MIRA INFORM REPORT

Report Date :

29.06.2013

IDENTIFICATION DETAILS

Name :	CADILA HEALTHCARE LIMITED
Registered Office :	Zydus Tower, Satellite Cross Road, Sarkhej – Gandhinagar Highway, Ahmedabad – 380015, Gujarat
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	15.05.1995
Com. Reg. No.:	04-025878
Capital Investment / Paid-up Capital :	Rs. 1024.000 Millions
CIN No.: [Company Identification No.]	L24230GJ1995PLC025878
TAN No.: [Tax Deduction & Collection Account No.]	AHMC00020G
PAN No.: [Permanent Account No.]	AAACC6253G
Legal Form :	A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges.
Line of Business :	Manufacturer and Seller of Pharmaceuticals, Bulk Drugs, Formulations and Injectibles.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

A (64)

RATING		STATUS	PROPOSED CREDIT LINE
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large

Maximum Credit Limit :	USD 100000000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Exist
Comments :	Subject is a well – established and a reputed company having good track record. Financial position of the company appears to be sound. Directors are reported to be experienced, respectable and resourceful businessmen. Trade relations are fair. Business active. Payments are reported to be regular and as per commitments. The company can be considered good for normal 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	CRISIL
Rating	Long term rating : AA+
Rating Explanation	High degree of safety and very low credit risk.
Date	January 9, 2013

Rating Agency Name	CRISIL
Rating	Short term rating : A1+
Rating Explanation	Strong degree of safety and lowest credit risk.
Date	January 9, 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 / Corporate Office :	Zydus Tower, Satellite Cross Road, Sarkhej – Gandhinagar Highway, Ahmedabad – 380015, Gujarat, India
Tel. No.:	91-79-26770100 (EPBX) (20 Lines)/ 26868100/ 26868235
Fax No.:	91-79-26732365/ 26732366/ 26862365
E-Mail :	info@cadila-zydus.com investor.grievance@zyduscadila.com upen.shah@zyduscadila.com
Website :	www.cadilapharma.com
Factory 1 :	Formulation Unit: Ø S. No.417, 419 and 420, Village Moraiya, Taluka Sanand, District Ahmedabad, Gujarat, India Ø Kundaim Industrial Estate, Ponda – 403401, Goa, India Ø Village Saraj Mujra, P. O.– Baddi, Tehsil – Nalagarh, District – Solan, Himachal Pradesh, India Neutraceutical Plant 5504, GIDC Estate, Phase III, Vatva, Ahmedabad, Gujarat, India SBI Bulk Drug Unit Plot No. 291, GIDC Industrial Estate, Ankleshwar, District Bharuch – 393002, Gujarat, India Tel No. 91-2646-220621/ 220719 Fax No. 91-2646-250672
Zydus Research Center :	S. No. 396/403, Village Moraiya, Taluka Sanand, District Ahmedabad, Gujarat, India
Business Development Office :	203/ 204, Neelkant Commercial Centre, Sahar Road, Andheri (East), Mumbai – 400099, Maharashtra, India
Tel. No.:	91-22-28394690/ 28394698
Branch Office :	Khemka House, Drive-in Road, Ahmedabad - 380052, Gujarat , India
Tel. No.:	91-79-27410861
API Units :	Ø GIDC Estate, Ankleshwar, Gujarat, India Ø Dabhasa, Tal. Padra, District Vadodara, Gujarat, India

DIRECTORS

AS ON 31.03.2012

Name	Mr. Pankaj R. Patel
Designation	Chairman and Managing Director
Name	Mr. Sharvil P. Patel
Designation	Deputy Managing Director
Address	16, Azad Society, Ambawadi, Ahmedabad – 380015, Gujarat, India
Name	Mr. Humayun Dhanrajgiri
Designation	Director
Name	Mr. Mukesh M. Patel
Designation	Director
Name	Mr. Nitin Raojibhai Desai
Designation	Director
Name	Mr. Apurva S. Diwanji
Designation	Director

KEY EXECUTIVES

Name	Mr. Ramanbhai B. Patel
Designation	Founder
Address	16, Azad Society, Ambawadi, Ahmedabad – 380015, Gujarat, India
Name	Mr. Upen H. Shah
Designation	Company Secretary
Name	Mr. Jyotindra B. Gor
Designation	Chief Accounts Officer
Name	Mr. Nitin D Parekh
Designation	Chief Financial Officer

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 31.03.2013

Category of Shareholder	No. of Shares	Percentage of Holding
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	153134446	74.79
Bodies Corporate	3600	0.00
Sub Total	153138046	74.79
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	153138046	74.79
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	12270087	5.99
Financial Institutions / Banks	1572651	0.77
Central Government / State Government(s)	850	0.00
Insurance Companies	9031429	4.41
Foreign Institutional Investors	10959884	5.35
Sub Total	33834901	16.53
(2) Non-Institutions
Bodies Corporate	6671208	3.26
Individuals
Individual shareholders holding nominal share capital up to Rs. 0.100 Million	8898478	4.35
Individual shareholders holding nominal share capital in excess of Rs. 0.100 Million	1746549	0.85
Any Others (Specify)	459338	0.22
NRIs/OCBs	459338	0.22
Sub Total	17775573	8.68
Total Public shareholding (B)	51610474	25.21
Total (A)+(B)	204748520	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)	204748520	0.00

BUSINESS DETAILS

Line of Business :

Manufacturer and Seller of Pharmaceuticals, Bulk Drugs, Formulations and Injectibles.

PRODUCTION STATUS (AS ON 31.03.2011)

Particulars	Unit	Installed Capacity	Actual Production
Tablets	M. L. Nos.	12084	7304
Capsules	M. L. Nos.	1138	916
Injections	K. Ltrs	513	1264
Dry Powder Injections	Kgs	200	5295
Liquids	K. Ltrs	0	485
Dry Syrups, Powder and Granuted	Tonnes	5800	524
Ointments	Tonnes	150	334
Suppositories	M. L. Nos.	8	17
Bulk Drugs	Tonnes	907	633
Lyophised Injections	ML Nos.	19	9
Vaccines	M. L. Dosages	4	2
Aeroslos	M. L. Nos.	3	8
Transdermals	ML.Nos.3	5	0

[#] Includes Inter unit Transfer 124 Tonnes [2009-10 - 121 Tonnes]

Note:

Licensed capacities not stated in view of abolition of Industrial licensing for all of the above class of goods vide Notification No. F.NO. 10[11] / 92 - LP dated 25.10.1994, issued by Government of India.

