MIRA INFORM REPORT

Report Date :

27.10.2012

IDENTIFICATION DETAILS

Name :	AANJANEYA LIFECARE LIMITED
Registered Office :	Aanjaneya House, Plot 34, Postal Colony, Chembur, Mumbai-400071, Maharashtra
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	03.01.2006
Com. Reg. No.:	11-158589
Capital Investment / Paid-up Capital :	Rs.138.872 millions
CIN No.: [Company Identification No.]	L24230MH2006PLC158589
IEC No.:	0306079551
PAN No.: [Permanent Account No.]	AAGCA0851L
Legal Form :	A Public Limited Liability company. The company’s Share are Listed on the Stock Exchange.
Line of Business :	Manufacturer of Bulk Drugs and Formulation.
No. of Employees :	261 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

A (58)

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 13990000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is well established company having good track record. Financially company is performing well. Trade relations are reported to be fair. Business is active. Payment are reported to be regular and as per commitment. The company can be considered for normal business dealing 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 – June 30, 2012

Country Name	Previous Rating (31.03.2012)	Current Rating (30.06.2012)
India	A1	A1

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

INDIAN ECONOMIC OVERVIEW

India is developing into an open-market economy, yet traces of its past autarkic policies remain. Economic liberalization, including industrial deregulation, privatization of state-owned enterprises, and reduced controls on foreign trade and investment, began in the early 1990s and has served to accelerate the country's growth, which has averaged more than 7% per year since 1997. India's diverse economy encompasses traditional village farming, modern agriculture, handicrafts, a wide range of modern industries, and a multitude of services. Slightly more than half of the work force is in agriculture, but services are the major source of economic growth, accounting for more than half of India's output, with only one-third of its labor force. India has capitalized on its large educated English-speaking population to become a major exporter of information technology services and software workers. In 2010, the Indian economy rebounded robustly from the global financial crisis - in large part because of strong domestic demand - and growth exceeded 8% year-on-year in real terms. However, India's economic growth in 2011 slowed because of persistently high inflation and interest rates and little progress on economic reforms. High international crude prices have exacerbated the government's fuel subsidy expenditures contributing to a higher fiscal deficit, and a worsening current account deficit. Little economic reform took place in 2011 largely due to corruption scandals that have slowed legislative work. India's medium-term growth outlook is positive due to a young population and corresponding low dependency ratio, healthy savings and investment rates, and increasing integration into the global economy. India has many long-term challenges that it has not yet fully addressed, including widespread poverty, inadequate physical and social infrastructure, limited non-agricultural employment opportunities, scarce access to quality basic and higher education, and accommodating rural-to-urban migration.

Source : CIA

EXTERNAL AGENCY RATING

Rating Agency Name	CRISIL
Date	June

Note: CRISIL suspended rating due to lack of information.

RBI DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2012.

LOCATIONS

Registered/ Corporate Office :	Aanjaneya House, Plot 34, Postal Colony, Chembur, Mumbai-400071, Maharashtra, India
Tel. No.:	91-22-25264500/ 25243678
Fax No.:	91-22-25262890/ 91-22-25223251/ 25262867
E-Mail :	info@aanlife.com mani@aanjaneya.com
Website :	http://aanlife.com http://www.aanjaneya.com
Area :	3000 Sq.ft.
Location:	Rented
Bulk Actives and R and D Centre/ Factory 1 :	K-4/1, Additional MIDC, Mahad-403209, Raigad, Maharashtra, India
Tel. No.:	91-2145-250115
Fax No.:	91-2145-250116
Area :	2000 Sq.Mtrs
Location:	Leased
Finished Dosage Facilities/ Factory 2 :	Gat No. 123, Pirangut, Taluka- Mulshi, Pune-411004, Maharashtra, India
Tel. No.:	91-20-66750552
Fax No.:	91-20-66750600
Area :	70000
Location:	Owned
Factory 3 :	Survey No.14, Gadda Potharam Industrial Area, Jinnaram Mandal, Medak Distrivct, Andhra Pradesh, India
Tel. No.:	91-8458-277268
Fax No.:	91-8458-277036
Overseas Office:	Located at v Singapore v UAE

DIRECTORS

As on 31.03.2012

Name :	Mr. Kashi Vishwanathan
Designation :	Chairman Emeritus
Address :	Vishwam 8/B, Postal Colony, Chembur, Mumbai-400071, Maharashtra, India
Date of Birth/Age :	14.07.1945
Qualification :	B.Sc.
Date of Appointment :	01.05.2008
Name :	Mr. Kannan Vishwanath
Designation :	Vice –Chairman and Managing Director
Address :	Vishwam 8/B, Postal Colony, Chembur, Mumbai-400071, Maharashtra, India
Date of Birth/Age :	30.11.1975
Qualification :	B.E. MBA
Date of Appointment :	03.01.2006
Name :	Mr. Prabhat Kumar Goyal
Designation :	Executive and Whole-Time Director
Name :	Mr. Shashikant B. Shinde
Designation :	Whole Time Director
Name :	Dr.(Mrs.) Ullooppee S Badade
Designation :	Non Executive Director
Address :	K-11, Shree Nagari Siddhi Vinayak Colony, Behind Appu Ghar, Nigadi, Pune-411044, Maharashtra, India
Date of Birth/Age :	11.12.1969
Qualification :	MBBS, MBA
Date of Appointment :	15.02.2010
Name :	Mr. Giridhar Gopal Pulleti
Designation :	Non Executive and Independent Director
Address :	Plot No. MIG 41/A, Flat No. 3-2, MCH Park, Besie Vengala Rao Nagar, Hyderabad-500038, Andhra Pradesh, India
Date of Birth/Age :	10.08.1968
Qualification :	M.Sc.
Date of Appointment :	20.03.2010
Name :	Mr. Balkrishna R Parab
Designation :	Non Executive and Independent Director
Address :	Building No. 6, Room No. 68, Sahakar Nagar-1, Sheli Colony, Chembur, Mumbai-400071, Maharashtra, India
Date of Birth/Age :	15.11.1970
Qualification :	B.Com
Date of Appointment :	31.03.2010
Name :	Mr. N C Paul
Designation :	Non Executive Director
Name :	Mr. Minhaj Khan
Designation :	Non.Exe.Independent Director
Name :	Dr. Kannan K Vishwanath
Designation :	Vice Chairman & Mng.Director
Name :	Mr. Prabhat K Goya
Designation :	Whole Time Director
Name :	Mr. Shashikant B Shinde
Designation :	Whole Time Director
Designation :	Executive and Whole-Time Director
Address :	503, A Wing, Hemal Co-operative Housing Society, Off Veera Desai Road, Near Rukminis Vaihav, Amboli, Andheri (West), Mumbai-400058, Maharashtra, India
Date of Birth/Age :	14.01.1952
Qualification :	MBA
Date of Appointment :	01.10.2009
Date of Ceasing:	23.03.2010

