1. Summary Information

		Country	India
Company Name	RPG LIFE SCIENCES LIMITED	Principal Name 1	Mr. H. V. Goenka
Status	Satisfactory	Principal Name 2	Mr. Ajit Singh Chouhan
		Registration #	11-169354
Street Address	RPG House, 463, Dr. Annie Besant Road, Worli, Mumbai-400030, Maharashtra
Established Date	29.03.2007	SIC Code	--
Telephone#	91-22-24981650	Business Style 1	Manufacturer
Fax #	91-22-24970127	Business Style 2	--
Homepage	--	Product Name 1	Pharmaceutical Products
# of employees	--	Product Name 2	--
Paid up capital	Rs.132,282,000/-	Product Name 3	--
Shareholders	Shareholding of Promoter and Promoter Group 56.48%, Public shareholding 43.52%	Banking	State Bank of India
Public Limited Corp.	Yes	Business Period	6 Years
IPO	Yes	International Ins.	-
Public Enterprise	Yes	Rating	Ba (46)
Related Company
Relation	Country	Company Name	CEO
--	--	--	--
Note	-

2. Summary Financial Statement

Balance Sheet as of	31.03.2012		(Unit: Indian Rs.)
Assets		Liabilities
Current Assets	439,400,000	Current Liabilities	533,300,000
Inventories	289,900,000	Long-term Liabilities	450,600,000
Fixed Assets	1,086,900,000	Other Liabilities	103,700,000
Deferred Assets	000	Total Liabilities	1,087,600,000
Invest& other Assets	12,800,000	Retained Earnings	609,100,000
		Net Worth	741,400,000
Total Assets	1,829,000,000	Total Liab. & Equity	1,829,000,000
Total Assets (Previous Year)	1,893,600,000
P/L Statement as of	31.03.2012		(Unit: Indian Rs.)
Sales/ Total Income	1,928,200,000	Net Profit	8,500,000
Sales(Previous yr)/ Total Income	1,868,300,000	Net Profit(Prev.yr)	127,100,000

MIRA INFORM REPORT

Report Date :

29.05.2013

IDENTIFICATION DETAILS

Name :	RPG LIFE SCIENCES LIMITED [w.e.f. 13.02.2008]
Formerly Known As :	RPG PHARMACEUTICALS LIMITED
Registered Office :	RPG House, 463, Dr. Annie Besant Road, Worli, Mumbai-400030, Maharashtra
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	29.03.2007
Com. Reg. No.:	11-169354
Capital Investment / Paid-up Capital :	Rs.132.282 Millions
CIN No.: [Company Identification No.]	L24232MH2007PLC169354
Legal Form :	A Public Limited Liability Company. The Company’s Shares are Listed on The Stock Exchanges.
Line of Business :	Manufacturing and Marketing of Pharmaceutical Products.
No. of Employees :	Information denied by the management.

RATING & COMMENTS

MIRA’s Rating :

Ba (46)

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

Maximum Credit Limit :	USD 2960000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is an established company having a satisfactory track record. It has recorded some growth in its sales turnover during 2012 but the profitability has dipped. However, trade relations are reported as decent. Business is active. Payment terms are usually correct and as per commitments. The company can be considered normal for business dealings at usual trade terms and conditions.

NOTES :

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

ECGC Country Risk Classification List – 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

EXTERNAL AGENCY RATING

Rating Agency Name	ICRA
Rating	BBB+ [Term Loan]
Rating Explanation	Moderate degree of safety and moderate credit risk.
Date	May 2012

Rating Agency Name	ICRA
Rating	A2 [Non-Fund Based]
Rating Explanation	Strong degree of safety and low credit risk.
Date	May 2012

RBI DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2012.

INFORMATION DECLINED BY

Management non co-operative. [91-22-24981650]

LOCATIONS

Registered / Corporate Office :	RPG House, 463, Dr. Annie Besant Road, Worli, Mumbai-400030, Maharashtra, India
Tel. No.:	91-22-24981650/51/66606375/76/77/78
Fax No.:	91-22-24970127
E-Mail :	rajesh.shirambekar@rpgls.com
Factory 1 :	BIOTECH Plot No. 2702/A, GIDC Industrial Estate, Ankleshwar-393002, District Bharuch, Gujarat, India
Tel. No.:	91-2646-652102/03/04/652074
Fax No.:	91-2646-250104
Factory 2 :	FORMULATION Plot No. 3102/A, GIDC Estate, Ankleshwar-393002, District Bharuch, Gujarat, India
Tel. No.:	91-2646-652062 to 652069
Fax No.:	91-2646-250572
Purchase Office / Factory 3 :	API 25, MIDC Land, Thane Belapur Road, Navi Mumbai-400705, Maharashtra, India
Tel. No.:	91-22-67955555/5398/5399/6795/5400
Fax No.:	91-22-27672646/27631052

