MIRA INFORM REPORT

Report Date :

25.07.2013

IDENTIFICATION DETAILS

Name :	NATURAL CAPSULES LIMITED
Registered Office :	No. 102, Shreshta Bhumib, No. 87, V K Iyenkar, K R Road, Bangalore 560004, Karnataka
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	20.09.1993
Com. Reg. No.:	08-014742
Capital Investment / Paid-up Capital :	Rs.45.027 Millions
CIN No.: [Company Identification No.]	L85110KA1993PLC014742
TAN No.: [Tax Deduction & Collection Account No.]	BLRN00437D
Legal Form :	A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges.
Line of Business :	Manufacturer of Hard Gelatin Capsule Shells, Hard Cellulose Shells and Pharmaceutical Dosages Forms in Capsule dosage Form.
No. of Employees :	About 300 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (52)

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

Maximum Credit Limit :	USD 1240000
Status :	Satisfactory
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well established company having a satisfactory track record. The company has seen a better growth in its sales turnover as well as net profitability during 2013. Financial and liquidity position appears to be strong and healthy. Trade relations are fair. Business is active. Payment terms are reported as regular. The company can be considered good for business dealings at usual trade terms and conditions.

NOTES :

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

ECGC Country Risk Classification List – March 31^st, 2013

Country Name	Previous Rating (31.12.2012)	Current Rating (31.03.2013)
India	A1	A1

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

EXTERNAL AGENCY RATING

Rating Agency Name	ICRA
Rating	Term loans: BBB
Rating Explanation	Moderate degree of safety and moderate credit risk.
Date	March 2013

Rating Agency Name	ICRA
Rating	Non fund based facility: A3+
Rating Explanation	Moderate degree of safety and higher credit risk.
Date	March 2013

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 Office :	No. 102, Shreshta Bhumib, No. 87, V K Iyenkar, K R Road, Bangalore-560004, Karnataka, India
Tel. No.:	91-80-26671571 / 2667 1573 / 26671581
Fax No.:	91-80-26671562
E-Mail :	info@naturlacapsules.com
Website :	www.naturalcapsules.com
Factory 1 :	Plot No.7A2, KIADB Industrial area, Attibele, Bangalore-562107, Karnataka, India
Factory 2 :	RS No.84, Perambai Road, Pitchaiveerampet, Pondicherry-652010, India

DIRECTORS

As on 26.07.2012

Name :

Mr. Sunil Laxminarayana Mundra

Designation :

Managing Director

Address :

Manjari 8/23, 10 Cross, Basappa Layout, Gavipuram Extn, Bangalore – 560019, Karnataka, India

Date of Birth/Age :

30.11.1964

Date of Appointment :

01.06.2011

DIN No.:

00214304

Other Directorship:

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	L85110KA1993PLC014742	NATURAL CAPSULES LIMITED	Managing director	01/06/2011	20/09/1993	-	Active	NO
2	U72102KA1994PTC015254	TAJOS INVESTMENTS PRIVATE LIMITED	Director	22/02/1994	22/02/1994	-	Active	NO

Name :

Mr. Laxminarayan Mundra

Designation :

Whole-time Director

Address :

Manjari 8/23, 10 Cross, Basappa Layout, Gavipuram Extn, Bangalore – 560019, Karnataka, India

Date of Birth/Age :

01.06.1943

Date of Appointment :

01.06.2011

DIN No.:

00214298

Other Directorship:

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	L85110KA1993PLC014742	NATURAL CAPSULES LIMITED	Whole-time director	01/06/2011	20/09/1993	-	Active	NO
2	U72102KA1994PTC015254	TAJOS INVESTMENTS PRIVATE LIMITED	Director	22/02/1994	22/02/1994	-	Active	NO

Name :

Mr. Satyanarayan Mundra

Designation :

Whole-time Director

Address :

Manjari 8/23, 10 Cross, Basappa Layout, Gavipuram Extn, Bangalore – 560019, Karnataka, India

Date of Birth/Age :

22.04.1952

Date of Appointment :

01.06.2011

DIN No.:

00214349

Other Directorship:

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U25204KA1985PTC007068	NANDI SYNTHETICS PRIVATE LIMITED	Director	12/08/1985	12/08/1985	-	Active	NO
2	L85110KA1993PLC014742	NATURAL CAPSULES LIMITED	Whole-time director	01/06/2011	20/09/1993	-	Active	NO

Name :

Mr. Srirangam Gopalan

Designation :

