MIRA INFORM REPORT

Report Date :

16.11.2013

IDENTIFICATION DETAILS

Name :	STRIDES ARCOLAB LIMITED
Registered Office :	201, Devavrata, Sector 17, Vashi, Navi Mumbai – 400705, Maharashtra
Country :	India
Financials (as on) :	31.12.2012
Date of Incorporation :	28.06.1990
Com. Reg. No.:	11-057062
Capital Investment / Paid-up Capital :	Rs. 588.040 Millions
CIN No.: [Company Identification No.]	L24230MH1990PLC057062
TAN No.: [Tax Deduction & Collection Account No.]	MUMS36534B
PAN No.: [Permanent Account No.]	AADCS8104P
Legal Form :	A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges.
Line of Business :	Manufacturing and Marketing of all types of Bulk Drugs, Pharmaceuticals, etc.
No. of Employees :	2700 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (51)

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

Maximum Credit Limit :	USD 54860000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Exist
Comments :	Subject is a well established company having a good track record. There appears drastic dip in sales and profitability during 2012. However, general financial strength seems to be strong. Liquidity position appears to be good. Trade relations are reported to be fair. Business is active. Payments are reported to be regular and as per commitments. The company can be considered 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.

INDIAN ECONOMIC OVERVIEW

The current downturn provides an opportunity to push ahead with reforms to accelerate growth, says the latest India Development Update report released by the World Bank. The report says that the adverse effects of rupee depreciation are likely to be offset by the gains in the exports performance due to improved external competitiveness. Since May this year, the local currency has depreciated substantially and fell to a record level of Rs 68.85 to a dollar on August, 28.

A stagflation like situation appears to have arisen as inflation jumped to an eight month high of 6.46 % for the month of September. It is up from 6.10 % in August. Growth continues to be muted with factory output plunging to 0.6  % in August. Onion prices have risen nearly 300 % from last September. Vegetables cost nearly 90 % more than they did last year. Wake up to the economic contribution of slum dwellers. They contribute more than 7.5 % to the country’s gross domestic product, according to a recent study conducted in 50 top cities.

136000 estimated number of jobs created during the second quarter of the current financial year. 50000 estimated number of additional jobs in the field of corporate social responsibility in the coming years.

The International Finance Corporation expects to come out with its rupee linked bonds issue before the end of 2013 as a part of its plan to raise $ 1 billion. The Apple iPhone 5c (Rs 41900 for 16 GB variant) and 5s (Rs 53500 for 16GB variant) has been launched in India from 1^st November.

The Land Acquisition Act to provide just and fair compensation to farmers will come into force from January 1 next year, said Rural Development Minister Jairam Ramesh. The Act replaces a 119 year old registration. The Securities and Exchange Board of India has approved the trading of currency futures on the Bombay Stock Exchange. The exchange plans to launch the currency futures platform with advanced trading technology by the end of November.

EXTERNAL AGENCY RATING

Rating Agency Name	ICRA
Rating	Term Loan Facilities = BBB+
Rating Explanation	Moderate degree of safety and moderate credit risk
Date	September, 2013

Rating Agency Name	ICRA
Rating	Fund Based Facilities = A2+
Rating Explanation	Strong degree of safety and low credit risk.
Date	September, 2013

