch of Menthol division

2007 – Commissioned state of the Art Empty hard gelatin plant

2008 - Launch of Generics division

2010 - Launch of Diagnostics division

SNAPSHOT:

Nuturing Enriching Caring for Life:

• Subject is one of the few qualitative manufactures in India having facilities to develop, manufacture and market Oral and Sterile Cephalosporins, Semi Synthetic Penicillins and other Active Pharmaceutical Ingredients (APIs).

• They are amongst the few life saving APIs manufacturing companies, possessing facilities to produce sterile APIs through both Lyophilization and Crystallization processes.

• They have ultra modern manufacturing facilities supported by a very strong technology group. It is a preferred Supplier to reputed / qualitative formulators in India and abroad.

• The company has a recognized two star ‘EXPORT HOUSE’ status. Their products are exported to over 45 countries across 5 continents.

• State of the art manufacturing facilities for API’s built as per USFDA /EDQM guidelines. Facilities certified by WHO GMP.

• Quality Management System certified as ISO 9001:2000 by DNV

• Listed on the Bombay Stock Exchange and National Stock Exchange of India

• Ventured in to Phyto-chemicals with launch of “NECTAR MENTHOL” offering Menthol and derived products.

• Ventured into Manufacture of Hard Gelatin Capsules.

NECTAR LIFESCIENCES UNDERGOING RS.900.000 MILLIONS EXPANSION

TO RAISE CAPITAL THROUGH AN IPO

Chandigarh; 30.05.2005: Nectar Lifesciences Limited (“Company”) proposes to undergo a Rs.900.000 Millions expansion.

The company is coming out with an Initial Public Offer to finance the Sterile Cephalosporin US FDA approvable plant at DeraBassi near Chandigarh and a formulations facility at Baddi in Himachal Pradesh. The resources raised would also be utilized towards the Research and Development and Corporate Quality Control Centre of the company also to be put up at Dera Bassi.

The Initial Public Offered would constitute of 3,870,000 Equity Shares of Rs.10 each consisting of Fresh Issue of Equity Shares. The Offer would constitute 26% of the fully diluted post Offer paid-up capital.

Nectar Lifesciences is one of the few companies in India having facilities to manufacture Oral and Sterile bulk drugs and supplies to major pharma players in the Indian. The company is among the leading players in the Sterile SSP and Sterile Cephalosporins in the domestic market. The current expansion plan underway would enable the company to increase its presence in the Cephalosporin segment and enter the Non-Antibiotic segment.

The existing and proposed expansion would increase the Company’s presence in the Cephalosporins segment, enables it to enter into non-antibiotic and formulations segment along with providing the Company with the ability to cater to the regulated markets. The formulations unit at Baddi is in line with Company’s forward integration strategy whereby it would supply the final product, as a one step further value added, to its customers.

Group Companies

The principal group company is Chempharma Private. Limited. based in the Exports Oriented (tax free) zone in Sri Lanka , and is a wholly owned subsidiary of the Company. CPL was set up due to economic and tax benefits of manufacturing products in Sri Lanka . In addition to certain economic benefits of manufacturing products in Sri Lanka the project has been conceptualized to take advantage of (i) ‘Nil’ custom duty on imports of pharmaceutical raw material by CPL (ii) ‘Nil’ customs duty payable on exports of API intermediates by CPL to India and (iii) Income-tax exemption.The arrangement provides their Company the advantage of reducing its cost of production on account of reduction in customs duty payable on imported raw materials consumed for domestic market.

Chandigarh-based Nectar Lifesciences Limited (NecLife) is amongst the largest manufacturer and exporter of Cephalosporins and Semi Synthetic Penicillins. Located in the foot hills of Himalayas, the manufacturing facilities in the state of Punjab – India are spread over a massive area of 500,000 Square Meters.

Chandigarh-based Nectar Lifesciences Limited (NecLife) is amongst the largest manufacturer and exporter of Cephalosporins and Semi Synthetic Penicillins. Located in the foot hills of Himalayas, the manufacturing facilities in the state of Punjab – India are spread over a massive area of 500,000 Square Meters.

Nectar Lifesciences was incorporated in 1995 by Mr. Sanjiv Goyal as a Joint Venture with Punjab State Industrial Development Corporation Limited. (a Punjab State Government undertaking) for the manufacture of oral and sterile (both lyophilized and crystalline) range of APIs and formulations with manufacturing facilities at Derabassi, Punjab.

WHOLLY OWNED SUBSIDIARY

ChemPharma (Private) Limited, a wholly owned subsidiary of NecLife is located at a distance of about 30 kilometers from Colombo in Sri Lanka.

The facility manufactures bulk Active Pharmaceutical Ingredients and various drug intermediates. The facility is a 100% Export Oriented Unit.

The day to day affairs of the company are managed by Mr. Sanjiv Goyal in the capacity of Managing Director, a 1st generation entrepreneur under the superintendence control and direction of the Board of Directors of the company:

Mr. Sanjiv Goyal is assisted by a selected team of professionals from various fields that form the core management and is responsible for formulating growth strategies and future course of action to be adopted.