KEY EXECUTIVES

Name :	Mr. Lalit Shukla
Designation :	President Finance
Name :	Col. Ashish Kumar Basu
Designation :	Head Adminstration and HR
Name :	Dr. Praful Mathur
Designation :	Head R and D APIs
Name :	Dr. Bhanu Pandey
Designation :	President Business Devlopment
Name :	Mr.Suhas Pise
Designation :	Head Global Pharma Manufacturing & Supply Chain
Name :	Mrs. Indira Surendran
Designation :	Corporate RA
Name :	Mr. Anil Kumar Singh
Designation :	Head QA - Formulations
Name :	Mr. Rashmin Virkud
Designation :	Head Manufacturing - APIs)
Name :	Mr.Pradeep Sarode
Designation :	Head Manufacturing - Formulations
Name :	Mr.C S Yogesh Patel
Designation :	Company Secretary and Compli.Officer

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2012

Names of Shareholders	No. of Shares	Percentage of Holding
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	1954261	14.07
Bodies Corporate	4653172	33.51
Sub Total	6607433	47.58
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	6607433	47.58
(B) Public Shareholding
(1) Institutions
Foreign Institutional Investors	37128	0.27
Sub Total	37128	0.27
(2) Non-Institutions
Bodies Corporate	6443719	46.40
Individuals
Individual shareholders holding nominal share capital up to Rs. 0.100 Million	42914	0.31
Individual shareholders holding nominal share capital in excess of Rs. 0.100 Million	266010	1.92
Any Others (Specify)	489947	3.53
Non Resident Indians	3417	0.02
Clearing Members	486530	3.50
Sub Total	7242590	52.15
Total Public shareholding (B)	7279718	52.42
Total (A)+(B)	13887151	100.00
(C) Shares held by Custodians and against which Depository Receipts have been issued	0	0.00
(1) Promoter and Promoter Group	0	0.00
(2) Public	0	0.00
Sub Total	0	0.00
Total (A)+(B)+(C)	13887151	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Bulk Drugs and Formulation.

Products :

· Bulk Drugs · API- Quinine Salt API DIVISION PRODUCT LIST · Anti Malarial APIS (Second Generation) · Quinine Sulphate · Quinine Hydrochloride · Quinine Dihydrochloride · Quinine Bisulphate · Expectorant- Beromhexine Hcl. FORMULATION DIVISION PRODUCT LIST · Expectorants and Cough Syrups – Codience based · Hormore Replacement Therapy · Urinary Dysfunction · Pain Management – Terminally III Cancer Patients · Erectile Dysfunction · Alzheimer Disease and Dementia Medication · Anti Diabetic · Herbal, Allphatic and Homeopathic Lozenges · Anti Malarial Therapy · Anti TB Therapy

PRODUCTION STATUS AS ON 31.03.2012

Particulars	Unit	Installed Capacity	Actual Production
Bulk Drugs	MT	650.000	497.40

Note: For API s, the reactors installed are to be of larger capacity so as to accommodate herbal based raw material inputs whose yield can vary from crop to crop. The reactors are also multipurpose in nature. Hence there is no direct correlation between installed capacity and actual production.

As on 31.03.2012

Particular	Unit	Installed Capacity	Actual Production
Formulation	Units in Thousands	1571650.00	764679.97

GENERAL INFORMATION

No. of Employees :

261 (Approximately)

Bankers :

• Bank of Baroda

• Canara Bank
• Corporation Bank
• Oriental Bank of Commerce
• Punjab national bank
• UCO Bank
• State Bank of Hyderabad
• J and K Bank
• Bank of India
• Allahabad Bank

Facilities :

Secured Loan	31.03.2012 (Rs. in Millions)	31.03.2011 (Rs. in Millions)
Term loan from banks	571.395	413.625
Interest accrued but not due on Term Loan	6.025	2.904
Working capital loan from banks (All Secured against first charge on the current assets)	1362.030	816.965
Total	1939.450	1233.494
Unsecured Loan	31.03.2012 (Rs. in Millions)	31.03.2011 (Rs. in Millions)
Loans from directors / shareholders	272.853	51.342
Loans & Advances from company /others	166.515	103.615
WCDL from Other Banks	607.062	0.000
Total	1046.430	154.957

Banking Relations :	--
Auditors :
Name :	Sunil Mistry and Company Chartered Accountants
Address :	B/10, Basant Court, Sion West, Mumbai-400022, Maharashtra, India
Tel. No.:	91-22-25212210
Mobile No.:	91-9320488878
E-Mail :	sunilpmistry@gmail.com
Holding Company : (As on 31.03.2011)	Aasda Life Care Limited
Subsidiary:	Eros Pharmachem Pte Limited Finventure Capital Limited (Aasda Life Care Limited)

CAPITAL STRUCTURE

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
30000000	Equity Shares	Rs.10/- each	Rs.300.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
13887151	Equity Shares	Rs.10/- each	Rs.138.872 Millions

List of Shareholders holding more than 5% shares	31.03.2012
	No. of shares	% of Holding
Finaventure capital Limited	5956172	42.89%
Kannan Vishwanath	2030948	14.62%
Apex Drugs and Intermediates Limited	1310484	9.44%
Religare Securities Limited	802870	5.78%

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2012	31.03.2011	31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		138.872	75.767	57.767
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		3359.140	1268.094	439.967
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		3498.012	1343.861	497.734
LOAN FUNDS
1] Secured Loans		1939.449	1233.494	495.941
2] Unsecured Loans		1046.430	154.957	100.989
TOTAL BORROWING		2985.879	1388.451	596.930
DEFERRED TAX LIABILITIES		143.854	49.819	23.502
TOTAL		6627.745	2782.131	1118.166
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		2138.536	703.469	469.267
Capital work-in-progress		1442.383	466.828	42.025
INVESTMENT		7.774	0.501	0.502
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	1375.168	823.730	360.428
	Sundry Debtors	2005.752	904.591	432.986
	Cash & Bank Balances	43.989	6.662	7.529
	Other Current Assets	156.509	0.000	3.302
	Loans & Advances	9.367	43.047	31.585
Total Current Assets		3590.785	1778.030	835.830
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	400.683	(60.308)	156.049
	Other Current Liabilities	23.227	21.443	8.287
	Provisions	127.823	205.562	65.122
Total Current Liabilities		551.733	166.697	229.458
Net Current Assets		3039.052	1611.333	606.372
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		6627.745	2782.131	1118.166