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

Ø Bank of Baroda

Ø BNP Paribas

Ø Credit Agricole Corporate and Investment Bank

Ø Citibank N. A.

Ø Exim Bank

Ø HDFC Bank Limited

Ø ICICI Bank Limited

Ø IDBI Bank

Ø State Bank of India

Ø Standard Chartered Bank

Facilities :

Secured Loans	31.03.2012	31.03.2011
	(Rs. In Millions)
LONG TERM BORROWINGS
A Debentures [Secured]:
a 8.50% Redeemable, Non Convertible privately placed	500.000	500.000
b 9.70% Redeemable, Non Convertible privately placed	1750.000	0.000
B Term Loans from Banks:
a Term Loan [Secured]	500.000	750.000
b External Commercial Borrowings in Foreign Currency [Secured]	3580.000	3243.000
SHORT TERM BORROWINGS
Loans repayable on Demand:
Working Capital Loans from Banks [Secured] [*]	1162.000	497.000
Total	7492.000	4990.000
Note: SHORT TERM BORROWINGS [*] Working Capital loans which are repayable on demand from Banks are secured by hypothecation of inventories of all types, save and except stores and spares relating to plant and machineries [consumable stores and spares], including goods in transit, bills receivables, book debts and other movables of the Company in the nature of current assets, including documents to title of goods. Interest in the range of 10.75% p.a. to 12.75% p.a. [**] PCFC loan from Banks. It is repayable during May, 2012 to August, 2012. Interest in the range of 95 bps to 165 bps over 6 months USD LIBOR.

Banking Relations :	--
Auditors :
Name :	Mukesh M. Shah and Company Chartered Accountants
Address :	3, H. K. House, Second Floor, Ashram Road, Ahmedabad – 380009, Gujarat, India
Subsidiary Companies/ Concerns:	Ø Dialforhealth India Limited Ø Zydus Pharmaceuticals (USA) Inc. [USA] Ø Dialforhealth Unity Limited Ø Nesher Pharmaceuticals (USA) LLC [USA] [Formerly known as Zynesher Pharmaceuticals (USA) LLC] Ø Dialforhealth Greencross Limited Ø German Remedies Limited Ø Zydus Healthcare (USA) LLC [USA] Ø Zydus Pharmaceuticals Limited Ø Zydus Noveltech Inc. [USA] Ø Zydus Animal Health Limited Ø Zydus Healthcare S.A. (Pty) Limited [South Africa] Ø Zydus Wellness Limited Ø Simayla Pharmaceuticals (Pty) Limited [South Africa] Ø Zydus Wellness-Sikkim, a Partnership Firm Liva Healthcare Limited Ø Script Management Services (Pty) Limited [South Africa] Ø Zydus Nikkho Farmaceutica Ltda. [Brazil] [Formerly known as Zydus Healthcare Brasil Ltda] Ø Zydus Technologies Limited Ø Biochem Pharmaceutical Industries Limited Ø Zydus Pharmaceuticals Mexico SA De CV [Mexico] Ø Finest Procuring Solutions Limited Ø Zydus Pharmaceuticals Mexico Services Company SA De C.V.[Mexico] Ø Zydus Healthcare, a Partnership Firm Zydus International Private Limited [Ireland] Ø ZAHL B.V. [the Netherlands] [Formerly known as RFCL B.V.] Ø Zydus Netherlands B.V. [the Netherlands] Ø ZAHL Europe B.V. [the Netherlands] [Formerly known as RFCL Europe B.V.] Ø Zydus France, SAS [France] Ø Etna Biotech S.R.L. [Italy] Ø Bremer Pharma GmbH [Germany] Ø Zydus Pharma Japan Company Limited [Japan] Ø Zydus Lanka (Private) Limited [Sri Lanka] Ø Laboratorios Combix S.L. [Spain]
Joint Venture :	Ø Zydus BSV Pharma Private Limited Ø Zydus Hospira Oncology Private Limited Ø Zydus Nycomed Healthcare Private Limited Ø Bayer Zydus Pharma Private Limited
Enterprises significantly influenced by Directors and/ or their relatives:	Ø Cadmach Machinery Company Private Limited Ø Western Ahmedabad Effluent Conveyance Company Private Limited Ø Zydus Hospitals and Healthcare Research Private Limited Ø Zydus Hospitals (Vadodra) Private Limited Ø Pripan Investment Private Limited Ø Zydus Hospitals (Rajkot) Private Limited Ø Zest Aviation Private Limited Ø MabS Biotech Private Limited Ø Zandra Infrastructure LLP Ø Zydus Infrastructure Private Limited Ø C. M. C. Machinery Ø Cadila Laboratories Private Limited Ø Cadam Enterprises

CAPITAL STRUCTURE

AS ON 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
220,000,000	Equity Shares	Rs. 5/- each	Rs. 1100.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
204,748,520	Equity Share	Rs. 5/- each	Rs. 1024.000 Millions

Notes:

A The reconciliation of the number of Shares outstanding is as under:	31.03.2012
Particulars
Number of shares at the beginning	204748520
Add: Bonus shares issued during the reporting period	--
Number of shares at the end	204748520
B The Company has only one class of shares i.e. equity shares. All equity shares rank pari passu and carry equal rights with respect to voting and dividend. In the event of liquidation of the Company, the equity shareholders shall be entitled to proportionate share of their holding in the assets remaining after distribution of all preferential amounts.
C Details of Share Holders holding more than 5% of Equity Shares of Rs. 5/- each, fully paid:
Zydus Family Trust
Number of Shares	153107446
% to total share holding	74.78%
D 100,885,305 [as at March 31, 2011: 100,885,305] Equity Shares of Rs. 5/- each, fully paid-up were issued and allotted without payment being received in cash and 90,000,000 [as at March 31, 2011: 90,000,000] Equity Shares of Rs. 5/- each were extinguished during February, 2009 pursuant to Composite Scheme of Arrangement.
E Equity Shares allotted as fully paid bonus shares during the last five years	68249507

