MIRA INFORM REPORT

Report Date :

23.06.2012

IDENTIFICATION DETAILS

Name :	GLENMARK PHARMACEUTICALS S.R.O.
Formerly Known As :	Medicamenta a.s.
Registered Office :	Hvězdova 1716/2b, 140 78 Praha 4
Country :	Czech Republic
Financials (as on) :	31.03.2012
Date of Incorporation :	30.04.1992
Com. Reg. No.:	C/150331
Legal Form :	Private Limited Company
Line of Business :	Manufacture of basic pharmaceutical products
No. of Employees :	128

RATING & COMMENTS

MIRA’s Rating :

B

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Status :	Moderate
Payment Behaviour :	Slow
Litigation :	Clear

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 – March 31^st, 2012

Country Name	Previous Rating (31.12.2011)	Current Rating (31.03.2012)
Czech Republic	A2	A2

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

Company name & address

Glenmark Pharmaceuticals s.r.o.
Hvězdova 1716/2b 
140 78 Praha 4 
Telephone: 00420/ 227 629 511
Telefax: 00420/ 227 629 509
e-mail: info@glenmarkpharma.cz.
Web: www.glenmarkpharma.cz

Company summary

Company development

Stagnant company development

Order situation	Good course of business
Terms of payment	mostly within agreed terms, recently occasional reminders

Business connection

Business connections appear permissible

Legal form

Private limited company

Foundation	30/04/1992 - Public limited company  01/04/2009 - Private limited company
Comp. Register	06/05/1994, Krajský soud Hradec Králové, RegNr.: B/674 06/05/1992, Městský soud v Praze, RegNr.: B/7443 01/04/2009, Městský soud v Praze, RegNr.: C/150331 Statistical number: 46505164 Tax number: CZ46505164

Share Capital	06/05/1992	CZK	289 459 000,-
	29/11/1993	CZK	296 371 000,-

25/04/2005	CZK	225 241 960,-
13/02/2009	CZK	226 001 960,-

	01/04/2009	CZK	60 000 000,-
Shareholders	Glenmark Holding SA chemin de la Combeta 5, 2300 La Chaux-de-Fonds, Switzerland	CZK	60 000 000,-

Management	Magdalena Tomaszewska (19.01.1964) Słoneczna 19, 05504 Złotokłos, Poland Executive Manager sole power of attorney
	PharmDr. Jiří Havránek (21.04.1974) Strážovská 522/16, 153 00 Praha 512  Executive Manager sole power of attorney

General Data		Manufacture and distribution of medicaments and food supplements.
	Main activity: Manufacture of basic pharmaceutical products

Former name(s)
MVM Vysoké Mýto, a.s. 
Beginning of validity: 06.05.1992
End of validity: 24.11.1992

Medicamenta a.s.
Beginning of validity: 24.11.1992
End of validity: 01.04.2009

Trade name(s)
Glenmark Pharmaceuticals s.r.o.
Beginning of validity: 01.04.2009

Address:
Hvězdova 1716/2b, 140 78 Praha 4 
Beginning of validity: 01.04.2009
telephone:
00420/ 227 629 511
telefax:
00420/ 227 629 509
e-mail:
info@glenmarkpharma.cz.
Web:
www.glenmarkpharma.cz

Fibichova 143/II, 566 17 Vysoké Mýto 
Beginning of validity: 06.05.1992
End of validity: 25.10.2001

Tusarova 857/58, 170 00 Praha 7 
Beginning of validity: 25.10.2001
End of validity: 21.03.2005

Jankovcova 1522/53, 170 00 Praha 7 
Beginning of validity: 21.03.2005
End of validity: 22.06.2007

Bělohorská 39/260, 169 00 Praha 6 
Beginning of validity: 22.06.2007
End of validity: 01.04.2009

business locations:
Fibichova 143, 566 17 Vysoké Mýto 
telephone:
00420/ 465 457 218
telefax:
00420/ 465 457 457
e-mail:
vyroby@glenmarkpharma.cz

