MIRA INFORM REPORT

Report Date :

15.04.2013

IDENTIFICATION DETAILS

Name :	NECTAR LIFE SCIENCES LIMITED
Formerly Known As :	SURYA MEDICARE LIMITED
Registered Office :	Village Saidpura, Tehsil Dera Bassi, District Patiala – 140507, Punjab
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	27.06.1995
Com. Reg. No.:	16-016664
Capital Investment / Paid-up Capital :	Rs.224.260 Millions
CIN No.: [Company Identification No.]	L24232PB1995PLC016664
TAN No.: [Tax Deduction & Collection Account No.]	PTLS10181D
PAN No.: [Permanent Account No.]	AABCS6468G
Legal Form :	A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges.
Line of Business :	Manufacturer of Medicines like Ampicillin, Trihydrate, S. Sterilite, Amoxycillin.
No. of Employees :	1700 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (54)

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Maximum Credit Limit :	USD 31300000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is an established company having a fine track record. Financial position of the company appears to be sound. Directors are reported to be experienced, respectable businessmen. Trade relations are reported as decent. Payments are reported to be regular and as per commitment. The company can be considered good for business dealings at usual trade terms and condition.

NOTES :

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

ECGC Country Risk Classification List – 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	FITCH
Rating	A- (Long Term Rating)
Rating Explanation	High credit quality and capacity for payment of financial commitment is considered strong.
Date	March 22, 2012

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.

INFORMATION DENIED

Management Non Co-Operative (91-172-3047701)

LOCATIONS

Registered Office :	Village Saidpura, Tehsil Dera Bassi, District Patiala - 140507, Punjab India
Tel. No.:	91-1762-308000/ 308001/ 231187/ 231287/ 231387
Fax No.:	91-1762-281187
E-Mail :	sales@suryamed.com sunderlal@neclife.com
Website :	http://www.suryamed.com http://www.neclife.com
Location :	Owned
Head Office :	No.1596, Bhaigrath Place, Chandni Chowk, Delhi – 110048, India
E-Mail :	91-11-23866341/ 23869202-03
Fax No.:	91-11-23866341
Corporate Office :	SCO 38-39, Sector 9-D, Chandigarh – 160009 (U.T.), India
Tel. No.:	91-172-3047777/ 3047701
Fax No.:	91-172-3047755
Factory :	110, Industrial Area, Phase-I, Chandigarh - 160002, India
Tel. No.:	91-172-2658317/ 2655166/ 2655438/ 2655775
Fax No.:	91-172-2655377
E-Mail :	sales@suryamed.com sales@neclife.com
Area :	2500 sq.yds.
Location :	Owned
Factory :	Unit I Village: Saidpura, Tehsil: Derabassi, District Mohali, Punjab, India Unit II Village: Saidpura, Tehsil: Derabassi, District Mohali, Punjab, India Empty Hard Gelatin Capsule Unit Village Bhatoli Kalan, Pargana Dharmpur, Tehsil Nalagarh, District Solan, Himachal Pradesh, India Formulation Unit Village Bhatoli Kalan, Pargana Dharmpur, Tehsil Nalagarh, District Solan, Himachal Pradesh, India Narbada Industries Plot No. 2, Lane No. 4, Phase II, SIDCO Industrial Complex, Bari Brahmana, Jammu, Jammu and Kashmir, India
Branches :	Located at : Indore Delhi
Administrative Office :	48/1 Dickmans Road, Colombo 4, Sri Lanka
E-Mail:	chempharma@neclife.com
Marketing Office :	D – 708, Crysral Plaza, Office New Link Road, Opposite Infinitti Mall, Andheri (w), Mumbai – 400053, Maharashtra, India
Tel. No.:	91-22-32060171
Fax No.:	91-22-26736793

DIRECTORS

As on: 31.03.2012

Name :	Mr. Sanjiv Goyal
Designation :	Chairman and Managing Director
Name :	Mr. Aryan Goyal
Designation :	Executive Director
Name :	Mr. Saurabh Goyal
Designation :	Executive Director
Name :	Mr. Vivek Seth
Designation :	Director
Name :	Mr. Vijay J Shah
Designation :	Independent Director
Name :	Mr. Basant Kumar Goswami
Designation :	Independent Director
Name :	Dr. (Maj. Gen.) S. S. Chauhan, VSM
Designation :	Independent Director
Name :	Mr. Raman Kapur
Designation :	Independent Director
Name :	Mr. Ajay Swaroop
Designation :	Independent Director