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2012	31.03.2011
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	1024.000	1024.000
(b) Reserves & Surplus	24469.000	19875.000
(c) Money received against share warrants	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000
Total Shareholders’ Funds (1) + (2)	25493.000	20899.000
(3) Non-Current Liabilities
(a) long-term borrowings	6844.000	4744.000
(b) Deferred tax liabilities (Net)	1248.000	1193.000
(c) Other long term liabilities	193.000	162.000
(d) long-term provisions	476.000	351.000
Total Non-current Liabilities (3)	8761.000	6450.000
(4) Current Liabilities
(a) Short term borrowings	4114.000	497.000
(b) Trade payables	2848.000	3459.000
(c) Other current liabilities	4103.000	1805.000
(d) Short-term provisions	1795.000	1508.000
Total Current Liabilities (4)	12860.000	7269.000
Foreign Currency Monetary Items Translation Difference Account	78.000	0.000
TOTAL	47192.000	34618.000
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	12007.000	10033.000
(ii) Intangible Assets	170.000	333.000
(iii) Capital work-in-progress	3117.000	2337.000
(iv) Intangible assets under development	0.000	0.000
(b) Non-current Investments	11025.000	5665.000
(c) Deferred tax assets (net)	0.000	0.000
(d) Long-term Loan and Advances	5658.000	3320.000
(e) Other Non-current assets	0.000	0.000
Total Non-Current Assets	31977.000	21688.000
(2) Current assets
(a) Current investments	1097.000	1323.000
(b) Inventories	5012.000	4645.000
(c) Trade receivables	5812.000	4751.000
(d) Cash and cash equivalents	1183.000	424.000
(e) Short-term loans and advances	1916.000	1399.000
(f) Other current assets	195.000	388.000
Total Current Assets	15215.000	12930.000
TOTAL	47192.000	34618.000

SOURCES OF FUNDS		31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		682.000
2] Share Application Money		0.000
3] Reserves & Surplus		15539.000
4] (Accumulated Losses)		0.000
NETWORTH		16221.000
LOAN FUNDS
1] Secured Loans		5542.000
2] Unsecured Loans		399.000
TOTAL BORROWING		5941.000
DEFERRED TAX LIABILITIES		1149.000
Foreign Currency Monetary Items Translation Difference Account		0.000
TOTAL		23311.000
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		9504.000
Capital work-in-progress		1429.000
INVESTMENT		5989.000
DEFERREX TAX ASSETS		0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	3808.000
	Sundry Debtors	4008.000
	Cash & Bank Balances	282.000
	Other Current Assets	0.000
	Loans & Advances	3677.000
Total Current Assets		11775.000
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	3760.000
	Other Current Liabilities	121.000
	Provisions	1517.000
Total Current Liabilities		5398.000
Net Current Assets		6377.000
MISCELLANEOUS EXPENSES		0.000
Foreign currency monetary items translation difference account		12.000
TOTAL		23311.0000

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	31508.000	29203.000	18329.000
		Other Income	2391.000	581.000	6355.000
		TOTAL (A)	33899.000	29784.000	24684.000
Less	EXPENSES
		Cost of Materials Consumed	7909.000	6767.000
		Purchases of Stock-in-Trade	3046.000	2283.000
		Changes in Inventories of Finished goods, Work-in-progress and Stock-in-Trade	(585.000)	(351.000)
		Employee Benefits Expense	4345.000	4138.000
		Other Expenses	10115.000	9288.000
		TOTAL (B)	24830.000	22125.000	18150.000
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		9069.000	7659.000	6534.000
Less	FINANCIAL EXPENSES (D)		1283.000	318.000	431.000
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		7786.000	7341.000	6103.000
Less/ Add	DEPRECIATION/ AMORTISATION (F)		1082.000	969.000	900.000
	PROFIT BEFORE TAX (E-F) (G)		6704.000	6372.000	5203.000
Less	TAX (H)		129.000	268.000	170.00
	PROFIT AFTER TAX (G-H) (I)		6575.000	6104.000	5033.000
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		6675.000	3323.000	2030.000
Less	APPROPRIATIONS
		Transfer to General Reserve	1000.000	1226.000	2500.000
		Transfer to Debenture Redemption Reserve	450.000	100.000	100.000
		Proposed Dividend	1536.000	1280.000	1024.000
		Corporate Dividend Tax on Proposed Dividend	170.000	146.000	116.000
	BALANCE CARRIED TO THE B/S		10094.000	6675.000	3323.000
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	13569.000	12111.000	9600.000
		Royalty, Know-how, professional and consultation fees	356.000	293.000	0.000
		Other Earnings	711.000	613.000	735.000
	TOTAL EARNINGS		14636.000	13017.000	10335.000
	IMPORTS
		Raw Materials	1759.000	1553.000	1329.000
		Stores & Spares	160.0000	161.000	79.000
		Capital Goods	718.000	496.000	331.000
		Finished Goods	690.000	322.000	234.000
		Packing materials	222.000	167.000	104.000
	TOTAL IMPORTS		3549.000	2699.000	2077.000
	Earnings Per Share (Rs.)
	Basic and Diluted EPS
	- Before Exceptional Items		32.11	29.81	24.58
	- After Exceptional Items		32.11	29.81	24.58

