1. Summary Information

		Country	India
Company Name	F D C LIMITED	Principal Name 1	Mr. Ashok A. Chandavarkar
Status	Good	Principal Name 2	Mr. Mohan A. Chandavarkar
		Registration #	--
Street Address	B-8, MIDC Industrial Estate, Waluj, Aurangabad – 431 136, Maharashtra
Established Date	23.09.1940	SIC Code	--
Telephone#	91-240-2554407 / 2554967 / 2554299	Business Style 1	Manufacturer of Pharmaceutical Formulations and Innovative Bulk Drugs.
Fax #	91-240-2554299	Business Style 2	--
Homepage	--	Product Name 1	--
# of employees	--	Product Name 2	--
Paid up capital	Rs.183,706,000	Product Name 3	--
Shareholders	Bodies Corporate - 5157740	Banking	Corporation Bank
Public Limited Corp.	--	Business Period	73 years
IPO	---	International Ins.	-
Public Enterprise	---	Rating	Aa (75)
Related Company
Relation Subsidiary	Country India	Company Name	FDC International Limited
Note	-

2. Summary Financial Statement

Balance Sheet as of	31.03.2012		(Unit: Indian Rs.)
Assets		Liabilities
Current Assets	1,128,349,000	Current Liabilities	1,332,307,000
Inventories	1,010,253,000	Long-term Liabilities	14,541,000
Fixed Assets	2,800,216,000	Other Liabilities	283,924,000
Deferred Assets	--	Total Liabilities	1,630,772,000
Invest& other Assets	3,572,335,000	Retained Earnings	6,696,675,000
		Net Worth	6,880,381,000
Total Assets	8,511,153,000	Total Liab. & Equity	8,511,153,000
Total Assets (Previous Year)	7,614,394,000
P/L Statement as of	31.03.2012		(Unit: Indian Rs.)
Sales	6,992,416,000	Net Profit	1,326,905,000
Sales(Previous yr)	7,003,626,000	Net Profit(Prev.yr)	1,487,459,000

MIRA INFORM REPORT

Report Date :

16.03.2013

IDENTIFICATION DETAILS

Name :	F D C LIMITED
Registered Office :	B-8, MIDC Industrial Estate, Waluj, Aurangabad – 431 136, Maharashtra
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	23.09.1940
Com. Reg. No.:	11- 003176
Capital Investment / Paid-up Capital :	Rs.183.706 millions
CIN No.: [Company Identification No.]	L24239MH1940PLC003176
TAN No.: [Tax Deduction & Collection Account No.]	MUMF03524D
PAN No.: [Permanent Account No.]	AAACF0253H
Legal Form :	A Public Limited Liability company. The company’s Share are Listed on the Stock Exchange.
Line of Business :	Manufacturer of Pharmaceutical Formulations and Innovative Bulk Drugs.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Aa (75)

RATING		STATUS	PROPOSED CREDIT LINE
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

Maximum Credit Limit :	USD 27520000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well established and a reputed company having good track. Financial position of the company appears to be sound. Trade relations are reported as fair. Business is active. Payments are reported to be regular and as per commitments. 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 – 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.