RBI DEFAULTERS’ LIST STATUS

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

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

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

LOCATIONS

Registered Office :	201, Devavrata, Sector 17, Vashi, Navi Mumbai – 400705, Maharashtra, India
Tel. No.:	91-22-27892924 / 27893199
Fax No.:	91-22-27892942
E-Mail :	kannan.n@stridesarco.com badree.komandur@stridesarco.com info@stridesarco.com
Website :	http://www.stridesarco.com
Corporate Office :	Strides House, Bilekahalli, Bannerghatta Road, Bangalore – 560076, Karnataka, India
Tel. No.:	91-80-26581343/ 44/ 67580738/ 39/ 67580000/ 66580751/ 66580000/ 66580600
Fax No.:	91-80-26583538/ 4330/ 67580700/ 800/ 66580800
E-Mail :	kannan.n@stridesarco.com strides@satyam.net.in info@stridesarco.com
R and D Centre	Strides Technology And Research, Bilekahalli, Bannerghatta Road, Bangalore 560076, Karnataka, India
Tel. No.:	91-80-67840290
Fax No.:	91-80-66580200/300
GLOBAL PLANTS :
Factory 1 :	Sterile Products Division – I Bilekahalli, Bannerghatta Road, Bangalore - 560076, Karnataka, India
Factory 2 :	Penicillins Facility Estrada Doutor Lorival Martins Beda, 926 – 968 28110-000- Donana – Campos dos, Goytacazes- Rio de Janeiro- Brazil
Factory 3 :	Sterile Products Division – II Plot No. 284-A, Bommasandra Jigani Link Road, Industrial Area, Jigani Village, Jigani, Hobli, Anekal Taluk, Bangalore - 562106, Karnataka, India
Factory 4 :	Strides Arcolab Polska Sp.Zo.o ul. Daniszewska 10 03-230 Warszawa NIP-813-34-15-000, Poland
Factory 5 :	Oral Dosage Form Facility – III Plot No. 9-12, Dewan and Sons Industrial Area, Veroor, Palghar, District Thane - 401404, Maharashtra, India
Factory 6 :	Onco Therapies Limited Plot No. 284-B, Bommasandra Jigani Link Road, Industrial Area, Jigani Village, Jigani Hobli, Anekal Taluk, Bangalore - 562106, Karnataka, India
Factory 7 :	Strides Vital Nigeria Limited Gate No. 02, Ladipo Oluwole Avenue, Opposite Cocoa Warehouse, Off Oba Akran Road, Ikeja Industrial Area, Ikeja Lagos, Nigeria
Factory 8 :	Beta-lactams Facility Bilekahalli, Bannerghatta Road, Bangalore-560076, Karnataka, India
Factory 9 :	Beltapharm SpA 20095 Cusano MIL. (MI) – Via Stelvio, 66 Italy.
Factory 10 :	Penems Facility Estrada Doutor Lorival Martins Beda, 926 – 968 28110-000- Donana – Campos dos, Goytacazes- Rio de Janeiro- Brazil
Factory 11 :	Oral Dosage Form Facility – II 'KRS Gardens', Suragajakanahalli, Anekal Taluk, Bangalore - 560106, Karnataka, India
Factory 12 :	Oral Dosage Form Facility – I 124, Sipcot Industrial Complex, Hosur - 635126, Tamilnadu, India
Factory 13 :	Beta-lactams Facility Bilekahalli, Bannerghatta Road, Bangalore - 560076, Karnataka, India
Factory 14 :	Star Drugs and Research Labs Limited Plot No. 14, Sipcot-II, Hosur - 635109, Tamilnadu, India
Factory 15 :	Cephalosporins Facility Bilekahalli, Bannerghatta Road, Bangalore - 560076, Karnataka, India
Factory 16 :	Penems Facility Estrada DoutorLorival Martins Beda, 926 - 968 28110-000- Donana - Campos dos Goytacazes- Rio de Janeiro- Brazil
Warehouse :	Plot No. 62, Sector – 1, Nerul, Navi Mumbai – 400706, Maharashtra, India
Global Offices :	Located at : USA 201 S. Main Street, Ste. 3, Lambertville, NJ 08530 Cameron BP 1834, Rue Dubois de Saligny, Akwa, Douala, Cameroon South Africa 4, Angus Cresent, Longmeadow East, Modderfontein-1644, Norway Sorkedalsveien, 10B 0369, Oslo, Norway. United Kingdom Unit 4, Metro Centre, Tolpits Lane,Watford, Hertfordshire, WD18 9SS, UK Singapore 8 Cross Street, No. 17-00 Singapore 048424

DIRECTORS

AS ON 31.12.2012

Name :	Mr. Deepak Vaidya
Designation :	Chairman and Independent Director
Name :	Mr. Arun Kumar
Designation :	Executive Vice Chairman and Managing Director
Qualification	B.Com., PGDBM
Name :	Mr. K.R. Ravishankar
Designation :	Non Executive Director
Qualification	B.Sc. (Part)
Name :	Mr. Mukul Sarkar
Designation :	Independent Director
Name :	Mr. P M Thampi
Designation :	Independent Director
Name :	Mr. Venkat S Iyer
Designation :	Director
Name :	Mr. M.R. Umarji
Designation :	Independent Director
Name :	Mr. A.K. Nair
Designation :	Independent Director
Name :	Mr. S Sridhar
Designation :	Independent Director

KEY EXECUTIVES

Name :	Mr. Arun Kumar
Designation :	Founder and Group Chief Executive Officer
Name :	Mr. Venkat S Iyer
Designation :	Executive Director and Chief Executive Officer – Agila
Name :	Mr. T. S. Rangan
Designation :	Group Chief Executive Officer
Name :	Mr. Adam Levitt
Designation :	Chief Executive Officer Americas Operations
Name :	Dr. Anand Iyer
Designation :	Chief Executive Officer, Agila Biotech Division
Name :	Mr. D P Shrivastava
Designation :	Chief Executive Officer, Brazil
Name :	Mr. Manish Gupta
Designation :	Chief Executive Officer – pharma
Name :	Mr. Subroto Banerjee
Designation :	President, Agila (India Region)
Name :	Mr. Sihue B Noronha
Designation :	Chief Executive Officer – Africa
Name :	Mr. Joe Thomas
Designation :	Chief Corporate Development Officer

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 30.09.2013

Category of Shareholder	No. of Shares	Percentage of Holding
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	3287326	5.56
Bodies Corporate	12896876	21.80
Sub Total	16184202	27.36
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	16184202	27.36
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	2060110	3.48
Financial Institutions / Banks	21120	0.04
Insurance Companies	940422	1.59
Foreign Institutional Investors	31605453	53.42
Qualified Foreign Investor	5000	0.01
Sub Total	34632105	58.54
(2) Non-Institutions
Bodies Corporate	2099429	3.55
Individuals
Individual shareholders holding nominal share capital up to Rs. 0.100 Million	2556863	4.32
Individual shareholders holding nominal share capital in excess of Rs. 0.100 Million	1144742	1.93
Qualified Foreign Investor	20020	0.03
Any Others (Specify)	2524010	4.27
Non Resident Indians	1550685	2.62
Hindu Undivided Families	106501	0.18
Directors & their Relatives & Friends	204900	0.35
Clearing Members	145669	0.25
Foreign Nationals	495000	0.84
Foreign Corporate Bodies	21005	0.04
Trusts	250	0.00
Sub Total	8345064	14.11
Total Public shareholding (B)	42977169	72.64
Total (A)+(B)	59161371	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)	59161371	0.00

Shareholding of securities (including shares, warrants, convertible securities) of persons belonging to the category Promoter and Promoter Group