Staff	2006	200 employees
	2008	75 employees

2009	88 employees
2010	138 employees

2011	138 employees
2012	128 employees

Annual Sales	2005	actual sales	CZK	28 285 000,-
	2006	actual sales	CZK	165 742 000,-

2008	actual sales	CZK	206 424 000,-
2009	actual sales	CZK	293 927 000,-

2010	actual sales	CZK	406 802 000,-
2011	actual sales	CZK	491 237 000,-

2012		actual sales	CZK	540 853 000,-
	In 2007, the inquired company has transited to the business year lasting from 01.04.till 31.03. Turnover for the year 2008 relates to a period lasting 15 months (as of 31.03.2008). The company expects, that from the year 2014  its economy will reach profits.

Balance sheets	The enclosed balance of 2012 from business register, it is authenticated by the auditor. (31.03.2012 - 1 CZK)
	The enclosed profit/loss account of 2012 from business register, it is authenticated by the auditor. (31.03.2012 - 1 CZK)

The enclosed balance of 2011 from business register, it is authenticated by the auditor. (31.03.2011 - 1 CZK)

The enclosed profit/loss account of 2011 from business register, it is authenticated by the auditor. (31.03.2011 - 1 CZK)

The enclosed balance of 2010 from business register, it is authenticated by the auditor. (31.03.2010 - 1 CZK)

The enclosed profit/loss account of 2010 from business register, it is authenticated by the auditor. (31.03.2010 - 1 CZK)

The enclosed balance of 2009 from business register, it is authenticated by the auditor. (31.03.2009 - 1 CZK)

The enclosed profit/loss account of 2009 from business register, it is authenticated by the auditor. (31.03.2009 - 1 CZK)

Auditor	R - audit, s.r.o. (Statistical number: 49243705) Na Hrázi 25, 18000 Praha 8
Remarks		The company is a holder of ISO 9001 certificate. All the sources of negative data accessible to public (insolvency registers, databases of debtors of health insurance institutions, commercial bulletin, collection database and others) are currently monitored.

Subsidiary company:  - GLENMARK PHARMACEUTICALS SK, s. r. o., Bratislava, Slovakia, share 100%  To the inquired company as to the successor company, property of disappearing companies  Medicamenta servis, a.s., IČO 26 14 32 32, Medicamenta Management, a.s., IČO 26 14 37 80, MEDICAMENTA Vysoké Mýto, a.s., IČO 26 14 38 28, has been transferred. Contact:  Daniela Fajtová – economic department danielaf@glenmarkpharma.cz

Bankers

Česká spořitelna, a. s.

Copyright: s.r.o. Praha

This information is addressed exclusively to the addressee. Contractor obligates to provide updated information. Although it is always put maximum effort to collect actual and exact information, it is not confirmed as delinquency if there are particular inaccurateness contained within the information, which are not considered as essential in terms of the objective for which the information is provided to the addressee. Contractor and recipient conform to the rules of the Name and Description Security Act, Nub.101/2000. According to the Name and Description Security Act, recipient has the right to process or to use forwarding data only for the purpose for which information has been sent to the recipient. Usage for other purpose is acceptable only in case referring to valid regulations of the above mentioned act.