DIRECTORS

AS ON 31.03.2012

Name :	Mr. H. V. Goenka
Designation :	Chairman
Name :	Mr. Ajit Singh Chouhan
Designation :	Managing Director
Name :	Mr. R.A. Shah
Designation :	Director [Alternate to Mr. C. Vinayaraghavan]
Name :	Mr. C. L. Jain
Designation :	Director
Name :	Mr. Ajit Gulabchand
Designation :	Director
Name :	Dr. Lalit S. Kanodia
Designation :	Director
Name :	Mr. Mahesh S. Gupta
Designation :	Director
Name :	Mr. Manoj K. Maheshwari
Designation :	Director
Name :	Mr. P. K. Mohapatra
Designation :	Director

KEY EXECUTIVES

Audit Committee:
Name :	Mr. C. L. Jain
Name :	Mr. Mahesh S. Gupta
Name :	Mr. P.K. Mohapatra
Name :	Mr. Ajit Singh Chouhan
Name :	Mr. Rajindrra Patkar
Designation :	Chief Executive – Global Formulations
Name :	Mr. Vimalendu K. Singh
Designation :	Chief Executive – API, Global Generics & Biotech
Name :	Mr. Sachin Raole
Designation :	CFO & Sr. Vice President – Corporate Services
Name :	Dr. Uday R. Bapat
Designation :	Chief Scientific Officer
Name :	Ms. Suchitra Tiwari
Designation :	General Manager – QA/QC & Regulatory Affairs

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 31.03.2013

Category of Shareholder	Total No. of Shares	Total Shareholding as a % of Total No. of Shares
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Bodies Corporate	9338897	56.48
Sub Total	9338897	56.48
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	9338897	56.48
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	1175	0.01
Financial Institutions / Banks	3217	0.02
Insurance Companies	389979	2.36
Foreign Institutional Investors	5650	0.03
Sub Total	400021	2.42
(2) Non-Institutions
Bodies Corporate	1479755	8.95
Individuals
Individual shareholders holding nominal share capital up to Rs.0.100 Million	3346934	20.24
Individual shareholders holding nominal share capital in excess of Rs.0.100 Million	1786258	10.80
Any Others (Specify)	183376	1.11
Trusts	205	0.00
Non Resident Indians	183171	1.11
Sub Total	6796323	41.10
Total Public shareholding (B)	7196344	43.52
Total (A)+(B)	16535241	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)	16535241	0.00

BUSINESS DETAILS

Line of Business :

Manufacturing and Marketing of Pharmaceutical Products.

Products :

PRODUCT DESCRIPTION	ITEM CODE
Azathioprine	3004 10 90
Diphenoxylate	2933 39 15
Doxorubicin	3942 00 90

PRODUCTION STATUS [AS ON 31.03.2011]

Particulars	Licensed Capacity	Installed Capacity	Actual Production
Tablets (Million Nos.)	1420	2750	2241
Liquids (Kilolitres)	1287	6000	592
Injections – Ampoules (Thousands)	1050	--	2309
Capsules (Million Nos.)	86	312	17
Powder Pouches (Thousands)	10000	12000	233
Ointments (Thousands)	100	--	20
Ointments (Kilolitres)	30	--	--
Bulk Drugs and Chemicals (Tonnes)	231	71	27
Consumer Products
Tablets (Million Nos.)	120	120	@
Powder Pouches (Thousands)	8000	8000	--

@0.13 Million Nos.

NOTE:

(i) Production includes manufacture of pharmaceutical preparations by other parties and of chemicals for sale but excludes manufacture of pharmaceutical preparations for other parties. Production of pharmaceutical preparations includes production of physician samples.

(ii) The installed capacities are as per the certificate given by the management of the company on which the auditors have relied.

(iii) The licensed capacity in respect of certain items has been converted into dosage / units to make it comparable with installed capacity, production and stocks.

GENERAL INFORMATION

No. of Employees :

Information denied by the management.

Bankers :

• Union Bank of India
• State Bank of India
• Corporation Bank
• Export-Import Bank of India
• IDBI Bank

Facilities :

Secured Loan

As on 31.03.2012

[Rs. in Millions]

As on 31.03.2011

[Rs. in Millions]

Term Loans

From Banks

3.200

0.000

From a Financial Institution

156.600

185.800

Finance Lease Obligations

1.300

3.000

Working Capital Loans Repayable on Demand

[Working Capital Loans are secured by hypothecation of inventory and book debts and second charge on immoveable assets at Thane / Ankleshwar Factory.]

