MIRA INFORM REPORT

Report Date :

23.07.2012

IDENTIFICATION DETAILS

Name :	IND SWIFT LABORATORIES LIMITED

Registered Office :	S.C.O. 850, Shivalik Enclave, N.A.C., Manimajra, Chandigarh – 160 101

Country :	India

Financials (as on) :	31.03.2011

Date of Incorporation :	04.01.1995

Capital Investment / Paid-up Capital :	Rs. 342.230 millions

Com. Reg. No.:	16-015553

CIN No.: [Company Identification No.]	L24232CH1995PLC015553

TAN No.: [Tax Deduction & Collection Account No.]	PTLI10111D / PTLI10125D

Legal Form :	A Public Limited Liability Company. The company’s shares are listed on the stock exchanges.

Line of Business :	Manufacturing of Pharmaceutical products such as Norfloxacin, Ampicillin, Amoxycillin, Erythromycin, Roxythromycin, etc.

No. of Employees :	1200 (Approximately)

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 23200000

Status :	Good

Payment Behaviour :	Regular

Litigation :	Clear

Comments :	Subject is a well established and a reputed company having fine track. Directors are reported to be experienced and respectable businessmen. Financial position of the company appears sound. 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.

ECGC Country Risk Classification List – June 30, 2012

Country Name

Previous Rating

(31.03.2012)

Current Rating

(30.06.2012)

India

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

EXTERNAL AGENCY RATING

Agency Name	Rating
ICRA	LBBB

Rating Explanations

AAA (Highest Safety)	Instruments with this rating are considered to have the highest degree of safety regarding timely servicing of financial obligations. Such instruments carry lowest credit risk.
AA (High Safety)	Instruments with this rating are considered to have high degree of safety regarding timely servicing of financial obligations. Such instruments carry very low credit risk.
A (Adequate Safety)	Instruments with this rating are considered to have adequate degree of safety regarding timely servicing of financial obligations. Such instruments carry low credit risk.
BBB (Moderate Safety)	Instruments with this rating are considered to have moderate degree of safety regarding timely servicing of financial obligations. Such instruments carry moderate credit risk.
BB (Moderate Risk)	Instruments with this rating are considered to have moderate risk of default regarding timely servicing of financial obligations.
B (High Risk)	Instruments with this rating are considered to have high risk of default regarding timely servicing of financial obligations.
C (Very High Risk)	Instruments with this rating are considered to have very high risk of default regarding timely servicing of financial obligations.
D (Default)	Instruments with this rating are in default or are expected to be in default soon.

LOCATIONS

Registered/ Corporate Office :	S.C.O. 850, Shivalik Enclave, N.A.C., Manimajra, Chandigarh – 160 101, India
Tel. No.	91-172-2660918 / 2604934 / 2730503 / 2730920 / 5061850-53/5076458 /506248/2738827 /2738828 /5072079 /5072079 /3292003
Fax No.	91-172-2660920 / 2730504
E-Mail :	info@indswiftlabs.com
Website	http://www.indswiftlabs.com

Overseas Office :	Ind Swift Laboratories Inc., 3500, South Dupont Highway Dover, Delaware, 19901 (USA)
Tel. No.:	+1-908-421-1234
E-Mail :	vikasnarendra@islinc.org vikasnarendra@hotmail.com

Factory 1 :	Barwala Road, Village Bhagwanpura, Near Derabassi, District Patiala, Punjab, India
Tel. No.:	91-1762-231072/231048/233130
Fax No.:	91-1762-31073
E-Mail :	lalit.wadhwa@indswiftlabs.com
Area :	Owned

Factory 2 :	SIDCO, Industrial Growth Centre, Jammu, Jammu and Kashmir, India

Research and Development :	Plot No. E-5, Industrial Area, Phase II, Mohali, Punjab, India

Branches :	Located at: New Delhi Chandigarh Punjab Mumbai

DIRECTORS

AS ON 31.03.2011

Name :	Mr. Gopal Munjal
Designation :	Chairman

Name :	Mr. N. R. Munjal
Designation :	Managing Director
Date of Birth/Age :	09.02.1952
Qualification :	B.Sc.
Date of Appointment :	04.01.1995
Directorship in other company :	Ind-Swift Limited Essix Biosciences Limited

Name :	Mr. V. K. Mehta
Designation :	Joint Managing Director
Date of Birth/Age :	25.03.1961
Qualification :	B. Com.
Date of Appointment :	04.01.1995
Directorship in other company :	Ind-Swift Limited Essix Biosciences Limited Mansa Print and Publishers Limited Nimbua Greefiled (Punjab) Limited

Name :	Mr. S. R. Mehta
Designation :	Director

Name :	Dr. V. R. Mehta
Designation :	Director
Date of Birth/Age :	30.11.1956
Qualification :	M. Sc. (PAU)
Date of Appointment :	31.07.2003
Directorship in other company :	Ind-Swift Limited Essix Biosciences Limited