Sl. No.	Name of the Shareholders	Details of Shares held
		No. of Shares held	As a %
1	Pronomz Ventures LLP	12665000	21.45
2	Arun Kumar	560797	0.95
3	K R Ravishankar	1235906	2.09
4	Agnus Holdings Private Limited	120816	0.20
5	Chayadeep Properties Private Limited	61060	0.10
6	Triumph Venture Holdings LLP	30000	0.05
7	Agnus Capital LLP	20000	0.03
8	Padma Kumar	171485	0.29
9	Deepa Arun Kumar	201000	0.34
10	Tarini Arun Kumar	200000	0.34
11	Aditya Arun Kumar	200000	0.34
12	Vineetha Mohanakumar Pillai	175000	0.30
13	K R Lakshmidevi	130365	0.22
14	Rajeswari Amma	93760	0.16
15	Sajitha Pillai	80000	0.14
16	Gayatri Nair	50000	0.08
17	Lakshmi Gopalakrishnan	50000	0.08
18	Hemalatha Pillai	48000	0.08
19	Rajitha Gopalakrishnan	45000	0.08
20	G Purushothaman Pillai	33013	0.06
21	Rahul Nair	3000	0.01
	Total	16174202	27.39

Shareholding of securities (including shares, warrants, convertible securities) of persons belonging to the category Public and holding more than 1% of the total number of shares

Sl. No.	Name of the Shareholders	No. of Shares held	Shares as %
1	Goldman Sachs Investments (Mauritius) I Limited	3896664	6.60
2	Dvi Fund Managers	2804778	4.75
3	Hsbc Global Investment Funds A/C HSBC Global Investment Funds Mauritius Limited	2782138	4.71
4	Morgan Stanley Asia (Singapore) Pte.	2373211	4.02
5	Janus Overseas Fund	1780895	3.02
6	Reliance Capital Trustees Company Limited A/C Reliance Growth Fund	1699963	2.88
7	Valiant Mauritius Partners Limited	1646360	2.79
8	Route One Investment Company, L.P. A/C Route One Fund 1, L. P	1599796	2.71
9	Route One Investment Company, L.P. A/C Route One Offshore Master Fund L.P	1520904	2.58
10	Valiant Mauritius Partners Offshore Limited	1459980	2.47
11	Reliance Life Insurance Company Limited	1341073	2.27
12	Satpal Khattar	1332286	2.26
13	Elara India Opportunities Fund Limited	1303273	2.21
14	Bnp Paribas Arbitrage	1001997	1.70
15	DB International (Asia) Limited	815458	1.38
16	Deutsche Securities Mauritius Limited	801689	1.36
17	DNB Fund A/C DNB Fund - Asian Small Cap	775000	1.31
18	IDFC Sterling Equity Fund	640000	1.08
19	SBI Magnum Tax Gain Scheme - 1993	611987	1.04
	Total	30187452	51.12

Shareholding of securities (including shares, warrants, convertible securities) of persons (together with PAC) belonging to the category “Public” and holding more than 5% of the total number of shares of the company

Sl. No.	Name(s) of the shareholder(s) and the Persons Acting in Concert (PAC) with them	No. of Shares	Shares as %
1	Goldman Sachs Investments (Mauritius) I Limited	3896664	6.60
	Total	3896664	6.60

Details of Locked-in Shares

Sl. No.	Name of the Shareholder	No. of Shares	Locked-in Shares as %
1	Pronomz Ventures LLP	3220000	5.45
	Total	3220000	5.45

BUSINESS DETAILS

Line of Business :

Manufacturing and Marketing of all types of Bulk Drugs, Pharmaceuticals, etc.

Products :

Item Code No.	Product Description
30039090	Lamivudine
30039090	Efavirenz
30039090	Nevirapine

PRODUCTION STATUS (AS ON 31.12.2011)

Particulars	Unit	Installed Capacity	Actual Production
Soft Gelatin Plant Softgel Capsules	Numbers in Millions	2645	--
Hard Gelatin Plant Capsules	Numbers in Millions	450	699734
Tablet Plant Tablets	Numbers in Millions	2160	2115452
Others	Numbers in Millions	--	2105

Note:

Installed Capacities are as certified by the management and relied upon by the Auditors. The installed capacities serve multiple purposes and will vary according to product mix.

** Not applicable as the products have been de-licensed.

GENERAL INFORMATION

No. of Employees :

2700 (Approximately)

Bankers :

· Axis Bank Limited

· Central Bank of India

· HDFC Bank Limited

· Indian Overseas Bank

· Ratnakar Bank Limited

· Syndicate Bank

· Yes Bank Limited

· Citi Bank

· Exim Bank

Facilities :

Secured Loans	31.12.2012	31.12.2011
	(Rs. In Millions)
LONG-TERM BORROWINGS
Term loan from banks	244.160	975.850
SHORT-TERM BORROWINGS
Working capital loans	2709.350	2680.770
Short term loans	0.000	1250.000
Cash credit facilities	226.460	111.510
Total	3179.970	5018.130