Director

Address :

No. 3, 2 Main Road, Jaganath Pura, Ualagheri, Chennai – 600042, Tamilnadu, India

Date of Birth/Age :

16.08.1934

Date of Appointment :

269.06.1994

DIN No.:

00287219

Name :

Mr. Sushil Kumar Mundra

Designation :

Director

Address :

Manjari 10 Cross, 3 Main Gavipuram Mew Extn, Bangalore – 560019, Karnataka, India

Date of Birth/Age :

03.12.1969

Date of Appointment :

20.09.1993

DIN No.:

00214332

Other Directorship:

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	L85110KA1993PLC014742	NATURAL CAPSULES LIMITED	Director	20/09/1993	20/09/1993	-	Active	NO
2	U25204KA1985PTC007068	NANDI SYNTHETICS PRIVATE LIMITED	Director	08/03/1994	08/03/1994	-	Active	NO
3	U24232KA2010PTC053898	MANAN HEALTHCARE PRIVATE LIMITED	Director	30/05/2012	30/05/2012	-	Active	NO

Name :

Mr. Chikkana Yakanahalo Muddulingaiah Gurumurthy

Designation :

Director

Address :

No. 317, 6^th Main, Hal II, Stage 1, No. 1 Ranagar, Bangalore – 560038, Karnataka, India

Date of Birth/Age :

30.06.1933

Date of Appointment :

29.06.1994

DIN No.:

00287294

Name :

Mr. Venkatram Subramony

Designation :

Director

Address :

56, 6 Main, 5^th Block, Jayanagar, Bangalore, Karnataka, India

Date of Birth/Age :

11.06.1934

Date of Appointment :

29.06.1994

DIN No.:

00287344

Other Directorship:

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U24231KA1981PTC004260	REMIDEX PHARMA PRIVATE LIMITED	Director	01/04/1994	01/04/1994	-	Active	NO
2	L85110KA1993PLC014742	NATURAL CAPSULES LIMITED	Director	29/06/1994	29/06/1994	18/05/2013	Active	NO

Name :

Mr. Cattancoletore Padmanabhan Rangachar

Designation :

Director

Address :

Aranga No. 900, IB Cross Park Road, Bangalore – 560038, Karnataka, India

Date of Birth/Age :

23.07.1942

Date of Appointment :

29.06.1994

DIN No.:

00310893

Other Directorship:

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U25209TN1967PLC005475	POLYENE FILM INDUSTRIES LIMITED	Director	08/03/1968	08/03/1968	-	Active	NO
2	U25200TN1973PTC006331	POLYENE GENERAL INDUSTRIES PRIVATE LIMITED	Director	29/03/1973	29/03/1973	-	Active	NO
3	L29150KA1976PLC003017	YUKEN INDIA LIMITED	Managing director	01/05/2010	01/05/1978	-	Active	NO
4	U67120KA1991PTC011723	BENEFIC INVESTMENT AND FINANCE COMPANY PRIVATE LIMITED	Director	01/03/1991	01/03/1991	-	Active	NO
5	L85110KA1993PLC014742	NATURAL CAPSULES LIMITED	Director	29/06/1994	29/06/1994	-	Active	NO
6	U29120KA1989FLC010358	SAI INDIA LIMITED	Director	27/09/1999	27/09/1999	-	Active	NO
7	U29120TN2002PTC048619	YUFLOW ENGINEERING PRIVATE LIMITED	Director	15/03/2002	15/03/2002	-	Active	NO
8	U74140KA2007PTC042384	BOURTON CONSULTING (INDIA) PRIVATE LIMITED	Director	30/09/2010	04/04/2007	-	Active	NO
9	U29119KA2007PLC043340	KOLBEN HYDRAULICS LIMITED.	Director	10/07/2007	10/07/2007	01/09/2008	Active	NO
10	U29119KA2007PTC043485	HYCOM ENGINEERING (INDIA) Private LIMITED.	Director	27/07/2007	27/07/2007	12/03/2009	Active	NO
11	L32209KA1988PLC009313	ADC INDIA COMMUNICATIONS LIMITED	Director	11/02/2011	22/01/2010	08/08/2012	Active	NO
12	U73100KA2011PTC059283	INTERMOT HYDRAULIC MOTORS AND DRIVES INDIA PRIVATE LIMITED	Director	23/06/2011	23/06/2011	11/12/2011	Active	NO
13	U29290MH1973GAP016420	INDIAN MACHINE TOOL MANUFACTURERS ASSOCIATION	Director	29/08/2012	29/08/2012	-	Active	NO
14	U74900KA2012NPL067059	IMTMA MACHINE TOOL INDUSTRY PARK	Director	06/12/2012	06/12/2012	-	Active	NO