From Banks

144.100

111.600

From a Financial Institution

99.800

91.800

TOTAL

405.000

392.200

NOTE:

Nature of security and terms of repayment for secured borrowings

Nature of Security	Terms of Repayment
(i) Terms Loans from Banks are secured by hypothecation of specific assets purchased under loans.	Repayable in 36 Equated Monthly Installments beginning from the time loan is taken along with interest ranging from 10.75% to 11.25%.
(ii) Terms Loans from a Financial Institution are secured by first charge on all fixed assets (movable and immovable) at Ankleshwar Factory and second charge on entire current assets at Thane / Ankleshwar Factory. The loan mentioned in (c) is also secured by a first charge on the specific moveable fixed assets to be financed out of the term loan at Thane.	(a) Loan of Rs. 66.700 Millions (Previous year Rs. 133.300 Millions) is repayable in 12 equal quarterly installments from 28th April, 2011 along with interest at 12% per annum. (b) Loan of Rs. 65.600 Millions (Previous year Rs. 52.500 Millions) is repayable in 16 quarterly installments beginning from 14th February, 2013 along with interest at 11.5% per annum. (c) Loan of Rs. 24.300 Millions (Previous year - Nil) is repayable in 16 quarterly installments beginning from 20th February, 2013 along with interest at 12.7% per annum.
(iii) Finance Lease Obligations are secured by hypothecation of assets underlying the leases.	Monthly payment of Equated Monthly Installments beginning from the month subsequent to taking the lease.
(b) Terms of repayment for unsecured borrowings (Fixed Deposits)	Repayable on maturity ranging from 2 years to 3 years along with interest ranging from 9% to 10% per annum.

Unsecured Loan

As on 31.03.2012

[Rs. in Millions]

As on 31.03.2011

[Rs. in Millions]

Fixed Deposits

45.600

59.200

TOTAL

45.600

59.200

Banking Relations :	--
Auditors :
Name :	Lovelock and Lewes Chartered Accountants
Solicitors:
Name :	Crawford Bayley and Company

CAPITAL STRUCTURE

AS ON 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
18750000	Equity Shares	Rs.8/- each	Rs.150.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
16535241	Equity Shares	Rs.8/- each	Rs.132.300 Millions

NOTE:

(a) Reconciliation of Number of Shares

Particular	As on 31.03.2012
	No. of Shares	Rs. in Millions
Number of shares outstanding as at the beginning of the year	16535241	132.300
Add: Shares issued on conversion of Share Warrants	--	--
Add: Shares allotted under the Employee Stock Option Plan	--	--
Number of shares outstanding as at the end of the year	16535241	132.300

(b) The company has only one class of shares i.e. Equity Shares having a face value of Rs. 8 each. Each shareholder is eligible for one vote per share held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

(c) List of shareholders holding more than 5% shares as at the Balance Sheet date

Name of the Shareholder	As on 31.03.2012
	No. of Shares	% of Holding
Swallow Associates Limited	4228089	25.57
Instant Holdings Limited	2701200	16.34
Summit Securities Limited	1216159	7.35
RPG Cellular Investments and Holdings Private Limited	--	--
Petrochem International Limited	--	--

(d) Shares reserved for issue under options Refer Note 29 for details of shares to be issued under the Employee Stock Option Plan.

(e) Shares allotted as fully paid-up pursuant to contract(s) without payment being received in cash (during 5 years immediately preceding 31st March, 2012) 14,368,850 shares were allotted in the last 5 years as fully paid-up pursuant to a Scheme of Arrangement without payments being received in cash.

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		132.300	132.300	120.551
2] Share Application Money		0.000	0.000	8.520
3] Reserves & Surplus		609.100	616.000	515.243
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		741.400	748.300	644.314
LOAN FUNDS
1] Secured Loans		405.000	392.200	486.300
2] Unsecured Loans		45.600	59.200	4.224
TOTAL BORROWING		450.600	451.400	490.524
DEFERRED TAX LIABILITIES		68.200	59.600	64.037
TOTAL		1260.200	1259.300	1198.875
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		1086.900	1125.000	1083.901
Capital work-in-progress		12.800	2.500	28.160
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	13.241
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	289.900	263.100	149.042
	Sundry Debtors	300.900	383.500	312.387
	Cash & Bank Balances	5.600	4.800	8.006
	Other Current Assets	6.700	5.900	0.000
	Loans & Advances	126.200	108.800	85.748
Total Current Assets		729.300	766.100	555.183
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	332.300	398.500	375.011
	Other Current Liabilities	201.000	181.400	56.553
	Provisions	35.500	54.400	50.046
Total Current Liabilities		568.800	634.300	481.610
Net Current Assets		160.500	131.800	73.573
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		1260.200	1259.300	1198.875