Banking Relations :	--
Statutory Auditors :
Name :	Deloitte Haskins and Sells Chartered Accountants
Address :	Deloitte Centre, Anchorage II, 100/2, Richmond Road, Bangalore – 560025, Karnataka, India
Tel. No.:	91-80-66276000
Fax No.:	91-80-66276011
Internal Auditors :
Name :	Grant Thornton International Chartered Accountants
Address :	Wings, 1^st Floor, 16/1, Cambridge Road, Halasuru, Bangalore-560008, Karnataka, India
Wholly Owned Subsidiaries :	Direct Holding · Arcolab Limited SA, Switzerland · Agila Biotech Private Limited, India (w.e.f. May 16, 2012) · Agila Specialties Asia Pte. Limited, Singapore (w.e.f. August 4, 2012) · Agila Specialties Private Limited, India · Agila Specialties Limited (formerly Starsmore Limited), Cyprus · Strides Africa Limited, British Virgin Islands (upto December 25, 2012) · Strides Arcolab International Limited, U.K (SAIL) · Strides Emerging Markets Private Limited, India (w.e.f. June 1, 2012 upto November7, 2012) · Strides Pharma International Limited, Cyprus (formerly Strides Specialty (Cyprus) Limited) · Strides Technology and Research Private Limited, India (Under the process of striking off) Indirect Holding · Agila Australasia Pty Limited, Australia (w.e.f. March 22, 2012) · Agila Biotech (Malaysia) SDN BHD, Malaysia (Formerly Agila Specialties (Malaysia) SDN BHD) · Agila (NZ) Pty Limited, New Zealand (w.e.f. February 8, 2012) · Agila Pharma Canada Corporation, Canada (formerly Pharma Strides Canada Corporation) · Agila Specialties Americas Limited, Cyprus (w.e.f. September 28, 2012) (Formerly Agila Specialties Latina Limited) · Agila Specialties Asia Pte. Limited, Singapore (upto August 3, 2012) · Agila Specialties Global Pte. Limited, Singapore (w.e.f. September 28, 2012) · Agila Specialties UK Limited, UK (w.e.f. December 14, 2012) · Agila Specialties Polska Sp. Z.o.o, Poland (Formerly Strides Arcolab Polska Sp.Z.o.o.) · Co Pharma Limited, UK · Farma Plus AS , Norway · Onco Laboratories Limited, Cyprus · Onco Therapies Limited, India · Plus Farma ehfi, Iceland · Scentia Pharmaceuticals Pty Limited, Australia (formerly Linkace Investments Pty Limited), · Strides Africa Limited, British Virgin Islands (w.e.f. December 26, 2012) Strides Australia Pty Limited, Australia · Strides Emerging Markets Private Limited, India (w.e.f. November 8, 2012) · Strides Inc., USA · Strides Pharma (Cyprus) Limited, Cyprus (upto June 28, 2012) Strides Pharma Limited, Cyprus (formerly Linkace Limited) · Strides Pharmaceuticals (Holdings) Limited, Mauritius · Strides Pharmaceuticals (Mauritius) Limited, Mauritius · Strides S.A. Pharmaceuticals Pty. Limited, South Africa (w.e.f. December31, 2012) · Strides Specialties (Holdings) Cyprus Limited, Cyprus · Strides Specialties (Holdings) Limited, Mauritius
Other Subsidiaries :	Indirect Holding · African Pharmaceuticals Development Company, Cameroon · Agila Marketing e distribicao de Productos Hospitalaries Limited. (formerly Ephos – 106 Produtos Hospitalaries Limited Me), Brazil · Beltapharm S.p.A., Italy · Congo Pharma SPRL, Congo · Inbiopro Solutions Private Limited, India · Sorepharm SA, Burkinofaso · SPC Company Limited, Sudan · Strides CIS Limited, Cyprus · Strides Farmaceutica Participacoes Limited, Brazil · Agila Jamp Canada Inc., Canada (w.e.f. March 20, 2012) · Strides Pharma Cameroon Limited, Cameroon · Strides Pharma (Cyprus) Limited, Cyprus · Strides Pharma Namibia (Pty) Limited, Namibia · Strides S.A. Pharmaceuticals Pty. Limited, South Africa · Strides Vital Nigeria Limited, Nigeria · Ascent Pharmahealth Asia Pte., Limited, Singapore · Ascent Pharma Pty Limited (formerly Genepharm Pty Limited), Australia · Ascent Pharmacy Services Pty Limited, Australia · Ascent Pharmaceuticals Limited (formerly Genepharm (New Zealand) Limited), New Zealand · Ascent Pharmahealth Asia (Hong Kong) Limited (formerly Strides Arcolab Hong Kong Limited), Hong Kong · Ascent Pharmahealth Asia (Malaysia) SDN BHD (formerly Strides Arcolab Malaysia SDN. BHD) , Malaysia · Drug Houses of Australia (Asia) Pte. Limited, Singapore · Pharmasave Australia Pty Limited, Australia
Joint Ventures :	· Akorn Strides LLC, USA · Sagent Agila LLC, USA
Enterprises owned or significantly influenced by key management personnel and relative of key management personnel :	· Atma Projects, India · Agnus Holdings Private Limited, India · Agnus Global Holdings Pte Limited, Singapore · Agnus IPCO Limited, BVI · Mandala Valley Vineyards Private Limited, India · Nous Infosytems Private Limited, India · Patsys Consulting Private Limited, India · Santo Properties Private Limited, India · Sequent Scientific Limited, India · Sequent Research Limited, India · Sequent Penems Private Limited, India · Sequent Global Holdings Limited, Mauritius · Sequent Antibiotics (Private) Limited, India · Sequent Oncolytics (Private) Limited, India · Skanray Healthcare Private Limited, India (Formerly known as Triumph Fincap Ventures Private Limited) · Karuna Ventures Private Limited, India · Paradime Infrastructure Development Company · Deesha Properties, India · Agnus Capital LLP, India · Atma Enterprises LLP India · Chayadeep Ventures LLP India · Qualichem Remedies LLP India · Triumph Venture Holdings LLP, India · Chayadeep Properties Private Limited, India · Higher Pharmatech Private Limited, India · Pronomz Ventures LLP, India