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	4799.638	3202.598	1616.715
		Other Income	23.572	1.948	5.263
		TOTAL (A)	4823.210	3204.546	1621.978
Less	EXPENSES
		Increase/ Decrease in Finished Goods and WIP	(167.452)	(143.343)	[71.588]
		Material Cost	3696.871	2470.323	1301.792
		Purchase of Traded Goods	2.601	--	--
		Other Manufacturing Expenses	94.139	54.454	39.928
		Personnel Cost	56.418	46.256	23.387
		Administration Expenses	46.873	50.758	18.877
		Selling Expenses	16.143	17.673	11.619
		TOTAL (B)	3745.593	2496.121	1324.015
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		1077.617	708.425	297.963
Less	FINANCIAL EXPENSES (D)		290.499	136.104	60.365
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		787.188	572.322	237.598
Less/ Add	DEPRECIATION/ AMORTISATION (F)		156.649	25.836	8.788
	PROFIT BEFORE TAX (E-F) (G)		630.469	546.485	228.810
Less	TAX (H)		220.183	186.358	78.033
	PROFIT AFTER TAX (G-H) (I)		410.286	360.127	150.777
	EARNINGS IN FOREIGN CURRENCY
		FOB Value of goods exported	402.011	116.253	90.801
	TOTAL EARNINGS		402.011	116.253	90.801
	IMPORTS
		Raw Materials	67.687	105.871	96.641
		Capital Goods	0.000	5.093	2.111
	TOTAL IMPORTS		67.687	110.964	98.752
	Earnings Per Share (Rs.)		34.42	52.00	30.34

QUARTERLY RESULTS

PARTICULARS	30.06.2012
Net Sales	1747.500
Total Expenditure	1382.960
PBIDT (Excl Ol)	364.540
Other Income	61.460
Operating Profit	426.000
Interest	98.290
Exceptional Items	0.000
PBDT	327.710
Depreciation	47.470
Profit Before Tax	280.240
Tax	90.920
Provisions and Contingencies	0.000
Profit After Tax	189.310
Extraordinary Items	0.000
Prior Period Expenses	0.000
Other Adjustments	0.000
Net Profit	189.310

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	8.51	11.23	9.30
Net Profit Margin (PBT/Sales)	(%)	13.14	17.06	14.15
Return on Total Assets (PBT/Total Assets}	(%)	11.00	18.53	17.53
Return on Investment (ROI) (PBT/Networth)		0.18	0.40	0.46
Debt Equity Ratio (Total Liability/Networth)		1.01	1.15	1.66
Current Ratio (Current Asset/Current Liability)		6.51	10.66	3.64

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	Yes
5]	Type of Business	Yes
6]	Line of Business	Yes
7]	Promoter's background	Yes
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)	No
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	Yes
31]	Date of Birth of Proprietor/Partner/Director, if available	Yes
32]	PAN of Proprietor/Partner/Director, if available	No
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	No

ECONOMIC OVERVIEW

Global economy: The global economic environment, which was tenuous at best through the early part of 2011, turned adverse in September 2011. Global GDP grew 3.8% in 2011, significantly lower than the 5.2% growth in 2010. Capital flows to developing countries in 2011 declined by almost half compared with the previous year. As per World Economic Outlook, global economic growth is expected to slow to 3.3% in 2012. Economic growth in emerging and developing economies is expected to average 5.4% – a significant decline from 6.2% growth in 2011. Despite a substantial downward revision, developing Asia is still projected to grow at 7.5% in 2012.

Indian economy: India’s GDP growth declined from 8.4% in 2010-11 to 6.5% in 2011-12. GDP growth in 2011-12 was the lowest in nine years (save 2008-09). Despite low growth, India remained one of the fastest-growing global economies. Going ahead, the government estimates a GDP growth of about 7%-plus in 2012-13. While this appears a reasonable estimate, inflation will continue to be a significant challenge for the government especially due to the recent hikes in excise duty and service tax in the Union Budget 2012.

THE PHARMACEUTICAL SECTOR

Until not too long ago, India's pharmaceutical space was written off as a self-pay generics-based market adept at product duplication; today, the sector has claimed significant share of the global market by leveraging strengths and enhancing its regulatory and technical maturity. The result is that Indian formulations constitute 20% of the global generics market by value; the overall share of Indian manufactured formulations is a high 46% in the generics segment of emerging markets.

SECTORAL OPPORTUNITIES

Anti-malaria: Some of the largest markets for anti-malaria drugs are China, India, Indonesia, Latin America and sub-Saharan Africa. In India, the anti-malarial drugs market grew at a CAGR of 22% over FY06- 10. The anti-malaria API market is dominated by chloroquine, quinine, and artemisinin salts (not under pricing regulation). Malaria costs the African continent an estimated US$12 billion a year in health costs. India accounts for 70% of malaria cases in South East Asia. India reports two million malarial cases with 1000 fatalities a year.

Herbal medicines:

The Indian herbal medicine market is estimated at ~ Rs.70 billion and is expected to report a CAGR of 20% over the next two years. India’s total herbal export is worth Rs.36 billion and is expected to report a CAGR 25% over two years. Herbal medication is being increasingly used in combination with allopathic treatments.

Anti-cancer:

The cancer market represents an attractive sector for generic players due to rising disease incidence with a price erosion significantly lower than in the other segments. The global cancer generics market is anticipated to grow at a 27% CAGR during 2010-2014, driven by upcoming anti-cancer blockbuster drugs patent expiry and a rising drugs bill that encourages access to generics access to control costs. According to a recent Frost and Sullivan report, the cancer market is expected to grow at a 21% CAGR from 2008 to 2014.

Business Operations

Active Pharmaceutical

Overview

Aanjaneya commenced its business as an API manufacturer primarily engaged in quinine salts – a key second-generation, antimalarial API. Today, it is the world’s third-largest manufacturer of quinine salts and the second largest in India.