LOCATIONS

Registered Office / Factory 1 :	B-8, MIDC Industrial Estate, Waluj, Aurangabad – 431 136, Maharashtra, India
Tel. No.:	91-240-2554407 / 2554967 / 2554299
Fax No.:	91-240-2554299
E-Mail :	waluj@fdcindia.com ameya@fdcindia.com fdc@fdcubdua.com shenoy_shalu@rediffmail.com
Website :	http://www.fdcindia.com
Corporate Office :	142-48, Swami Vivekanand Road, Jogeshwari (West), Mumbai – 400 102, Maharashtra, India
Tel. No.:	91-22-26782542 /26780652 /26782653 /26782656 /26785176 /26787568 /26794379 / 26775282 / 26775283
Fax No.:	91-22-26786393 /26781912 /26788123 /26786194
Factory 2 :	Plot No. 19 and 20/2, MIDC Industrial Area, Roha - 402 109, District Raigad, Maharashtra, India
Tel. No.:	91-2194-263580 / 263692 / 263653/63264
Fax No.:	91-2194-263264
E-mail :	roha@fdcl.com
Factory 3 :	Plot No. G-1, MIDC Malegoan, Sinnar - 422103, District Nasik, Maharashtra, India
Tel. No.:	91-2551-230389 / 230674 / 230531 / 230338
Fax No.:	91-2551-230674
E-mail :	sinnar@fdcl.com
Factory 4 :	Verna Industrial Estate, Plot No. L-56 and L-57, Phase II-D, Verna, Goa - 403 722, India
Tel. No.:	91-832-2783882 / 2783883
Fax No.:	91-832-2783884
E-mail :	goa@fdcl.com
Factory 5 :	Village Khol, Bhud, Tahsil - Nalaghar, Baddi, District – Solan - 173205, Himachal Pradesh, India.
Tel. No.:	91-1795 - 323901 / 323902 / 323903 / 323904
Fax No.:	91-1795 - 244377
Branch Office :	Located at : Pune New Delhi Lucknow Ghaziabad Chennai Kolkatta Hyderabad Indore Jaipur Bangalore
Regional Offices :	Located at Ahmedabad Bangalore Patna Pune Varanasi.
International Office	Located at UK South Africa

DIRECTORS

As on 31.03.2012

Name :	Mr. Mohan A. Chandavarkar
Designation :	Chairman and Managing Director
Name :	Mr. Ashok A. Chandavarkar
Designation :	Director
Name :	Mr. Nandan M. Chandavarkar
Designation :	Joint Managing Director
Name :	Mr. Ameya A. Chandavarkar
Designation :	Director
Name :	CA Girish C. Sharedalal
Designation :	Director
Name :	Dr. Satish S. Ugrankar
Designation :	Director
Name :	Dr. Rahim H. Muljiani
Designation :	Director
Name :	Dr. Nagam H. Atthreya
Designation :	Director
Name :	Dr. Nagam H. Atthreya
Designation :	Additional Director

KEY EXECUTIVES

Name :	Ms. Shalini Kamath
Designation :	Company Secretary

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 31.12.2012

Names of Shareholders	No. of Shares	Percentage of Holding
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	72714656	39.87
Bodies Corporate	49790000	27.30
(2) Foreign
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	13581635	7.45
Central Government / State Government(s)	199898	0.11
Venture Capital Funds	10	0.00
Insurance Companies	1588031	0.87
Foreign Institutional Investors	6112858	3.35
(2) Non-Institutions
Bodies Corporate	5157740	2.83
Individuals
Individual shareholders holding nominal share capital up to Rs. 0.100 million	18033408	9.89
Individual shareholders holding nominal share capital in excess of Rs. 0.100 million	12723451	6.98
Any Others (Specify)
Clearing Members	478350	0.26
Non Resident Indians	1988390	1.09
(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
Total	182368427	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Pharmaceutical Formulations and Innovative Bulk Drugs.

Products :

Item Code No. [ITC Code]	Production Description
300420.19	Cefixime Trihydrate / Cefuroxime Axetil
300420.33	Ciprofloxacin
300420.70	Cefadroxil
300420.64	Azithromycin
300450.03	Oral Rehydration Salts

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

· Corporation Bank, Aurangabad, Maharashtra, India

· HDFC Bank Limited, Aurangabad, Maharashtra, India

· State Bank of India, Aurangabad, Maharashtra, India

Facilities :

Unsecured Loan	31.03.2012 (Rs. in Millions)	31.03.2011 (Rs. in Millions)
Deferred sales tax loan	14.541	17.268
Total	14.541	17.268

Note:

Under various schemes of Government of Maharashtra, the Company was entitled to Sales Tax deferral incentives for its units at Waluj and Sinnar. These are repayable in annual installments over a period of 9-11 years commencing after a period of 10-12 years from the year of availment of deferred sales tax loan.