CAPITAL STRUCTURE

AS ON 31.12.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
89750000	Equity Shares	Rs.10/- each	Rs. 897.500 Millions
620000	Cumulative Redeemable Preference Shares	Rs.1000/- each	Rs. 620.000 Millions
	TOTAL		Rs. 1517.500 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
58803721	Equity Shares	Rs.10/- each	Rs. 588.040 Millions

NOTE:

Reconciliation of the number of shares and amount outstanding at the beginning and at the end of the reporting period:

PARTICULARS	31.12.2012
	No. of shares	(Rs. In Millions)
Equity share of Rs.10/- each
Opening balance	58380171	583.800
Issued pursuant to employee stock option plan	423550	4.240
Closing balance	58803721	588.040

Detail of the rights, preferences and restrictions attaching to each class of shares outstanding Equity shares of Rs. 10/- each:

The Company has only one class of equity shares, having a par value of Rs.10/-. The holder of equity shares is entitled to one vote per share. The Company declares and pays dividends in Indian rupees. The dividend proposed by the Board of Directors is subject to approval by the shareholders at the ensuing Annual General Meeting. In the event of liquidation of the Company, the holders of the equity shares will be entitled to receive any of the remaining assets of the Company, after distribution to all other parties concerned. The distribution will be in proportion to number of equity shares held by the shareholders.

Details of equity shares held by each shareholder holding more than 5% of shares:

PARTICULARS	31.12.2012
	No. of shares	%
Pronomz Ventures LLP	12665000	21.54%

Details of aggregate number of equity shares allotted as fully paid-up pursuant to contract without payment being received in cash for the period of five year immediately preceding the balance sheet date:

PARTICULARS	31.12.2012
	No. of shares
Equity shares of Rs.10- issued pursuant to a scheme of amalgamation in 2009	13524

Details of equity shares ofRs.10/- each reserved for issuance:

PARTICULARS	31.12.2012
	No. of shares
Towards Employee stock options under the various Strides Stock option plans	2702350

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.12.2012	31.12.2011
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	588.040	583.800
(b) Reserves & Surplus	13126.100	13008.360
(c) Money received against share warrants	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000
Total Shareholders’ Funds (1) + (2)	13714.140	13592.160
(3) Non-Current Liabilities
(a) long-term borrowings	2846.610	3639.350
(b) Deferred tax liabilities (Net)	0.000	0.000
(c) Other long term liabilities	79.940	45.860
(d) long-term provisions	504.290	588.640
Total Non-current Liabilities (3)	3430.840	4273.850
(4) Current Liabilities
(a) Short term borrowings	2935.810	4142.280
(b) Trade payables	1429.370	2096.120
(c) Other current liabilities	1104.260	7684.170
(d) Short-term provisions	373.390	833.840
Total Current Liabilities (4)	5842.830	14756.410
TOTAL	22987.810	32622.420
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	2285.870	2354.360
(ii) Intangible Assets	776.740	884.660
(iii) Capital work-in-progress	81.200	54.710
(iv) Intangible assets under development	214.470	15.420
(b) Non-current Investments	12953.230	7868.180
(c) Deferred tax assets (net)	0.000	0.000
(d) Long-term Loan and Advances	922.580	5835.170
(e) Other Non-current assets	0.000	0.000
Total Non-Current Assets	17234.090	17012.500
(2) Current assets
(a) Current investments	0.380	0.000
(b) Inventories	1043.540	1303.190
(c) Trade receivables	1930.960	2642.830
(d) Cash and cash equivalents	293.300	814.610
(e) Short-term loans and advances	2343.170	10520.270
(f) Other current assets	142.370	329.020
Total Current Assets	5753.720	15609.920
TOTAL	22987.810	32622.420

SOURCES OF FUNDS		31.12.2010
SHAREHOLDERS FUNDS
1] Share Capital		577.450
2] Share Application Money		0.000
3] Reserves & Surplus		13462.740
4] Employees stock options outstanding account		20.860
5] (Accumulated Losses)		0.000
NETWORTH		14061.050
LOAN FUNDS
1] Secured Loans		6461.360
2] Unsecured Loans		5969.340
TOTAL BORROWING		12430.700
DEFERRED TAX LIABILITIES		0.000
TOTAL		26491.750
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		3115.520
Capital work-in-progress		375.280
INVESTMENT		8645.200
DEFERREX TAX ASSETS		0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	1293.080
	Sundry Debtors	1597.310
	Cash & Bank Balances	810.290
	Other Current Assets	145.280
	Loans & Advances	14210.230
Total Current Assets		18056.190
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	1882.820
	Other Current Liabilities	326.790
	Provisions	1490.830
Total Current Liabilities		3700.440
Net Current Assets		14355.750
MISCELLANEOUS EXPENSES		0.000
TOTAL		26491.750