The Company commissioned its GMP-certified Mahad plant in 2007 with an installed capacity of 200 TPA to process quinine (API derived from natural extracts) which increased to 450 TPA in 2010. The unit received the ISO 4001:200 (Environment Management System), ISO 9001:2008 and ISO 22000:2005 certifications by BSI Systems. The Company invested in a full-fledged Rand D facility dedicated to product development for `10 million.

The Company enjoys a marketing footprint across 60 countries in addition to supplying APIs to leading Indian pharmaceutical companies that account for more than 50% of its sales volumes. A majority of the rest is exported for superior realisations and attractive government incentives.

Key initiatives in 2011-12

The Company implemented a number of business-strengthening initiatives to strengthen its competitive position:

Shopfloor

Enhanced plant productivity 20% by increasing the input volume per batch in a measured way, ensuring that final output adhered to global standards

Reduced the batch cycle time by applying lean operation techniques and addition of utility infrastructure proximate to work stations, reducing the batch cycle time

Added condensers at various points in the process line, which maximised toluene recovery and halved toluene consumption per kg of quinine

Created a new Rand D unit dedicated to the API business focusing on product development and process improvements

Set up a dedicated quality control laboratory ensuring that products match the best global standards

Regulatory

Received approvals for the registrations for quinine sulphate and salts from USFDA, European and Canadian regulatory authorities

Filed registrations for two products (Bromexine and Metachlorpromine) with European and Canadian regulatory authorities

Marketing

Identified new API markets consequent to the acquisition of Apex Drugs and Intermediates

Added customers in Africa, South East Asia and Latin America

Utilities

Installed a rooftop rain harvesting system at the Mahad facility, which collected around 10 lac litres of water in 10 days of rainfall, reducing fresh water intake

Road map for 2012-13

Commission two new CGMP compliant blocks and stabilize production of six new APIs comprising third-generation Artemisinin and its salts and other niche APIs

Commission the intermediate block which will provide intermediates for the APIs and will produce a niche API Commission the dedicated oncology block and stabilize operations of complex anti-cancer APIs

Commence manufacture of new APIs Bromexine (used in cough syrups) and Metachlorpromine (for indigestion). Atorvastatin Calcium, among others

Complete the warehousing facility (50,000 sq ft) for systematic storage of raw materials, intermediates and finished goods

Invest in renewable energy (solar panels on the Mahad plant roof top) which will reduce the overall energy cost for the unit Complete integration with Apex assets will increase their product portfolio and exposure to wide therapeutic segments

Highlights, 2011-12

Production of Quinine Sulphate increased 30% in 2011-2012

Sales of Quinine Sulphate grew 45%

Exports increased 250% from Rs. 100.000 millions to Rs. 310.000 millions

Added 35 international and 50 domestic clients

Completed trials for Bromexine (expectorant), a new API that will be launched in 2012-13

BUSINESS OPERATIONS

FINISHED DOSAGE FORMS

Overview

The Company entered the formulations business following the acquisition of Prophyla Biological Private Limited in March 2010. Through this acquisition, Aanjaneya now manufactures lozenges, syrups and ointment/gels/creams at the Pune facility. This transformed Aanjaneya from an API manufacturer to a vertically-integrated pharmaceutical company. More importantly, the acquisition provided Aanjaneya with a six tonne per annum codeine quota, making it one of the largest quota holders in the pharmaceutical sector. It also resulted in the acquisition of customer accounts as Prophyla undertook work for 100 leading Indian pharmaceutical companies.

Following the acquisition, Aanjaneya restructured Prophyla’s operations from conversion to a P2P formulations manufacturer, which enhanced margins and intellectual capital. Besides, these P2P agreements allow the Company to sell the same formulation to other players (the brand has to be different), de-risking it from an excessive dependence on a single player. The Company has such agreements with leading Indian pharmaceutical brands like Wockhardt, Zydus Cadila, Cipla and Glenmark, among others.

In the formulations space, the Company focused on the niche therapeutic segments of anti-malarial, erectile dysfunction, pain alleviation, herbals, hormone replacement and anti-obesity. The herbal formulations aim to cover cough and cold, liver protection, throat congestion and osteoporosis.

The Company launched its own cough syrup (Rankorex) as a derisking strategy from an overdependence on other brands for its codeine syrups. The Company also established a foothold in the branded generic segment through the launch of products like Anjtil, Doktor Qure, Prosils, LivChek, Herbal Drops and Esyhil, catering to the cough, cold and liver segments. The Company received registrations for its Prosil lozenges range from Haiti, South Africa, Hong Kong and the Dominican Republic.

For the domestic space, the Company entered into an agreement with Rx Pharma India, a marketing company, to strengthen its sales management, logistics and marketing.

Key initiatives in 2011-12

Converted contract manufacturing contracts into P2P relationships with a number of clients (large Indian pharmaceutical companies), strengthening margins; added a large domestic pharmaceutical player to its P2P client list

Developed innovative lozenges (as pharmaceutical products) as first time products for the Indian market; filed registration dossiers in 45 nations for its lozenges

Launched the Black Seed ointment in Sudan (muscle relaxant that provides relief from cough and cold)

Entered into contracts with leading Indian pharmaceutical players to develop lozenge variants for existing formulations

Developed low-cost, anti-cancer formulations (herbal-based) Developing unique lozenge products for basic ailments (Xerostomia, jaundice, obesity and diabetes)

Road map for 2012-13

Commission the independent EUGMP-compliant lozenges block; commission the new 50 million tableting block

Work on developing products with a transdermal application (patch application) primarily in the pain management space

Install high capacity extractors at the Mahad unit for increased herbal extracts to be value-added into formulations at Pune

Highlights, 2011-12

Launched ‘Rankorex’, an in-house codeine-based cough syrup brand for the first time in its history

Received the Kenya PPB GMP approval from all facilities namely lozenges, liquids and ointments

Received registration for ‘Arecta Plus’ (a lozenge variant of Viagra tablets) from Sierra Leone and Libya; received the first export order for this product to be executed in 2012-13

MINIMISING BUSINESS UNCERTAINTIES

“THE BEST THEM CAN DO IS SIZE UP THE CHANCES, CALCULATE THE RISKS INVOLVED, ESTIMATE THEIR ABILITY TO DEAL WITH THEM, AND THEN MAKE THEIR PLANS WITH CONFIDENCE.” – HENRY FORD

Aanjaneya assesses and initiates counter-measures to minimize potential losses arising owing to particular risks. The Company created a comprehensive risk management model implemented across the organisation.

An excessive dependence on the anti-malarial segment could hamper the Company’s growth.

De-risking initiatives

The malarial segment enjoys huge demand from markets where the Company has established a strong presence.