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	1928.200	1868.300	1598.474
		Other Income	6.900	7.200	32.514
		TOTAL (A)	1935.100	1875.500	1630.988
Less	EXPENSES
		Cost of Materials Consumed	446.500	450.000
		Purchases of Stock-in-Trade	119.500	142.900
		Employee Benefits Expense	499.900	402.400	1312.260
		Other Expenses	694.800	643.200
		Changes in Inventories of Finished Goods, Work-in-Progress and Stock-in-Trade	(14.000)	(95.700)
		TOTAL (B)	1746.700	1542.800	1312.260
Less	PROFIT / (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		188.400	332.700	318.728
Less	FINANCIAL EXPENSES (D)		68.800	62.800	81.392
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		119.600	269.900	237.336
Less/ Add	DEPRECIATION/ AMORTISATION (F)		102.200	95.200	91.822
	PROFIT / (LOSS) BEFORE TAX (E-F) (G)		17.400	174.700	145.514
Less	TAX (H)		8.900	47.600	37.551
	PROFIT / (LOSS) AFTER TAX (G-H) (I)		8.500	127.100	107.963
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		240.400	153.600	78.983
Less	APPROPRIATIONS
		Transfer to General Reserve	0.000	9.500	8.097
		Proposed Dividend	13.200	26.500	21.699
		Tax on Proposed Dividend	2.200	4.300	3.604
	BALANCE CARRIED TO THE B/S		233.500	240.400	153.546
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	506.900	556.827	444.357
		Freight and Insurance	11.200	10.611	7.297
	TOTAL EARNINGS		518.100	567.438	451.654
	IMPORTS
		Raw Materials	92.800	108.655	83.293
		Stores & Spares	1.900	2.299	1.120
		Capital Goods	14.500	12.699	6.988
	TOTAL IMPORTS		109.200	123.653	91.401
	Earnings / (Loss) Per Share (Rs.) (Basic)		0.51	8.04	7.51
	Earnings / (Loss) Per Share (Rs.) (Diluted)		0.51	7.69	6.54

QUARTERLY RESULTS

PARTICULARS	30.06.2012	30.09.2012	31.03.2012	31.03.2013
Type	1^st Quarter	2^nd Quarter	3^rd Quarter	4^th Quarter
Net Sales	557.900	584.300	490.100	584.100
Total Expenditure	493.100	537.600	513.100	511.900
PBIDT (Excl OI)	64.800	46.700	(23.000)	72.200
Other Income	04.200	(0.200)	04.800	09.000
Operating Profit	69.000	46.500	(18.200)	81.200
Interest	16.800	17.400	19.600	20.600
PBDT	52.200	29.100	(37.800)	60.600
Depreciation	23.700	24.000	25.700	25.300
Profit Before Tax	28.500	05.100	(63.500)	35.300
Tax	00.600	02.000	(02.600)	(38.700)
Profit After Tax	27.900	03.100	(60.900)	74.000
Net Profit	27.900	03.100	(60.900)	74.000

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	0.44	6.77	6.62
Net Profit Margin (PBT/Sales)	(%)	0.90	9.35	9.10
Return on Total Assets (PBT/Total Assets}	(%)	0.95	9.23	8.87
Return on Investment (ROI) (PBT/Networth)		0.02	0.23	0.23
Debt Equity Ratio (Total Liability/Networth)		1.37	1.45	1.51
Current Ratio (Current Asset/Current Liability)		1.28	1.21	1.15

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	Check List by Info Agents	Available in Report (Yes / No)
1]	Year of Establishment	Yes
2]	Locality of the firm	Yes
3]	Constitutions of the firm	Yes
4]	Premises details	No
5]	Type of Business	Yes
6]	Line of Business	Yes
7]	Promoter's background	Yes
8]	No. of employees	No
9]	Name of person contacted	No
10]	Designation of contact person	No
11]	Turnover of firm for last three years	Yes
12]	Profitability for last three years	Yes
13]	Reasons for variation <> 20%	--
14]	Estimation for coming financial year	No
15]	Capital in the business	Yes
16]	Details of sister concerns	No
17]	Major suppliers	No
18]	Major customers	No
19]	Payments terms	No
20]	Export / Import details (if applicable)	No
21]	Market information	--
22]	Litigations that the firm / promoter involved in	--
23]	Banking Details	Yes
24]	Banking facility details	Yes
25]	Conduct of the banking account	--
26]	Buyer visit details	--
27]	Financials, if provided	Yes
28]	Incorporation details, if applicable	Yes
29]	Last accounts filed at ROC	Yes
30]	Major Shareholders, if available	No
31]	PAN of Proprietor/Partner/Director, if available	No
32]	Date of Birth of Proprietor/Partner/Director, if available	No
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	Yes