KEY EXECUTIVES

Name :	Mr. Sandeep Goel
Designation :	Vice President (Finance)
Name :	Mr. R. K. Aggarwal
Designation :	Vice President (Accounts)
Name :	Mr. Sunder Lal
Designation :	Vice President and Company Secretary

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on: 31.03.2013

Category of Shareholders	No. of Shares	Percentage of Holding
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	99468000	55.80
Sub Total	99468000	55.80
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	99468000	55.80
(B) Public Shareholding
(1) Institutions
Insurance Companies	4431505	2.49
Foreign Institutional Investors	2333721	1.31
Any Others (Specify)	26000000	14.59
Foreign Companies	26000000	14.59
Sub Total	32765226	18.38
(2) Non-Institutions
Bodies Corporate	19591356	10.99
Individuals
Individual shareholders holding nominal share capital up to Rs. 0.100 Million	20076415	11.26
Individual shareholders holding nominal share capital in excess of Rs. 0.100 Million	4034170	2.26
Any Others (Specify)	2325803	1.30
Non Resident Indians	2183354	1.22
Clearing Members	105374	0.06
Trusts	37075	0.02
Sub Total	46027744	25.82
Total Public shareholding (B)	78792970	44.20
Total (A)+(B)	178260970	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	46000000	0.00
Sub Total	46000000	0.00
Total (A)+(B)+(C)	224260970	0.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Medicines like Ampicillin, Trihydrate, S. Sterilite, Amoxycillin.

PRODUCTION STATUS (As on: 31.03.2011)

Particulars	Unit	Installed Capacity	Actual Production
Bulk Drug and Sterile	MTS	1800.00	1086.82
Job Work Executed	MTS	--	18.78
Phytochemicals – Menthol	MTS	7600.00	1958.80
EH Gelatin Capsules	Nos	2880.00	2970.33*
Formulations	Nos	345.00	115.00

* Actual Production exceeds installed capacity due to change in product mix.

Note:

(i) In terms of press note no. 4 (1994 series) dated October 25, 1994 issued by the department of Industrial Development, Ministry of Industry, Government of India, Industrial licensing has been abolished in respect of bulk drugs and formulations.

(ii) Installed Capacities are as certified by Management and have not been verified by the auditors being a technical matter.

GENERAL INFORMATION

No. of Employees :

1700 (Approximately)

Bankers :

· Punjab National Bank, Sector 16D, Chandigarh, India

· State Bank of India, Specialised Commercial Branch, Sector 17B, Chandigarh, India

· Vijaya Bank, Barakhamba Road, New Delhi, India

· Exim Bank, Mumbai, Maharashtra, India

· HSBC, Barakhamba Road, New Delhi, India

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2012	As on 31.03.2011
Term Loans
From Banks	3629.300	2336.030
Working Capital Limits
From Banks	5452.110	3300.100
Total	9081.410	5636.130

Notes:

I. Term Loans from various banks are secured by way of First Pari Passu Charge on all the fixed assets of the Company and further secured by way of Second Pari Passu Charge on all the current assets of the Company and personal guarantee of directors namely Sanjiv Goyal and Aryan Goyal.

Repayment Schedule of Term Loans

Year of Repayment	Rs. In Millions
1-2	1606.000
2-5	2023.310
>5	Nil

Other Loans comprise of Vehicle Loans which are secured against hypothecation of respective vehicles.

Repayment Schedule of Vehicle Loans

Year of Repayment	Rs. In Millions
1-2	3.430
2-5	3.440
>5	Nil

Banking Relations :	--
Auditors :
Name :	Datta Singla and Company Chartered Accountants
Address :	SCO 2935-36, 1st Floor, Sector 22-C, Chandigarh, India
Entities over which key management personnel/their relatives are able to exercise significant influence :	· Surya Narrow Fabrics · Nectar Lifestyle Limited · Nectar Organics Limited
Subsidiary Companies :	· Chempharma Private Limited · Nectar Capital Limited · Nectar Lifesciences UK Limited

CAPITAL STRUCTURE

As on: 31.03.2012

Authorised Capital :

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

Issued, Subscribed & Paid-up Capital :

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

DETAIL OF SHAREHOLDERS HOLDING MORE THAN 5 % SHARES

Particulars	As at 31st March,2012
	Number of shares held	Percentage of shares held
Mr. Sanjiv Goyal	76779000	34.24
NSR Direct PE Mauritius,LLC	26000000	11.59
Mrs. Raman Goyal	21584000	9.62
Depository of GDRs	46000000	20.51

Note:

Since, the equity shares underlying GDRs held by Deutsche Bank Trust Company Americas being depository of GDRs, hence disclosed per se.

