MIRA INFORM REPORT

Report Date :

07.11.2013

IDENTIFICATION DETAILS

Name :	NECTAR LIFE SCIENCES LIMITED
Formerly Known As :	SURYA MEDICARE LIMITED
Registered Office :	Village Saidpura, Tehsil Dera Bassi, District Patiala – 140507, Punjab
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	27.06.1995
Com. Reg. No.:	16-016664
Capital Investment / Paid-up Capital :	Rs.224.260 Millions
CIN No.: [Company Identification No.]	L24232PB1995PLC016664
TAN No.: [Tax Deduction & Collection Account No.]	PTLS10181D
PAN No.: [Permanent Account No.]	AABCS6468G
Legal Form :	A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges.
Line of Business :	Manufacturer of Medicines like Ampicillin, Trihydrate, S. Sterilite, Amoxycillin.
No. of Employees :	1700 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (54)

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

Maximum Credit Limit :	USD 34700000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well established company having fine track record. Sales and profit margins of the company appear to be decent. Overall fundaments of the company appear to be sound and healthy. Trade relations are fair. Business is active. Payments are regular as per commitment. The company can be considered for business dealings at usual trade terms and conditions.

NOTES :

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

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

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

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

INDIAN ECONOMIC OVERVIEW

India’s current account deficit or CAD in April-June widened to 4.9 % of gross domestic product. High imports of gold and oil led to a worsening of the trade deficit, resulting in CAD jumping to $ 21.8 billion to the latest quarter from $ 16.9 billion in the corresponding quarter of the previous financial year. The government aims to bring down CAD to 3.7 % or $ 70 billion, in 2013/14, from 4.8 % or $ 88.2 billion in 2012/13.

The finance ministry has started preparations for Budget 2014/15. With general elections scheduled to be held by May next year, there will only be an interim budget. The new government will present the fiscal Budget.

The Supreme Court has barred clinical trials for new drugs till a monitoring mechanism is put in place to protect the lives of people on which the drugs are tested.

Mumbai has been named the world’s second most honest city according to a survey on 15 cities worldwide by Readers’ Digest magazine. Finnish capital Helsinki bagged the top spot for the world’s most honest city while Lisbon, the capital of Portugal, proved to be the least honest.  The survey put hundreds of people to test in four continents to find out just how honest they were by dropping wallets and seeing how many would be returned.

3.7 % Growth of the core sector in August, a seven month high. This takes the overall growth in April-August this year to 2.3 % compared with 6.3 % in the corresponding period next financial year.

$19 million Estimated average spending by companies across the globe including India, on social media this year, according to a global study by information technology major Tata Consultancy Services. This will rise to $ 24 million in 2015.

Rising inflation, fewer employment avenues and dwindling earnings are taking a toll on the spending capacity in India. Over 72 % respondents from middle and lower middle income families would be forced to slash their Diwali expenditure by 40 % and on average spend nearly 25 % of their monthly salary on Diwali, according to a survey by Assochem.

Analysts believe the shutdown of the US government would have limited impact in sectors such as IT or tourism that are dependent on Visa clearances.

RBI DEFAULTERS’ LIST STATUS

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

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

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

INFORMATION PARTED BY (GENERAL DETAILS)

Name :	Mr. Yogesh Solanki
Designation :	Accounts Department
Contact No.:	91-1762-308000
Date :	31.10.2013