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.12.2012	31.12.2011	31.12.2010
	SALES
		Revenue from operations	7120.070	7496.200	5046.610
		Other Income	1189.080	195.990	561.030
		TOTAL	8309.150	7692.190	5607.640
Less	EXPENSES
		Cost of materials consumed	2815.420	3178.380
		Purchase of stock in trade	1003.070	1072.110
		(Increase)/Decrease in stock	66.760	66.180
		Employees benefits expenses	709.190	629.760
		Other Expenses	1568.570	1061.020
		TOTAL	6163.010	6007.450	4347.240
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION		2146.140	1684.740	1260.400
Less	FINANCIAL EXPENSES		712.200	805.900	733.740
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION		1433.940	878.840	526.660
Less/ Add	DEPRECIATION/ AMORTISATION		190.990	176.150	150.820
	EXCEPTIONAL ITEM		(644.090)	559.060	514.990
	PROFIT BEFORE TAX		598.860	1261.750	890.830
Less	TAX		39.000	82.500	155.210
	PROFIT AFTER TAX		559.860	1179.250	735.620
	EARNINGS IN FOREIGN CURRENCY
		FOB Value of Exports of Goods	5098.960	5404.610	3277.180
		Development Income	30.170	447.590	609.680
		Management advisory service fees	507.150	332.64	312.970
		Interest	516.340	10.230	9.880
		Profit on sale of investment	308.460	0.000	94.400
		Share of Profit on Sale of Product	11.610	0.000	97.920
		Other Income	9.200	131.260	149.970
	TOTAL EARNINGS		6481.890	6326.330	4552.000
	IMPORTS
		Raw Materials	1379.150	1241.020	612.690
		Capital Goods	69.290	37.120	185.550
		Others	66.070	11.560	6.450
	TOTAL IMPORTS		1514.510	1289.700	804.690
	Earnings Per Share (Rs.)
	Basic		9.55	20.30	15.69
	Diluted		5.84	20.13	11.98

QUARTERLY RESULTS

PARTICULARS	31.03.2013
	4^th Quarter
Sales Turnover	1783.700
Total Expenditure	1462.600
PBIDT (Excl OI)	321.100
Other Income	166.800
Operating Profit	487.900
Interest	124.600
Exceptional Items	8.300
PBDT	371.600
Depreciation	88.800
Profit Before Tax	282.700
Tax	(33.000)
Provisions and Contingencies	0.000
Reported PAT	315.700
Extraordinary Items	0.000
Prior Period Expenses	0.000
Other Adjustments	0.000
Net Profit	315.700

KEY RATIOS

PARTICULARS		31.12.2012	31.12.2011	31.12.2010
PAT / Total Income	(%)	6.74	15.33	13.12
Net Profit Margin (PBT/Sales)	(%)	8.41	16.83	17.65
Return on Total Assets (PBT/Total Assets}	(%)	6.15	5.11	4.21
Return on Investment (ROI) (PBT/Networth)		0.04	0.09	0.06
Debt Equity Ratio (Total Debt /Networth)		0.42	0.57	0.88
Current Ratio (Current Asset/Current Liability)		0.98	1.06	4.88

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	No
10]	Designation of contact person	No
11]	Turnover of firm for last three years	Yes
12]	Profitability for last three years	Yes
13]	Reasons for variation <> 20%	-----
14]	Estimation for coming financial year	No
15]	Capital in the business	Yes
16]	Details of sister concerns	Yes
17]	Major suppliers	No
18]	Major customers	No
19]	Payments terms	No
20]	Export / Import details (if applicable)	No
21]	Market information	-----
22]	Litigations that the firm / promoter involved in	Yes
23]	Banking Details	Yes
24]	Banking facility details	Yes
25]	Conduct of the banking account	-----
26]	Buyer visit details	-----
27]	Financials, if provided	Yes
28]	Incorporation details, if applicable	Yes
29]	Last accounts filed at ROC	Yes
30]	Major Shareholders, if available	Yes
31]	Date of Birth of Proprietor/Partner/Director, if available	No
32]	PAN of Proprietor/Partner/Director, if available	No
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	Yes

LITIGATION DETAILS
Bench:- Bombay
Stamp No:-	ITXAL/2454/2010	Failing Date:-	07/12/2010	Reg. No.:-	ITXA/46/2011	Reg. Date:-	15/01/2011
		Main Matter
Petitioner:-	Commissioner of Income tax		Respondent:-	Strides Arcolab Limited
Petn.Adv:-	Padam Divakar
District:-	Mumbai
Bench:-	Single		Category:-	TAX APPEALS
Status:-	Admitted(Unready)		Stage:-	FOR ADMISSION - FRESH
Last Date:-	23/11/2011
Last Coram:-	HON'BLE SHRI JUSTICE J.P. DEVADHAR HON'BLE SHRI JUSTICE A.R. JOSHI
Act:-	Income Tax Act, 1961

UNSECURED LOANS

Unsecured Loans	31.12.2012	31.12.2011
	(Rs. In Millions)
LONG-TERM BORROWINGS
Term loan from banks	2605.450	2663.500
SHORT-TERM BORROWINGS
Unsecured loan repayable on demand from others	0.000	100.000
Total	2605.450	2763.500

TURNOVER AND PROFITS

On a Standalone basis the total income during the year stood at Rs. 8309.150 Millions as against Rs. 7692.190 Millions in the previous year. The Standalone net profits Rs.559.806 Million as against a net profit ofRs.1179.250 Millions for the previous year.

BUSINESS OVERVIEW

2012 began and ended on an optimistic note for the Company. During the year, their revenues and EBIDTA increased considerably, compared to 2011, primarily driven by consistent new product launches and increase in operational scale. Besides, both Agila and Pharma divisions demonstrated significant operating leverage across all global manufacturing facilities and consistent regulatory filings. Besides, there were significant corporate initiatives round the year.