The Company’s acquisition of Apex Drugs expanded its API basket to lifestyle therapeutic segments.

The Company is establishing a presence in the oncology segment and will leverage its three patents in complex oncology drugs, creating an attractive growth opportunity.

Quinine Sulphate accounts for around 60% of revenues. Superior alternatives for the malarial attacks (Falcipuram Malaria) that require stronger formulations could affect the Company’s prospects.

De-risking initiatives

Quinine is the ‘paracetamol’ for malaria; it is the preferred solution as it is based on natural extracts with no side-effects and is significantly cheaper than thirdgeneration, anti-malarial products.

Quinine enjoys applications in tonic water and certain beverages as well.

The Company commenced the manufacture of third-generation anti-malarial API for the new-age malarial attacks; these stronger alternatives come in combinations with quinine salts, sustaining product demand.

The concept of lozenges may not receive consumer acceptance.

De-risking initiatives

The Company marketed Rs. 1400.000 million lozenges in 2011-12 – a 55% growth over the previous year.

The Company’s Prosil lozenge range is registered in Haiti, South Africa, Hong Kong and the Dominician Republic; the lozenges team received 15 approvals in 2011-12 and submitted dossiers in 45 nations.

The Company manufactures lozenge variants across dosage forms for leading domestic pharmaceutical players.

The Company is tying up with a marketing company for focused lozenge marketing in India.

The Company appointed over 350 distributors pan-India for its range of branded generic products.

An excessive dependence on a handful of customers could affect business in the event of key customer attrition.

De-risking initiatives

The Company’s transformation from an API manufacturer to a vertically integrated player de-risked it from a dependence on a handful of customers from about 30 customers to 150 in 2012.

A part of the API production will be value-added into formulations, widening the customer basket.

The acquisition of Apex Drugs increased the Company’s customer base (India and the world) with a cross-sale facility.

Sizeable growth of the formulations business will add customers.

Inability to acquire people with competent skills could be detrimental to the Company’s growth.

De-risking initiatives

The Company recruited 50 members in 2011-12 to man the new units to be commissioned in 2012-13.

As part of the succession planning exercise, the HR team identified key positions within the organization with relevant succession planning.

The integration of the Company and an institutionalised training calendar (technical and behavioral) is expected to shrink the learning curve.

The Company’s employee engagement in business improvements strengthened employee pride; the award and recognition scheme (monetary and non-monetary) enhanced organisational bonding.

The Company featured among the Top 100 Best Places to Work in India (rank 83) rated by The Great Place to Work with Institute and The Economic Times.

Inconsistent quality could lead to customer attrition.

De-risking initiatives

The Company’s facilities at Pune and Mahad are WHO GMP and ISO 9001:2008, ISO 14001:2008, ISD 18000 and ISO 22000:2008- certified, ensuring that its facilities comply with stringent global quality standards.

The Company institutionalised in process quality assurance at its formulations unit, ensuring that quality standards are strictly adhered to.

The Company institutionalised the online audit system at all its facilities in which a quality assurance executive is assigned to a particular area of the plant to monitor performance real-time and to facilitate improvements.

The internal audit was intensified, ensuring that each department was audited twice.

The QC team created a knowledge repository where the lifecycle history of each product (development issues, reprocessing and rework) was completely documented for prospective reference.

The Company’s inability to access low-cost funds could hamper operations and growth.

De-risking initiatives

The Company completed its Rs. 1170.000 Millions IPO to fund capacity expansions at its Mahad and Pune facilities.

The acquisition of Apex Drugs for Rs. 2500.000 Millions (equity contribution only Rs. 650.000 Millions) was funded through debt and accruals.

The Company received a Board approval to raise US$ 75 million through the issue of securities and foreign currency convertible bonds to qualified institutional buyers to fund capex and inorganic initiatives.

The Company enjoyed a modest debt-equity ratio of 0.85 (March 31, 2012) as well as a cash and bank balance of Rs. 44.000 Millions (March 31, 2012), which can be leveraged for additional credit limits from banks and institutions.

BOARD OF DIRECTORS

Mr. Kashi Vishwanathan

(Chairman Emeritus)

Mr. Vishwanathan is Chairman Emeritus of the Company. He holds a Bachelor’s degree in Science from the University of Mumbai. He is an industry veteran, with over 4 decades of international experience in the Chemical and Pharmaceutical arena. . He is the guiding force behind the Company’s strategic decisions. He was awarded Udyog Rattan Award by the Institute of Economic Studies for his contribution to industrial development and the World Economic Development Award for Business Excellence at the International Achievers Summit on Emerging India in 2009. He was awarded The Life Time Achievement Award for his contribution to the pharmaceutical industry at the 4th Annual Business Leadership Awards 2012 in Bengaluru India.

Dr. Kannan Vishwanath

Ph.D (Vice Chairman and Managing Director)

Dr. Kannan K. Vishwanath, 37 years, is the Founder and the Vice Chairman and Managing Director of their Company. He holds a Doctorate in Business Management (Ph.D). He has an experience of 13 years in the pharmaceutical industry. As the Vice Chairman and Managing Director, Dr. Vishwanath, has been the backbone of their Company’s operations and is involved in formulating the Company’s strategy. Under his guidance, their Company ventured into new geographies with a wide product range in various therapeutic segments. His vision and value system have guided the organisation towards profitable sustainability. Believing in responsibility delegation, Dr Vishwanath created a professional team and expects, Aanjaneya to emerge as a global player across multiple therapeutic segments.

Mr. Prabhat K. Goyal

(Whole-Time Director)

Mr. Prabhat K. Goyal, 58 years, is the Whole Time Director of their Company. Mr. Goyal is a Postgraduate in Organic Chemistry from Vikram University, Ujjain. Earlier, he worked with Elder Pharmaceuticals Limited, IPCA Laboratories Limited, Ranbaxy Laboratories Limited and Jayant Vitamins Limited. He has an experience of 33 years in the pharmaceutical basic drug industry. he also enjoys almost two decades of experience in pharma manufacturing and research, reflected in a proficiency related to GMP and USFDA manufacture. He was responsible for setting up the APIs facility at Mahad . He has designed and commissioned the Company's world-class manufacturing facility at Mahad . He has helped broaden the product portfolio, created a team of proficient scientists and enriched the Company's intellectual property. He is in charge of developing a world-class research center at Mahad.