LOCATIONS

Registered Office :	Village Saidpura, Tehsil Dera Bassi, District Patiala - 140507, Punjab India
Tel. No.:	91-1762-308000/ 308001/ 231187/ 231287/ 231387
Fax No.:	91-1762-281187
E-Mail :	sales@suryamed.com sunderlal@neclife.com
Website :	http://www.suryamed.com http://www.neclife.com
Location :	Owned
Head Office :	No.1596, Bhaigrath Place, Chandni Chowk, Delhi – 110048, India
E-Mail :	91-11-23866341/ 23869202-03
Fax No.:	91-11-23866341
Corporate Office :	SCO 38-39, Sector 9-D, Chandigarh – 160009 (U.T.), India
Tel. No.:	91-172-3047777/ 3047701
Fax No.:	91-172-3047755
Factory :	110, Industrial Area, Phase-I, Chandigarh - 160002, India
Tel. No.:	91-172-2658317/ 2655166/ 2655438/ 2655775
Fax No.:	91-172-2655377
E-Mail :	sales@suryamed.com sales@neclife.com
Area :	2500 sq.yds.
Location :	Owned
Factory :	Unit I Village: Saidpura, Tehsil: Derabassi, District Mohali, Punjab, India Unit II Village: Saidpura, Tehsil: Derabassi, District Mohali, Punjab, India Empty Hard Gelatin Capsule Unit Village Bhatoli Kalan, Pargana Dharmpur, Tehsil Nalagarh, District Solan, Himachal Pradesh, India Formulation Unit Village Bhatoli Kalan, Pargana Dharmpur, Tehsil Nalagarh, District Solan, Himachal Pradesh, India Narbada Industries Plot No. 2, Lane No. 4, Phase II, SIDCO Industrial Complex, Bari Brahmana, Jammu, Jammu and Kashmir, India
Branches :	Located At : Indore Delhi
Administrative Office :	48/1 Dickmans Road, Colombo 4, Sri Lanka
E-Mail:	chempharma@neclife.com
Marketing Office :	D – 708, Crysral Plaza, Office New Link Road, Opposite Infinitti Mall, Andheri (w), Mumbai – 400053, Maharashtra, India
Tel. No.:	91-22-32060171
Fax No.:	91-22-26736793

DIRECTORS

AS ON 31.03.2013

Name :	Mr. Sanjiv Goyal
Designation :	Chairman and Managing Director
Name :	Mr. Aryan Goyal
Designation :	Executive Director
Name :	Mr. Saurabh Goyal
Designation :	Executive Director
Name :	Mr. Vivek Seth
Designation :	Director
Name :	Mr. Vijay J Shah
Designation :	Independent Director
Name :	Mr. H.P. Singh
Designation :	Director
Name :	Mr. Raman Kapur
Designation :	Independent Director
Name :	Mr. Ajay Swaroop
Designation :	Independent Director

KEY EXECUTIVES

Name :	Mr. Sandeep Goel
Designation :	Vice President (Finance)
Name :	Mr. R. K. Aggarwal
Designation :	Vice President (Accounts)
Name :	Mr. Sunder Lal
Designation :	Vice President and Company Secretary
Name :	Mr. Yogesh Solanki
Designation :	Accounts Department

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 30.09.2013

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
Individuals / Hindu Undivided Family	99468000	55.80
Sub Total	99468000	55.80
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	99468000	55.80
(B) Public Shareholding
(1) Institutions
Financial Institutions / Banks	9010	0.01
Insurance Companies	4431505	2.49
Foreign Institutional Investors	2910592	1.63
Any Others (Specify)	26000000	14.59
Foreign Companies	26000000	14.59
Sub Total	33351107	18.71
(2) Non-Institutions
Bodies Corporate	15034884	8.43
Individuals
Individual shareholders holding nominal share capital up to Rs.0.100 Million	20225090	11.35
Individual shareholders holding nominal share capital in excess of Rs.0.100 Million	7959149	4.46
Any Others (Specify)	2222740	1.25
Non Resident Indians	2114085	1.19
Clearing Members	71080	0.04
Trusts	37575	0.02
Sub Total	45441863	25.49
Total Public shareholding (B)	78792970	44.20
Total (A)+(B)	178260970	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	46000000	0.00
Sub Total	46000000	0.00
Total (A)+(B)+(C)	224260970	0.00

BUSINESS DETAILS

Line of Business :	Manufacturer of Medicines like Ampicillin, Trihydrate, S. Sterilite, Amoxycillin.
Terms :
Selling :	LC and Credit
Purchasing :	LC and Credit

PRODUCTION STATUS (AS ON 31.03.2011)

Particulars	Unit	Installed Capacity	Actual Production
Bulk Drug and Sterile	MTS	1800.00	1086.82
Job Work Executed	MTS	--	18.78
Phytochemicals – Menthol	MTS	7600.00	1958.80
EH Gelatin Capsules	Nos	2880.00	2970.33*
Formulations	Nos	345.00	115.00

* Actual Production exceeds installed capacity due to change in product mix.

NOTE:

(i) In terms of press note no. 4 (1994 series) dated October 25, 1994 issued by the department of Industrial Development, Ministry of Industry, Government of India, Industrial licensing has been abolished in respect of bulk drugs and formulations.

(ii) Installed Capacities are as certified by Management and have not been verified by the auditors being a technical matter.