Banking Relations :	--
Auditors :
Name :	S.R. Batliboi and Associates Chartered Accountants
Address :	Mumbai, Maharashtra, India
Subsidiary :	· FDC International Limited · FDC Inc. · Anand Synthochem Limited (w.e.f. 17th October 2011))
Joint Venture Entity :	Fair Deal Corporation Pharmaceutical SA (Pty) Limited
Enterprises owned or significantly influenced by Key Management Personnel or their relatives :	· Anand Synthochem Limited (upto 16th October 2011) · Mejda Marketing Private Limited · Akhil Farma Limited · Soven Trading and Investment Company Private Limited · Transgene Trading and Investment Company Private Limited · Anand Chandavarkar Foundation

CAPITAL STRUCTURE

As on 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
250000000	Equity Shares	Re.1/- each	Rs. 250.000 Millions

Issued Capital :

No. of Shares	Type	Value	Amount
186065427	Equity Shares	Re.1/- each	Rs. 186.065 Millions

Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
182920427	Equity Shares	Re.1/- each	Rs. 182.920 Millions
	Add: 3145000 Equity shares forfeited		Rs. 0.786
	Total		Rs. 183.706 millions

Reconciliation of the shares outstanding at the beginning and at the end of the reporting period

Particulars	31.03.2012
	No. in millions	Rs. in millions
At the beginning of the period	184.570	184.570
Less: Buy back during the period	1.650	1.650
Outstanding at the end of the period	182.920	182.920

Terms/ rights attached to equity shares

The Company has only one class of equity shares having a par value of Re.1 per share. Each holder of equity shares is entitled to one vote per share. The Company declares and pays dividend in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting. During the year ended 31st March 2012, the amount of per share dividend recognised as distributions to equity

shareholders was Rs. 2 (Previous year - Rs. 2).

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company. The distribution will be in proportion to the number of equity shares held by the shareholders.

Aggregate number of bonus shares issued, share issued for consideration other than cash and shares bought back during the period of five years immediately preceding the reporting date

Particulars	31.03.2012
	No. in millions
Equity shares bought back by the Company	8.541

In accordance with section 77A, 77AA and 77B of the Companies Act, 1956 and pursuant to the buy back announcement made by the Company on 8th February 2011, the Company has bought back from open market through stock exchanges 1,649,274 equity shares of Re. 1 each during the year for a total consideration of Rs. 146.087 millions. The Company has extinguished all equity shares till 31st January 2012. Consequently, an amount of Rs.1.650 millions being the nominal value of equity shares bought back has been transferred to Capital Redemption Reserve from General Reserve. An amount of Rs.144.437 millions being the premium on buyback has been appropriated from General Reserve.

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

Particulars	31.03.2012
Equity shares of Re. 1 each fully paid	Numbers	% holding in the class
Meera Ramdas Chandavarkar	21,925,260	11.98
Transgene Trading and Investment Company Private Limited	17,097,500	9.35
Sudipta Trading and Investment Company Private Limited	16,365,000	8.95
Soven Trading and Investment Company Private Limited	16,327,500	8.93
ICICI Prudential Right Fund	11,569,168	6.33
Mohan Anand Chandavarkar	11,222,770	6.14
Ashok Anand Chandavarkar	10,530,360	5.76
Sandhya Mohan Chandavarkar	10,483,480	5.73

As per of the Company, including its register of shareholders/members and other declarations received from shareholders regarding beneficial interest, the above shareholding represents both legal and beneficial ownerships of shares.