Name :	Mr. K. M. S. Nambiar
Designation :	Director

Name :	Mr. Yogesh Goel
Designation :	Director ( nomination withdrawn by PSIDC w. e. f. 17^th April, 2003)

Name :	Mr. Udayan Roy
Designation :	Director (Nominee IIBI)

Name :	Mr. A. K. Mahajan
Designation :	Director (nomination withdrawn by PSIDC w. e. f. 17^th April, 2003)

Name :	Mr. A. K. Jain
Designation :	Director (passed away on 16.07.2003)

Name :	Mr. J. K. Kakkar
Designation :	Director

Name :	Mr. Himanshu Jain
Designation :	Director

Name :	Mr. Viswajeet Khanna (IAS)
Designation :	Chairman (nomination withdrawn by PSIDC w. e. f. 17^th April, 2003)

Name :	Dr. S D Nanda
Designation :	Director

KEY EXECUTIVES

Name :	Dr. Lalit K Wadhwa
Designation :	Chief Technical Officer

Name :	Mr. N. K. Bansal
Designation :	Chief Financial Officer

Name :	Mr. Vijay Kumar
Designation :	President – International Marketing

Name :	Mr. Vikas Narendra
Designation :	President – US Operations

Name :	Mr. G K Sharma
Designation :	Senior Vice President - Production

Name :	Mr. Subodh Gupta
Designation :	Senior Vice President – Commercial

Name :	Mr. S C Srinivasan
Designation :	Vice President – R and D

Name :	Mr. R S Dhaliwal
Designation :	Vice President – Human Resources

Name :	Mr. Pradeep Verma
Designation :	Company Secretary

Audit Committee :

Name :	Mr. K.M.S. Nambiar
Designation :	Chairman

Name :	Dr. J.K. Kakkar
Designation :	Member

Name :	Mr. S.P. Sharma
Designation :	Member

Name :	Mr. S.R.Mehta
Designation :	Member

Name :	Mr. N.R Munjal
Designation :	Permanent Invitee

Name :	Mr. Himanshu Jain
Designation :	Permanent Invitee

Name :	Mr. N.K.Bansal
Designation :	Permanent Invitee

Remuneration Committee :

Name :	Mr. K.M.S. Nambiar
Designation :	Chairman

Name :	Mr. S.P. Sharma
Designation :	Member

Name :	Mr. S.R. Mehta
Designation :	Member

Name :	Mr. N.R Munjal
Designation :	Permanent Invitee

Name :	Mr. Himanshu Jain
Designation :	Permanent Invitee

Share Transfer and Shareholder / Investor Grievance Committee

Name :	Mr. K.M.S. Nambiar
Designation :	Chairman

Name :	Dr. J.K. Kakkar
Designation :	Member

Name :	Mr. N.R.Munjal
Designation :	Member

Name :	Mr. S.R. Mehta
Designation :	Member

Compensation Committee :

Name :	Dr. J.K. Kakkar
Designation :	Chairman

Name :	Mr. S.P. Sharma
Designation :	Member

Name :	Mr. N.R.Munjal
Designation :	Member

Name :	Mr. Himanshu Jain
Designation :	Permanent Invitee

Name :	Mr. K.M.S. Nambiar
Designation :	Member

Sub – Committee of Board :

Name :	Mr. N.R.Munjal
Designation :	Chairman

Name :	Mr. Dr. J.K. Kakkar
Designation :	Member

Name :	Mr. K.M.S. Nambiar
Designation :	Member

Name :	Mr. Himanshu Jain
Designation :	Member

Company Secretary and Compliance Officers :

Name :	Mr. Pardeep Verma

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 31.03.2012

Category of Shareholder	No. of Shares	% of No. of Shares
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	852,605	2.25
Bodies Corporate	17,696,521	46.67
Sub Total	18,549,126	48.91
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	18,549,126	48.91
(B) Public Shareholding
(1) Institutions
Financial Institutions / Banks	71,339	0.19
Foreign Institutional Investors	1,672,224	4.41
Sub Total	1,743,563	4.6
(2) Non-Institutions
Bodies Corporate	8,200,197	21.62
Individuals
Individual shareholders holding nominal share capital up to Rs. 0.100 Million	6,420,872	16.93
Individual shareholders holding nominal share capital in excess of Rs. 0.100 Million	2,847,727	7.51
Any Others (Specify)	160,485	0.42
Non Resident Indians	160,485	0.42
Sub Total	17,629,281	46.49
Total Public shareholding (B)	19,372,844	51.09
Total (A)+(B)	37,921,970	100
(C) Shares held by Custodians and against which Depository Receipts have been issued	-	-
(1) Promoter and Promoter Group	-	-
(2) Public	23,500	-
Sub Total	23,500	-
Total (A)+(B)+(C)	37,945,470	-

BUSINESS DETAILS

Line of Business :

Manufacturing of Pharmaceutical products such as Norfloxacin, Ampicillin, Amoxycillin, Erythromycin, Roxythromycin, etc.