Reconciliation of the number of shares outstanding:

Particulars	As at 31st March, 2012
Equity shares at the beginning of the year	224260970
Add: Shares issued during the year	Nil
Equity shares at the end of the year	224260970

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		224.260	224.260	224.260
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		7621.200	6987.570	5985.520
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		7845.460	7211.830	6209.780
LOAN FUNDS
1] Secured Loans		9081.410	5636.130	4510.150
2] Unsecured Loans		206.870	7.390	1498.780
TOTAL BORROWING		9288.280	5643.520	6008.930
DEFERRED TAX LIABILITIES		630.220	508.060	501.860
TOTAL		17763.960	13363.410	12720.570
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		8578.710	7362.590	6272.600
Capital work-in-progress		1501.340	824.170	555.130
INVESTMENT		1.910	53.830	256.930
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	5914.160	4708.850	3963.540
	Sundry Debtors	3044.930	3111.280	2224.550
	Cash & Bank Balances	259.250	325.750	305.170
	Other Current Assets	226.710	220.760	264.660
	Loans & Advances	1682.260	1518.980	964.400
Total Current Assets		11127.310	9885.620	7722.320
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	1944.910	1398.210	1345.160
	Other Current Liabilities	1318.000	2470.310	91.980
	Provisions	182.400	894.280	649.630
Total Current Liabilities		3445.310	4762.800	2086.770
Net Current Assets		7682.000	5122.820	5635.550
MISCELLANEOUS EXPENSES		0.000	0.000	0.360
TOTAL		17763.960	13363.410	12720.570

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	13032.880	10554.480	8457.990
		Operating Income	98.180	66.140	189.530
		Other Income	128.940	134.570
		TOTAL (A)	13260.000	10755.190	8647.520
Less	EXPENSES
		Raw Material Consumed	9906.050	7103.980
		Purchase of Stock in Trade (Traded Goods)	630.270	829.970
		Changes in inventories of Finished Goods, Stock-in-Process and Stock in Trade	(1346.690)	(823.240)
		Employee Benefits Expense	476.590	371.680
		Other Expenses	1101.880	869.360
		TOTAL (B)	10768.100	8351.750	6507.600
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		2491.900	2403.440	2139.920
Less	FINANCIAL EXPENSES (D)		1029.950	740.840	602.840
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		1461.950	1662.600	1537.080
Less/ Add	DEPRECIATION/ AMORTISATION (F)		607.290	461.030	387.460
	PROFIT BEFORE TAX (E-F) (G)		854.660	1201.570	1149.620
Less	TAX (H)		122.160	162.380	229.880
	PROFIT AFTER TAX (G-H) (I)		732.500	1039.190	919.740
	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		--	--	2345.440
	APPROPRIATIONS
		Final Dividend	22.430	22.430	0.000
		Tax on Dividend	3.640	3.640	0.000
		Transfer to General Reserve	0.000	0.000	100.000
		Interim Dividend	0.000	0.000	38.070
		Tax on Interim Dividend	0.000	0.000	6.470
	BALANCE CARRIED TO THE B/S		706.430	1013.120	3120.640
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	6548.390	3678.400	3245.180
	TOTAL EARNINGS		6548.390	3678.400	3245.180
	IMPORTS
		Raw Materials	2735.720	4738.950	3187.140
		Capital Goods, Stores & Spares	34.620	58.210	43.990
	TOTAL IMPORTS		2770.340	4797.160	3231.130
	Earnings Per Share (Rs.)		3.27	4.63	5.81

QUARTERLY RESULTS

PARTICULARS	30.06.2012 1^st Quarter	30.09.2012 2^nd Quarter	31.12.2012 3^rd Quarter
	UnAudited	UnAudited	UnAudited
Net Sales	3941.700	4952.700	3690.700
Total Expenditure	3337.900	4242.800	2971.200
PBIDT (Excl OI)	603.800	709.900	719.500
Other Income	41.200	41.300	41.300
Operating Profit	645.000	751.200	760.800
Interest	249.300	276.800	281.700
Exceptional Items	0.000	0.000	0.000
PBDT	395.700	474.400	479.100
Depreciation	179.300	192.000	192.200
Profit Before Tax	216.500	282.500	286.800
Tax	56.200	57.000	72.400
Provisions and contingencies	0.000	0.000	0.000
Profit After Tax	160.300	225.500	214.500
Extraordinary Items	0.000	0.000	0.000
Prior Period Expenses	0.000	0.000	0.000
Other Adjustments	0.000	0.000	0.000
Net Profit	160.300	225.500	214.500