Name :

Mr. Balaji Venugopal Bhat

Designation :

Director

Address :

302 Embassy Orchid, 8 Main RMU Extn, Bangalore – 560080, Karnataka, India

Date of Birth/Age :

19.06.1964

Date of Appointment :

29.01.2005

DIN No.:

00052256

Other Directorship:

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	L85110KA1994PLC016663	SUBEX LIMITED	Director	19/04/2000	19/04/2000	18/05/2012	Active	NO
2	U74140TN2000PLC071607	INDUSAGE ADVISORS LIMITED	Director	21/06/2000	21/06/2000	-	Active	NO
3	U32104KA1992PTC012863	APARA ENTERPRISE SOLUTIONS PRIVATE LIMITED	Director	10/01/2001	10/01/2001	08/01/2009	Active	NO
4	L29150KA1976PLC003017	YUKEN INDIA LIMITED	Director	21/06/2003	21/06/2003	-	Active	NO
5	L85110KA1993PLC014742	NATURAL CAPSULES LIMITED	Director	29/01/2005	29/01/2005	-	Active	NO
6	U74140KA2005PLC035905	SUBEX TECHNOLOGIES LIMITED	Director	28/03/2005	28/03/2005	-	Active	NO
7	U18101KA2004PTC033743	K MOHAN AND COMPANY (EXPORTS) PRIVATE LIMITED	Director	27/09/2005	27/09/2005	18/10/2010	Active	NO
8	U18109KA1996PTC019991	PRIMUS BRANDS PRIVATE LIMITED	Director	30/09/2005	30/09/2005	-	Amalgamated	NO
9	U65999KA1995PTC019281	PRIMUS RETAIL PRIVATE LIMITED	Managing director	06/09/2006	30/09/2005	-	Active	NO
10	L17121KA1999PLC025320	INDUS FILA LIMITED	Director	11/04/2006	11/04/2006	-	Active	NO
11	U18101KA1998PLC024274	PERSONALITY LIMITED	Director	30/05/2007	30/05/2007	-	Amalgamated	NO
12	U18109KA2009PTC050049	PRIMUS SPORTS PRIVATE LIMITED	Director	04/06/2009	04/06/2009	-	Amalgamated	NO
13	U18109KA2010PTC055327	WEEKENDER CLOTHING PRIVATE LIMITED	Director	28/09/2010	28/09/2010	-	Strike off	NO

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	2106166	46.78
Any Others (Specify)	3800	0.08
Directors/Promoters & their Relatives & Friends	3800	0.08
Sub Total	2109966	46.86
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	2109966	46.86
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	3700	0.08
Foreign Institutional Investors	300	0.01
Sub Total	4000	0.09
(2) Non-Institutions
Bodies Corporate	637994	14.17
Individuals
Individual shareholders holding nominal share capital up to Rs.0.100 Million	1183956	26.29
Individual shareholders holding nominal share capital in excess of Rs.0.100 Million	447401	9.94
Any Others (Specify)	119383	2.65
Clearing Members	1600	0.04
Hindu Undivided Families	81129	1.80
Non Resident Indians	36654	0.81
Sub Total	2388734	53.05
Total Public shareholding (B)	2392734	53.14
Total (A)+(B)	4502700	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)	4502700	0.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Hard Gelatin Capsule Shells, Hard Cellulose Shells and Pharmaceutical Dosages Forms in Capsule dosage Form.

Products :

PRODUCTION DESCRIPTION	ITEM CODE NO
9602.00	Hard Capsule Shells

• Hard Gelatin Capsule Shells
• Hard Cellulose Capsule Shells
• BSE/TSE Free Gelatin Shells
• Shiny Gelatin Capsule Shells
• SLS Free Gelatin Capsule Shells
• Halal Certified Gelatin Capsule Shells
• Fortified Gelatin Capsule Shells
• Fast Release Gelatin Capsule Shells
• Printed Gelatin/Cellulose Capsule Shells

PRODUCTION STATUS [AS ON 31.03.2011]

Particulars	Unit	Installed Capacity	Actual Production
Capsules	Nos. Lakhs	54000.00	47120.17
Formulation	Nos. Lakhs	2700.00	386.35