Products :

Product Description	Item Code No.

Clarithromycin	294150
Betamethsone Salt	294200

PRODUCTION STATUS AS ON 31.03.2011

Particulars	Unit	Installed Capacity

Bulk Drugs, Intermediates, Solvents and others	KGS	631831
Mint Derivattives		3600000

GENERAL INFORMATION

No. of Employees :

1200 (Approximately)

Bankers :

State Bank of India, Specialized Commercial Branch, SCO : 103-106, Sector 17-B, Chandigarh – 160 017, India
State Bank of Patiala, Commercial Branch, SCO:103-107, Sector 8-C, Chandigarh, India
Bank of India, Bank Square, SCO: 81-93, Sector 17-B, Chandigarh – 160 017, India
IDBI Bank Limited, (Bill Discounting of Ranbaxy) Sector 8, Chandigarh, India
Deutsche Bank, (Bill Discounting of Ranbaxy) Sector 8, Chandigarh, India

Facilities :

SECURED LOAN	Rs. In Millions 31.03.2011	Rs. In Millions 31.03.2010

Non Convertible Debentures	92.500	138.500
Loans and Advance from Banks
1. Borrowings for working capital	1693.133	1302.085
2. Term Loans	5386.269	3237.885
3. Other Loans	18.459	20.004
Other Loans and advances	60.979	104.258

Total	7251.341	4802.734
Note: A) 14% Non Convertible Debentures amounting to Rs. 92.500 millions (P.Y. 13.85) from Tata Capital Limited are secured by first ranking pari passu charge on the immovable properties measuring 68 bighas and 13 biswas situated at village Behra and village Bhagwanpura Tehsil Rajpura, Distt. Patiala in the state of Punjab and land admeasuring 9435.56 square yards being Plot No E-V, Industrial Focal Point, Phase II, Mohali in the state of Punjab together with all Buildings and Structures, Plant and Machinery thereon personal guarantees of Mr. S.R. Mehta and Mr. N.R. Munjal. B) a) Bank borrowings for working capital Rs.1693.100 millions (P.Y.1302.000 Millions) are secured by a Pari Passu, first charge by way of hypothecation of the company's current assets, namely, Stocks of Raw Materials, Semi Finished, Finished Goods, Stores and Spares not relating to plant and Machinery (Consumable Stores and Spares), Bills Receivable and Book Debts and all other movables of the Company both present and future excluding such movables as may be permitted by the said Banks from time to time. The said facility is further secured by way of pari passu second charge on the company's immovable and movable properties (other than current assets) and personal guarantees of Mr. S. R. Mehta, Dr. V.R. Mehta, Mr. N.R. Munjal, Dr. G. Munjal, Mr. Himanshu Jain and Mr. Rishav Mehta. b) Term Loan Rs. 5386.300 (P.Y. 3237.800 millions) are from State Bank of India, Axis Bank, Central Bank of India, State Bank of Patiala, Bank of India, Catholic Syrian Bank , Export Import Bank of India, IDBI Bank, South Indian Bank, ABN Amro Bank, Standard Chartered Bank, Bank of Rajasthan, State Bank of Indore, State Bank of Hyderabad, IFCI, State Bank of Travencore, L and T finance, Allahabad Bank, Bank of Baroda, DEG- Deutsche Investitions – Und Entwicklungsgesellschaft Mbh and ICICI Bank are secured by first pari passu charge by way of Joint Equitable Mortgage by deposit of title deeds of the Company's immovable properties situated at Derabassi Punjab and Plot No E-V, industrial Focal Point, Mohali and second chargeby way of hypothecation of all its movable assets, including machinery, machinery spares , tools and accessories present and future, subject to the charges created /to be created, in favour of the company banker. These loans are further secured by the personal guarantee of Promoter Directors. c) Other Term loans and advances Rs.18.500 millions (P.Y.20.000 millions) includes Vehicle loans Rs. 16.400 millions (P.Y. 1.78) are secured against hypothecation of the vehicles under the hire purchase agreement and ICICI Home Loan Rs. 2.100 millions (P.Y. 2.200 millions ) is in the name of Mr. N. R. Munjal, and is secured against the office premises in Mumbai. C) Other loan and advances Rs. 61.000 millions (P.Y.104.300 millions) includes Term Loans from Technology Development Board Rs. 55.600 millions (P.Y. 91.600 millions) is secured by way of charges on movable fixed assets and personal guarantee of Shri. N. R. Munjal and Vehicle Loans (NBFC) Rs. 5.400 millions (P.Y. 12.700 millions) are secured against hypothecation of the vehicles under the hire purchase agreements.
UNSECURED LOAN	Rs. In Millions 31.03.2011	Rs. In Millions 31.03.2010
Fixed Deposits	582.323	579.304
Short Term Loans and Advances
From Other	356.587	349.901
From Banks	1.655	151.322