BACKGROUND:

Subject was incorporated on 29th March, 2007 as RPG Pharmaceuticals Limited. The name of the company was subsequently changed to RPG Life Sciences Limited on 13th February, 2008. Pursuant to a Scheme of Arrangement, the company acquired the pharmaceuticals business of Brabourne Enterprises Limited (formerly RPG Life Sciences Limited) with retrospective effect from the appointed date of 2nd April, 2007.

OPERATIONS:

The Company earned a total income of Rs.1935.100 Millions for the year as compared to Rs.1875.500 Millions during the previous year. The profit after tax for the year stood at Rs.8.500 Millions as compared to Rs.127.100 Millions for the previous year. In December, 2011, the Company received a communication from the Ministry of Social and Family Affairs, Health and Consumer Protection, Hamburg, Germany that it was not being granted EU GMP for the Company’s Active Pharmaceutical Ingredient (API) facility at Navi Mumbai, Maharashtra, citing certain deficiencies noticed during inspection. Consequently some of the key customers cancelled their orders for shipment to be done during the quarter ended March 31, 2012. Though the Company has promptly initiated remedial measures for the same, the API facility was only partially functional during the last quarter of the year and this has adversely affected the export business of the Company. Overall, this has led to significant erosion in the profits of the Company for the year. The Company continues to progressively resolve the issues raised by the said authority. The Company continues to hold a valid WHO GMP and TGA, Australia certification for the API facility at Navi Mumbai plant and is also working towards achieving recertification of its EU GMP status at the earliest.

ACTIVE PHARMACEUTICAL INGREDIENTS (API/BULK DRUGS) BUSINESS:

PERFORMANCE:

The API business achieved sales revenue of Rs.274.800 Millions, which is 2.20% below that of the previous year. The performance was adversely impacted mainly due to non-granting of EU GMP certification as cited earlier. Upon completion of remedial measures, the reaudit of the API facility at Navi Mumbai is expected to be conducted in the third quarter of the financial year 2012-13. The traditional markets of Latin America where the Company enjoys a favourable market share for Quinfamide, Haloperidol and Lamotrigine continued to out-perform and the Company was able to ward off significant price erosion. The sales of Nicorandil, a key export API, grew 136% over the previous year.

OUTLOOK:

One of the key objectives of the Company is to build a strong and sustainable product portfolio. The primary focus during the current year will be to re-establish the licensing approvals in the EU and further to progress with the US FDA audit as well. Therefore, while growth in business will be constrained until the approvals are in place, the Company plans to continue launching new bulk drug products and explore new geographies. The focus would be on products in cardiovascular therapies. Within the segment of Cardiology the new products would address niche therapeutic areas like Pulmonary Arterial Hypertension and Hyponatremia. These are two fast growing segments in the international markets and the Company expects to garner good market share in the same.

GLOBAL GENERICS BUSINESS:

PERFORMANCE:

The Global Generics business achieved sales revenue of Rs.132.300 Millions, which was 24% below that of the previous year. The key factor for the slowdown was the non granting of EU GMP certification and consequently, reduced orders from key clients. Also, more generic companies are entering the market with Azathioprine formulations, increasing the competition in this product. The Company is actively pursuing various markets to maintain its position in the Azathioprine formulation business.

OUTLOOK:

The Generics market worldwide is poised to touch USD 250 bn in the year 2012, and is expected to post a healthy growth rate in the medium term. During the period upto the year 2020, patented drugs worth USD 200 bn which are currently patented will be opened to generic manufacture, giving manufacturers an immense opportunity for growth in the generics space. Opportunities are also being evaluated to develop and manufacture private label products for pharmacy chains.

The Company has a robust business plan for Azathioprine formulations. Globally the product generates revenues of about USD 150 mn, with the largest markets being USA, Germany and UK. The Company has drawn up its entry strategy for all these markets for Azathioprine and is exploring new markets in Australia, New Zealand, Germany and other EU Countries which will result in a global presence.

However, during the current year, there will be limitations on the volume of business due to suspension of EU GMP certification of API facility. The reaudit of the API facility is expected only by the end of third quarter of FY 2012-13. Marketing dossier (ANDA) for Azathioprine has already been fi led in the US during May 2010 and US FDA Audit of the facilities is also expected in 2012-13.