GENERAL INFORMATION

No. of Employees :

About 300 (Approximately)

Bankers :

State Bank of India, Specialized Commercial Branch, 1^st Floor, Krishi Bhavan, Hudson Circle, Bangalore-560001, Karnataka, India

Facilities :

Secured Loan	As on 31.03.2012 [Rs. in Millions]	As on 31.03.2011 [Rs. in Millions]
Rupee term loans banks	92.900	63.089
Working capital loans banks		26.564
TOTAL	92.900	89.653

Banking Relations :	--
Auditors :
Name :	Gnanoba and Bhat Chartered Accountants
Address :	45 Annamalai Arcade 1st Cross Wilson Garden Bangalore – 560027, Karnataka, India
PAN N Income-tax PAN of auditor or auditor's firm :	AAAFG5742M

CAPITAL STRUCTURE

AS ON 30.09.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
5000000	Equity Shares	Rs.10/- each	Rs.50.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
4502700	Equity Shares	Rs.10/- each	Rs.45.027 Millions

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		45.000	45.027	45.027
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		267.200	224.295	185.921
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		312.200	269.322	230.948
LOAN FUNDS
1] Secured Loans		92.900	89.653	54.129
2] Unsecured Loans		0.000	0.186	2.709
TOTAL BORROWING		92.900	89.839	56.838
DEFERRED TAX LIABILITIES		0.000	17.861	13.768
TOTAL		405.100	377.022	301.554
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		264.100	234.506	124.476
Capital work-in-progress		36.900	52.672	114.290
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	25.200	18.784	13.609
	Sundry Debtors	138.800	113.949	83.388
	Cash & Bank Balances	2.000	4.829	1.127
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	29.200	77.601	56.077
Total Current Assets		195.200	215.163	154.201
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors		53.665	38.972
	Other Current Liabilities	71.800	6.130	4.189
	Provisions	19.300	65.524	48.252
Total Current Liabilities		91.100	125.319	91.413
Net Current Assets		104.100	89.844	62.788
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		405.100	377.022	301.554

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	437.600	341.381	290.040
		Other Income	8.300	4.015	4.858
		TOTAL (A)	445.900	345.396	294.898
Less	EXPENSES
		Consumption Materials Changes Inventories		134.083	114.784
		Contract Cost	328.200	47.965	40.254
		Employee Related Expenses		30.443	23.325
		Administrative Selling and Other Expenses		39.718	34.794
		TOTAL (B)	328.200	252.209	213.157
Less	PROFIT / (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		117.700	93.187	81.741
Less	FINANCIAL EXPENSES (D)		13.500	8.075	3.054
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		104.200	85.112	78.687
Less/ Add	DEPRECIATION/ AMORTISATION (F)		27.000	18.733	14.587
	PROFIT / (LOSS) BEFORE TAX (E-F) (G)		77.200	66.379	64.100
Less	TAX (H)		24.300	21.704	21.444
	PROFIT / (LOSS) AFTER TAX (G-H) (I)		52.900	44.675	42.656
	IMPORTS
		Lab Equipments and Spare Parts	NA	4.997	2.988
		Excipients	NA	0.140	0.115
	TOTAL IMPORTS		NA	5.137	3.103
	Earnings / (Loss) Per Share (Rs.)		11.26	9.92	9.47

QUARTERLY RESULTS

Particulars	30.06.2012 (1^st Quarter)	30.09.2012 (2^nd Quarter)	31.12.2012 (3^rd Quarter)	31.03.2013 (4^th Quarter)
Audited / UnAudited
Net Sales	119.500	136.800	142.700	135.700
Total Expenditure	95.300	104.600	112.700	112.100
PBIDT (Excl OI)	24.300	32.200	30.000	23.600
Other Income	1.200	0.400	2.700	2.900
Operating Profit	25.500	32.600	32.700	26.400
Interest	3.500	3.400	3.300	3.100
Exceptional Items	0.000	0.000	0.000	0.000
PBDT	22.000	29.200	29.400	23.300
Depreciation	7.400	7.600	7.900	8.300
Profit Before Tax	14.600	21.600	21.500	15.000
Tax	3.600	10.200	6.900	(11.000)
Provisions and contingencies	0.000	0.000	0.000	0.000
Profit After Tax	11.000	11.400	14.600	26.000
Extraordinary Items	0.000	0.000	0.000	0.000
Prior Period Expenses	0.000	0.000	0.000	0.000
Other Adjustments	0.000	0.000	0.000	0.000
Net Profit	11.000	11.400	14.600	26.000