TOTAL	940.566	1080.529

Banking Relations :	----

Auditors :
Name :	Jain and Associates Chartered Accountants,
Address :	SCO : 819-20, Sector 22-A, Chandigarh - 160 022, India

Associates :	Ind Swift Limited Essix Biosciences Limited Halcyon Life Science Private Limited Fortune (India) Constructions Limited Mansa Print and Publishers Limited Swift Fundamental Research and Education Society Ind swift communications (P) Limited Punjab Renewable Energy Private Limited AKJ Portfolio Private Limited NRM Portfolio Private Limited GM Portfolio Private Limited VRM Portfolio Private Limited VKM Portfolio Limited SRM Portfolio Private Limited

Subsidiaries :	Ind Swift Laboratories Inc. USA Meteoric Life Sciencec Pte. Limited Ind Swift Middle East FZE(UAE) Hakim farayand Chemi Co (Iran)

CAPITAL STRUCTURE

AS ON (31.03.2011)

Authorised Capital :

No. of Shares	Type	Value	Amount

35000000	Equity Shares	Rs.10/- each	Rs. 350.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount

34223070	Equity Shares	Rs.10/- each	Rs. 342.231 Millions

AS ON (26.09.2011)

Authorised Capital :

No. of Shares	Type	Value	Amount

60000000	Equity Shares	Rs.10/- each	Rs. 600.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount

39270470	Equity Shares	Rs.10/- each	Rs. 392.705 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2011	31.03.2010	31.03.2009
SHAREHOLDERS FUNDS
1] Share Capital		342.230	278.524	252.700
2] Share Application Money		100.237	37.500	17.800
3] Reserves & Surplus		5358.260	4204.794	3382.800
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		5800.727	4520.818	3653.300
LOAN FUNDS
1] Secured Loans		7251.341	4802.734	3536.700
2] Unsecured Loans		940.566	1080.529	257.300
TOTAL BORROWING		8191.907	5883.263	3794.000
DEFERRED TAX LIABILITIES		433.551	438.002	798.400

TOTAL		14426.185	10842.083	8245.700

APPLICATION OF FUNDS

FIXED ASSETS [Net Block]		5448.432	4787.508	4935.500
Assets held for Disposal		22.336	23.595	0.000
Capital work-in-progress		3152.962	1725.227	486.700

INVESTMENT		581.795	684.656	233.800
DEFERREX TAX ASSETS		0.000	0.000	323.300

CURRENT ASSETS, LOANS & ADVANCES
	Inventories	3655.471	2372.423	2033.100
	Sundry Debtors	2879.677	1780.949	1089.600
	Cash & Bank Balances	484.225	535.980	228.800
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	1091.236	861.623	577.100
Total Current Assets		8110.609	5550.975	3928.600
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	2524.207	1667.597	1490.586
	Current Liabilities	146.182	124.524	92.614
	Provisions	219.560	139.915	86.400
Total Current Liabilities		2889.949	1932.036	1669.600
Net Current Assets		5220.660	3618.939	2259.000

MISCELLANEOUS EXPENSES		0.000	2.158	7.400

TOTAL		14426.185	10842.083	8245.700

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Net Sales and Other Income	10312.070	7905.275	5881.382
		TOTAL (A)	10312.070	7905.275	5881.382

Less	EXPENSES
		Cost of Material Consumed	7608.847	5698.627	3937.537
		Manufacturing Expenses	433.976	383.022	336.930
		Administrative and Other Expenses	200.029	150.184	127.847
		Selling and Distribution Expenses	180.656	165.011	116.391
		Research and Development Expenses	56.841	52.269	49.381
		Loss on Sale of Fixed Assets	3.192	1.519	8.993
		Impairment of Assets	24.135	50.181	25.260
		Provision for Doubtful Debts	6.010	5.973	2.852
		Previous Year Income/Expenses	3.275	3.196	3.956
		Extra Ordinary Items	(30.677)	(29.973)	(8.106)
		Foreign Exchange Fluctuation	0.000	0.000	44.632
		Other Expenses	0.000	0.000	8.308
		TOTAL (B)	8486.284	6480.009	4653.981

Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		1825.786	1425.266	1227.401

Less	FINANCIAL EXPENSES (D)		569.368	510.624	469.549

	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		1256.418	914.642	757.852

Less/ Add	DEPRECIATION/ AMORTISATION (F)		385.164	368.002	268.569

	PROFIT BEFORE TAX (E-F) (G)		871.254	546.640	489.283

Less	TAX (I)		(4.907)	(32.999)	91.419

	PROFIT AFTER TAX (G-I) (J)		876.161	579.639	397.864

Less	APPROPRIATIONS
		Transfer to General Reserve	43.808	28.982	19.893
		Provision for Dividend on Equity Shares	34.223	27.852	25.972
		Provision for Equity Dividend Tax	5.684	4.734	4.414
	BALANCE CARRIED TO THE B/S		792.446	518.071	347.585