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		183.706	185.356	187.065
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		6696.675	5935.919	5055.619
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		6880.381	6121.275	5242.684
LOAN FUNDS
1] Secured Loans		0.000	0.000	0.000
2] Unsecured Loans		14.541	17.268	24.380
TOTAL BORROWING		14.541	17.268	24.380
DEFERRED TAX LIABILITIES		283.924	251.109	239.071
TOTAL		7178.846	6389.652	287.831
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		2800.216	2717.841	2501.549
Capital work-in-progress		107.190	101.794	300.650
INVESTMENT		3465.145	2631.986	2294.947
DEFERRED TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	1010.253	958.535	889.715
	Sundry Debtors	406.917	395.956	354.785
	Cash & Bank Balances	134.233	160.499	143.103
	Other Current Assets	59.690	31.790	0.000
	Loans & Advances	527.509	615.993	241.651
Total Current Assets		2138.602	2162.773	1629.254
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	564.465	447.856	414.467
	Other Current Liabilities	294.139	290.605	368.944
	Provisions	473.703	486.281	436.854
Total Current Liabilities		1332.307	1224.742	1220.265
Net Current Assets		806.295	938.031	408.989
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		7178.846	6389.652	5506.135

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	6992.416	7003.626	6208.694
		Other Income	278.200	278.378	317.247
		TOTAL (A)	7270.616	7282.004	6525.941
Less	EXPENSES
		Cost of materials consumed	2019.311	2021.302	13051.882
		Purchases of stock-in-trade	884.899	892.953
		Employee benefits expense	982.704	849.058
		Other Expenses	1596.599	1592.466
		Changes in inventories of finished goods/ stock-in-trade and work-in-progress	(108.396)	14.290
		TOTAL (B)	5375.117	3348.767	13051.882
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		1895.499	1911.935	1955.916
Less	FINANCIAL EXPENSES (D)		13.235	13.398	13.199
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		1882.264	1898.537	1942.717
Less/ Add	DEPRECIATION/ AMORTISATION (F)		180.500	169.854	144.803
	PROFIT BEFORE TAX (E-F) (G)		1701.764	1728.683	1797.914
Less	TAX (I)		374.859	241.224	309.721
	PROFIT AFTER TAX (G-I) (J)		1326.905	1487.459	1488.193
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		2843.005	2084.248	1273.611
Less	APPROPRIATIONS
		Final dividend – proposed	365.841	368.863	325.987
		Dividend Tax	59.348	59.839	54.142
		Transfer to General Reserve	300.000	300.000	300.000
		Reversal of excess provision of dividend	0.000	0.000	(2.573)
	BALANCE CARRIED TO THE B/S		3444.721	2843.005	2084.248
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	841.413	670.006	558.774
		Interest	2.534	2.172	2.811
		Other Earnings	0.634	0.097	0.114
	TOTAL EARNINGS		844.581	672.275	561.699
	IMPORTS
		Raw Materials	175.930	216.391	330.869
		Packing material	18.487	18.579	28.826
		Components, Stores & Spares	6.445	5.968	11.451
		Capital goods	78.625	36.047	57.666
		Intangible assets	6.268	18.524	32.400
	TOTAL IMPORTS		285.755	295.509	461.212
	Earnings Per Share (Rs.)		7.22	7.99	7.97

QUARTERLY RESULTS

PARTICULARS	30.06.2012	30.09.2012	31.12.2012
Type	1^st Quarter	2^nd Quarter	3^rd Quarter
Net Sales	2038.660	2081.310	1789.000
Total Expenditure	1530.220	1524.820	1347.200
PBIDT (Excl OI)	508.440	556.490	441.700
Other Income	83.210	93.420	84.000
Operating Profit	591.660	649.910	525.700
Interest	3.530	3.490	3.500
Exceptional Items	0.000	0.000	0.000
PBDT	588.130	646.420	522.200
Depreciation	94.650	60.020	61.600
Profit Before Tax	493.480	586.400	460.600
Tax	87.000	121.140	109.900
Provisions and contingencies	0.000	0.000	0.000
Profit After Tax	406.480	465.260	350.700
Extraordinary Items	0.000	0.000	0.000
Prior Period Expenses	0.000	0.000	0.000
Other Adjustments	0.000	0.000	0.000
Net Profit	406.480	465.260	350.700

