MIRA INFORM REPORT

Report Date :

03.01.2013

IDENTIFICATION DETAILS

Name :	MARKSANS PHARMA LIMITED (w.e.f. 08.11.2005)
Formerly Known As :	TASC PHARMACEUTICALS LIMITED
Registered Office :	11^th Floor, Lotus Business Park, Off New Link Road, Andheri (West), Mumbai – 400053, Maharashtra
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	16.04.1992
Com. Reg. No.:	11-66364
Capital Investment / Paid-up Capital :	Rs.502.807 Millions
CIN No.: [Company Identification No.]	L24110MH1992PLC066364
TAN No.: [Tax Deduction & Collection Account No.]	MUMT09972E
PAN No.: [Permanent Account No.]	AAACT3153G
Legal Form :	A Public Limited Liability Company. The Company’s Shares are Listed on The Stock Exchanges.
Line of Business :	Manufacturer of Marketing Formulations.
No. of Employees :	200 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

C

RATING		STATUS	PROPOSED CREDIT LINE
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended

Status :	Sick Company
Payment Behaviour :	--
Litigation :	--
Comments :	With reference to BIFR (Board For Industrial Financial Reconstruction). The company has been declared as a sick company. There appear huge accumulated losses recorded by the company. The networth of the company is completely eroded. The company can be considered for business dealings on a fully safe and secured trade terms and conditions.

NOTES :

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

ECGC Country Risk Classification List – June 30, 2012

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

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 PARTED BY

Name :	Mr. Jitendra
Designation :	Manager
Contact No.:	91-22-40012000

LOCATIONS

Registered Office:	11^th Floor, Lotus Business Park, Off New Link Road, Andheri (West), Mumbai – 400053, Maharashtra, India
Tel No.:	91-22-40012000 (30 lines)
Fax No.:	91-22-40012099 / 40012011
E-Mail :	info@marksanspharma.com hitesh@marksanspharma.com harshavardhan@marksanspharma.com
Website :	www.marksanspharma.com
Location :	Owned
	API Division Tel : 91-22-4001-20-00 (30 lines) Fax : 91-22-40012099, 40012011 Email : info@marksanspharma.com Formulations – Domestic Tel : 91-22-4001-20-00 (30 lines) Fax : 91-22-40012099, 40012011 Email : info@marksanspharma.com Formulations – International Tel : 91-22-4001-20-00 (30 lines) Fax : 91-22-40012099, 40012011 Email : info@marksanspharma.com
Branch Office :	F-89/13, 2^nd Floor, Okhla Industrial Area, Phase 1, New Delhi – 110020, India
Factory :	Ø L – 82 and 83, Verna Industrial Estate, Verna, Goa , 403722, India Tel : 91-832-2782017, 2782512, 2782678 Fax : 91-832-2782071 Location : Owned Ø D-10, Kurkumbh M.I.D.C., Tal. Daund, District Pune-413105, Maharashtra, India Tel : 91-2117-235266, 235267 Fax : 91-2117-235264 Ø A-88, Kurkumbh M.I.D.C., Tal. Daund, District Pune-413105, Maharashtra, India Tel : 91-2117-235338 Fax : 91-2117-235339 Ø Bell, Sons and Company (Druggists) Limited, Gifford House, Slaidburn Crescent, Southport, Merseyside. PR9 9AL

DIRECTORS

AS ON 31.03.2012

Name :	Mr. Mark Saldanha
Designation :	Chairman and Managing Director
Qualification :	B.S.C.
Name :	Mr. Mahesh B Parikh
Designation :	Director
Name :	Mr. Ajay S. Joshi
Designation :	Director
Name :	Mr. B.S. Desai
Designation :	Director
Qualification :	P.H.D.
Name :	Mr. S.R. Buddharaju
Designation :	Director

KEY EXECUTIVES

Name :	Mr. Harshavardhan Panigrahi
Designation :	Company Secretary and Leal Manager
Name :	Mr. Jitendra
Designation :	Manager