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	5.52	9.66	10.63
Net Profit Margin (PBT/Sales)	(%)	6.56	11.38	13.59
Return on Total Assets (PBT/Total Assets}	(%)	4.34	6.97	8.21
Return on Investment (ROI) (PBT/Networth)		0.11	0.17	0.18
Debt Equity Ratio (Total Debt/Networth)		1.18	0.78	0.97
Current Ratio (Current Asset/Current Liability)		3.23	2.08	3.70

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	No
8]	No. of employees	--
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	No
32]	PAN of Proprietor/Partner/Director, if available	--
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	Yes

UNSECURED LOAN

(Rs. In Millions)

Particular	As on 31.03.2012	As on 31.03.2011
Other Loans
From Banks	3.990	3.100
From Others	2.880	4.290
Short Term Loans
From Banks	200.000	0.000
Total	206.870	7.390

OPERATIONS

During the Year:

Sales and other income are up by 20.13%. Profit before interest and depreciation is up by 3.68%. Profit after tax has decreased due to high interest cost.

MANAGEMENT DISCUSSION AND ANALYSIS

GLOBAL PHARMA

Spending on medicines which was estimated at $856 billion in 2010, is expected to reach nearly $1,100 billion in 2015, reflecting a growth rate of three-six per cent over the five year period. This growth will be driven by following factors:

Patent expiries: Share of patented brands which accounted for nearly 70 per cent of global pharmaceutical spending in 2010 are expected to decline to 53 per cent in 2015, on account of patent expiries, mainly in the developed markets.

New wave of drug budget controls among brands in developed markets: 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 coming years.

Rapid shift towards Pharmerging markets: A distinct shift is also expected in the market shares across the globe, with the US share of global spending estimated to be declining from 41 per cent in 2005 to 31 per cent in 2015, along with the share of spending from Europe estimated to be declining from 27 per cent to 19 per cent over the same period. Meanwhile, 17 high growth emerging markets (pharmerging) including China, India, Brazil, Russia and Mexico estimated to contribute 28 per cent of total spending by 2015, up from only 12 per cent in 2005.

Innovative products: In 2011, the introduction and uptake of new drugs are poised to provide new treatment options 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.

INDIAN PHARMA AND HEALTHCARE

India's pharmaceutical industry is now the third largest in the world in terms of volume and stands 14th in terms of value. According to the Department of Pharmaceuticals, Ministry of Chemicals and Fertilizers, the total turnover of India's pharmaceuticals industry between September 2008 and September 2009 was US$ 21.04 billion. Of this the domestic market was worth US$ 12.26 billion.

The Indian pharmaceuticals market was estimated at about US$ 24.8 billion in 2010 and is expected to reach US$ 55 billion in 2020. The market has the further potential to reach US$ 70 billion by 2020 in an aggressive growth scenario. India has benefited from a rising middle-class population, improvements in medical infrastructure and the establishment of intellectual property rights.

According to IMS Health, the top five therapy classes of Indian Pharmaceutical market are:

· Angioten-II Antag

· Human insulin and analogs

· Cephalosporins

· Anti-ulcerants

· Oral antidiabetics

Generics

The global generics market is estimated at about $ 225 billion in 2011. By 2016, it is expected that the value of the total global generics sector will have risen to $ 358billion, representing more than 18% of all pharmaceuticals, a projected compound annual growth rate (CAGR) of 9.7% between 2011 and 2016. The North American market is estimated to reach nearly $ 73 billon in 2011 and is expected to increase at a 7.9% compound annual growth rate to reach nearly $107 billion in 2016. Emerging market represents the second largest market category for generic drugs with the expected sale of $ 57 billion in 2011. This should reach nearly $ 115 billion in 2016 for a CAGR of 15.1% India tops the world in exporting generic medicines worth US$ 11 billion and currently, the India pharmaceutical industry in one of the world's largest and most developed. Moreover, the Indian generic drug market to grow at a CAGR of around 17 per cent between 2010-11 and 2012-13