	EARNINGS IN FOREIGN CURRENCY
		Value of Goods	3994.680	2693.968	2245.893
	TOTAL EARNINGS		3994.680	2693.968	2245.893

	IMPORTS
		Raw Materials	1238.084	1648.555	1690.818
		Capital Goods	84.844	5.374	4.035
	TOTAL IMPORTS		1322.928	1653.929	1694.853

	Earnings Per Share (Rs.)		29.76	21.45	15.57

QUARTERLY RESULTS

PARTICULARS	30.06.2011	30.09.2011	31.12.2011	31.03.2012
Type	1^st Quarter	2^nd Quarter	3^rd Quarter	4^thQuarter
Sales Turnover	2794.300	3535.590	3588.040	3606.930
Total Expenditure	2261.820	2947.850	3019.080	3296.120
PBIDT (Excl OI)	532.480	587.740	568.960	310.810
Other Income	0.000	0.000	0.000	17.700
Operating Profit	532.480	587.740	568.960	328.510
Interest	189.360	230.140	156.810	212.850
Exceptional Items	0.000	0.000	0.000	0.000
PBDT	343.120	357.600	412.150	115.660
Depreciation	139.170	115.370	113.260	30.800
Profit Before Tax	203.960	242.230	298.890	84.870
Tax	30.570	19.180	14.490	(98.690)
Reported PAT	173.390	223.050	284.400	183.560
Extraordinary Items	0.000	0.000	0.000	0.000
Prior Period Expenses	0.000	0.000	0.000	0.000
Other Adjustments	0.000	0.000	0.000	0.000
Net Profit	173.390	223.050	284.400	183.560

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	8.50	7.33	6.76

Return on Total Assets (PBT/Total Assets}	(%)	6.43	4.96	5.33

Return on Investment (ROI) (PBT/Networth)		0.15	0.12	0.13

Debt Equity Ratio (Total Liability/Networth)		1.99	1.83	1.71

Current Ratio (Current Asset/Current Liability)		2.81	2.87	2.35

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	Check List by Info Agents	Available in Report (Yes / No)
1]	Year of Establishment	Yes
2]	Locality of the firm	Yes
3]	Constitutions of the firm	Yes
4]	Premises details	No
5]	Type of Business	Yes
6]	Line of Business	Yes
7]	Promoter's background	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)	Yes
21]	Market information	-----
22]	Litigations that the firm / promoter involved in	-----
23]	Banking Details	Yes
24]	Banking facility details	Yes
25]	Conduct of the banking account	----
26]	Buyer visit details	----
27]	Financials, if provided	Yes
28]	Incorporation details, if applicable	Yes
29]	Last accounts filed at ROC	Yes
30]	Major Shareholders, if available	No
31]	PAN of Proprietor/Partner/Director, if available	No
32]	Passport No of Proprietor/Partner/Director, if available	No
33]	Voter ID No of Proprietor/Partner/Director, if available	No

OPERATIONS AND BUSINESS PERFORMANCE

The company has recorded an impressive growth by scaling newer heights and benchmarks in terms of sales and profits for the year ended 31st March, 2011. Turnover of Rs.1031.207 millions was 30.45% over Rs.7905.28 millions of the previous year. Profit before tax also increased from Rs.546.64 millions to Rs.871.26 millions registering a growth of 59.38% whereas profit after tax increased by 51.16% from Rs.579.64 millions to Rs.876.16 millions. The Earning per share increased to Rs.29.76 per share from Rs.21.45 per share.

The company has recorded strong results across the global markets. Its exports during the financial year ending 31st March, 2011 were Rs.4163.06 millions as compared to Rs.3165.66 million recorded in the previous year, recording an increase of 31.51%.

SUBSIDIARIES AND JOINT VENTURES

As on 31.03.2011 the Company had 3 Subsidiaries The US subsidiary of the Company viz. Ind-Swift Laboratories Inc, recorded a net Profit of $ 382416.43/- as compared to Loss of $ 331493/- .

The Singapore Subsidiary Meteoric Life Sciences PTE Limited. started business in current Financial Year 2010-11 and achieved net sales of INR 99.669 Millions and recorded a net profit of INR 0.971 Million.

The Dubai Subsidiary viz. Ind-Swift Middle East FZE has not started operations yet. During the year in view of the operational efficiency and to reduce administrative costs and efforts the investment in Iran was transferred to the Company’s Dubai Subsidiary Ind-Swift Middle East FZE. The transactional impact of the same will be reflected in the current year’s Balance Sheet. Information related to performance/financial of the subsidiary companies are disclosed in the Consolidated Financial Statements.

MANAGEMENT DISCUSSION AND ANALYSIS

The value of the global pharmaceutical market is expected to grow 5-7 percent in 2011, to US$880 billion, compared with a 4-5 percent pace this year. Global Generic pharmaceutical market is valued at approximately US$108 billion in 2009 and is expected to reach US$ 130 billion by 2014 with a CAGR of 9%.