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 14.12.2012

Category of Shareholder	Total No. of Shares	Total Shareholding as a % of Total No. of Shares
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	195483090	50.73
Sub Total	195483090	50.73
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	195483090	50.73
(B) Public Shareholding
(1) Institutions
Financial Institutions / Banks	10000	0.00
Foreign Institutional Investors	1110507	0.29
Sub Total	1120507	0.29
(2) Non-Institutions
Bodies Corporate	32245977	8.37
Individuals
Individual shareholders holding nominal share capital up to Rs.0.100 Million	114641024	29.75
Individual shareholders holding nominal share capital in excess of Rs.0.100 Million	26103340	6.77
Any Others (Specify)	15713266	4.08
Clearing Members	1020802	0.26
Non Resident Indians	2907363	0.75
Overseas Corporate Bodies	11765101	3.05
Trusts	20000	0.01
Sub Total	188703607	48.97
Total Public shareholding (B)	189824114	49.27
Total (A)+(B)	385307204	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)	385307204	0.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Marketing Formulations.

Products :

Item Code No. (ITC Code)	29419003
Product Description	Ciprofloxacin

Item Code No. (ITC Code)	29420006
Product Description	Ranitidine

Item Code No. (ITC Code)	30045090
Product Description	Soft Gel Capsule

PRODUCTION STATUS (AS ON: 31.03.2011)

Particulars	31.03.2011
Installed Capacity	1140.00 TPA
Actual Production	74.059 TPA

Particulars	Installed Capacity	Actual Production
Tablets / Hard Gel	25200	16952
Soft Gel Capsules	6000	443

NOTE: Licensed capacity is not mentioned since the same is not applicable.

GENERAL INFORMATION

No. of Employees :

200 (Approximately)

Bankers :

v State Bank of India

v Bank of India, Andheri (West), Mumbai, Maharashtra, India

v Corporation Bank, Andheri, Mumbai, Maharashtra, India

v IDBI Bank, Andheri, Mumbai, Maharashtra, India

v Lakshmi Vilas Bank Limited, Andheri, Mumbai, Maharashtra, India

Facilities :

Secured Loan	As on 31.03.2012 [Rs. in Millions]	As on 31.03.2011 [Rs. in Millions]
Term Loan From Banks	151.453	189.694
Vehicle Loan	0.561	0.355
Working Capital Facilities From Banks [Working capital facilities are secured by Hypothecation of stock of raw material, packing material, finished goods, work-in progress, receivables and equitable mortgage on fixed assets of manufacturing facility of Goa plants, present and future.]	771.834	843.330
TOTAL	923.848	1033.379

Banking Relations :	--
Auditors :
Name :	N.K. Mittal and Associates Chartered Accountants
Legal Advisors :	Crawford Bayley and Company
Subsidiaries :	1. Nova Pharmaceuticals Australia Pty Limited 2. Marksans Pharma (UK) Limited a) Relonchem Limited b) Marksans Holdings Limited Bells Sons and Co. (Druggists) Limited

CAPITAL STRUCTURE

AS ON 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
550000000	Equity Shares	Re.1/- each	Rs.550.000 Millions
1400000	7% Redeemable Cumulative Preference Shares	Rs.100/- each	Rs.140.000 Millions
	Total		Rs.690.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
367807204	Equity Shares	Re.1/- each	Rs.367.807 Millions
1350000	7% Redeemable Cumulative Preference Shares	Rs.100/- each	Rs.135.000 Millions
	Total		Rs.502.807 Millions

NOTE:

Terms/rights attached to Equity Shares

The Company has only one class of Equity Shares having a par value of Re. 1/- per share. All the Equity Shares rank pari passu in all respect. Each holder of Equity Shares is entitled to one vote per share. The equity share holders are entitled to dividend, if declared by the shareholders in an Annual General Meeting, in proportion to the number of Equity Shares held by the shareholders. In the event of liquidation of the Company, the holders of Equity Shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of Equity Shares held by the shareholders.

Terms/rights attached to Preference Shares

The Company has issued 1,350,000 7% Redeemable Cumulative Preference Shares of Rs. 100/- each fully paid-up to Glenmark Pharmaceuticals Limited on 27 March, 2008. These preference shares carry dividend at the rate of 7% per annum subject to approval of the shareholders at an Annual General Meeting. These preference shares will be redeemed at par on 27th March, 2013. The holder of the preference shares is entitled to one vote per share only on resolutions placed before the Company which directly affect the rights attached to the preference shares. In the event of liquidation of the Company before redemption of the preference shares, the holder of the preference shares will have priority over equity shares in the payment of dividend and repayment of capital.