India's strong competitive advantage

Indian pharma sector has emerged as a key destination for global pharma companies due to its high growth prospects and conducive regulatory environment. Big Pharma companies are passing through a phase of declining growth rates in developed markets. They also have fewer new products in the pipeline. To counter these pressures on revenues and products, and also to reorient their business models towards investing more in R and D, outsourcing is happening in a big way. Indian companies are cost effective and reliable suppliers to global companies. Other factors contributing to growth of Indian pharma are:

· Increasing per capita income

· Increasing investments by big MNCs

· Lifestyle related disorders

· Government initiatives

The Union government is in the process of setting up a 20-billion-rupee venture capital fund to support drug discovery. The Government of India's expenditure on Healthcare has increased over the last four years and it plans to cover 45% of population by 2020.

OPPURTUNITIES AND OUTLOOK

The company expects a positive outlook for the next year. NLL is expecting to continue its strategic entry in US market with a number of ANDA filings for its Cephalosporins range during 2012-13.

The U.S. is the single largest generics market, estimated at US$ 30 billion (about 34% of global generic market), regardless of the intense competition and pricing pressure.

NLL intends to make a strategic entry into EU countries like France, Germany, UK, Italy, Spain, Poland and Hungary during 2012-13. Europe forms the world's 2nd largest generic market, estimated at about US$ 25.5 billion backed by Govt reforms to curb healthcare cost and increased demand from ageing population.

Japanese generic market was valued at about US$ 7.4 billion in 2010. With a view to reducing burgeoning healthcare costs and tackling rising cases of life-threatening diseases, the Japanese government is taking various measures to increase the adoption of generic drugs among people in the country. The Japanese generic drugs market, evolving to become the world's next generic hub, offers a wide range of opportunities to both domestic and international players. The patent expiry of a large number of branded drugs and active pharmaceutical ingredients are the major attractions for companies willing to enter the market. It is one of the most lucrative destinations for pharma player mainly because of the rapidly ageing population and increasing incidence of western lifestyle diseases. NLL expects future value growth from this market for Cephalosporin products along with other regulated markets such as US and EU.

NLL also expects continued momentum from its domestic and export markets. Next few years will see NLLs ability to discover new markets and new opportunities gaining an invaluable advantage over competitors.

CONTINGENT LIABILITIES

(Rs. In Millions)

Particulars	31.03.2012	31.03.2011
Claims not acknowledged as debts:- ** -Income Tax matters -Excise matters -Service Tax matters	5.970 4.160 13.350	26.590 -- --
Bank Guarantees	26.840	4.500
Bills Discounted	583.780	39.950
Letter of Credit (Foreign / Inland)	560.000	482.400
Other money for which Company is contingently liable a) Differential amount of custom duty in respect of machinery imported under EPCG Scheme	1.800	38.080

Note:

** The matters are subject to legal proceedings in the ordinary course of business. The legal proceedings, when ultimately concluded will not, in the opinion of management, have a material effect on the results of operation or financial position of the company.

FIXED ASSETS:

· Freehold Land and Site Development

· Leasehold Land

· Buildings

· Tube Well

· Plant and Machinery

· Plant and Machinery (R and D)

· Boiler

· Pollution Control Equipment

· Laboratory

· Miscellaneous Fixed Assets

· Furniture and Fixture

· Motor Vehicles

· Computer

Part I - Statement of Unaudited Financial Results for the Quarter and Nine Months ended 31.12.2012

(Rs. In Millions)