BIOTECH BUSINESS:

PERFORMANCE:

The Biotech business at Rs.127.600 Millions was lower by 41% as compared to the previous year mainly due to two reasons. Firstly, intense competition from domestic as well as Chinese and Korean companies, led to pricing pressures. Secondly, a slowdown in the market for these products coupled with delay in the opening of tenders in Latin American markets adversely affected sales. Sales began to improve towards end of the financial year as a result of new tenders in Latin America, which were won by the Company. Should the trend continue in FY 2012-13, the business could return to earlier levels by the third quarter of the year. The Company made several improvements and upgrades in its Biotech facility, to meet the requirements of various markets in emerging geographies. In line with its strategy to take the products to regulated markets, the Company also plans to file DMFs for its products in the current financial year.

OUTLOOK:

During the year, the Biotech facility was successfully audited and approved by several multinational companies, which has further instilled confidence in the facility and its quality systems. The quality of the product has been substantially improved by continuous R and D efforts. Both, Doxorubicin and Epirubicin, used in the treatment of cancer and which are manufactured by the Company, comply with major pharmcopoeial specifications and compete with the best in class in their category.

The oncology market is one of the fastest growing markets, and is poised to surpass USD 50 bn during the current year. The Indian oncology market is also poised for significant growth. The Company has decided to add synthetic oncology products to its existing portfolio of fermentation oncology products. As an outcome, four synthetic oncology APIs are already under scale up. The APIs so manufactured will be sold to major Oncology players in Emerging market and will also be consumed captively for its own oncology franchise targeted at the INR 15000.000 Millions Indian oncology market. The Company will continue to market its products in the MENA region and the Far East where it has already made inroads.

FORMULATIONS BUSINESS:

PERFORMANCE:

The formulations business achieved sales revenue of Rs.1357.600 Millions during the year registering a growth of 16% as compared to the previous year. During the year, the Company has improved its rank in the Indian Pharmaceutical market by 8 ranks. The flagship divisions like Nephrocare, Lomo group and Chronic Care achieved accelerated growth. Oncology, the new business segment which was launched in 2010-11, has strengthened patient-focus image of the Company amongst Oncologists. The Company is a leading player in Nephrology with Azoran having leadership position.

New brands such as Alfalog, Minmin, Frastim, Rinostat, Naprosyn Tab, etc. which were launched in last few years, have contributed 9.40% to sales in fi nancial year 2011-12. Key products like Aldactone, Serenace, Naprosyn and Azoran have shown good growth. Focus on key brands and field force expansion has helped the Company grow its business. The year witnessed launch of several new products to enhance the depth and width of the product portfolio. Various initiatives have also been taken to develop new export markets in Africa, South East Asia and Latin America.

OUTLOOK:

The business verticals have been restructured to optimize profitable and sustainable sales. The year will see consolidation of the formulation business with improved productivity of sales force. Focus on systems and processes with increased activities at clinic level with strong monitoring and sales force automation will be the key drivers for consolidation. During the current year, the Company would focus on continuous leveraging of legacy brands with additional emphasis on select brands as Focus Brands fuelling growth. Sharp positioning of products coupled with innovative promotional strategies will be implemented with emphasis on micro-management across levels. New products are being planned as line extension of existing popular brands. The Company would focus on strengthening of Nephrology portfolio in the African and South East Asian markets. The business will have major thrust on two therapy areas i.e. - Acute Care and Chronic Care and Chronic Care growth would come from the Specialty Divisions namely Nephrology, Oncology and Cardiac-diabetic-neuro/psychiatry, where customer retention and acquisition programs will help to achieve strong sustainable foothold. The traditional antidiarrheoal range Lomo group will have further increased sales through exploiting new packs and new market opportunities.

EXPORTS:

Exports sales for the year amounted to Rs.518.100 Millions as against Rs.567.400 Millions in the previous year. The Company has taken several key initiatives to gain access to new markets and is confident that these will yield results in the current year in terms of substantially increasing exports.

MANAGEMENT DISCUSSION AND ANALYSIS REPORT

INDUSTRY STRUCTURE AND DEVELOPMENTS:

The Indian healthcare industry has evolved rapidly from being a product centric industry to a service driven sector with delivery (hospitals) and medical insurance segments gaining prominence. India ranks 12th globally in terms of value and 3rd in volumes. The Indian pharmaceutical market is projected to grow at a Compounded Annual Growth Rate (CAGR) of 12-14% to about US $ 55 billion by 2020.

SEGMENT WISE PERFORMANCE:

The Company is exclusively engaged in pharmaceutical business.