The company has not issued bonus shares and shares for consideration other than cash nor the company has bought back any shares during the period of five years immediately preceding the reporting date.

Details of shareholders holding more than 5% shares in the Company

Name of Shareholder	As on 31.03.2012
	No. of Shares	% of Holding
Equity Shares of Re. 1/- each fully paid Mr. Mark Saldanha	177982910	48.39
7% Redeemable Cumulative Preference Shares of Rs. 100/- each fully paid Glenmark Pharmaceuticals Limited	1350000	100.00

Pursuant to the special Resolution passed by the share holders at the Annual General Meeting held on 29th September, 2011, the Board of Directors of the company at its meeting held on 25th October, 2011 allotted 17,500,000 warrants to Mr. Mark Saldanha, Promoter of the company at a price of Rs. 2.56 per warrant on preferential basis and received Rs. 11.565 Millions being 25.81% upfront price. Mr. Mark Saldanha is entitled to apply for allotment of one fully paid up equity share of Re. 1/- each against each warrant at any time after the date of allotment but on or before expiry of 18 months from the date of allotment.

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		502.807	502.807	502.805
2] Share Application Money		0.000	0.000	0.000
3] Money Received Against Share Warrants		11.565	0.000	0.000
4] Reserves & Surplus		0.000	0.000	1253.652
5] (Accumulated Losses)		(2395.158)	(924.195)	0.000
NETWORTH		(1880.786)	(421.388)	1756.457
LOAN FUNDS
1] Secured Loans		923.848	1033.379	1759.367
2] Unsecured Loans		0.000	0.000	1769.596
TOTAL BORROWING		923.848	1033.379	3528.963
DEFERRED TAX LIABILITIES		125.869	149.614	115.000
TOTAL		(831.069)	761.605	5400.420
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		766.568	1849.006	2941.424
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		235.146	676.164	776.164
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	402.470	400.125	830.601
	Sundry Debtors	741.894	721.745	672.016
	Cash & Bank Balances	175.850	262.378	206.302
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	137.348	157.851	325.126
Total Current Assets		1457.562	1542.099	2034.045
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	294.785	299.773	352.414
	Other Current Liabilities	2944.348	2985.057	0.000
	Provisions	51.212	20.965	0.850
Total Current Liabilities		3290.345	3305.795	353.264
Net Current Assets		(1832.783)	(1763.696)	1680.781
MISCELLANEOUS EXPENSES		0.000	0.131	2.051
TOTAL		(831.069)	761.605	5400.420

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	1545.912	1546.977	1995.621
		Other Income	19.540	16.864	16.037
		TOTAL (A)	1565.452	1563.841	2011.658
Less	EXPENSES
		Cost of materials consumed	605.010	435.185
		Purchases of Stock-in-Trade	169.258	637.643
		Changes in inventories of finished goods, work-in-progress and Stock-in-Trade	103.316	0.355	1759.217
		Employee benefits expense	135.489	113.768
		Other expenses	1710.590	1163.511
		Miscellaneous Expenditure Written Off	0.131	1.921
		TOTAL (B)	2723.794	2352.383	1759.217
Less	PROFIT / (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		(1158.342)	(788.542)	252.441
Less	FINANCIAL EXPENSES (D)		490.876	392.279	147.783
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		(1649.218)	(1180.821)	104.658
Less/ Add	DEPRECIATION/ AMORTISATION (F)		179.812	146.439	98.391
	PROFIT / (LOSS) BEFORE TAX (E-F) (G)		(1829.030)	(1327.260)	6.267
Less	TAX (H)		(18.368)	850.632	3.369
	PROFIT / (LOSS) AFTER TAX (G-H) (I)		(1810.662)	(2177.892)	2.898
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		NA	650.573	647.675
	BALANCE CARRIED TO THE B/S		NA	(1527.319)	650.573
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	843.828	843.828	719.066
	IMPORTS
		Raw Materials	210.995	89.196	152.189
		Capital Goods	2.137	0.000	0.000
	TOTAL IMPORTS		213.132	89.196	152.189
	Earnings / (Loss) Per Share (Rs.)
	Basic		(4.92)	(5.92)	--
	Diluted		(4.70)	(5.92)	--