GENERAL INFORMATION

Customers :

End Users

No. of Employees :

1700 (Approximately)

Bankers :

· Punjab National Bank, Sector 16D, Chandigarh, India

· State Bank of India, Specialized Commercial Branch, Sector 17B, Chandigarh, India

· Vijaya Bank, Barakhamba Road, New Delhi, India

· Exim Bank, Mumbai, Maharashtra, India

· HSBC Bank Limited, Barakhamba Road, New Delhi, India

Facilities :

Secured Loan	As on 31.03.2013 [Rs. in Millions]	As on 31.03.2012 [Rs. in Millions]
Long Term Borrowings
Term Loans
From Banks	2604.820	3629.300
Short Term Borrowings
Working Capital Limits
From Banks	5091.110	5452.110
TOTAL	7695.930	9081.410
Unsecured Loan	As on 31.03.2013 [Rs. in Millions]	As on 31.03.2012 [Rs. in Millions]
Long Term Borrowings
Other Loans
From Banks	3.430	3.990
From Others	1.360	2.880
Short Term Borrowings
From Banks	0.000	200.000
TOTAL	4.790	206.870

Banking Relations :	--
Auditors :
Name :	Datta Singla and Company Chartered Accountants
Address :	SCO 2935-36, 1st Floor, Sector 22-C, Chandigarh, India
Subsidiaries :	· Nectar Capital Limited, Mauritius – Wound up on 3th August, 2012 · Nectar Life Sciences UK Limited, United Kingdom
Other Related Parties :	· Surya Narrow Fabrics, New Delhi · Nectar Lifestyle Private Limited, New Delhi · Nectar Organics Private Limited, New Delhi

CAPITAL STRUCTURE

AS ON 31.03.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
350000000	Equity Shares	Re.1/- each	Rs.350.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
224260970	Equity Shares	Re.1/- each	Rs.224.260 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2013	31.03.2012	31.03.2011
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	224.260	224.260	224.260
(b) Reserves & Surplus	8451.800	7621.200	6987.580
(c) Money received against share warrants	0.000	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000	0.000
Total Shareholders’ Funds (1) + (2)	8676.060	7845.460	7211.840
(3) Non-Current Liabilities
(a) long-term borrowings	2609.610	3636.170	2343.410
(b) Deferred tax liabilities (Net)	957.560	630.220	508.060
(c) Other long term liabilities	10.300	19.570	11.080
(d) long-term provisions	37.890	34.270	24.110
Total Non-current Liabilities (3)	3615.360	4320.230	2886.660
(4) Current Liabilities
(a) Short term borrowings	5091.110	5652.110	3300.100
(b) Trade payables	3825.190	1944.910	1398.210
(c) Other current liabilities	1312.760	1298.430	2459.220
(d) Short-term provisions	219.950	148.140	870.170
Total Current Liabilities (4)	10449.010	9043.590	8027.700
TOTAL	22740.430	21209.280	18126.200
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	9138.390	8578.710	7362.590
(ii) Intangible Assets	0.000	0.000	0.000
(iii) Capital work-in-progress	1385.700	1501.340	824.170
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	0.500	0.500	0.500
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	704.860	631.850	498.690
(e) Other Non-current assets	0.150	0.230	0.300
Total Non-Current Assets	11229.600	10712.630	8686.250
(2) Current assets
(a) Current investments	3.190	1.410	53.320
(b) Inventories	6760.000	5914.150	4708.850
(c) Trade receivables	3493.860	3044.930	3111.280
(d) Cash and cash equivalents	62.400	259.250	325.750
(e) Short-term loans and advances	868.430	1050.420	1020.290
(f) Other current assets	322.950	226.490	220.460
Total Current Assets	11510.830	10496.650	9439.950
TOTAL	22740.430	21209.280	18126.200