QUARTERLY RESULTS

PARTICULARS	30.06.2012	30.09.2012	31.12.2012	31.03.2013
	1^st Quarter	2^nd Quarter	3^rd Quarter	4^th Quarter
Sales Turnover	8194.200	7948.400	7842.000	9539.600
Total Expenditure	6285.000	6993.500	7035.900	7160.000
PBIDT (Excl OI)	1909.200	954.900	806.100	2379.600
Other Income	26.900	520.200	150.200	112.100
Operating Profit	1936.100	1475.100	956.300	2491.700
Interest	268.900	279.400	302.000	185.700
Exceptional Items	0.000	0.000	0.000	0.000
PBDT	1667.200	1195.700	654.300	2306.000
Depreciation	275.200	267.200	312.700	282.800
Profit Before Tax	1392.000	928.500	341.600	2023.200
Tax	65.000	(46.000)	2.000	(2.100)
Provisions and Contingencies	0.000	0.000	0.000	0.000
Reported PAT	1327.000	974.500	339.600	2025.300
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	1327.000	974.500	339.600	2025.300

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	19.40	20.49	20.39
Net Profit Margin (PBT/Sales)	(%)	21.28	21.82	28.39
Return on Total Assets (PBT/Total Assets}	(%)	20.28	23.94	24.45
Return on Investment (ROI) (PBT/Networth)		0.26	0.30	0.25
Debt Equity Ratio (Total Debt/Networth)		0.43	0.25	0.37
Current Ratio (Current Asset/Current Liability)		1.18	1.78	2.18

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	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	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	Yes
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	No
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	Yes

LITIGATION DETAILS:

HIGH COURT OF GUJARAT

TAX APPEAL No. 752 of 2012

Status: PENDING CCIN No: 001092201200752

Last Listing Date: 20/03/2013

Coram: - HONOURABLE MR.JUSTICE AKIL KURESHI

- HONOURABLE MS JUSTICE SONIA GOKANI

S.NO.

Name of the Petitioner

Advocate On Record

1

COMMISSIONER OF INCOME TAX-I

MRS MAUNA M BHATT for: Appellant(s) 1

S.NO.

Name of the Respondant

Advocate On Record

1

CADILA HEALTHCARE LIMITED

MR RK PATEL for :Opponent(s) 1

Presented On : 23/10/2012 Registered On : 23/10/2012

Bench Category : DIVISION BENCH District : AHMEDABAD

Case Originated From: THROUGH ADVOCATE Listed : 4 times

Stage Name : FOR FINAL HEARING

Classification - DB - OJ - TAX APPEAL - INCOME TAX ACT, 1961 - APPEAL TO HIGH COURT - U/S 260 OF IT ACT - LONG TERM CAPITAL GAIN - U/S 54EA

Act - INCOME-TAX ACT, 1961

Office Details

S. No

Filing Date

Document Name

Advocate Name

Court Fee on Document

Document Details

1

15/08/2012

VAKALATNAMA

MR RK PATEL ADVOCATE
for RESPONDENT(s) 1

-

MR RK PATEL:1

2

23/10/2012

CERTIFIED COPY

MRS MAUNA M BHATT ADVOCATE
for PETITIONER(s) 1

6

MRS MAUNA M BHATT:1

3

23/10/2012

MEMO OF APPEAL/PETITION/SUIT

MRS MAUNA M BHATT ADVOCATE
for PETITIONER(s) 1

20

MRS MAUNA M BHATT:1

Court Proceedings

S. No.

Notified Date

Court Code

Board Sr. No.

Stage

Action

Coram

1

26/02/2013

7

-

FOR FINAL HEARING

NEXT DATE

· HONOURABLE MR.JUSTICE AKIL KURESHI

· HONOURABLE MS JUSTICE SONIA GOKANI

2

12/03/2013

7

-

ADMISSION (FRESH MATTERS)

NEXT DATE

· HONOURABLE MR.JUSTICE AKIL KURESHI

· HONOURABLE MS JUSTICE SONIA GOKANI

3

19/03/2013

7

-

FOR FINAL HEARING

NEXT DATE

· HONOURABLE MR.JUSTICE AKIL KURESHI

· HONOURABLE MS JUSTICE SONIA GOKANI

4

20/03/2013

7

-

FOR FINAL HEARING

RULE/ADMIT

· HONOURABLE MR.JUSTICE AKIL KURESHI

· HONOURABLE MS JUSTICE SONIA GOKANI

Available Orders

S. No.	Case Details	Judge Name	Order Date	CAV	Judgement
1	TAX APPEAL/752/2012	· HONOURABLE MR.JUSTICE AKIL KURESHI · HONOURABLE MS JUSTICE SONIA GOKANI	20/03/2013	N	N

Certified Copy

S. No.	Applicant Name	Application Type	Application Date	UOL Number	Order Date	Notify Date	Delivery Date	Status	Nature Of Document
1	MR RK PATEL	ORDINARY	21/03/2013	O/9308/2013	20/03/2013	22/03/2013	25/03/2013	Delivered	-

UNSECURED LOANS

Unsecured Loans	31.03.2012	31.03.2011
	(Rs. In Millions)
LONG TERM BORROWINGS
Term Loans from Banks:
External Commercial Borrowings in Foreign Currency [Unsecured]	339.000	0.000
Deferred Payment Liabilities [Unsecured]:
Interest free deemed loan against deferment of sales tax:
a From a Financial Institution	28.000	42.000
b Deferred amount	113.000	171.000
From Others [Unsecured]	34.000	38.000
SHORT TERM BORROWINGS
Loans repayable on Demand:
Working Capital Loans from Banks [Unsecured] [**]	2952.000	0.000
Total	3466.000	251.000

HISTORY:

The company was incorporated on 15.05.1995 at Ahmedabad in Gujarat as a Private Limited Liability Company under the Companies Act, 1956 and subsequently the company was converted into a Public Company and then renamed as Cadila Healthcare Limited effective from 17.07.1996.

Subject is the flagship of Zydus Cadila Group.

Subject was established in 1951. After an existence of four and a half decades subject restructured its operations in 1995, to keep pace with the new business environment. Subject, under the aegis of the Zydus Group came into existence with a focus on total healthcare solutions.