Divergent growth rates are expected for developed and pharmerging markets. As countries recover from the global economic crisis at different rates, there is growing divergence in the pace of pharmaceutical growth among major markets. The 17 pharmerging countries are forecast to grow at a 15-17 percent rate in 2011, to $170-180 billion. Many of these markets are benefiting from greater government spending on healthcare and broader public and private healthcare funding, which is driving greater demand and access to medicines. China, which is predicted to grow 25-27 percent to more than $50 billion next year, is now the world’s third-largest pharmaceutical market. Among major developed countries, Japan is forecast to grow 5-7 percent in 2011, a year when biennial price cuts will have little impact. The five major European markets (Germany, France, Italy, Spain, and the U.K.) collectively will grow at a 1-3 percent pace, as will Canada. The U.S. will remain the single largest pharmaceutical market, with 3-5 percent growth expected next year. Pharmaceutical sales in the U.S. will reach $320- $330 billion, up from $310 billion forecast for this year, not including the impact of off invoice discounts or rebates.

Peak years of patent expiries shift major therapies to generic dominance. In 2011, products with sales of more than $30 billion are expected to face the prospect of generic competition in the major developed markets. In the U.S. alone, Lipitor, Plavix, Zyprexa and Levaquin – which together accounted for more than 93 million prescriptions dispensed in the past 12 months and generated over $17 billion in total sales – likely will lose market exclusivity. The full impact of patients shifting to lower-cost generic alternatives for these products, as well as other brands in their therapy classes, mostly will be felt in 2012, due to the timing and expected competitive intensity among generic entrants. Broad measures applied by public and private players to reduce growth in drug budgets. Governments are pursuing an ongoing wave of budgetary control mechanisms that target drug spending as one way to restore fiscal balance. Multiple markets will be impacted by these measures in 2011.

Prominent examples include substantial reductions in the price of generics relative to their branded counterparts in Spain and in Canada, where generic pharmacy rebates are expected to be eliminated; new price negotiation requirements for brands launched in Germany; and across-the-board price cuts for branded products in Turkey and Greece. In the U.S., health plans are stepping up their use of pre-authorizations and cost sharing provisions in an effort to address rising healthcare expenditures.

Therapy area growth dynamics driven by innovation cycle and areas of unmet need. In 2011, the introduction and uptake of new drugs - a third of which are specialty pharmaceutical products - are poised to fulfill patients' unmet needs and significantly alter treatment paradigms in several key therapy areas. These include innovative treatment options for stroke prevention, melanoma, multiple sclerosis, breast cancer and hepatitis C. As these new drugs are brought to market, patient access is expected to expand and funding redirected from other areas where lower-cost generics are available. Five potential blockbuster products - defined as those exceeding $1 billion annually in peak sales - are expected to be approved and launched globally by the end of next year

THE OTHER DYNAMICS OF THE WORLD PHARMA MARKET ARE:-

Varying growth rates for different types of countries - pharmaceutical growth is expected to progress at different rates, with 17 Pharmerging countries expanding at between 15% and 17% next year to $170-180 million. Many pharmerging countries are spending considerably more on healthcare. These countries are experiencing broader public and private healthcare funding, resulting in higher demand and access to medications.

China alone, currently the third largest pharmaceutical market, is expected to expand by 25% to 27% in 2011 to over $50 billion.

Developed nations - Germany, France, Italy, Spain and the United Kingdom, Europe's five major markets, as well as Canada are estimated to expand by 1% to 3%. The Japanese market has a forecast of 5% to 7% growth. The world's largest market, the USA will most likely see growth of 3% to 5%, with pharmaceutical sales reaching between $320 and $330 billion. Shift to generics as patents expire - a large number of blockbusters will have reached the end of their patent lives by 2011, making way for generics. The report calculates that about $30 billion's worth of current sales will face generic competition. The authors stress that the largest impact of generic competition will probably be felt in the following year, in 2012.

Measures to reduce expenditure - national governments worldwide are trying to bring down their drug bill in their drive towards budgetary control. This will have an impact on several markets next year. Countries, such as Canada and Spain have attained considerable discounts in generic prices relative to their branded counterparts - in these countries generic pharmacy rebates may be done away with. In an effort to deal with rising healthcare costs, health plans in the USA are increasing their use of pre-authorizations and cost sharing provisions.

Growth in new drugs that meet areas of unmet need – next year, new medications, many of which are specialist pharmaceutical products, will most likely fulfill patients' unmet needs. This may have a considerable impact on the way some therapy areas are treated, such as stroke prevention, MS (multiple sclerosis), hepatitis C, melanoma, and breast cancer. A growing number of patients will be accessing these medications as they enter the market. In 2011, we will see the loss of exclusivity for some iconic brands and a promising new wave of innovation. It also will be a critical year for gauging how healthcare reform initiatives in key markets evolve and play out amid the expected macroeconomic recovery. For pharmaceutical manufacturers, an unrelenting focus on bringing distinct value to patients and health systems will be essential to navigating this dynamic market.