QUARTERLY RESULTS

PARTICULARS	30.06.2012	30.09.2012
Type	1^st Quarter	2^nd Quarter
Net Sales	382.330	502.880
Total Expenditure	533.820	314.480
PBIDT (Excl OI)	(151.490)	188.400
Other Income	0.000	0.000
Operating Profit	(151.490)	188.400
Interest	24.330	22.610
Exceptional Items	0.000	0.000
PBDT	(175.820)	165.790
Depreciation	21.460	21.810
Profit Before Tax	(197.280)	143.980
Profit After Tax	(197.280)	143.980
Other Adjustments	0.000	0.000
Net Profit	(197.280)	143.980

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	(115.66)	(139.27)	0.14
Net Profit Margin (PBT/Sales)	(%)	(118.31)	(85.80)	0.31
Return on Total Assets (PBT/Total Assets}	(%)	(82.23)	(39.14)	0.12
Return on Investment (ROI) (PBT/Networth)		0.97	3.15	0.00
Debt Equity Ratio (Total Liability/Networth)		(2.24)	(10.30)	0.20
Current Ratio (Current Asset/Current Liability)		0.44	0.47	5.75

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	Check List by Info Agents	Available in Report (Yes / No)
1]	Year of Establishment	Yes
2]	Locality of the firm	Yes
3]	Constitutions of the firm	Yes
4]	Premises details	No
5]	Type of Business	Yes
6]	Line of Business	Yes
7]	Promoter's background	No
8]	No. of employees	Yes
9]	Name of person contacted	Yes
10]	Designation of contact person	Yes
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	No
31]	PAN of Proprietor/Partner/Director, if available	No
32]	Date of Birth 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

BACKGROUND:

Subject together with its subsidiaries and associates; operate as an integrated international pharmaceutical organization with business encompassing the entire value change in and distribution of pharmaceutical products. The company’s equity shares are listed for trading on the National Stock Exchange and the Bombay Stock Exchange in India. As per the audited Balance Sheet as at 31st March, 2011, the Company’s Net Worth had been completely eroded. Therefore, as required under Section 15 (1) of the Sick Industrial Companies (Special Provisions) Act, 1985, the company has made a reference to the Board for Industrial and Financial Reconstruction (BIFR) for measures to be determined with respect to the company. Accordingly, the company is registered with the BIFR.

OPERATIONS:

During the year ended 31st March, 2012, total turnover achieved by the company was Rs. 1545.913 Millions as compared to previous year of Rs. 1546.977 Millions. Though during the year, the sales from formulation business have increased, the comparison with previous year is showing a negligible decrease of Rs. 1.064 Million. This is because previous year’s turnover also includes sales of the erstwhile API division which was sold during the previous year. This year’s turnover consists of formulation business only. The year has registered a net loss of Rs. 1810.662 Millions as compared to net loss of Rs. 1375.724 Millions in the previous year. This is mainly due to the charging of the diminution in the value of investment and impairment of assets during the year.

MANAGEMENT DISCUSSION AND ANALYSIS

INDUSTRY STRUCTURE AND DEVELOPMENT

GLOBAL PHARMACEUTICAL MARKET

The pharmaceutical market worldwide, after experiencing a slump during the last couple of years, is now in its recovery path, although very slow. Decline in global pharma market was largely due to the economic slowdown, and further aggravated by patent expiry of key blockbusters together with saturation in key pharma markets, such as the US and Western Europe. Meanwhile, pharma markets in some developing regions, like Asia and Latin America have been continuously witnessing robust growth rate for the last few years on account of increasing prevalence of diseases, rising healthcare spending, and increasing affordability. Overall, these markets will enjoy good growth potential in coming years.