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	18.25	20.43	20.80
Net Profit Margin (PBT/Sales)	(%)	24.34	24.68	28.96
Return on Total Assets (PBT/Total Assets}	(%)	34.46	35.42	45.82
Return on Investment (ROI) (PBT/Networth)		0.25	0.28	0.34
Debt Equity Ratio (Total Liability/Networth)		0.20	0.20	0.24
Current Ratio (Current Asset/Current Liability)		1.61	1.77	1.34

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	-----
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]	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	No

BUSINESS REVIEW
 
The Indian Pharmaceutical Market (IPM) is destined to be one of the fastest growing Industry. It has been the front runner in a wide range of specialties involving complex drugs manufacture, development and technology. The IPM is on the threshold of becoming a major global market by 2020. The IPM grew by 16% to touch the market size of Rs.629041.200 millions, during the year ended March 2012. Around 2,638 products were introduced during the year (Source: AIOCD AWACS).
 
The key drivers have been increase in household income level, increase in lifestyle related diseases, growing population, improving healthcare infrastructure/ delivery systems and rising penetration in smaller towns and rural areas, have contributed to the long term growth of the Industry. 
 
The life style segments such as cardiovascular, anti-diabetes, anti-depressants and anti-cancers have continued to be lucrative and fast growing owing to increased urbanisation and changing lifestyle patterns. After the anti-diabetic segment, the cardiac segment is considered to be the 2nd largest in the chronic therapy which has a CAGR of 19%. This is further boosted due to the rise in affluent consumers demanding innovative drugs for the treatment of chronic illness associated with their changing life styles. High growth in domestic sales in the future will depend on the growing chronic disease segment. 
 
A large untapped opportunity is seen in the rural markets. However, these markets have their own share of challenges like awareness, modern health care facilities, affordability and investments in infrastructure. The MNC`s too are augmenting their portfolio in these rural areas. Even though challenges are manifold to penetrate in these markets, host of opportunities are available which can be achieved by adopting untraditional methods like tying up with Government organisations, insurance, diagnostic providers, NGOs, increasing patient awareness and literacy campaigns.
 
The IPM is adopting various strategies for their RandD efforts like entering into collaboration and partnership agreements with innovator companies and out-licensing their molecules for milestone payments. 
 
Over the last five years focus, investments are seen in the emerging markets namely China, India, Brazil and Russia. Due to India`s demographics, rising income levels and changing attitude towards health and lifestyle, India will increasingly become an important market. 
 
Mergers and Acquisitions, collaborations and in-licensing will continue to see significant activities, mainly due to expert technical staff, excellent infrastructure in terms of clinical trial laboratories, contract manufacturing and readily available world class accredited state of the art manufacturing facilities in India. 
 
The new price control policy is still pending review by the Government. Compulsory licensing, patent oppositions and litigations, increasing regulatory requirements and compliances, infrastructure development and menace of counterfeit drugs are seen as major hurdles in the Industry. 
 
Against the above market background, they give below a  brief review of various functions of the Company:
 
a. Marketing:
 
The Company registered a market growth of 3.2% in the financial year April 2011 to March 2012. The Company is ranked at 26th position, attaining a market share of 1.20% (Source: AIOCD AWACS March 2012). 
 
The Company does not find this performance satisfactory. However, following steps have been taken to improve the performance:
 
i. Online reporting system is under implementation in the field to monitor the work carried out in the field.
 
ii. Web based online sales information system is introduced to enable the managers to follow-up on sales growth and targets on day to day basis.
 
iii. Appraisal systems at field have been improvised to reward good performance and identify the areas of improvement.
 
iv. Training of field has been intensified to improve the performance, particularly of 1st and 2nd line managers. This is expected to reduce the impact of attrition in territories under the managers.
 
v. Incentive and salary levels in the field are substantially revised to reduce attrition, considering current opportunities in the industry.
 
vi. Territory rationalisation and introduction of specialised marketing field force is on cards to avail various opportunities.
 
vii. Number of new innovative products are in the R and D pipeline.
 
viii. The Company is in the process of finalising innovative products for in-licensing. 
 