Two families, "the Patel's" and "the Modi's", promoted the Cadila group of companies. The flagship company was Cadila Laboratories. There were other companies named Cadila Chemicals, Cadila Exports, Cadila Antibiotics and Cadila Veterinary Limited. In 1995, to pursue their independent business philosophies a restructuring of the group was carried out under which two companies were formed Cadila Laboratories Limited (Modi's) and the subject.

The business was divided into two equal parts. After the restructuring the company embarked on a major marketing exercise, which helped it, catapult from 15th rank to 6^th rank in the Indian Pharma industry. The promoters of the company, Mr. Ramanbhai Patel and Mr. Pankaj Patel are both well qualified in the field of Pharmaceuticals and have received several awards for their recognition.

In February, 2000 it came out with a pubic issue of 14886000 shares of Rs.5 each which included a book build portion of 13397400 equity shares of Rs.5 each and a fixed price portion of 1488600 equity shares at a premium of Rs.245/- per share.

The fund raised is proposed to utilise for financing new formulations unit at Moraiya, near Ahmedabad and for expansion of bulk drug unit at Ankleshwar, Gujarat. It entered into technical collaboration with Ethical Holdings of UK to manufacture and market transdermal patches in India.

The company’s operation include pharmaceuticals (human formulations, veterinary formulations and bulkdrugs), diagnostics, herbal products like skin care products and OTC products. Its formulation complex is located at Moraiya Village, Sanand Taluka, Ahmedabad.

The company has entered into a joint venture with USA based Onconova Teherapeuticsl Inc. a biopharmaceutical company specialising in the field of oncology (cancer research). This agreement provides for future collaboration on research manufacturing and marketing of products.

As a result of the merger of 4 companies the company has been rated as fourth largest Pharmaceutical company in the domestic formulations market with a market share of 3.80%.

RESULTS OF OPERATIONS:

During the year, the consolidated sales grew by 14.59 %. On standalone basis, the Company has achieved sales of Rs. 24,565 millions, showing a growth of 11.09 % compared to the previous year. The PBIDT increased by 18.41 % to Rs. 9,069 millions. The Profit before Tax was higher by 5.21 % to Rs. 6,704 millions. The Profit after Tax increased to Rs. 6,575 millions up by 7.72% compared to Rs. 6,104 millions in 2010-11. The Company achieved EPS of Rs. 32.11 compared to Rs. 29.81 in 2010-11.

MANAGEMENT'S DISCUSSION & ANALYSIS

GLOBAL ECONOMY AND PHARMACEUTICAL INDUSTRY

The global economy has passed through a challenging phase in 2011-12, characterised by significant risks and instability. The intense financial crisis prevailing in Europe has had a ripple effect in both the developing and high-income countries, and has generated significant headwinds. Capital flows to developing countries have declined by almost half as compared to last year.

While Europe seems to be in recession, several major developing countries like Brazil, India, and to a lesser extent Russia, South Africa and Turkey have witnessed decceleration in economic growth owing to a variety of factors including domestic policies. This has resulted in a sharp slowdown in the global economic growth. As against a growth of 4.1% in 2010, the global economic growth, measured by GDP, is expected to have slowed down to 2.7% in 2011. Also, the outlook for 2012 looks muted with expected growth of 2.5% as against 3.6% projected earlier (Source: Global Economic Prospects 2012 by World Bank).

The global pharmaceutical industry, particularly the branded innovator drugs segment, is also facing pressure due to a number of factors like patent expiry of a large number of high revenue molecules, a diminishing R&D pipeline of new drugs, regulatory challenges and pricing pressures from governments across the globe, apart from ballooning costs of doing research. There has been a shift of focus towards the emerging markets of Asia, Africa and Latin America, which are growing three times faster than the leading markets of North America, Japan and Europe. In 2011, while the leading pharmaceutical markets of North America and Europe continued to grow at a matured market rate of less than 3%, the emerging markets are expected to have grown by more than 15% (Source: IMS Health). The generics segment growth continued to outpace branded drugs, with several drugs losing patent protection in 2011, including ‘block-busters’ like Atorvastatin in the USA.

INDIAN ECONOMY AND PHARMACEUTICAL INDUSTRY

The financial year 2011-12 was a year of slow growth for the Indian economy. The GDP is estimated to have grown at less than 7% during 2011-12 after it grew by more than 8% during the two preceding financial years. Agriculture and industry showed slower growth during the year as compared to the growth that was registered in the previous year, resulting in slower overall growth.

Inflation remained high, with the Wholesale Price Index (WPI) remaining at over 9% for the most part of FY 2011-12, although it showed signs of moderating towards the later part of the fiscal year. The average WPI inflation rate for 2011-12 was 8.79% as against 9.56% during 2010-11. The global economic slowdown and the crisis in European economies, especialy Greece and now Spain, have resulted in currency movement from Euros to US Dollars and Pound Sterling, and a clamour for USD, which has gained in strength. This in turn, has led to a sharp depreciation of currencies of developing economies, including the Indian Rupee vis-à-vis the US Dollar and other currencies. The exchange rate for the Indian Rupee vs. the US Dollar, which was below Rs. 45, has shown a steady rise from August 2011 and reached a peak of Rs.53.7 in December 2011, before closing at Rs. 50.9 in March 2012 (Source: Monthly Economic Report, March 2012, as published by the Ministry of Finance, Govt. of India).

The Indian pharmaceutical market is on the path of becoming a major global market and is one of the biggest drivers of growth in the Asian subcontinent, apart from China. The year 2011 was yet another year of robust growth for the Indian pharmaceutical industry as it grew by 15%, reaching a market size of more than Rs. 600000.000 Millions (Source: AIOCD Market Intelligence Report 2012). This high growth can be attributed to the increase in investment by market players, high penetration into the rural areas, increasing purchasing power of the consumers and improving availability of healthcare facilities. Rural markets, now termed as the 'Extra Urban' markets, offer high growth potential for the Indian pharmaceutical industry. The anti-infectives therapy is the highest contributor to the Indian pharmaceutical market, in terms of sales.