KEY BUSINESS HIGHLIGHTS FOR 2012

PHARMA

COLLABORATION WITH GILEAD SCIENCES

The Company entered into an in-licensing agreement to collaborate with Gilead Sciences, Inc. to promote access to high-quality, low-cost generic versions of Gilead's HIV medicine emtricitabine (FTC) in developing countries - including fixed-dose combinations of emtricitabine co-formulated with other Gilead HIV medicines.

FUNDING FROM FRENCH DEVELOPMENT

FINANCING INSTITUTION

During the year the French Development Financing Institution Proparco invested USD12.5 Million in the form of equity participation for a 20% stake in Strides' African front-end arm, valuing the African operations at about USD 60 Million. The proceeds will be used to create additional manufacturing infrastructure in key markets in Africa and to build a regional Company.

BIOTECH

CONSOLIDATION OF STAKE IN INBIOPRO

During the year 2012, the Company consolidated its stake in Inbiopro Solutions Private Limited (Inbiopro) the Biotech arm of the Company from the initial holding of 70% to 96.79%.

As at the date of this report the Company further consolidated its stake to 100% and consequently Inbiopro is a wholly owned subsidiary of the Company.

CUSTOMISED BIOTECH FACILITY IN MALAYSIA

In March 2013, the Company's wholly owned subsidiary Agila Biotech (Malaysia) SDN BHD, Malaysia, entered into an arrangement with Bio-XCell Sdn Bhd (Malaysian Government undertaking) for the establishment of a customised biotech facility located in the Bio-XCell ecosystem in Johor, Malaysia.

The Company plans to incorporate into this facility, the "next-generation" technology platforms which revolutionise the way biomolecules are developed, manufactured and commercialised.

SPECIALTIES (AGILA)

BRAZIL STERILE PENEMS FACILITY - US FDA APPROVAL

In February 2012, the Brazilian Sterile Penems facility received US FDA approval. This state-of-the-art facility manufactures sterile dry powder injectables of Penems. The plant has already been approved by other international regulatory agencies like MHRA and ANVISA.

POLISH FACILITY - US-FDA APPROVAL

During the year, the Company's polish sterile facility received US-FDA approval. This state-of-the-art facility located in Warsaw, Poland, manufactures vials, ampoules, pre-filled syringes and lyophilized injections. The approval offers significant flexibility to the manufacturing which is currently experiencing strong demand on a worldwide basis.

ACQUISITION OF USFDA APPROVED STERILE MANUFACTURING FACILITY

During the year, the Company through its wholly owned subsidiary, Agila Specialties Private Limited acquired a USFDA approved Sterile Formulations facility situated at Hosur, Tamil Nadu from Star Drugs and Research Labs Limited.

JOINT VENTURE WITH JAMP PHARMA CORPORATION

During the year, the Company through its wholly owned subsidiary Agila Specialties Pharma Corporation, Canada (part of injectable division of Strides), formed a joint venture with Jamp Pharma, a Canadian generic drug company, to introduce a variety of quality injectable generic drugs in Canada.

COLLABORATION WITH ELI LILLY

In December 2012, the Company along with its subsidiary Agila Specialties Private Limited collaborated with Eli Lilly to expand delivery of cancer medicines in the emerging markets. As a part of this arrangement, Lilly will in-license a portfolio of high-quality, branded generic injectable and oral cancer medicines from

Agila Specialties, the specialties division of Strides.

MANAGEMENT DISCUSSION AND ANALYSIS

GLOBAL ECONOMY

The global economy weathered unpredictable headwinds in 2012. The Euro zone had little to cheer in 2012 as governments continued to look for ways and means to keep financial markets afloat without promoting unsustainable debts, or continue with austerity measures without impacting the economy. Emerging economies were also impacted in a largely interdependent world.However, the world's largest economy, the United States, seems to be recovering.

In 2012 the economy grew 2.2% against 1.8% in 2011.

Reliable forecasts of the US economy for 2013 put growth upwards of 2% and for 2014, above 3%. These estimates apparently look insignificant, but considering the size of the economy, around US$ 15 Trillion, even a 2% growth would add an output worth US$ 300 Billion. This will create a fresh wave of economic activity not only in the US, but around the world, thanks to globalisation. The global economy is expected to have grown by 3.2% in 2012. It is estimated to grow at the rate of 3.5% in 2013.

INDIAN ECONOMY

India's GDP is estimated to have grown by 5% in FY 2012-13. The Reserve Bank of India infused Rs. 18,000 crore to its economy by reducing the cash reserve ratio (CRR) to 4% in its third monetary policy during 2012-13. Moreover, he Reserve Bank of India twice lowered the repo rate by 25 basis points in 2012-13 to help revive growth. Increasing FDI limits across major sectors have significantly improved India's capital inflows. The government is also taking various initiatives to keep the fiscal deficit within 5.2%. More financial reforms are expected to strengthen India's growth story.

GLOBAL PHARMACEUTICAL INDUSTRY

PHARMACEUTICAL INDUSTRY OVERVIEW

The global pharmaceutical market has witnessed a 6% CAGR from 2006 to 2012 to reach a US$ 956 Billion market size in 2012. According to IMS Health, the global pharmaceutical spend is estimated to touch US$ 1.2 Trillion by CY2016, growing at 4.5%annually. Growth will be primarilydriven by higher generic spending (accounting for 3/4^th of the total increase) and increasing medical expenditure.