The above steps are expected to yield results over a period of time. 
 
b. Financial Performance:
 
The Company`s sales and profit stagnated due to attrition in the field and increased employees` cost respectively. The treasury income has been moderate due to fluctuating markets. The Company continues its efforts to improve the performance through operational efficiencies and incremental business. Cost controls across all levels of functions are a continuous and ongoing exercise. The Company`s internal control procedures commensurate to the extent and nature of its operations.
 
c. Exports:
 
The annual export turnover for the year ended March 31, 2012 was Rs.868.293 millions with a growth of 24% as compared to year ended March 31, 2011 which stood at Rs.701.910 millions. Although FDC continues to supply APIs worldwide to its esteemed customers, the improved export performance resulted from sales of finished dosage forms mainly Ophthalmic and ORS range to UK, USA and Latin America and support of various international NGOs.
 
The Company`s manufacturing facilities of Ophthalmic/ liquids/powders and tablet dosage forms at Waluj and Goa are approved by international authorities namely US FDA and UK MHRA respectively. In view of the Company`s core capabilities, number of opportunities in European and US markets are opening up, for out-licensing of dossiers/ANDA`s/ DMF/COS.
 
In view of emerging economic markets in CIS countries, the Company is exploring a business alliance for marketing its various products. 

UNAUDITED FINANCIAL RESULTS FOR THE QUARTER AND HALF YEAR ENDED ON 30^TH SEPTEMBER, 2012

(Rs.in Millions)

Particulars	Quarter Ended		Half Year Ended
	Unaudited	Unaudited	Unaudited
	30.09.2012	30.06.2012	30.09.2012
1.Income from Operations
(a)Net Sales (Net Excise duty)	2073.385	2029.448	4102.833
(b) Other Operating Income	7.917	9.213	17.130
Total Income From operations	2081.302	2038.661	4119.963
2. Expenditure
a. Cost of Raw Materials consumed	542.411	470.091	1012.502
b. Purchases of stock in trade	258.121	211.375	469.496
c. Changes in inventories of finished goods , work in progress	13.136	175.062	188.198
d. Employee benefit expenses	268.095	267.255	535.350
e. Depreciation and amortisation expense	60.019	94.646	154.665
f. Other Expenses	443.053	406.425	849.478
Total Expenditure	1584.835	1624.854	3209.689
3. Profit from Operations before Other Income and Finance Cost (1-2)	496.467	413.807	910.274
4. Other Income	93.418	83.206	176.624
5. Profit before finance costs (3+4)	589.885	497.013	1086.898
6. Finance Costs	3.485	3.532	7.017
7. Profit from Ordinary Activities before Tax and exceptional items	586.400	493.481	1079.881
8. Tax Expenses	121.139	87.000	208.139
9. Net Profit for the period (7-8)	465.261	406.484	871.742
10. Paid-up equity share capital (Face value Re. 1 each)
11. Reserves excluding revaluation reserve as per balance sheet of previous accounting year
12. Basic and Diluted Earning Per Share (of Re. 1 each)	2.54	2.22	4.77
a. Basic and b. Diluted
A Particulars of Shareholding
1 Public Shareholding
- No. of shares	59876771	60415771	59876771
- % of holding	32.83 %	33.03 %	32.83 %
Promoters And Promoter Group Shareholding a) Pledged/ Encumbered
-Number of Shares	Nil	Nil	Nil
-% of Shares (As a % of the total Shareholding of Promoter and Promoter Group)	Nil	Nil	Nil
-% of Shares (as a % of the total share capital of the Company)	Nil	Nil	Nil
b) Non Encumbered
- Number of Shares	122504656	122504656	122504656
-% of Shares (As a % of the total Shareholding of Promoter and Promoter Group)	100.00 %	100.00 %	100.00 %
-% of Shares (as a % of the total share capital of the Company)	67.17 %	66.97 %	67.17 %