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013	31.03.2012	31.03.2011
	SALES
		Revenue From Operations	16248.140	13032.880	10554.480
		Operating Income	14.370	98.180	66.140
		Other Income	160.400	128.940	134.570
		TOTAL (A)	16422.910	13260.000	10755.190
Less	EXPENSES
		Raw Material Consumed	11465.220	9783.500	7103.980
		Purchase of Stock in Trade (Traded Goods)	599.980	630.270	829.970
		Employees Benefits Expense	486.110	476.590	371.680
		Other Expenses	1454.420	1101.880	869.360
		Changes in inventories of Finished Goods. Stock-in-Process and Stock in Trade	(644.020)	(1346.690)	(823.240)
		TOTAL (B)	13361.710	10645.550	8351.750
Less	PROFIT / (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		3061.200	2614.450	2403.440
Less	FINANCIAL EXPENSES (D)		1154.890	1152.500	740.840
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		1906.310	1461.950	1662.600
Less/ Add	DEPRECIATION/ AMORTISATION (F)		759.560	607.290	461.030
	PROFIT / (LOSS) BEFORE TAX (E-F) (G)		1146.750	854.660	1201.570
Less	TAX (H)		290.090	122.160	162.380
	PROFIT / (LOSS) AFTER TAX (G-H) (I)		856.660	732.500	1039.190
Less	APPROPRIATIONS
		Final Dividend	22.430	22.430	22.430
		Tax on Dividend	3.640	3.640	3.640
	BALANCE CARRIED TO THE B/S		830.590	706.430	1013.120
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	9910.030	6548.390	3678.400
	IMPORTS
		Raw Materials	3119.800	2737.230	4738.950
		Traded Goods	120.410	202.080	0.000
		Capital Goods	29.670	34.620	58.210
	TOTAL IMPORTS		3269.880	2973.930	4797.160
	Earnings / (Loss) Per Share (Rs.)		3.82	3.27	4.63

QUARTERLY RESULTS

PARTICULARS	30.06.2013
Net Sales	3448.800
Total Expenditure	2868.000
PBIDT (Excl OI)	580.800
Other Income	39.900
Operating Profit	620.700
Interest	257.700
PBDT	363.000
Depreciation	214.000
Profit Before Tax	149.000
Tax	38.300
Provisions and contingencies	0.000
Profit After Tax	110.800
Extraordinary Items	0.000
Net Profit	110.800

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
PAT / Total Income	(%)	5.22	5.52	9.66
Net Profit Margin (PBT/Sales)	(%)	7.05	6.55	11.38
Return on Total Assets (PBT/Total Assets}	(%)	5.37	4.34	6.94
Return on Investment (ROI) (PBT/Networth)		0.13	0.11	0.17
Debt Equity Ratio (Total Debt/Networth)		0.89	1.18	0.78
Current Ratio (Current Asset/Current Liability)		1.10	1.16	1.17

LOCAL AGENCY FURTHER INFORMATION

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

INDEX OF CHARGES:

S. No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10444604	23/08/2013	500,000,000.00	STATE BANK OF BIKANER & JAIPUR	16/67-68, FAIZ ROAD, KAROL BAGH, NEW DELHI - 110005, INDIA	B82904855
2	10441331	02/08/2013	1,000,000,000.00	ALLAHABAD BANK	INDUSTRIAL FINANCE BRANCH, FIRST FLOOR, 17, PARLIAMENT STREET, , NEW DELHI - 110001, INDIA	B81334542
3	10422304	26/04/2013 *	1,300,116,000.00	STATE BANK OF INDIA	SPECIALISED COMMERCIAL BRANCH, SCO 103-106, SECTOR 17-B, CHANDIGARH - 160017, INDIA	B73948606
4	10342507	06/03/2012	3,000,000.00	GOVERNMENT OF HIMACHAL PRADESH THROUGH DIRECTOR OF INDUSTRIES	DY. DIRECTOR OF INDUSTRIES, SWCA, BADDI, SOLAN- 173205, HIMACHAL PRADESH, INDIA	B35141779
5	10333669	07/05/2013 *	5,364,000,000.00	PUNJAB NATIONAL BANK	SECTOR 16 BRANCH, CHANDIGARH - 160016, INDIA	B76154293
6	10313435	06/09/2011	1,000,000,000.00	VIJAYA BANK	17, BARAKHAMBA ROAD, NEW DELHI, NEW DELHI - 110001, INDIA	B23630312
7	10295257	22/05/2012 *	600,000,000.00	EXPORT-IMPORT BANK OF INDIA	CENTRE ONE, FLOOR 21, WORLD TRADE CENTRE COMPLEX, CUFFE PARADE, MUMBAI - 400005, MAHARASHTRA, INDIA	B41993924
8	10280455	22/05/2012 *	400,000,000.00	EXPORT-IMPORT BANK OF INDIA	CENTRE ONE, FLOOR 21, WORLD TRADE CENTRE COMPLEX, CUFFE PARADE, MUMBAI - 400005, MAHARASHTRA, INDIA	B41989898
9	10280456	21/04/2011	500,000,000.00	EXPORT-IMPORT BANK OF INDIA	CENTRE ONE, FLOOR 21, WORLD TRADE CENTRE COMPLEX, CUFFE PARADE, MUMBAI - 400005, MAHARASHTRA, INDIA	B10753598
10	10285034	02/04/2011	500,000,000.00	PUNJAB NATIONAL BANK	SECTOR 16 BRANCH, CHANDIGARH - 160016, INDIA	B12419677
* Date of charge modification

MANAGEMENT DISCUSSION AND ANALYSIS:

GLOBAL PHARMACEUTICAL INDUSTRY OVERVIEW:

After the roller-coaster year of 2012, it's easy to overlook the exciting opportunities in life sciences: technological advances, new business models, and global markets. The global pharmaceutical industry, after experiencing a shrink during 2009-2011, is now in its recovery period, which will be followed by its growth.