2011-12: JOURNEY BEYOND THE BILLION BEGINS

While the year 2010-11 marked the achievement of an important milestone of $ 1 bn in consolidated revenues by the Company, the year 2011-12 marks the beginning of the journey Beyond the Billion in pursuit of its next milestone of $ 3 bn in 2015. During the year, the Company carried out a detailed exercise to work out the strategy for this journey Beyond the Billion (BtB). After a detailed study of various therapies and markets, the Company has identified 15 markets / countries and 13 therapies as key focus areas. Different markets / therapies have been classified into different clusters. They are home markets, steady growth businesses and new technology businesses.

Home markets comprise the two established markets of India Formulations and US generics and the two promising future markets of Brazil and Mexico. While the established home markets are expected to continue sustainable and profitable growth with significant revenue contribution, the future home markets offer a high growth potential with a large revenue contribution in times to come. The steady growth businesses comprise Europe, Japan, the Emerging Markets, Consumer Wellness, Animal Health, APIs, JVs and Alliances. These markets are expected to continue a steady growth momentum with low variability in business performance.

The new technology businesses comprise Biosimilars, Transdermals, Vaccines, Injectibles, Inhalers, Creams and Ointments and NCEs. While these businesses require high upfront investments, which the Company has already initiated, they have a very large potential upside in the future.

The vision, objectives and detailed road-map for each of these businesses have been defined. Several strategic initiatives have been identified for each of the businesses, alongwith their execution plans to ensure that each business achieves its own vision and BtB objectives. Key risks and their mitigation plans have also been identified for each business.

To ensure better review and monitoring process, greater accountability and better focus, the Company has also revamped the internal governance architecture. Key initiatives and implementation plans have been laid out for improving overall organizational health in the areas of Value Creation, Innovation, Collaboration and Accountability. These four pillars of VICA have been identified as the growth drivers in the journey Beyond the Billion.

Highlights of operations of the different businesses and markets in FY 2011-12 are as follows.

STEADY GROWTH BUSINESSES

EUROPE

The Company has its presence in Europe through its subsidiaries in the generic markets of France and Spain. During the year, the French generics market grew by approximately 3% to reach €2.8 bn. Market growth showed a decline as compared to the previous years, mainly due to lower than expected generic substitution rates. The Spanish generic market, on the other hand, grew by about 30% and reached €1.4 bn, led by the increase in generic penetration, combined with some key patent expiries.

The Company’s business in France maintained its progress during the year, despite the slowdown in the overall French market. The Company launched 16 new products in France, including 6 Day-1 launches. In Spain, the Company registered a robust growth backed by the launch of 12 new products. More than half of the products launched in France and Spain were manufactured and supplied from India.

During the year, the Company’s business in Europe posted sales of Rs. 2,983 Mio., up by 8%.

JAPAN

The Company is present in Japan, the world’s second largest pharmaceutical market, through its subsidiary Zydus Pharma Japan Company Limited (ZPJ). Japan continues to face the challenge of a rapidly ageing population and increasing healthcare costs, forcing the government to intervene by promoting generics. This offers a promising opportunity for the generic players to expand and grow.

During the year, the Company launched two in-licensed products and received the PMDA approval for three new products including one Day-1 launch.

The Company’s sales in Japan grew by 24% and reached Rs. 522 Millions during the year.

EMERGING MARKETS OF ASIA PACIFIC, AFRICA AND THE MIDDLE EAST

During the year, the Company’s business continued to perform well in the participated markets of Asia Pacific, Africa and the Middle East despite a slowdown in some of the markets due to political imbalances, regulatory changes and adverse currency fluctuations. The Company expanded its market share in the Philippines, Vietnam and Sri Lanka. With the launch of over 30 new products, the Company posted sales of Rs. 1,889 Mio. during the year in the Emerging Markets.

API & INTERMEDIATES

The Company’s APIs and Intermediates business continued to provide support in the form of backward integration to cater to the demand for finished formulations across markets. The Company filed 10 US DMFs during the year, taking the Company's cumulative filings to 107.

The year 2011-12 saw a decline in the sales of APIs at Rs. 2,854 Mio., down by 18% primarily on account of price erosion in the key international markets and higher capacity allocation to internal requirements for manufacturing of finished formulations.

CONSUMER WELLNESS

The health and wellness market in India is a niche segment, which has been growing rapidly as in the recent past there has been an increased awareness and concern for health and wellness. The Company is present in this segment through its subsidiary, Zydus Wellness Limited, which has become a significant player in this growing market with its portfolio of health care brands such as Sugar Free, EverYuth, Nutralite and the recently launched Actilife.

During the year 2011-12, Sugar Free, India’s leading sugar substitute achieved a milestone market share of over 90%, through its multi-product presence. The year witnessed an intense competition in the skincare category from new entrants. In EverYuth skincare range, the scrubs and peel-off segments continued to grow, despite stiff competition. The last quarter of the FY 2011-12 saw a rapid revival in the market share backed by the strong marketing support. Nutralite also faced competition in the margarine space, as there have been multiple launches from low priced competitors, especially in the institutional segment. Despite this, Nutralite has successfully maintained its position through high service levels that complement strong brand equity.

Actilife, a nutritional milk additive for adults, launched last year, has seen steady progress during the year. Being a new concept, the Company has invested in creating awareness, not just through theme advertising but also through large scale consumer contact programs involving education and sampling. This brand will be in focus for the next few years as it has a potential to become an additional pillar of growth for the Company.

INDIA FORMULATIONS

The Company’s formulations business in India is of strategic importance in the journey Beyond the Billion. It is currently the largest contributor to the Company's revenues, and is expected to remain one of the largest contributors in the BtB journey.

During the year, the Company acquired 100% stake in Biochem, one of the top 40 pharma companies in India. A well-integrated pharma player, Biochem has a presence in the antibiotics, cardiovasculars, anti-diabetics and oncological segments. It has over 1100 employees including a field force of 900) and a manufacturing facility at Daman. This acquisition is aimed at strengthening the Company’s presence in the Indian pharmaceutical space by capitalising on the growth of the acute segment where it has a relatively smaller presence.