TRENDS IN INDIA

In recent times, the pharmaceuticals industry has grown high interest in India due to it’s sustained economic growth, healthcare reforms and patent related legislation. The India formulations market valued at Rs. 482 billion has grown at CAGR of 15% over last 4 years. New product introductions contributed to 10% of the sales growth while volume growth contributed to 82% of sales growth, growing population, improving medical infrastructure, rising income level sand increasing government spend on healthcare are driven the market growth.

Indian market is witnessing gradual transaction from acute diseases to lifestyle diseases and chronic therapies like cardiology, neurology, psychiatry and diabetes. With current demographic profile and growth prospectus of the economy, Indian pharmaceutical market to see continuing trends of transaction towards chronic and super specialty therapies, with acute therapies like Anti-Invectives retaining their market size.

If Indian economy continues on it’s current high growth path then the Indian Pharmaceuticals market will undergo a major transformation in the next decade. The market will triple to US$20 billion by 2015 and move into the world’s top 10 pharmaceuticals markets. Generics will continue to dominate, while patent-protected products are likely to constitute 10% of the market by 2015.

COMPANY’S OUTLOOK

PRODUCTS

Company has launched new drugs like Dutasteride Cinacalcet, Dulexetine, Mecloxamine Citrate, Atomoxetine, Exemestane, Ezetimbe, Pregalin, Ranolazine, Telmisartan and Posaconazole. The other products driving the growth of the Company are Letrozole, Anastrozole(Anti-Cancer) Venalafaxine (Anti- Depressants), Lavofloxacin(Anti-Biotic), Quetiapine and Aripiprazole (Anti-Pshychotic) Ezetimibe ( Anti- hyperlipdemic) and Piogiltazone, an anti-diabetic drug. The Company is further developing newer products such as Argatroban, gefitinib, Elitriptan and others. The Company has successfully introduced for the first time in India new products like Ivabradine and Cinacalcet. Ind-Swift is the first and only company to launch these products in the Indian market.

CONTINGENT LIABILITIES NOT PROVIDED FOR:

(Rs. In Millions)

Particulars	31.03.2011	31.03.2010

Letter of Credit against purchase of raw material:	1052.858	1249.341
Bank Guarantees	581.458	3.135
Export obligation in respect of custom duty	17.718	8.549
Contingent Liabilities in respect of unassessed cases of Income Tax, Excise Duty, Sales Tax and Service Tax.	Amt Unascertained	Amt Unascertained
Corporate guarantees given on behalf of (to the extent utilized)
Ind Swift Limited	416.600	500.000
Essix Biosciences Limited	311.755	116.700
Halcyon Life Science Private Limited	450.436	277.631

FIXED ASSETS

Land Free Hold
Land Lease Hold
Factory Buildings
Office Buildings
R and D Buildings
Plant and Machinery
R and D Machinery
Electric Installations
Furniture and Fixtures
Office Equipments
Vehicles
R and D Technology

AUDITED FINANCIAL RESULTS FOR THE YEAR ENDED ON 31^ST MARCH, 2012

(Rs. in millions)

Sr. No.	Particular	Quarter Ended		Year Ended
		31.03.2012 (Audited)	31.12.2011 (Unaudited)	31.03.2012 (Audited)
1.	Net Sales/Income from Operations	3606.930	3588.041	13383.956

2.	Expenditure
	Cost of materials consumed	2135.647	2399.344	7204.944
	Purchase of Stock in Trade	999.744	867.043	4003.457
	(Increase) / Decrease in Stock in Trade	(106.404)	(596.964)	(812.072)
	Staff Cost	79.909	67.768	271.546
	Depreciation	30.802	113.264	398.609
	Impairment of Assets	(10.000)	2.000	0.000
	Other Expenditure	197.217	210.001	787.088
	Total	3326.913	3062.456	11853.573

3.	Profit From Operations before Other Income, Interest and Exceptional Items (1-2)	280.016	525.585	1530.383

4.	Other Income	17.700	0.000	145.041

5.	Profit Before Interest and Exceptional Items (3+4)	297.716	525.585	1675.424

6.	Interest	212.849	226.698	845.471

7.	Profit After Interest but before Exceptional Items (5-6)	84.868	298.887	829.954

8.	Exceptional Items	--	--	--

9.	Profit from Ordinary Activities before Tax (7+8)	84.868	298.887	829.954

10.	Tax Expense
	Provision of taxation	26.126	59.568	174.621
	Income tax adjustment of previous year	0.071	0.000	(4.663)
	Mat credit entitlement	(26.126)	(59.568)	(174.621)
	Provision for differed tax	(98.760)	14.486	(29.784)