CORPORATE PROFILE

Subject is a knowledge driven organization which constitutes a vital part of fast growing Indian Pharmaceutical Industry. In a short span of existence, NLL has today emerged as 365 ranked organization amongst the top 500 Indian Corporates and is currently among top 25 fore runners of the Indian Pharmaceutical industry with a top 5 ranking in the Indian Bulk Drug Industry from a stand alone Active Pharmaceutical Ingredients (API Manufacture) perspective.

Subject has transformed itself to being the most integrated player in the Global Cephalosprins Industry within Anti Infective Therapeutic segment.

Subject is catapulting itself into Cephalosporin Formulations in a defining way by entering lucrative regulated markets like US, European Union and Japan to name a few with 11 State of Art manufacturing facilities spread across the States of Punjab, Himachal Pradesh   Jammu and Kashmir   with compliance to global standards of cGMP, Environment Health  Safety (EHS) as well as pool of thousands of highly skilled, knowledgeable, competent   qualified work force at all levels.

Growth through human capital is the principal unlying driver of Subject success in past as well as in the future   with global economy undergoing rapid changes driven by Pharma emerging markets like India, China, Korea, Brazil, South Africa, Russia just to name a few. Subject has a very sharp focus on these exciting   rapidly expanding economies.

Sustained growth which enshrines strict adherence to corporate governance, value system   cultural ethos, mingled with respect and adherence to tenets of intellectual property make Subject into the most favoured organization to align with both in terms of conduct of business as well as a prime candidate in CRAMS space in Lifesciences which is the main stay of the Indian Lifesciences Industry that has witnessed excellent growth in the last 5 years.

Human suffering alleviation at affordable costs will continue to drive both developed and developing nations in terms of greater access to medication  Subject is committed to play its role in making this happen in best possible way. They invite you to be a part of us whilst we nurture, enrich and care to contribute our bit to the society at large by way of small contribution in our own way to give back to the society what we’ve taken from it.

WEALTH OF EXPERTISE

The company has a wealth of expertise in terms of seasoned and experienced professionals from the field of marketing, finance, production, R and D and other operational areas. NecLife recognizes that people are its most valuable asset and their hard work and dedication leads to success of a company.

Subject is one of the few qualitative manufactures in India having facilities to develop, manufacture and market Oral and Sterile Cephalosporins, Semi Synthetic Penicillins and other Active Pharmaceutical Ingredients (APIs).

• They are amongst the few life saving APIs manufacturing companies, possessing facilities to produce sterile APIs through both Lyophilization and Crystallization processes.

• They have ultra modern manufacturing facilities supported by a very strong technology group. It is a preferred Supplier to reputed / qualitative formulators in India and abroad.

• The company has a recognized ‘EXPORT HOUSE’ status with more than 36 per cent of the revenues coming from export sales. Their products are exported to over 70 countries across 5 continents.

• Their products are WHO-GMP certified.

Subject is player in SSP and Cephalosporin range of intermediates, Oral and Sterile bulk drugs and drugs in dosage forms like Capsules and injectibles. The Company is one of the few companies in India having facilities to manufacture Oral and Sterile bulk drugs. The company has a fully operational subsidiary Chempharma Private Limited. (“CPL”) in Sri Lanka which has resulted in cost savings. Nectar has been awarded recognition as an “Export House” by the Director General of Foreign Trade, Ministry of Commerce, and Government of India.

.Subject had come out with an Initial Public Offer of 3,870,000 Equity Shares of Rs.10 each and has recently got on BSE and NSE. The revenues for the Company have increased at a CAGR of 14.9% over the period FY00-05. For the year ended March 31, 2005 on consolidated basis, the company achieved a sales turnover of Rs.2298 millions with an EBIDTA of Rs. 431 millions. The Profit After Tax for the company for March 31, 2005 was at Rs.218.8 millions.

Nectar Lifesciences Lists at 25% Premium on NSE at Rs.300  

Nectar Lifesciences Limited today got listed at 25% on NSE at Rs.300, on BSE the company got listed at Rs.298.90. The stock was issued at Rs.240, the upper end of the price band.

The company came out with an IPO of 38,70,000 equity shares of Rs.10 each which closed for subscription on 28.06.2005 . The IPO had received a huge response from the investing community and was subscribed more than 15 times at Rs.240/-the upper end of the price band.

The Qualified Institutional Buyers (QIB) portion was subscribed around 19 times whereas the High Networth Individuals (HNI’S) has been subscribed 15 times. The retail individual bidders saw the subscription of 12 times. The Total numbers of application received by the company was 99577 showing a huge overall response.

Nectar is among the leading manufacturer and exporter of Sterile Cephalosporins and Sterile Semi Synthetic Penicillin’s in India had come out with an Initial Public Offer of 3,870,000 Equity Shares of Rs.10 each.