The Company continued to maintain its strong position in the participated market segments of cardiovasculars, gastro intestinals, respiratory and women’s healthcare during the year. 20 of the Company’s brands now feature amongst the top 300 pharmaceutical brands in India. (Source: AIOCD AWACS Report, MAT March 2012). During the year, the Company made a foray into a new therapy segment of opthalmology with the launch of the division, Zydus Occucare. The Company continued its thrust on new product introductions and launched over 90 new products, including over 40 line extensions, of which, 29 were first in India. The new products launched during 2011-12 contributed to about 3% in the growth of the formulations business in India.

During the year, the Company’s formulations business in India posted sales of Rs.18954 Millions, up by 17% from Rs.16208 Millions last year.

US ORAL SOLIDS

The US pharmaceutical market remains the world’s largest pharmaceutical market accounting for more than 40% of the market share. The Company’s business in the US is spearheaded by its 100% subsidiary, Zydus Pharmaceuticals (USA) Inc. It ranks amongst the top three players in the market for nine out of the top ten products marketed by it in the US and has also recently been ranked 11th amongst the top US generic companies based on scripts (Source: IMS).

During the year, Zydus Pharmaceuticals (USA) Inc., through its subsidiary Nesher Pharmaceuticals USA LLC, acquired the assets of the US based pharmaceutical company; Nesher Pharmaceuticals Inc. Nesher has capabilities to manufacture controlled release medications or DEA-controlled substances. With this, the Company will now be able to manufacture and distribute generic controlled substances in the US market, which otherwise cannot be imported. The market for controlled substances medications in the US is estimated at $7 bn.

The Company’s business in the US continued to grow and posted sales of Rs.12431 Millions, up by 29% during the year. The Company launched 6 new products in the US market. This performance reflects the capabilities of the Company to offer high quality low cost generic products, making it a trusted and preferred supplier. The Company’s continuous endeavour to improve service levels has helped it achieve close to 100% service level satisfaction of the customers. Going forward, the Company’s growth momentum in the US market will continue with the launch of value added generic products that will drive incremental sales and margins.

BRAZIL

Rated as one of the most promising ‘pharmerging’ countries across the world, the Brazilian pharmaceutical market has been continuously growing for the last few years and offers significant potential. Several factors such as strong Government support and high healthcare demand, amongst others are propelling the Brazilian healthcare market to grow at a faster pace.

The company is present in both the branded and generic segments of the Brazilian pharmaceutical market. With an aspiration to be a leading player in chronic therapy segments like cardiovascular, diabetes and neuro psychiatry, the Company launched 7 new products in Brazil during the year. Overall, the Company posted sales of Rs. 2,473 Mio., up by10% during the year.

MEXICO

The Company is present in Mexico, the second largest pharmaceutical market of Latin America, valued at $11 bn, through its 100% subsidiary, Zydus Pharmaceuticals Mexico S.A. de C.V. The Mexican market is expected to show an upward trend, with prescription medicines continuing to dominate the market, representing about 85% of its total value (Source: IMS and BMI). During the year, the organisational structure at Mexico including the basic regulatory, finance and marketing were put in place. Going forward, the Company expects to continue its aggressive product development and filing strategy and commence commercial operations in 2013.

ANIMAL HEALTH BUSINESS

Zydus Animal Health Limited, (ZAHL), a 100% subsidiary of the Company, is one of India’s leading animal healthcare providers with its wide range of drugs, feed supplements and vaccines for livestock, companion animals and poultry. During the year 2011-12, ZAHL continued its prowess in launching new products with the introduction of 11 new products in India.

During the year, ZAHL expanded its operations globally with the acquisition of a 100% stake in Bremer Pharma GmbH, Germany. This acquisition will help ZAHL, expand its animal health business and gain strategic access to the key markets across Europe, South America, Asia and Africa.

On a consolidated basis, ZAHL posted sales of Rs. 1,944 Mio, with a growth of 40% during the year.

JVS AND ALLIANCES

A. ZYDUS NYCOMED HEALTHCARE PRIVATE LIMITED

Zydus Nycomed is a 50:50 JV between Nycomed and Cadila Healthcare Limited, for manufacturing of Key starting materials (KSMs) for Pantoprazole and also a hub for supplying various APIs of Nycomed’s generic portfolio and in future for Takeda, following the acquisition of Nycomed by Takeda .

During the year, the Zydus Nycomed JV commenced the commercial production and supply of 7 generic APIs to Nycomed. The JV was successful in getting approvals from the Danish Medicine Agency after their regulatory audits for different products.

B. ZYDUS HOSPIRA ONCOLOGY PRIVATE LIMITED

Zydus Hospira Oncology Private Limited (ZHOPL), the 50:50 JV between Cadila and Hospira Inc., USA, successfully completed its third year of operations. During the year, the JV successfully completed audits by the Korean and Saudi FDA. With this, the JV has received approvals from the regulatory authorities of US, Europe, Canada, Australia, Brazil, Uganda, Korea and Saudi. The JV commenced commercial production and supply of 2 additional products for Europe and 1 for the US market during the year.

C. BAYER ZYDUS PHARMA PRIVATE LIMITED

Bayer Zydus Pharma Private Limited, the joint venture with Bayer Schering Pharma, commenced commercial operations in India during the year. The JV aims at operating in key segments of the Indian pharmaceutical market with a focus on women’s healthcare, metabolic disorders, diagnostic imaging, cardiovascular diseases, anti-diabetic treatments and oncology.

D. ZYDUS BSV PHARMA PRIVATE LIMITED

Zydus BSV Pharma Private Limited (ZBSV), the 50:50 JV set up in alliance with Bharat Serums and Vaccines Limited, owns rights to a novel and patented product for use in oncology. ZBSV also operates in the generic oncology segment by way of contract manufacturing. The JV’s novel and patented product progressed well in the Indian market. This clearly indicates the superior benefits, this product offers to cancer patients and further supports the Company’s plans for developing the product for global markets. The Company’s ongoing clinical trial in breast cancer is progressing as per schedule and will assist in gaining market share in India as well as

approvals in various other markets.