The global pharma industry is projected to grow at a CAGR of around 5% in the coming years. The growth will be

driven by low cost factor, increasing prevalence of diseases worldwide, and rising per capita income of consumers. Sales of generic drugs will emerge as the most prominent segment of the pharma market during the coming period, indicating large opportunities for generics manufacturers. The pharma industry is growing at a rapid rate in emerging countries, such as India, China, Brazil, Russia, among others, while a slowdown is still looming in the US and Western European countries. Recent structural changes in the global pharmaceutical industry has led to outsourcing being a key strategy for improving profitability for innovator companies. These include a) declining productivity, b) rising costs of R&D, c) looming patent cliff, d) increasing genericization of products coupled with weaker pipelines of innovator companies, e) fewer blockbuster launches, and f) delays in new product approvals.

Major decisive factors for pharmaceutical companies to adopt outsourcing include flexibility, quicker time-to-market and lower scale-up costs in order to meet increasing demand for new drugs and focus on core competencies. Outsourcing also helps in the reduction of excess capacity in their manufacturing networks and restructure supply chains.

GLOBAL OUTSOURCING MARKET:

• Global outsourcing market reported a slowdown in growth driven by factors such as inventory rationalization by global innovators, reduced R&D spending etc., triggered by the recent economic crisis.

• However, over the medium to long-term, this market is likely to grow at a CAGR of about 20-25 percent, backed by strong fundamental drivers such as a) increased outsourcing by big pharmaceutical companies; and b) increased traction in the new and high-end service contracts.

US GENERIC MARKET:

• There is continued penetration of generics in the US market due to steeply escalating healthcare costs and the impending patent cliff. Large number of patented drugs are going off-patent in the next few years, thereby offering significant opportunities for Indian pharmaceutical players.

THE US GENERIC MARKET PRESENTS THE FOLLOWING ADVANTAGES FOR THE INDIAN GENERICS PLAYERS:

• Approval from US FDA can open up a large USD 35bn market;

• The market is easier to penetrate as it is dominated by ‘generic generics’ compared to branded-generic markets in the emerging world;

• Distribution chain already in place and hence large upfront investments in sales and marketing infrastructure are not required; and

• The gestation period is shorter, as there is no need to build relationships with physicians.

• The US market accounts for approximately 40 percent of the global generics market and therefore offers a large scope for scaling up operations.

INDIAN PHARMACEUTICAL MARKET:

Globally India ranks third in term of manufacturing pharmaceutical products in volume. The Indian pharmaceutical industry is expected to grow at around 9.5%. The increasing population of the higher income group, competent and skilled workforce, lower production cost, R & D cost and clinical trial expenses in the country will open a vast market for multinational companies selling costly drugs and making India a lucrative destination for clinical trials for global giants. This will also pave the way for new drug discovery research. The Indian pharmaceutical industry has been the front runner in a wide range of specialties involving complex drug manufacture, development and technology.

GROWTH OF INDIAN PHARMACEUTICALS MARKET IS EXPECTED TO BE INFLUENCED BY:

• Lower production cost, R and D cost and Clinical trial expenses compared to rest of the world.

• Rapid increase in disposable income and number of middle class households.

• Expansion of medical infrastructure largely through private investments.

• Greater penetration of health insurance.

• Rising prevalence of chronic disease. Increased urbanisation and rapidly changing lifestyles in urban and semi-urban areas are expected to see increased incidences of chronic diseases which are expected to provide thrust to specialty and super-specialty therapies.

• Adoption of product patents as patent infrastructure scales up to enable up to 30 approvals annually and an average approval timeframe of two years.

• Aggressive market penetration as several smaller players have surfaced across the country who are catering to mass therapies.

• Solid legal framework and strong financial market.

OUTLOOK

Despite the aforesaid threats, risks and concerns, the Management looks forward to a satisfactory performance in the coming years in the light of the opportunities available with more focus on the formulation business which are expected to grow in the years to come. The following key factors will drive the Company forward:

1. Global presence – Export Oriented Unit

2. Low cost manufacturing base

3. World class manufacturing facilities with huge capacities approved by major global health authorities

4. Own front ends into UK/Europe and Australia

5. Tie up with big pharmaceutical companies

6. Strong R and D, Dossier development capabilities

7. Preferred outsourcing partner

FIXED ASSETS

• Land
• Building
• Plant and Machinery
• Computer and Software
• Office Equipments
• Furniture and Fixtures
• Vehicles

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.54.39
UK Pound	1	Rs.88.75
Euro	1	Rs.72.19

INFORMATION DETAILS

Report Prepared by :

TPT

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.