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	11.86	12.93	14.46
Net Profit Margin (PBT/Sales)	(%)	17.64	19.44	22.10
Return on Total Assets (PBT/Total Assets}	(%)	16.81	14.76	23.00
Return on Investment (ROI) (PBT/Networth)		0.25	0.25	0.27
Debt Equity Ratio (Total Debt/Networth)		0.30	0.33	0.25
Current Ratio (Current Asset/Current Liability)		2.14	1.72	1.69

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	Yes
8]	No. of employees	No
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	No
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	Yes

UNSECURED LOAN

PARTICULARS	As on 31.03.2012 [Rs. in Millions]	As on 31.03.2011 [Rs. in Millions]
Deferred sales tax loan unsecured	0.000	0.186
TOTAL	0.000	0.186

VIEW INDEX OF CHARGES

.No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	80002092	23/01/2013 *	179,400,000.00	State Bank of India	Specialised Commercial Branch, 1st Floor, Krishi Bhavan, Hudson Circle, Bangalore - 560001, Karnataka, India	B68935352

PERFORMANCE AND PROSPECTS:
 

During the year, the company`s turnover increased by 29% and the company has earned a Net profit (before tax) of Rs. 77.200 Millions as against the corresponding net profit of Rs. 66.400 Millions in the previous year. An amount of Rs. 539 Millions was ploughed back from profits for funding the ongoing expansion at Pondicherry. The exports of the company has remained almost at same level due to difficult situations on international front. Though the sales turnover has increased by 29%, the profit after tax has increased by only 16% mainly due to increase in raw material costs, depreciation, interest, fuel and power costs etc.

FLUCTUATION IN FOREIGN EXCHANGE:
 
The Company has benefited to an extent of Rs. 2.800 Millions owing to foreign exchange fluctuation.

PERFORMANCE CREDIT RATING:
 
The Company has obtained “CRISIL" rating of "SME-1" indicating highest performance capacity and high financial strength for fourth successive year.
 
MANAGEMENT DISCUSSION AND ANALYSIS:

INDUSTRY STRUCTURE AND DEVELOPMENTS:

During the year, in-spite of the difficult situation on the international front, Indian Pharmaceutical Industry has grown by around 12%. However, Pharma exports have grown at a much higher rate than the domestic market. Despite the difficult scenario in many countries and in domestic market the company is hopeful of maintaining the top line growth rate in the coming year.

 
OUTLOOK:
 
Based on the company`s performance up to the date of this report, orders on hand and commissioning of the new machines at Pondicherry, company is hopeful of achieving a turnover of around Rs. 500.000 to 520.000 Million in the current year. However due to steep increase in the input costs, Company may have to face reduction in profitability.

AUDITED FINANCIAL RESULT FOR THE QUARTER AND YEAR ENDED 31ST MARCH 2013

(Rs. In Millions)

SI. no	PARTICULARS	3 Months ended	Preceding 3 Months ended	Current Year ended
		31.03.2013	31.12.2012	31.03.2013
1	Net Sales/Income from operation	135.701	142.672	534.726
2	Other Income	2.845	2.699	7.163
3	Total Income (1+2)	138.546	145.371	541.889
4	Total Expenditure
	a. Increase / (Decrease) in stock in trade	(7.214)	1.602	(10.831)
	b. Consumption of raw materials	59.841	60.173	217.076
	c. Purchase of traded goods	--	-	-
	d. Employee cost	12.463	9.724	38.306
	e. Depreciation	8.262	7.875	31.114
	f. Other Expenditure	47.039	41.195	180.849
	g. Total Expenditure	120.391	120.569	456.514
5	Interest	3.119	3.305	12.343
6	Exceptional items	--	--	0.090
7	Profit (+) / Loss (-) from ordinary Activities before tax (3) - (4+5+6)	15.036	21.497	72.942
8	Tax expense	(10.997)	6.868	9.631
	a. Deferred Tax	(4.303)	0.184	(2.099)
	b. Income Tax (Prior year)	(7.275)	--	(7.275)
	c. Income Tax	0.581	6.684	19.005
9	Net profit (+) / Loss (-) from ordinary Activities after tax (7-8)	26.033	14.629	63.311
10	Extraordinary items (Net of tax expense Rs	--	--	--
11	Net profit (+) / Loss (-) for the period (9-10)	26.033	14.629	63.311
12	Paid up Equity Share Capital (Face value of the Share Rs.10)	45.027	45.027	45.027
13	Reserves excluding revaluation reserve	--	--	322.595
14	Earning per share (not annualised)	5.78	3.25	14.06
15	Public shareholding:
	a. Number of Shares	2392734	2395531	2392734
	b. Percentage of Shareholding	53.14%	53.20%	53.14%
16	Promoter shareholding(Unencumbered)
	a. Number of Shares	1742966	1740169	1742966
	b. Percentage of Shareholding	38.71%	38.65%	38.71%
17	Promoter shareholding(Encumbered)
	a. Number of Shares	367000	367000	367000
	b. Percentage of Shareholding	8.15%	8.15%	8.15%