Global Pharmaceutical market was around $900 billion in 2011, is expected to reach nearly $1.2 trillion in 2016, reflecting a growth rate of four-six per cent over the five year period, compared to 6.2% annual growth over the past five years. Growth will be primarily driven by higher generic spending (accounting for 3/4th of the total increase) and increasing medical expenditure.

Decline in global pharmaceutical market was largely due to the economic recession. Meanwhile, pharmaceutical markets in some developing regions, like Asia and Latin America have been continuously witnessing huge growth rate for last few years on account of increasing prevalence of diseases, rising healthcare spending, and increasing affordability

The pharmerging countries including China, India, Brazil, Russia, Venezuela, Poland, Argentina, Turkey, Mexico, Vietnam, South Africa, Thailand, Indonesia, Romania, Egypt, Pakistan and Ukraine (hereinafter collectively referred as the "pharmerging countries") will be the primary growth drivers with market share likely to rise to 30% by 2016 from 20% in 2011. Simultaneously, the share of developed markets is likely to be 57% by 2016, led by around US$ 100 Billion of patent expiry in next five years. Gradually growth of Pharmaceutical Industry is gravitating from developed countries to emerging markets.

GLOBAL SPENDING ON MEDICINES

Global spending on medicines annually will grow to nearly $1.2 trillion by 2016, as the pharmerging markets and generics will contribute a greatershare of spending. Pharmerging markets share of spending will increase by 10 percentage points to 30% of global spending over the next five years, as population and economic growth will drive a dramatically higher use of medicines in these markets. There will be an accelerated shift in spending to generics; biologic medicines are expected to account for $200-210Billion of global spending, while biosimilars will be between $4-6Billon, and 2% of biologies spending.

ACTIVE PHARMACEUTICAL INGREDIENTS (APIS):

Active Pharmaceutical Ingredients (API) or bulk drugs are the principal ingredients for finished pharmaceutical products. The global API market can broadly be divided into regulated and semi-regulated markets. The semi-regulated markets offer low entry barriers in terms of regulatory requirements and intellectual property rights.

The highly regulated markets, like the United States, Europe and Japan have high entry barriers in terms of intellectual property rights and regulatory requirements, including facility approvals. As a result, there is a premium for quality and regulatory compliance, along with relatively greater stability for both volumes and prices.

The API growth will be fuelled by rise in demand of generics and biological drugs. The API market was valued at US$ 101.08 billion in 2010, and is expected to grow at a CAGR of 7.9% from 2012 to 2016. Globally, Asia-Pacific is the third largest regional market for APIs by revenue after the US and Europe.

GENERIC/ FORMULATIONS DRUG INDUSTRY:

The global generics market reached a value of US$ 225 billion in 2011. The patent expiries of blockbuster drugs commencing from 2012 provides a solid base for robust growth of generics. The global generics market is anticipated to reach US$ 400-450 billion by 2015. Nearly 70% of this demand will be contributed by Pharmerging economies. The cost containment strategies implemented by governments, shift towards affordable generics, ageing population and chronic diseases will catalyze the generics markets.

PHARMACEUTICAL MARKET:

The Indian Pharmaceutical Industry (IPI) is globally the 3rd largest in terms of volume and 13th largest in terms of value. The total market size of Rs. 1,233 Billion includes domestic consumption market of Rs.600 Billion (contributing 48.6%) and the exports market being Rs. 633 Billion (contributing 51.4%).

The industry grew at a CAGR of 12.5% during the past five years and is expected to grow at a robust CAGR of 15.1% during Financial Years 2012-17 given huge export potential coupled with steady growth in the domestic formulation market.

Growth in the domestic pharma market will be driven by increase in the penetration of medical facilities, increase in the prevalence of chronic diseases, rising per capita income and increase in the health insurance coverage.

Growth in the exports of pharmaceutical products from India will be driven by patent expiries of the major branded drugs across the world, particularly in the US market.

The growth in the US market will be led by increasing generic penetration and healthy ANDA (Abbreviated New Drug Application) pipeline of Indian pharma players.