balAnce sheet

	balance	31.03.2009 (CZK)	31.03.2010 (CZK)	31.03.2011 (CZK)	31.03.2012 (CZK)
r1	TOTAL ASSETS	684 609 000	929 156 000	999 601 000	1 051 390 000
r2	Receivables for subscriptions				0
r3	Fixed assets	508 611 000	541 677 000	535 997 000	516 191 000
r4	Intangible fixed assets	386 418 000	410 513 000	409 451 000	379 463 000
r7	Software	398 000		294 000	380 000
r8	Valuable rights	289 730 000	316 024 000	276 736 000	318 578 000
r11	Intangible fixed assets under construction	23 361 000	44 631 000	132 421 000	60 505 000
r12	Advance payments for intangible fixed assets	72 929 000	49 858 000
r13	Tangible fixed assets	122 006 000	130 990 000	126 383 000	133 804 000
r14	Lands	785 000	785 000	785 000	975 000
r15	Constructions	100 136 000	102 390 000	100 408 000	104 404 000
r16	Equipment	21 085 000	16 280 000	20 814 000	28 297 000
r20	Tangible fixed assets under construction		11 535 000	4 376 000
r21	Advance payments for tangible fixed assets				128 000
r23	Long-term financial assets	187 000	174 000	163 000	2 924 000
r24	Shares in controlled and managed organizations	182 000	169 000	163 000	2 924 000
r26	Other securities and shares	5 000	5 000
r31	Current assets	167 853 000	378 221 000	458 502 000	532 540 000
r32	Inventory	51 643 000	101 124 000	93 470 000	105 945 000
r33	Materials	22 796 000	23 676 000	22 076 000	15 619 000
r34	Work in progress and semi-products	10 033 000	7 454 000	3 671 000	7 906 000
r35	Finished products	10 524 000	19 693 000	14 331 000	35 427 000
r37	Merchandise	8 290 000	50 301 000	52 677 000	46 993 000
r38	Advance payments for inventory			715 000
r39	Long-term receivables	2 044 000	0	0	243 000
r44	Long-term deposits given	2 044 000			243 000
r48	Short-term receivables	95 405 000	248 569 000	350 761 000	384 244 000
r49	Trade receivables	86 311 000	241 095 000	331 103 000	370 940 000
r50	Receivables from controlled and managed organizations	308 000	297 000
r54	Due from state - tax receivable	3 760 000	2 686 000	1 022 000	4 068 000
r55	Short-term deposits given	3 240 000	3 084 000	9 070 000	1 408 000
r56	Estimated receivable	1 528 000		8 717 000	7 678 000
r57	Other receivables	258 000	1 407 000	849 000	150 000
r58	Short-term financial assets	18 761 000	28 528 000	14 271 000	42 108 000
r59	Cash	47 000	152 000	518 000	48 000
r60	Bank accounts	18 714 000	28 376 000	13 753 000	42 060 000
r63	Accruals	8 145 000	9 258 000	5 102 000	2 659 000
r64	Deferred expenses	8 145 000	9 258 000	5 102 000	2 659 000
r67	TOTAL LIABILITIES	684 609 000	929 156 000	999 601 000	1 051 390 000
r68	Equity	473 937 000	520 913 000	593 179 000	298 365 000
r69	Registered capital	226 002 000	60 000 000	60 000 000	60 000 000
r70	Registered capital	226 002 000	60 000 000	60 000 000	60 000 000
r73	Capital funds	365 559 000	701 268 000	1 022 645 000	1 025 408 000
r74	Share premium	18 587 000	18 587 000	18 587 000	18 587 000
r75	Other capital funds	346 947 000	682 669 000	1 004 052 000	1 004 052 000
r76	Differences from revaluation of assets and liabilities ( +/- )	25 000	12 000	6 000	2 769 000
r78	Reserve funds, statutory reserve account for cooperatives, and other retained earnings	8 529 000	8 529 000	8 529 000	8 529 000
r79	Legal reserve fund / indivisible fund	8 498 000	8 498 000	8 498 000	8 498 000
r80	Statutory and other funds	31 000	31 000	31 000	31 000
r81	Profit / loss - previous years	-150 250 000	-126 154 000	-248 883 000	-497 996 000
r82	Retained earnings from previous years	22 880 000	46 976 000	46 976 000	46 976 000
r83	Accumulated losses from previous years	-173 130 000	-173 130 000	-295 859 000	-544 972 000
r84	Profit / loss - current year (+/-)	24 097 000	-122 730 000	-249 112 000	-297 576 000
r85	Other sources	210 672 000	405 471 000	389 771 000	753 025 000
r86	Reserves	992 000	2 074 000	4 910 000	2 140 000
r89	Income tax reserves	992 000
r90	Other reserves		2 074 000	4 910 000	2 140 000
r91	Long-term payables	3 382 000	0	0	305 473 000
r93	Payables to controlled and managed organizations	3 382 000			305 473 000
r102	Short-term payables	183 847 000	348 633 000	334 521 000	445 412 000
r103	Trade payables	164 231 000	216 535 000	313 325 000	303 984 000
r104	Payables to controlled and managed organizations		108 803 000	9 478 000
r106	Payables from partners, cooperative members and association members	6 814 000	6 746 000
r107	Payroll	3 573 000	3 854 000	2 269 000	4 745 000
r108	Payables to social securities and health insurance	1 168 000	1 761 000	1 639 000	2 698 000
r109	Due from state - tax liabilities and subsidies	292 000	926 000	2 585 000	3 771 000
r110	Short-term deposits received	777 000	777 000
r112	Estimated payables	6 937 000	8 658 000	1 359 000	72 584 000
r113	Other payables	55 000	573 000	3 866 000	57 630 000
r114	Bank loans and financial accommodations	22 451 000	54 764 000	50 340 000	0
r115	Long-term bank loans	3 875 000	16 684 000	10 508 000	0
r116	Short-term bank loans	18 576 000	38 080 000	39 832 000	0
r117	Short-term accommodations				0
r118	Accruals	0	2 772 000	16 651 000	0
r119	Accrued expenses		2 772 000	16 651 000