(Rs. In Millions)

		Quarter Ended		Current Year
	PARTICULARS	31.03.2013	31.12.2012	31.03.2013
1	SEGMENT REVENUE
	Capsules	135.889	141.917	521.536
	Formulation	2.926	3.895	15.864
	Others	0.502	0.653	7.162
	Total	139.387	146.465	544.562
	Less : Inter Segment Revenue	0.841	1.094	2.673
	Net Income from Operation	138.546	145.365	541.889
2	SEGMENT RESULTS
	Profit / (Loss) before depreciation, tax and interest for each segment
	Capsules	25.926	32.037	111.450
	Formulation	0.323	0.421	0.660
	Others	0.168	0.219	4.305
	Total	26.417	32.677	116.415
	Less : I) Depreciation & Amortisation	8.262	7.875	31.130
	ii) Interest	3.119	3.05	12.343
	iii) Other Unallocable expenses inclusive Income Tax	(10.997)	6.868	9.631
	Total Profit after Tax	26.033	14.629	63.311

STATEMENT OF ASSETS AND LIABLETIES

(Rs. In Millions)

SI. no	PARTICULARS	31.03.2013
A	EQUITY AND LIABILITIES
1	SHAREHOLDES FUNDS
	(a) Share Capital	45.027
	(b) Reserves and surplus	322.595
	Sub-total - Shareholder's funds	367.622
2	Non-current Liabilities
	(a) Long Term borrowings	89.982
	(b) Deferred tax liabilities (net)	16.815
	(c) Other long term liabilities /div>	1.484
	(d) Long - Term provisions	4.097
	Sub-total - Non-current Liabilities	112.378
3	Current Liabilities
	(a) Short Term Borrowing	0.292
	(b) Trade payables	46.453
	(c) Other current liabilities	23.339
	(d) Short-term provisions	12.741
	Sub-total - current liabilities	82.825
	TOTAL-EQUITY AND LIABILITIES	562.825
B	ASSETS
1	Non-current assets
	(a) Fixed Assets	292.297
	(b) Capital work-in-progress	28.596
	(c) Long-term loans and advances	10.037
	(d) Other non-current assets	12.849
	Sub-total-Non-current assets	343.779
2	Current Assets
	(a) Current investments	0.000
	(b) Inventories	35.211
	(c) Trade Receivable	171.395
	(d) Cash and bank equivalents	2.886
	(e) Short-term loans and advances	5.854
	(f) Other current assets	3.700
	Sub-total-current assets	219.046
	TOTAL-ASSETS	562.825

Note:

• The above results were reviewed by the Audit committee and approved by the Board of Directors in their meeting held on 25.05.2013.
• Results are based on the basis of limited audit Statutory Auditors.
• Previous year figures have been regrouped wherever necessary. The figure of quarter ended March 31, 2013 and March 31, 2012 are balancing figures between the audited figures in respect of the full financial year and published year to date figures up to the 3rd quarter of the respective financial year
• Capital deployed by the Company for its different segement is interchangeable and hence calculation of capital deployed for segment reporting has not been made.
• No of investors complaints during the quarter : Received - 11, Redressed - 10, Pending - 1
• Board of directors have recomended dividend @ 15% on the equity shares of Rs. 10/- each for the year 2012-13.

FIXED ASSETS:

• Free hold land
• Building
• Plant and Machinery including Electrical Installations
• Computer
• Furniture and Fixture
• Office Equipments
• Motor Vehicles
• Technical know-how-fees
• Land

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.59.69
UK Pound	1	Rs.91.66
Euro	1	Rs.78.69

INFORMATION DETAILS

Report Prepared by :

KVT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	6
--RESERVES	1~10	5
--CREDIT LINES	1~10	5
--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	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		52

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.