S. No	PARTICULARS	Quarter ended	Quarter ended	9 Months ended
		31.12.2012	30.09.2012	31.12.2012
		Unaudited	Unaudited	Unaudited
1.	Income from Operations
	(a) Gross Sales	3809.564	5058.252	12909.137
	Less : Excise Duty	120.710	110.849	337.380
	Net Sales	3688.854	4947.403	12571.757
	(b) Other Operating Income	1.885	5.277	13.347
	Total Income from Operations (net)	3690.739	4952.680	12585.104
2.	Expenses
	(a) Cost of Materials consumed	3012.156	3694.047	9132.865
	(b) Purchase of Stock in Trade	84.534	99.062	533.582
	(c) Changes in inventories of finished goods, work-in-progress and stock-in-trade	(604.124)	(33.198)	(489.221)
	(d) Employee benefits expense	113.720	114.993	336.219
	(e) Depreciation and amortisation expense	192.239	191.959	563.458
	(f) Other expenses	364.936	367.850	1038.416
	Total Expenses	3163.461	4434.713	11115.319
3.	Profit from Operations before Other Income, finance costs and exceptional Items (1-2)	527.278	517.967	1469.785
4.	Other Income	41.272	41.271	123.742
5.	Profit before finance costs and exceptional Items (3+4)	568.550	559.238	1593.527
6.	Finance costs	281.741	276.791	807.809
7.	Profit after finance costs but before exceptional Items (5-6)	286.809	282.447	785.718
8.	Exceptional Items	0.000	0.000	0.000
9.	Profit from ordinary activities before tax (7+8)	286.809	282.447	785.718
10.	Tax Expense	72.346	56.953	185.484
11.	Net Profit from ordinary activities after tax (9-10)	214.463	225.494	600.234
12.	Extraordinary Item (net of tax expense)	0.000	0.000	0.000
13.	Net Profit for the period (11-12)	214.463	225.494	600.234
14.	Paid up Equity Share Capital (Face Value per share : Re.1/-)	224.261	224.261	224.261
15.	Reserves excluding Revaluation Reserves	-	-	-
16.i	Earnings per Share (EPS) (before extraordinary items)
	a) Basic	0.96	1.01	2.68
	b) Diluted	1110.96	1.01	2.68
16.ii	Earnings per Share (EPS) (after extraordinary items)
	a) Basic	0.96	1.01	2.68
	b) Diluted	0.96	1.01	2.68
Part II Select Information for the Quarter and Nine month ended 31.12.2012
A	Particulars of shareholding
1.	Public Shareholding
	- Number of Shares	124792970	124792970	124792970
	- Percentage of Shareholding	55.65	55.65	55.65
2.	Promoters and Promoter Group Shareholding a) Pledged/Encumbered - Number of Shares - Percentage of Shares ( as a % of the total shareholding of promoter and promoter group) - Percentage of Shares ( as a % of the total share capital of the company b) Non-encumbered	- - -	- - -	- - -
	- Number of Shares	99468000	99468000	99468000
	- Percentage of Shares ( as a % of the total shareholding of promoter and promoter group)	100.00	100.00	100.00
	- Percentage of Shares ( as a % of the total share capital of the company	44.35	44.35	44.35
B	Investor Complaints	3 Months Ended 31.12.2012
	Pending at the beginning of Quarter	-
	Received During the Quarter	8
	Disposed Off During the Quarter	8
	Pending at the end of Quarter	-

Notes:

1 The above financial results were reviewed by Audit Committee on 13.02.2013 and approved by the Board in its meeting held on further limited reviewed by the Statutory Auditors of the Company.

2 The company is exclusively in the pharmaceutical business segment.

3 Previous year figures have been regrouped and reclassified wherever necessary to make them comparable with current period.

4 The above financial results are on standalone basis.

AS PER WEBSITE DETAILS

Press Release

CELLCAP INVOFIN SELLS 12 LAKH SHARES OF NECTAR LIFESCIENCES

March 23, 2013, 11.15 AM IST

On March 22, 2013 Cellcap Invofin India Private Limited sold 1200000 shares of Nectar Lifesciences at Rs 16 on the BSE. However, Yash Shares and Stock Private Limited bought 1573732 shares at Rs 16.

On Friday, Nectar Lifesciences closed at Rs 15.60, down Rs 0.15, or 0.95%. It has touched an intraday high of Rs 16.25 and an intraday low of Rs 15.25.

The share touched its 52-week high Rs 25.95 and 52-week low Rs 15.05 on 23 April, 2012 and 12 March, 2013, respectively. Currently, it is trading 39.88% below its 52-week high and 3.65% above its 52-week low. Market capitalisation stands at Rs 3498.500 Millions.

The company's trailing 12-month (TTM) EPS was at Rs 4.54 per share. (Dec, 2012). The stock's price-to-earnings (P/E) ratio was 3.44. The latest book value of the company is Rs 34.98 per share. At current value, the price-to-book value of the company was 0.45. The dividend yield of the company was 0.64%.

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.54.44
UK Pound	1	Rs.83.78
Euro	1	Rs.71.33

INFORMATION DETAILS

Information Gathered by :	NYN
Report Prepared by :	VRN

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	7
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	7
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	6
--RESERVES	1~10	6
--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	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		54

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.