Global Formulation division catering to domestic market and rest of the world market achieved sales of Rs.1357.600 Millions registering a growth of 16%. The Company has strengthened its presence in the market through introduction of speciality divisions to cater to the Oncology and Cardio Vascular segment. The Company also took number of initiatives such as training to field staff to improve technical and communication skills, integration of sales force, fi eld force automation, redesign of communication plans and promotional strategy that are expected to improve the sales in the current year and bring consistency in performance. Special emphasis has also been put on export of immunosuppressant products to Asian, African and Latin American markets where these products would find competitive edge due to the Company’s technology and cost.

The Global Generics business achieved net sales of Rs.132.300 Millions registering a de-growth of 22% during the year. New agreements have been executed with customers in Germany and other EU Markets for Azathioprine tablets and are also under discussion in Australia and New Zealand. A marketing application has been filed by the Company simultaneously in several EU markets. New products development has been undertaken for the regulated markets. Clopidogrel Bisulphate Form I tablet and Risperidone tablet for which Company already manufactures the bulk drug have been identified for the dossier development for EULER HERMES – MUMBAI and US markets.

The Bulk Drug business achieved net sales of Rs.274.800 Millions registering a de-growth of 2.20% during the year. In the current year the Company plans to launch new bulk drugs and also plans to foray into new markets with existing products. With these initiatives the bulk drugs business is expected to perform better in the current year. Sales in the Biotech business at Rs.127.600 Millions were lower by 41% as compared to the previous year mainly due to pressure from Indian, Chinese and Korean competition. Though major customers continue to procure from the Company the sales realization per unit has come down significantly.

OUTLOOK:

The outlook for the domestic pharmaceutical industry is positive. In view of the strengths and initiatives discussed above, the outlook for the Company’s business is promising.

CONTINGENT LIABILITIES:

Particulars	31.03.2012 (Rs. in millions)	31.03.2011 (Rs. in millions)
(a) Claims against the company not acknowledged as debts
(i) Sales tax matters	11.800	11.800
(ii) Excise matters	9.300	7.200
(b) Guarantee given to Gujarat Industrial Development Corporation	1.500	1.500
(c) Bank guarantees given to third parties	4.700	4.600
Total	27.300	25.100
NOTE: (i) Future cash outflows in respect of (a) (i) and (a) (ii) above are determinable only on receipt of judgments/decisions pending with various authorities/forums and/or final outcome of the matters. (ii) The management is of opinion that there will be no impact on future cash outflow of the company in respect of (b) and (c) above.

FIXED ASSETS:

• Goodwill
• Technical Knowhow
• Computer Software
• Leasehold Land
• Building
• Plant and Machinery
• Furniture, Fittings and Office Equipments
• Vehicles

STATEMENT OF STANDALONE AUDITED RESULTS FOR THE YEAR ENDED 31^ST MARCH, 2013

Rs. in Millions

Sr. No.	Particular	3 Months Ended		Year Ended
		31.03.2013	31.12.2012	31.03.2013
		Unaudited	Unaudited	Audited
1.	Net Sales/Income from Operations	563.400	480.900	2162.100
	Other Operating Income	20.700	9.200	54.300
	Total Income From Operations (Net)	584.100	490.100	2216.400
2.	Expenditure
	Cost of materials consumed	121.200	135.900	547.900
	Purchase of stock in trade	42.500	41.100	188.000
	Changes in inventories of finished goods, work in progress and stock in trade	44.100	4.100	28.500
	Employee benefits expenses	135.100	139.100	552.000
	Depreciation and amortization expenses	25.300	25.700	98.700
	Other expenses	169.000	192.900	739.300
	Total Expenses	537.200	538.800	2154.400
3.	Profit From Operations before Other Income, Interest and Exceptional Items (1-2)	46.900	(48.700)	62.000
4.	Other Income	9.000	4.800	17.800
5.	Profit Before Interest and Exceptional Items (3+4)	55.900	(43.900)	79.800
6.	Interest	20.600	19.600	74.400
7.	Profit After Interest but before Exceptional Items (5-6)	35.300	(63.500)	5.400
8.	Exceptional Items	(38.700)	(2.600)	(38.700)
9.	Profit from Ordinary Activities before Tax (7+8)	74.000	(60.900)	44.100
10.	Tax Expense	0.000	0.000	0.000
11.	Net Profit from Ordinary Activities after Tax (9-10)	74.000	(60.900)	44.100
12.	Extraordinary Item (net of expense)	0.000	0.000	0.000
13.	Net Profit for the period (11-12)	74.000	(60.900)	44.100
14.	Paid-up Equity Share Capital (Face Value of Rs.8/- Each)	132.300	132.300	132.300
15.	Reserves Excluding Revaluation Reserve	--	--	630.000
16.	Basic and Diluted Earning Per Share (EPS) (Rs.)-Not Annualised
	a) Basic and diluted EPS before extraordinary items	4.48	(3.68)	2.67
	b) Basic and diluted EPS after extraordinary items	4.48	(3.68)	2.67
17.	Public Shareholding
	-Number of Shares	7196344	7196344	7196344
	- Percentage of Shareholding	43.52	43.52	43.52
18.	Promoters and Promoter Group Shareholding
	a) Pledged/Encumbered
	- Number of Shares	--	--	--
	- Percentage of Shares (as a % of the Total Shareholding of promoter and promoter group)	--	--	--
	- Percentage of Shares (as a % of the Total Share Capital of the Company)	--	--	--
	b) Non Encumbered
	- Number of Shares	9338897	9338897	9338897
	- Percentage of Shares (as a % of the Total Shareholding of Promoter and Promoter Group)	100.00	100.00	100.00
	- Percentage of Shares (as a % of the Total Share Capital of the Company)	56.48	56.48	56.48