	profit/loss account	31.03.2009 (CZK)	31.03.2010 (CZK)	31.03.2011 (CZK)	31.03.2012 (CZK)
a1	Turnover	293 927 000	406 802 000	491 237 000	540 853 000
a2	Revenues from sold goods	123 046 000	158 172 000	169 670 000	141 590 000
a3	Expenses on sold goods	46 343 000	67 236 000	75 845 000	109 861 000
a4	Sale margin	76 703 000	90 936 000	93 825 000	31 729 000
a5	Production	181 614 000	254 477 000	309 354 000	424 551 000
a6	Revenues from own products and services	170 881 000	248 630 000	321 567 000	399 263 000
a7	Change in inventory of own products	10 733 000	5 847 000	-12 213 000	25 288 000
a9	Production consumption	172 404 000	355 195 000	461 371 000	523 433 000
a10	Consumption of material and energy	70 609 000	84 497 000	96 766 000	143 994 000
a11	Services	101 795 000	270 698 000	364 605 000	379 439 000
a12	Added value	85 913 000	-9 782 000	-58 192 000	-67 153 000
a13	Personnel expenses	51 794 000	68 607 000	118 384 000	111 689 000
a14	Wages and salaries	35 570 000	44 215 000	73 813 000	70 971 000
a15	Renumeration of board members	4 079 000	7 554 000	13 260 000	13 173 000
a16	Social security expenses and health insurance	11 029 000	14 756 000	22 061 000	24 642 000
a17	Other social expenses	1 116 000	2 082 000	9 250 000	2 903 000
a18	Taxes and fees	1 797 000	1 021 000	1 063 000	186 000
a19	Depreciations of intangible and tangible assets	39 794 000	49 179 000	50 537 000	47 607 000
a20	Revenues from disposals of fixed assets and materials	4 617 000	1 152 000	303 000	685 000
a21	Revenues from disposals of fixed assets	4 089 000	274 000	303 000	664 000
a22	Revenues from disposals of materials	528 000	878 000		21 000
a23	Net book value of disposed fixed assets and materials	380 000	682 000	1 000	16 000
a24	Net book value of sold fixed assets	263 000
a25	Net book value of sold material	117 000	682 000	1 000	16 000
a26	Change in operating reserves and adjustments and complex deferred costs ( + / - )	-53 071 000	-2 641 000	20 198 000	-45 449 000
a27	Other operating revenues	1 453 000	993 000	11 205 000	504 000
a28	Other operating expenses	13 793 000	5 267 000	15 356 000	48 590 000
a31	Operating profit / loss	37 496 000	-129 752 000	-252 223 000	-228 603 000
a34	Revenues from long-term financial assets	0	0	0
a43	Interest revenues	111 000	12 000	8 000	4 000
a44	Interest expenses	9 537 000	4 051 000	10 574 000	8 133 000
a45	Other financial revenues	13 236 000	47 207 000	106 237 000	26 066 000
a46	Other financial expenses	22 500 000	32 161 000	92 560 000	49 416 000
a49	Profit / loss from financial operations ( transactions )	-18 690 000	11 007 000	3 111 000	-31 479 000
a50	Income tax on ordinary income	-5 312 000	-992 000	0	0
a51	Due tax	992 000	-992 000
a52	Tax deferred	-6 304 000
a53	Operating profit / loss ordinary activity	24 118 000	-117 753 000	-249 112 000	-260 082 000
a54	Extraordinary revenues	11 000	194 000
a55	Extraordinary expenses	32 000	5 171 000		37 494 000
a56	Income tax on extraordinary income	0	0	0
a59	Operating profit / loss extraordinary activity	-21 000	-4 977 000	0	-37 494 000
a61	Profit / loss of current accounting period (+/-)	24 097 000	-122 730 000	-249 112 000	-297 576 000
a62	Profit / loss before tax (+/-)	18 785 000	-123 722 000	-249 112 000	-297 576 000
	Receivables after due date total		161 655 000	189 501 000	152 828 000
	Receivables more than 360 days after due date		38 499 000	27 283 000	45 360 000
	Liabilities after due date total		156 009 000	261 681 000	191 743 000
	Liabilities more than 360 days after due date			86 745 000	20 817 000
	Liabilities more than 180 days after due date		8 055 000