Mr. Shashikant B. Shinde

(Whole-Time Director)

Mr. Shashikant B. Shinde, 60 years, is the Whole Time Director of their Company. Mr. Shinde holds a Masters degree in management from Marathwada University, Aurangabad, and is a gold medalist in Bachelors in Science from Marathwada University, Aurangabad. He possesses more than 32 years of experience in the pharmaceutical industry. He is also the Secretary of All India Small Drug Manufacturers Association. Mr. Shinde has earlier worked with companies like Aristo Pharmaceuticals Private Limited, Geno Pharmaceuticals Limited, Rathi Brothers Limited and Lyka Labs Private Limited. He has handled many responsibilities in areas as varied as Marketing and Sales, Restructuring and Revitalising businesses, Business Development, Formulation Sourcing and Alliance management, Acquisition and Divestment projects and in setting up and managing operations in many overseas markets. Presently, he is responsible for overseeing the operations of their unit in Mulshi, Pune.

Dr. Mrs. Ullooppee S. Badade

(Non- Executive-Director)

Dr. Mrs Ullooppee S. Badade, 43 years, is an Independent Director of their Company. Ms. Badade completed her M.B.B.S. from Amravati University and also holds a masters degree in Business Administration (Hospital Administration) from University of Pune. She has an experience of 16 years in hospital administration and was previously associated with Manipal Cure and Care Private Limited, Lokmanya Hospital, Supertech Neurosurgical Centre and Nirmay Hospital. She is presently associated with Manipal Cure and Care Private Limited as a Center Head (Operations and Administration) and is also an in-house physician. In her current role, she provides leadership and management of Aanjaneya research activities in generic segments

Mr. Giridhar G. Pulleti

(Non- Executive Director)

Mr. Giridhar G. Pulleti, 44 years, is an Independent Director of their Company. Mr. Pulleti holds a masters degree in science with specialisation in organic chemistry and has an experience of 20 years in the pharmaceutical industry. He is currently on the Board of Directors of Sanova Pharma Chem Private Limited, a pharma company located in Hyderabad and as a Technical Director of Nutra Specialities Private Limited. He was inducted on the Board of their Company on March 20, 2010. He advises the board on strategic planning and pilots the successful implementation of joint ventures. He also has good understanding of emerging technologies in API like Asymmetric synthesis, Biocatalysis, Reaction Calorimeter and Peptides. He is well versed with Global Regulatory,

Intellectual Property, Clinical Pharmacology and Pharmacokinetics Units, Compliance and Quality requirements.

Mr. Minhaj Khan (CA)

(Non – Executive Director)

Mr. Khan is a member of Institute of Chartered Accountant of India (ICAI). Mr. Khan is a practicing Chartered Accountant with more than three (3) years of experience in Company Law Matters, Direct and Indirect Taxes, International Taxation, Business Consultancy, Investment and Portfolio Management and System Audit Business Compliances, and Bank and Trust Audits, Tax Audits and Company audits.

Mr. Balkrishna R. Parab

(Non- Executive Director)

Mr. Balkrishna R. Parab, 41 years, is an Independent Director of their Company. Mr. Parab holds a Bachelor’s degree in Commerce from the University of Mumbai and has an experience of 15 years in the creative arts and designing. Mr Parab has had comprehensive corporate affairs experience, being involved in the turnaround at Prophyla Biologicals prior to their acquisition of it, as well as in the early stages of their company's growth. Mr. Parab has successfully built and led strong teams across various segments and has considerable knowledge and functional expertise in core areas of Human Resource Strategy, Leadership Development, Talent Management and HR operations.

Mr . N. C. Paul

(Non – Executive Director)

Mr N.C. Paul is a graduate in commerce from Mumbai. He has over 25 years experience in exports business to African continent. He is widely traveled and is involved in all aspects of setting up business in various countries in Africa. For over 20 years his work has focused on global strategic consulting as well as research for the investment industry. He has been a consultant to several multinational companies for their business development in Africa and brings to Aanjaneya immense knowledge and experience in a valuable field of exports. Under his role in the Business Development Committee, various control systems were developed. He delivers lectures and seminars on HR, Exports and policies at various platforms.

Mr Lalit Shukla

President Finance

Mr. Lalit Shukla has rich and varied experience of over 30 years in managing financial operations, across industry sectors, in large organisations. These included major capital mobilisations, financial structuring and turnaround, investor relations, joint ventures, improvement of systems, reporting processes and controls, in both established and greenfield projects. As a member of the senior management team, he has played a key role in the growth of the organisations he has been involved with. A seasoned professional and Qualified Cost Accountant Mr. Shukla started his career with Abbot India Limited, a company where he gained deep insight into the pharmaceutical industry.

Col ( Retd ) Ashish Kumar Basu

( Head Admin and HR )

A competent professional with 26 years of extensive experience of working in The Indian Army handling HR Management, General Administration, Training and Development, Training Development and project management. Extensive experience in managing operations of large armed groups with demonstrated leadership qualities and organizational skills during the tenure. An enterprising leader with the ability to motivate personnel towards achieving organisational objectives and adhering to industry best practices. Col Retd AK Basu has successfully built and led strong teams across various geographies and has considerable knowledge and functional expertise in core areas of Human Resource Strategy, Leadership Development, Talent Management and HR operations.

Dr. Praful Mathur

Ph.D ( NPL, Delhi), Fellow CSIR ( Head R and D APIs )

Dr. Prafull Mathur has over 12 years of extensive experience in Process Development of API’s, Medicinal Chemistry, Drug Discovery, Pre-clinical and Clinical Development of New Chemical Entities, Development of Generic Drugs, comprising a wide range of technologydriven synthesis of advance pharmaceutical intermediates and development of noninfringing, commercially viable and complex technologies for a wide range of Active Pharmaceutical Ingredients. He also has good understanding of emerging technologies in API like Asymmetric synthesis, Biocatalysts, Reaction Calorimeter and Peptides. He is well-versed with Global Regulatory, Intellectual Property, Clinical Pharmacology and Pharmacokinetics units, Compliance and Quality requirements. With a Ph. D in Synthetic Organic Chemistry from NPL and Fellow at CSIR, Dr. Mathur has been a prominent speaker at various national and international scientific forums. He also represents the Company at various academic and research institutions in India. He is the reviewer of many international journals and the recipient of prestigious Endeavor Research Fellowships, Australia for Postdoctoral Research 2007. He has 12 publications in reputed journals and patents to his credit.