In the long term, growth in the exports market will be sustained by emerging markets like Russia, Brazil, S. Africa etc. along with the enhanced focus on the niche and complex product segments such as injectables, inhalers, ophthalmic, dermatology and oral contraceptives. These are high risk - high return product segments. These offer comparatively huge entry barriers; as their clinical trials, approvals and manufacturing process are comparatively more complex and time consuming. Hence very limited number of players has entered these segments resulting in limited competition.

Pharma sector in India is growing at a rapid pace, marked by a number of mergers and acquisitions (M&A) and growth in foreign expenditure. The sector is going to be a major area of focus in the coming years as Indian medicines are increasingly becoming popular in many parts of the world because of the cost effectiveness and easy availability. The manufacturing cost of Indian pharmaceutical companies is upto 65 percent lower than that of US firms and almost half of that of the European manufacturers.

FIXED ASSETS:

· Freehold Land and Site Development

· Leasehold Land

· Buildings

· Tube Well

· Plant and Machinery

· Plant and Machinery (R and D)

· Boiler

· Pollution Control Equipment

· Laboratory

· Miscellaneous Fixed Assets

· Furniture and Fixture

· Motor Vehicles

· Computer

STATEMENT OF UNAUDITED FINANCIAL RESULTS FOR THE QUARTER ENDED ON 30.06.2013

Rs. in Millions

Sr. No.	Particular	Quarter Ended
		30.06.2013
		Unaudited
1.	Net Sales/Income from Operations	3448.126
	Other Operating Income	0.653
	Total Income From Operations (Net)	3448.779
2.	Expenditure
	Cost of materials consumed	2456.784
	Purchase of stock in trade	273.695
	Employee benefits expenses	139.870
	Depreciation and amortization expenses	213.951
	Other expenses	292.494
	Changes in inventories of finished goods, work in progress and stock in trade	(294.851)
	Total Expenses	3081.943
3.	Profit From Operations before Other Income, Interest and Exceptional Items (1-2)	366.836
4.	Other Income	39.886
5.	Profit Before Interest and Exceptional Items (3+4)	406.722
6.	Interest	257.678
7.	Profit After Interest but before Exceptional Items (5-6)	149.044
8.	Exceptional Items	--
9.	Profit from Ordinary Activities before Tax (7+8)	149.044
10.	Tax Expense	38.282
11.	Net Profit from Ordinary Activities after Tax (9-10)	110.762
12.	Extraordinary Item (net of expense)	--
13.	Net Profit for the period (11-12)	110.762
14.	Paid-up Equity Share Capital (Face Value of Rs.1/- Each)	224.261
15.	Reserves Excluding Revaluation Reserve	--
16.	Basic and Diluted Earning Per Share (EPS) (Rs.)-Not Annualized
	a) Basic and diluted EPS before extraordinary items	0.49
	b) Basic and diluted EPS after extraordinary items	0.49
17.	Public Shareholding
	-Number of Shares	124792970
	- Percentage of Shareholding	55.65
18.	Promoters and Promoter Group Shareholding
	a) Pledged/Encumbered
	- Number of Shares	Nil
	- Percentage of Shares (as a % of the Total Shareholding of promoter and promoter group)	Nil
	- Percentage of Shares (as a % of the Total Share Capital of the Company)	Nil
	b) Non Encumbered
	- Number of Shares	99468000
	- Percentage of Shares (as a % of the Total Shareholding of Promoter and Promoter Group)	100.00
	- Percentage of Shares (as a % of the Total Share Capital of the Company)	44.35

Particulars	3 Months ended on 30.06.2013
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

NOTES:

1. The above financial results were reviewed by Audit Committee on 12.08.2013 and approved by the Board in its meeting held on 13.08.2013 and further limited reviewed by the Statutory Auditors of the Company.

2. Previous year figures have been regrouped and reclassified wherever necessary to make them comparable with current period.

3. As per Accounting Standard 11, accounting of the effect of changes in foreign exchange rates will be ascertained at the end of the year and hence the same is not considered in these quarterly results.

4. The above financial results are on standalone basis.

5. The company is exclusively in the pharmaceutical business segment.

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 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.61.92
UK Pound	1	Rs.99.60
Euro	1	Rs.83.64

INFORMATION DETAILS

Information Gathered by :	PLK
Report Prepared by :	TPT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	6
--RESERVES	1~10	6
--CREDIT LINES	1~10	6
--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
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		54

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.