11.	Net Profit from Ordinary Activities after Tax (9-10)	183.557	284.401	864.401

12.	Extraordinary Item (net of expense)	--	--	--

13.	Net Profit for the period (11-12)	183.557	284.401	864.401

14.	Paid-up Equity Share Capital (Face Value of Rs.10/- Each)	379.455	363.845	379.455

15.	Reserves Excluding Revaluation Reserve	--	--	--

16.	Basic and Diluted Earning Per Share (EPS) (Rs.)-Not Annualised
	a) Basic and diluted EPS before extraordinary items	5.12	8.06	24.10
	b) Basic and diluted EPS after extraordinary items	4.94	7.46	23.25

17.	Public Shareholding
	-Number of Shares	19396344	19397124	19396344
	- Percentage of Shareholding	51.12%	53.31%	51.12%

18.	Promoters and Promoter Group Shareholding
	a) Pledged/Encumbered
	- Number of Shares	Nil	Nil	Nil
	- Percentage of Shares (as a % of the Total Shareholding of promoter and promoter group)	Nil	Nil	Nil
	- Percentage of Shares (as a % of the Total Share Capital of the Company)	Nil	Nil	Nil

	b) Non Encumbered
	- Number of Shares	18549126	16987346	18549126
	- Percentage of Shares (as a % of the Total Share Capital of the Company)	48.88%	46.69%	48.88%

STATEMENT OF ASSETS AND LIABILITIES

(Rs. In Millions)

PARTICULARS	31.03.2012 AUDITED
Equity and liabilities
Shareholders' fund
Share capital	379.455
Reserve & surplus	7830.861
Money received against share warrants	27.122
Sub-total - Shareholders' funds	8237.438
Non - current liabilities
Long term borrowings	7110.429
Deferred tax liability (net)	403.767
Other Long term liabilities	234.443
Sub-total - Non-current liabilities	7748.639
Current liabilities
Short term borrowings	3018.308
Trade payables	2384.766
Other current liabilities	488.769
Short term provisions	174.621
Sub-total - Current liabilities	6066.464
Total - Equity & Liabilities	22052.541

Assets
Non-current assets
Fixed assets
Tangible assets	9020.333
Intangible assets	1366.921
Capital work in progress	2942.286
Assets held for disposal	22.336
	13351.876
Accumulated depreciation	1322.946
Net Block	12028.931

Non-current investment	272.303
Long term loans and advances	16.476

Current assets
Current Investment	21.000
Inventories	4938.092
Trade receivables	2818.028
Cash & bank balances	462.296
Short term loans & advances	1495.415
Total – Assets	22052.541

Notes:

1. The Above results have been reviewed by the Audit Committee and approved by the Board of Directors at their respective Meetings held on 30th May, 2012.

2. During the quarter ended March, 2012, Company has allotted 15,61000 equity shares upon conversion of Zero Coupon Warrants raising thereby a sum of Rs.96.587 Millions. The funds raised were utilized for Derabassi, Jamrnu and R and D Mohali facility expansion including capital advances and augmentation of NWC.

3. A major fire occurred at MIS Dashmesh Medicare Private Limited, a loan licencee for ISLL for a main product, on continuous basis. Impact on ISLL could not be ascertained as the site is not released to Dashmesh yet.

4. Information on Investor Complaints for the quarter. Opening Balance NIL, Received Nil, Redressed Nil, Closing Balance NIL.

5. The previous period figures have been re-grouped and re-arranged wherever necessary.

6. The Company is exclusively in the Pharmaceutical business segment.

WEBSITE DETAILS:

PROFILE:

Subject is a part of the Ind-swift Group and is based at Chandigarh, India. It has been promoted by Ind-Swift Limited in joint venture with the Punjab State Industrial Development Corporation Limited (PSIDC). The group has established a strong reputation as innovators in the Indian pharmaceutical industry.

Subject went public in 1997 and concentrated on the manufacturing of Active Pharmaceutical Ingredients (API). Its strength in organic synthetic chemistry resulted in the company emerging as the pioneer for a number of products both in the National and International markets. As the company built up vast skills in the area of research and development, quality systems as well as matters relating to regulatory compliance, it began establishing a presence in the highly regulated markets of the world.

Over a short period of time, Subject has emerged as a respectable and dependable supplier of Bulk-Actives in more than 40 countries. Not only are the company's plants built as per USFDA, the company employs current Good Manufacturing Practices (CGMP) also, which are recognized and accepted in the stringent regulated markets. This includes a responsible commitment to the environment.

To leverage its quality commitment, the Company has drawn out a long term strategy of emerging as a powerful force in the regulated markets as drugs worth over US$ 80 billion goes off patent during this decade. Subject reported a turnover of Rs.1605.20 million and a profit after tax of Rs.76.92 million in 2003-2004. The company's shares are listed on the Mumbai, National, Ludhiana and Delhi stock exchanges.

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 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. 55.15
UK Pound	1	Rs. 86.57
Euro	1	Rs. 67.60

INFORMATION DETAILS

Information Gathered by :	--

Report Prepared by :	DPT

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.