Dr. Bhanu Pandey

(President – Business Development)

Dr Bhanu Pandey has over 28 years of experience in the pharmaceutical industry, spanning generic and innovator companies. An Alumnus of PFUR – Russia , he has worked extensively in multicultural global business leadership roles in many countries, including , across wide-ranging domains such as business revitalisation; change management; inlicensing/ out-licensing of technologies and products; the creation and implementation of

long term strategies. A seasoned professional, he is adept at managing large business teams across key functions of Marketing, Business Development and Corporate Strategy Mr. Pandey has been associated with the Pharmaceutical Industry as member of Indo American Chamber of Commerce and Indo Africa Chamber of Commerce.

Mr Suhas Pise

(Head Global Pharma Manufacturing and Supply Chain)

Mr. Pise is a seasoned professional with over three decades of experience in the Pharmaceutical industry. Prior to joining Aanjaneya, he worked in different capacities and leadership roles in reputed pharma companies where he had a successful tenure with oversight of the Company's formulation technical operations and Supply Chain.Mr. Pise joined Aanjaneya in 2006 and is presently heading the Company’s Global Pharma Manufacturing and Supply Chain functions. He is a Post graduate in Commerce from Mumbai University, and holds PG diploma in Computer Systems and Management

Mrs Indira Surendran

(Corporate RA)

Mrs. Surendran brings with herself 25 years of rich global experience in Quality Assurance, Quality Control, pharmaceutical quality systems and GXP compliance management. She has managed quality and compliance systems for oral solid dosage, sterile products and biologic dosage forms, for both finished products and active pharmaceutical ingredients (API). Mrs. Surendran has domain expertise in both US and European Union quality systems and GXP compliance management standards and her career includes working with multinational pharmaceutical companies

Mr Anil Kumar Singh

(Head QA – Formulations)

Mr Singh has 15 years of experience in Quality Management and Regulatory compliance in Pharmaceutical industry, both in Indian top companies and MNCs Experienced Quality and Regulatory Professional having vast exposure in QA,QC, Validations, Training, Compliance, RA Successfully implemented Regulatory Compliance Audits, Establishing and Harmonising the systems and processes. Proven ability to lead, influence and motivate colleagues and external partners; Ability to work both independently and within a team structure. Lead and deploy Quality/Regulatory compliance, Effective GxP compliance at plant level (GMP, GLP etc)

Mr Rashmin Virkud

(Head Manufacturing – APIs)

Mr Virkud is a Chemical Engineer with 25 years of exposure in greenfield Projects execution of API/Bulk drug units; Manufacturing; Factory operation Management. He has handled Technology transfer, process excellence, Pilot Plant management, Scale-up and cost reduction techniques for new and existing molecules respectively. A firm believer in growing with the Company, his expertise include cost reduction techniques in the Production costs of bulk drugs; other modifications aiming at Yield and productivity improvement ( close to theory ) and time cycle reduction; Review of reaction dilution to aid bigger batch sizes ; Optimisation of costly raw material input; Solvent recycling; optimising water consumption etc.

Mr Pradeep Sarode

(Head Manufacturing – Formulations)

Mr. Sarode has nearly three decades of experience in the global Pharmaceutical Industry. Prior to joining Aanjaneya, he worked with reputed organisations including Emcure and Prophyla Biologicals P Limited . Mr. Sarode has domain expertise in manufacturing operations of various sterile and non sterile dosage forms in pivotal roles, which include Technology Transfer, Engineering and Facilities - Projects, Contract Manufacturing, Environment, Health and Safety.

CS Yogesh Patel

(Company Secretary and Compliance Officer)

Mr. Yogesh Patel, aged 24 years, is the Company Secretary and Compliance Officer of their Company. He is a qualified Company Secretary from the Institute of Company Secretaries of India. He holds a Bachelors Degree in Commerce from the University of Mumbai and is currently pursuing LL.B. from the University of Mumbai. He has independently and efficiently handled compliance(s) with various provisions of Companies Act, SEBI Regulations, Takeover Code and Listing Agreement and worked in listed companies earlier before joining the Company. Presently he is responsible for secretarial and compliance matters of their Company

Year in Retrospect

The Company’s Sales increased by 50% from Rs. 3202.598 Millions in the previous year to Rs. 4799.638 Millions in the current year.

EBITDA increased by 52% from Rs.708.425 Millions in the previous year to Rs.1077.617 Millions in the current year.

Net Profit After Tax increased by 14% from Rs. 360.128 Millions in the previous year to Rs. 410.286 Millions in the current year.

Debt equity ratio improved from 1.03 in the previous year to 0.85 in the current year.

Total outside Liability to Net Worth improved from 1.19 in the previous year to 1.05 in the current year.

Current Ratio improved from 1.81 in the previous year to 1.43 in the current year.

Business Outlook

Under challenging conditions the Company has stood up well. Them recognised that them need to step up to the plate, build and cement their relationships with customers and were reassured that their customers were supportive of their efforts to enhance their deliverables. Them are particularly satisfied when their team responded as a unit to proactively become a learning organisation, improve the quality management systems and processes. Aanjaneya has set itself a goal to become a zero-defect company in the foreseeable future. This to their mind was the most reassuring aspect of their journey into maturing as a leading player in the industry. . Many changes stemmed from looking inward at their execution capabilities and examining their service deliveries, and in particular the due date performance. Supply chain initiatives reduced the lead time for delivery from receipt of orders, which in turn lowered the inventory and ultimately made significant improvement in customer relationships. Them were on a learning mode and examined processes, costs, yields and productivity. Them invested in underlining quality in whatever them do.

Today, Aanjaneya is respected by its customers for their large infrastructure for both APIs and formulations. They also recognise their ability to develop new products and regulatory expertise. They see their potential and appreciate their confidence to compete with the best in the business. They see a large base of competencies and believe that them are capable of becoming a partner of choice, a preferred supplier and a capable collaborator who works for mutual benefit.

Dollar-rupee parity is creating an opposite impact on their financials. A stronger dollar adds to their income and cash. This conundrum needs to be addressed. Them shall aggressively drive up the revenues, pare costs, enhance

productivity, improve the business mix, lower the gearing and take several other actions to improve the profit after tax. Them shall strive to make Aanjaneya the Company of choice for all their stakeholders.