Business News

Nector Lifesciences goes for expansion, boosts exports - Kolkata, Jun 16 (UNI) Nector Lifesciences Limited,India's second largest manufacturer of Cephalosporin range of drugs,is poised for a Rs 860 millions capacity expansion cum modernisation programme at its Baddi(HP) and Derabassi(Punjab)plants to boost export volumes.

Announcing this NLL Managing Director Sanjiv Goal here today said with a view to raising necessary funds they are entering the capital market on June 22 for about a week with an Initial Public Offerings (IPO) with 3870,000 equity shares of Rs ten each.

The funds being raised through the IPO would be entirely used for financing the formulating facility at the Company's new Baddi plant in Himachal Pradesh at a cost of Rs 312 millions, besides the expansion of the sterile cephalosphin approved plants and its Research and Development facilities at Derabassi near Patiala in Punjab at a total cost of Rs 610 millions, Mr Goal said.

He said following the implementation of the capacity expansion programme by next year, the overall export basket of NLL would go up from about 25 per cent of total sales to at least 50 per cent of that figure from 2005-06.

"Last year their export volume was to the tune of Rs 650 millions which they expect to go up to over Rs 2000 millions from next year," Mr Goal said adding that during the period the number of exporting countries would also go up from 21 in the Middle East, Latin America, South East Asia and the SAARC countries to around 30 after clinching fresh orders from the USA and several European countries.

Also keeping the future growth in mind NLL had set up a wholly owned subsidiary called Chempharma Private Limited near Colombo in Sri Lanka in 2004 with a total investment of about Rs 200 millions to work as an intermediatary unit. The Sri Lanka unit which produced only semi-finished products and capsules, sent their products to NLL national plants for exports."However, we have no plan for capacity expansion in their Sri Lanka unit," he said.

MANAGEMENT

Mr. Sanjiv Goyal (Chairman & Managing Director)

Mr. Sanjiv Goyal is the founder promoter of the Company. A Commerce and Law graduate, having been a successful entrepreneur for more than two decade. Recognizing his Business acumen, he was conferred with the "Young Innovative Entrepreneur of the Year-2000" Award by the Ludhiana Management Association (Affiliation to the All India Management Association), one of the most respected management associations in India.

Mr. Aryan Goyal (Executive Director)

Mr. Aryan Goyal is a chemical engineer and an economist by training from Purdue University, USA. Aryan is responsible for general management and operations of the company.

Mr. Dinesh Dua (Chief Executive Officer and Director)

Mr Dinesh holds a Masters in Business Management from the Indian Institute of Management Ahmedabad. He has over 31 years of professional experience across varied industries such as Healthcare, Biotech, Pharmaceuticals, Petrochemicals and Consumer goods, having worked in multinational organizations such as Hoechst (Sanofi Aventis)  Berger Paints, and large Indian Corporates like Reliance, Wockhardt, Zydus Cadila Healthcare  Jubilant Organosys. Before joining Nectar Mr Dua was President of Wockhardt Ltd's International  Biotechnology Strategic Business Unit. Prior to Wockhardt, Mr. Dua was President,API at Zydus Cadila Healthcare. He has also served as a member of various subcommittees of the Confederation of Indian Industry (CII) and  FICCI, two of the major Industry Associations of India.

Mr. Alok Kumar Satsangi (Senior President)

Mr. Alok Kumar Satsangi, is a graduate engineer with a Masters in Business Administration (Materials Management) and is having 39 years of rich experience in Chemicals, Fine Chemicals and Pharmaceutical Industries for setting up large greenfield prejects and operating them efficiently as SBU for API and Formulation Divisions. He has to his credit getting approvals for many facilities with a number of Sterile, Non Sterile API and Formulation Products from USFDA UKMCA TGA ANVISA Brasil and other regulatory markets.

Mr. Amit Chadah (President – Business Development)

Mr. Amit Chadah is post graduate in management  international business studies (IIM-C) and having more than 17 years of experience in marketing, international business and commerce. He has worked as regional and business head in various leading pharmaceutical companies like Ranbaxy, Orchid  Zydus Cadila before joining Neclife in 2004. He brings in expertise in International marketing and business development for expanding our business  operations in various geographies.

Mr. Subhash Sharma (President – India Business)

Mr. Subash Sharma, is heading the business activities in India market. He has rich experience and knowledge to handle the key market like India which is not only big consumer of APIs because of growing pharmaceutical industry and also one of the competitive markets. Mr. Subhash has more than 23 years of experience in handling India business.

Mr. Saurabh Goyal (Executive Director)

Mr. Saurabh Goyal holds a Masters degree in International Management from Kings College London, United Kingdom. He coordinates the activities of various SBUs of the company.

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.45.09
UK Pound	1	Rs.72.82
Euro	1	Rs.63.43

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	7
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	8
--PROFITABILIRY	1~10	8
--LIQUIDITY	1~10	8
--LEVERAGE	1~10	7
--RESERVES	1~10	8
--CREDIT LINES	1~10	7
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		64

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.