Balance indices		31.03.2009	31.03.2010	31.03.2011	31.03.2012
Return on total assets ROA (in %)	a62/r1 * 100	2,74	-13,32	-24,92	-28,30
Return on equity ROE (in %)	a62/r68 * 100	3,96	-23,75	-42,00	-99,74
Return on sales ROS (in %)	a62/a1 * 100	6,39	-30,41	-50,71	-55,02
Turnover of receivables (in days)	r49/a1 * 365	107,18	216,32	246,02	250,33
Turnover of liabilities (in days)	r103/a1 * 365	203,94	194,28	232,81	205,15
Turnover of inventories (days)	r32/a1 * 365	64,13	90,73	69,45	71,50
Net working capital (in ths. CZK)	r31 - r102 - r116 - r117	-34 570,00	-8 492,00	84 149,00	87 128,00
Ratio of accounts payable to accounts receivable (in %)	(r39+r48) / (r91+r102) * 100	52,05	71,30	104,85	51,20
Ratio of profit/loss to tangible assets (in%)	r3 / a1 * 100	173,04	133,16	109,11	95,44
Current ratio	r31 / (r102+r116+r117)	0,83	0,98	1,22	1,20
Quick ratio	(r58+r48) / (r102+r116+r117)	0,56	0,72	0,98	0,96
Cash ratio	r58 / (r102+r116+r117)	0,09	0,07	0,04	0,09
Debt ratio I (in %)	(1-r68/r67) * 100	30,77	43,94	40,66	71,62
Debt ratio II (in %)	r85/r67 * 100	30,77	43,64	38,99	71,62

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.56.99
UK Pound	1	Rs.88.97
Euro	1	Rs.71.57

INFORMATION DETAILS

Report Prepared by :

MNL

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	----

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%)

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.