Particulars	3 Months Ended 31.03.2013
Pending at the beginning of the quarter	Nil
Received during the quarter	6
Disposed of during the quarter	6
Remaining unresolved at the end of the quarter	Nil

STANDALONE STATEMENT OF ASSETS AND LIABILITIES

Rs. in Millions

PARTICULARS	31.03.2013
Equity and liabilities
Shareholders' fund
Share capital	132.300
Reserve & surplus	630.000
Sub-total - Shareholders' funds	762.300
Non - current liabilities
Long term borrowings	105.200
Deferred tax liability (net)	29.400
Other Long-term Liabilities	72.500
Long term provisions	12.500
Sub-total - Non-current liabilities	219.600
Current liabilities
Short term borrowings	370.900
Trade payables	433.300
Other current liabilities	240.100
Short term provisions	31.400
Sub-total - Current liabilities	1075.700
Total - Equity & Liabilities	2057.600
Assets
Non-current assets
Fixed assets	1041.800
Long term loans & advances	18.000
Other non-current assets	5.500
Sub-total - Non-current Assets	1065.300
Current assets
Inventories	293.700
Trade receivables	487.400
Cash & bank balances	7.800
Short term loans & advances	119.300
Other current assets	84.100
Sub-total - Current Assets	992.300
Total – Assets	2057.600

NOTES:

1. The above results have been reviewed by the Audit Committee and approved by the Board of Directors at its meeting held on 7th May, 2013.

2. The figures for the quarter ended 31st March, 2013 are the balancing figures between the audited financial results for the year ended 31st March, 2013 and the published unaudited financial results for the nine months ended 31st December, 2012.

3. The company is exclusively engaged in the pharmaceuticals segment.

4. The company continues to invest strongly in building of brands to gain market share.

5. The company's API facility at Navi Mumbai was successfully audited by Hamburg Health Authorities, Germany during November 2012. The company has since received the Certificate of GMP compliance as per EUGMP standards for a period of three years.

6. The company's API facility at Navi Mumbai was also successfully audited by TGA, Australia during November 2012. The company has since received the Certificate of GMP compliance for a period of three years.

7. The Board of Directors has recommended dividend of Rs. 1.20 per share (15%) for the year ended 31st March, 2013. This will absorb Rs. 23.200 Millions including Dividend Distribution Tax.

8. Figures for the prior periods have been regrouped where necessary.

CMT REPORT (Corruption, Money Laundering & Terrorism]

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

1] INFORMATION ON DESIGNATED PARTY

No exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

2] Court Declaration :

No exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

3] Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

4] Record on Financial Crime :

Charges or conviction registered against subject: None

5] Records on Violation of Anti-Corruption Laws :

Charges or investigation registered against subject: None

6] Records on Int’l Anti-Money Laundering Laws/Standards :

Charges or investigation registered against subject: None

7] Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

8] Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

9] Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

10] Press Report :

No press reports / filings exists on the subject.

CORPORATE GOVERNANCE

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

CONTRAVENTION

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.55.74
UK Pound	1	Rs.84.17
Euro	1	Rs.72.03

INFORMATION DETAILS

Report Prepared by :

TPT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	4
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	6
--RESERVES	1~10	5
--CREDIT LINES	1~10	6
--MARGINS	-5~5	-
DEMERIT POINTS
--BANK CHARGES	YES/NO	NO
--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
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		46

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended
-	NB	New Business	-

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.