E. STRATEGIC OUT-LICENSING DEAL WITH ABBOTT LABORATORIES

During the year, the company expanded its alliance with Abbott Laboratories to 3 more countries taking the total number of countries to 18. Further, 7 more products were added to the existing portfolio of 24 products, taking the number of out-licensed products to 31.

Overall, the Company’s share in the sales from the JVs was Rs. 4,230 Mio. during the year, up by 16%.

NEW TECHNOLOGIES

BIOLOGICS

The Company is developing a pipeline of 19 biologics, comprising 17 biosimilars and 2 novel biological products. During the year, the Company launched 5 biosimilar products in the Indian market, developed and manufactured in-house. 3 more products are in an advanced stage of development. On the novel biologics front, the Company filed clinical trial applications for PEGEPO, which is being developed in collaboration with Prolong Pharma, USA and Rabimabs, which is being developed in collaboration with WHO.

TRANSDERMALS

The Company’s initiatives to develop a niche portfolio of technologically complex and advanced new drug delivery systems have progressed well during the year, with filings with the USFDA for 2 ANDAs for transdermal patches.

NCE RESEARCH

The Company’s state-of-the-art Zydus Research Centre (ZRC) spearheads the Company’s NCE and Biologics research activities. The company currently conducts basic new drug discovery research in cardio-metabolic, inflammation, pain and oncology therapeutic areas, with a portfolio of 8 candidates in various stages of development.

During the year, ZYOG1, the Company’s novel, orally acting GLP-1 agonist completed Phase I(a) clinical trials in healthy human volunteers and the Company applied for permission to conduct Phase I(b) trials in diabetic patients. ZYD1, a novel GLP-1 agonist for treating diabetes and ZYGK1, a novel Glucokinase activator are currently undergoing Phase 1 clinical trials. The Company also received Phase I clinical trial permission for ZYPH0907, a novel oral PTH agonist for treating osteoporosis and ZYG19, a novel GPR-119 agonist for treating diabetes.

INTELLECTUAL PROPERTY RIGHTS

The Company’s efforts in the development of new molecules, newer delivery systems, processes and technologies have continued. The Company’s research and development centres have filed over 150 patents in the US, Europe and other countries during the year, taking the cumulative number of filings to over 800.

MANUFACTURING OPERATIONS

The Company’s state-of-the-art facilities for manufacturing formulations and APIs are considered to be the backbone of the Company’s global operations and would be one of the important pillars for success in the BtB journey. During the year, the formulations manufacturing plant at Baddi, Himachal Pradesh received an approval from the USFDA. This opens up an additional resource to cater to the growing needs of its US business. Further, commercial production was started from the Ointment facility during the year for the Indian market.

CONTINGENT LIABILITIES:

(Rs. in Millions)

Particulars	31.03.2012	31.03.2011
a Claims against the Company not acknowledged as debts [Including Rs. 1 {as at March 31, 2011: Rs. 1} Million in respect of Amalgamated {*} Companies]	57.000	57.000
b i In respect of guarantees given by Banks and/or counter guarantees given by the Company	151.000	150.000
ii In respect of letter of comforts/ corporate guarantees given by the Company to Banks for the outstanding dues of loans availed by some of the subsidiary companies and a joint venture company	8752.000	4643.000
c Other money for which the company is contingently liable:	41.000	40.000
i In respect of the demands raised by the Central Excise, State Excise & Service Tax Authority [Including Rs. 9 {as at March 31, 2011: Rs. 9} Millions in respect of Amalgamated {*} Companies]	328.000	319.000
ii In respect of the demands raised by the Ministry of Chemicals & Fertilizers, Govt. of India under Drug Price Control Order, 1979/1995 for difference in actual price and price of respective bulk drug allowed while fixing the price of certain life saving formulations and disputed by the Company, which the Company expect to succeed based on the legal advice [Including Rs. 51 {as at March 31, 2011: Rs. 51} Millions in respect of Amalgamated {*} Companies]	917.000	66.000
iii In respect of Income Tax matters pending before appellate authorities which the Company expects to succeed, based on decisions of Tribunals/ Courts.	917.000	66.000
iv In respect of Sales Tax matters pending before appellate authorities/ Court which the Company expects to succeed, based on decisions of Tribunals/ Courts.	36.000	93.000
v Letters of Credit for Imports	46.000	2.000
vi The Company has imported certain capital equipment at concessional rate of custom duty under "Export promotion of Capital Goods Scheme" of the Central Government. The Company has undertaken an incremental export obligation to the extent of US $ 19 Millions [equivalent to Rs. 971 Millions approx.{Previous reporting period: US $ 4 (equivalent to Rs. 163 Millions approx.)}] to be fulfilled during a specified period as applicable from the date of imports. The unprovided liability towards custom duty payable thereon in respect of unfulfilled export obligations 156 5 [*] represents contingent liabilities taken over by the Company under the Scheme of Arrangement and Amalgamation of Cadila Laboratories Limited, and erstwhile Cadila Chemicals Limited, Cadila Antibiotics Limited, Cadila Exports Limited and Cadila Veterinary Private Limited with the Company w.e.f. June 1, 1995.	156.000	5.000

Fixed Assets:

Ø Freehold Land

Ø Leasehold Land

Ø Buildings

Ø Plant and Machinery

Ø Furniture and Fixture

Ø Office Equipments

Ø Vehicles

Ø Trademarks, Patents and Designs

Ø Technical Know-how

Ø Commercial Rights

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 records 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. 59.70
UK Pound	1	Rs. 91.14
Euro	1	Rs. 77.98

INFORMATION DETAILS

Report Prepared by :

BVA

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	7
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	8
--PROFITABILIRY	1~10	8
--LIQUIDITY	1~10	8
--LEVERAGE	1~10	7
--RESERVES	1~10	8
--CREDIT LINES	1~10	7
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	Yes
--LITIGATION	YES/NO	YES
--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
DEFAULTERS
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		64

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

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.