INVESTOR COMPLAINTS	31.03.2012
Pending at the beginning of the quarter	0
Received during the quarter	19
Disposed if during the quarter	19
Remaining unresolved the end of the quarter	0

STANDALONE STATEMENT OF ASSETS AND LIABILITIES

(Rs. In millions)

Particular	30.09.2012
EQUITY AND LIABILITIES
Shareholders’ funds
(a) Share capital	183.167
(b) Reserves and surplus	7520.360
Sub-total - Shareholders' funds	7703.527
Non-current liabilities
(a) Long-term borrowings	12.499
(b) Deferred tax liabilities (Net)	272.063
(c) Long-term provisions	20.213
Sub-total - Non-current liabilities	304.775
Current liabilities
(a) Trade payables	711.222
(b) Other current liabilities	355.263
(c) Short-term provision	63.221
Sub-total - Current liabilities	1129.706
TOTAL - EQUITY AND LIABILITIES	9138.008
ASSETS
Non-current assets
(a) Fixed assets	2818.034
(b) Non-current investments	997.928
(c) Long-term loans and advances	219.507
(d) Other non-current assets	6.136
Sub-total - Non-current assets Current assets	4041.605
Current assets
(a)Current Investments	2850.169
(a) Inventories	860.187
(b) Trade receivables	701.046
(c) Cash and bank balance	254.667
(d) Short-term loans and advances	351.104
(e) Other current assets	79.230
Sub-total - Current assets	5096.403
TOTAL - ASSETS	9138.008

Note :

The above standalone financial results were reviewed by the audit committee and taken on record by the Board of Directors at its meeting held on November 05, 2012 and have been subjected to a limited review by the statutory auditors.

Pursuant to the approval of Shareholders for Buyback vide postal ballot voting on August 17, 2012, the company has bought back 539000 equity shares of Re. 1 each during the quarter ended September 30, 2012. All the equity shares have been extinguished as of date. Further 7000 equity shares were bought back from October 01, 2012 till the date of this board meeting making it a total buyback of 546000 equity shares.

Other expenses included provision/(Reversal) of diminution in value of the current investments as follows:

(Rs. In millions)

Quarter ended 30.09.2012	Quarter ended 30.06.2012	Half Year Ended 30.09.2012
(22.962)	1.101	(21.861)

The company has only one segment of activity namely “Pharmaceuticals”.

CONTINGENT LIABILITIES :

(Rs. In millions)

PARTICULARS	31.03.2012
Disputed tax matters
Income tax	1.029
Excise duty	23.547
Sales tax	19.652
In respect of guarantees given by banks	15.465
Letter of credit issued by bankers	45.212
Estimated amount of duty payable on export obligation against outstanding advances licenses	0.463

FIXED ASSETS:

v TANGIBLE ASSETS

• Leasehold land

• Leasehold Improvements
• Freehold land
• Buildings
• Plant and machinery
• Laboratory testing machines
• Electrical installations
• Furniture, fixtures and fittings
• Office equipments
• Vehicles
• Buildings
• Equipments
• Furniture and fixtures

v Intangible Assets

• Marketing rights
• Software
  

CMT REPORT (Corruption, Money Laundering and 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 records 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.54.16
UK Pound	1	Rs.81.74
Euro	1	Rs.70.50

INFORMATION DETAILS

Report Prepared by :

SDA

SCORE and RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	8
PAID-UP CAPITAL	1~10	7
OPERATING SCALE	1~10	8
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	9
--PROFITABILIRY	1~10	9
--LIQUIDITY	1~10	9
--LEVERAGE	1~10	8
--RESERVES	1~10	9
--CREDIT LINES	1~10	8
--MARGINS	-5~5	-
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		75

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 and 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.