Excellence Awards

In recognition of excellence in Corporate Governance, the following awards have been conferred on the Company:

India’s Most Valuable Company in Corporate Governance, Ethical Practice and Sustainability Vision at 3^rd Annual India Leadership Conclave and Indian Affairs Leadership Awards 2012

The European Award for Best Corporate Governance Practices 2012 in Gold Category by European Society for Quality Research at Amsterdam

Environment and Safety Outlook

At Aanjaneya, operating profitably is as important as safeguarding the ecological basis of life and achieving a balance. The cornerstone of sustainable business development in the long-term includes the competitive creation of value in manufacturing as well as preservation of natural resources in a responsible and human-friendly work environment. The Company has pursued forward looking environmental policies involving foresighted and prudent use of available natural resources in its operations.

The product portfolio is comprised of products manufactured from safe raw materials with high utilization and low wastage. There is considerable effort made to recycle materials and save water, energy and fuels.

To create a more secure work environment for their employees, a few concrete steps were initiated to proactively identify process safety issues and resolve them, including the following:

Process risk analysis in API units;

Re-HAZOP of all processes in API units;

Activity-based risk assessment for non-process activities (warehouse, engineering, QC) in both API and

formulation units;

Devise specific handling procedures for hazardous chemicals with training on those procedures;

Process safety testing: determination of thermal conductivity of all powders and flammability of powders which are not conductive;

Review of layouts and PandID for new projects before finalisation. Presently, the following steps have been initiated to improve their review and auditing process:

Examination of processes involving hazardous raw materials and critical chemistry by senior management;

Inter plant safety audits - where safety personnel from one unit audits another unit

Monthly review of EHS along with the operations team;

Appointment of a world-class consultant to evaluate the safety management system and give directions to bring about a cultural and attitude change towards safety;

Creation of departmental safety committees to ensure participation of employees in lower cadre in safety communication and propagation;

EHS alert system, in which significant EHS incidents and mlearning from those are shared across all units of

Aanjaneya.

Improving their environmental performance and raising awareness of their commitment is a key element of their value chain. Them believe higher standards in providing safety, ensuring protection, reducing wastage; minimizing consumption of natural resources and caring for the future are all as much good economics as they are in adding to their sustainable growth. Better relations with the customers and society and earning their trust should ultimately reflect in the balance.

STATEMENT OF STANDALONE UNAUDITED FINANCIAL RESULTS FOR THE YEAR ENDED 30^th JUNE, 2012

(Rs. in Millions)

SR. NO	Particulars	Quarter Ended 30.06.2012 Unaudited
1	a) Net Sales / Income from Operations (Excluding Branch Transfer) fNet of Excise Dutv)	1747.496
	b) Other Operating Income
	Total Income from operations (net)	1747.496
2	Expenses
	a. Cost of Material Consumed	1348.783
	b. Purchase of Traded Goods	0.454
	c. Changes in inventories of finished goods, work-in-progress and stock -in-trade	(15.541)
	d. Employee benefits expense	19541
	e. Depreciation and Amortisation expense	47.465
	f. Other Expenses	29.728
	Total Expenses	1430.429
3 •1	Profit / (Loss) from Operations before other income, finanace costs and exceptional items (1-2)	317.067
	Other Income	61.457
5	Profit / (Loss) from ordinary activities before finance costs and exceptional Items (3 ± 4)	378.524
6	Finance Costs	98.289
7	Profit / (Loss) from ordinary activities after finance costs but before exceptional Items (5 ± 6)	280.235
8	Exceptional Items - Expenditure / (Income)
9	Profit / (Loss) from Ordinary Activities before tax (7 - 8)	280.235
10	Tax Expense	90.922
11	Net Profit / (Loss) from Ordinary Activities after tax (9 ± 10)	189.313
12	Extraordinary items (Net of Tax expense Rs. Nil)
13	Net Profit / (Loss) for the period (11 ± 121	189.313
14	Share of Profit / (Loss) of associates *
15	Share of Minority Interest *
16	Net Profit/(Loss) after taxes, minority iinterest and share of Profit/fLoss) of associates for the period fl3+14+15) *	189.313
17	Paid-up Eouitv Share Capital (Face Value Rs. 10/- each)	138.872
18	Reserves Excluding Revaluation Reserves as per Balance Sheet of previous accounting vear	3359.141
19	Earning Per Share (before extraordinary items - not annualised) Basic & Diluted	15.83
20	Earning Per Share (after extraordinary items - not annualised) Basic & Diluted	15.88
	PART - 2
SR. NO.	Particulars	Quarter Ended 30.06.2012 Unaudited
A	PARTICULARS OF SHAREHOLDING
1	Public Share Holding
	- Number of Shares	6,612,718
	- Percentage of Shareholding	47.62%
2	Promoter and Promoter Group Shareholding
	al Pledged / Encumbered,
	- Number of Shares	3.816,000
	- Percentage of Shareholding (as a % of the total shareholding of promoter and promoter group)	52.46%
	- Percentage of Shares (as a % of total share capital of the Companvl	27.48%
	b) Non - Pledged / Encumbered
	- Number of Shares	3.458,433
	- Percentage of Shares (as a % of total shareholding of promoter and promoters group)	47.54%
	- Percentage of Shares (as a % of total share capital of the Company)	24.90%
	PARTICULARS	Quarter Ended 30.06.2012
B	INVESTOR COMPLAINTS
1	PENDING AT THE BEGINNING OF THE QUARTER	Nil
2	RECEIVED DURING THE YEAR	Nil
3	DISPOSED OF DURING THE QUARTER	Nil
4	REMAINING UNRESOLVED AT THE END OF THE QUARTER	Nil

NOTE:

1. The Above Results were reviewed by the Audit Committee and approved by the Board of Directors at their Meeting held on 13th August, 2012

2. The statutory Auditors have carried out Limited review of the un-audited financial results of the company for the said quarter.

3. The Company has only one reportable segment i..e. Pharmaceutical.

4. Previous Quarters/Years figures have been regrouped/ rearranged wherever considered necessary

FIXED ASSETS:

· Land

· Factory Building

· Plant and Machinery

· Lab Equipments

· Air Conditioners

· Furniture and Fixtures

· Computers

· Office Equipments

· Motor Car

· Software

CMT REPORT (Corruption, Money Laundering & Terrorism]

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

1] INFORMATION ON DESIGNATED PARTY

No 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 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.53.63
UK Pound	1	Rs.86.18
Euro	1	Rs.69.75

INFORMATION DETAILS

Report Prepared by :

MRI

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	7
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	7
--PROFITABILIRY	1~10	7
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	6
--RESERVES	1~10	7
--CREDIT LINES	1~10	6
--MARGINS	-5~5
DEMERIT POINTS
--BANK CHARGES	YES /NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		58

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.