The pharmerging countries will be the primary growth driver with market share likely to rise to 30% by CY2016 from 20% in CY2011. Simultaneously, the share of developed markets is likely to decline to 57% by CY2016 from 66% in CY2011, led by around US$ 100 Billion of patent expiries in the next five years.

Gradually growth is gravitating from developed countries to emerging markets. This is owing to an enhanced focus on biopharmaceuticals, compared to small molecule drugs and higher preference for generics, compared to their branded counterparts.

INNOVATOR MARKET

As the innovator market emerges from a wave of patent expiries in the US, there has been a sharp increase in the number of NDA (new drug application) approvals. The year 2012 saw around 34 new drug approvals, highest in the last eight years.

GENERIC MARKET

Growing generics spending in the developed Market over the next five year will be fuelled by generic competition due to patent expiries, with some additional increases due to expanded generic use for off-patent molecules. In

pharmerging markets generic companies will increase most of the spending

GLOBAL PHARMACEUTICAL MARKETS

REGULATED MARKET

USA

The US pharmaceutical market valued is US$ 322 Billion in 2011, is expected to grow at a CAGR of 1-4% over 2012-16, likely to reach a market value of 350-380 Billion by 2016 The year 2012 witnessed around US$ 35 Billion worth of drugs to go off patent The US generics market, worth US$ 100 Billion, is also estimated to register a CAGR of 8-9% in the medium term on account of patent expiries

JAPAN

Japan is the world’s second largest pharmaceutical market. Japan’s pharmaceutical market valued at US$ 111 Billion in 2011, is likely to witness CAGR of 1-4% over 2012-16, reaching a market size of US$ 105 – 135 Billion.Growth rate is marginally hindered by price cuts expected in 2014 and 2016. Rising healthcare costs and ageing population have forced the government to initiate a shift towards generic drugs. The generics segment is the highest growing of all with anestimated CAGR of ~14% (2010-2015).

EUROPE

Europe is one of the largest global pharmaceutical market (around 17%) followed by the US and Japan. In Europe pharmaceutical market is likely to witness growth in the range of -1% to 2% by 2016. Sluggish growth is expected

due to healthcare cost containment measures adopted in order to curtail the debt crisis. The EU5* nations are likely to touch a market size of US$ 125-175 Billion by 2016.

PHARMERGING MARKETS

The pharmerging markets are likely to double their pharmaceutical spending from US$ 151 Billion 2011 to around US$ 285-313 Billion by 2015.Growth will be led by gradual economic growth and government efforts to expand healthcare access. IMS expects the pharmerging markets to grow by 13%-plus CAGR from 2011 to 2016, reaching US$ 357 Billion by 2016.

CHINA

China’s pharmaceutical market is expected to soar to 2.3 Trillion yuan (US$ 369.2 Billion) by 2020, up from 926.1 Billion yuan (US$ 148. 66 Billion), currently. The growth will be led by China’s ageing population and economic development, driving social insurance and consumption capacities (Source: Life Sciences Health Industry Group, 2013).

LATIN AMERICA

The outlook for the Latin American market is positive, given the sheer size and the burgeoning population. Generics and biologics are among the strongest areas. Even if standards vary, the tendency is for ‘similar drugs’ without proven bio-equivalence to be phased out.

According to the IMS Health, the Latin American market will double from 2011 to 2015.The Latin America’s pharmaceutical market is worth US$ 45 Billion in 2011.

Brazil’s is the largest market in Latin America and ranks the 7th globally. The market is growing at 14-15%, and is expected to reach US$ 25 Billion by 2014 (Source: IMS, Fortune).

INDIA

India’s pharmaceutical industry is expected to reach US$ 29 Billion, growing at a CAGR of 15-16%. The country is expected to have registered a growth of US$ 15.7 Billion in 2012(Source: Espicom). The key growth enablers (disposable income, insurance penetration, growing prevalence of lifestyle diseases) will continue to drive growth.

GLOBAL APPROACH

India is rapidly emerging as one of the most preferred outsourcing destinationsfor pharmaceuticals. A favourable regulatory environment has attracted significant foreign investment. The cumulative drugs and pharmaceutical industry attracted a foreign direct investment (FDI) of US$ 9,596 Million between April 2000 and May 2012.

STATEMENT OF STANDALONE UNAUDITED RESULTS FOR THE QUARTER AND SIX MONTH ENDED JUNE 30, 2013

(Rs. In Millions)

Sl. No.	Particulars	3 Months ended 30.06.2013 Unaudited	Preceding3 Mounts ended 31.03.2013	Year to date figures for the previous year 30.06.2013
1	Income from operations
	(a) Net Sales / Income from Operations (Net of excise duty)	1508.301	1613.426	3121.727
	(b) Other Operating Income	156.005	170.235	326.240
	Total Income from operations (net)	1664.306	1783.661	3447.967
2	Expenses
	(a) Cost of material consumed	657.453	707.978	1365.431
	(b) Purchases of stock-in-trade	228.948	243.863	472.811
	(c) Changes in inventories of finished goods, work-in-progress and stock-in-trade	12.536	51.429	63.965
	(d) Employee benefit expenses	174.658	192.177	366.835
	(e) Depreciation and amortisation expense	91.708	88.815	180.523
	(f) Other expenses	369.916	267.156	637.072
	Total expenses	1535.219	1551.418	3086.637
3	Profit/(Loss) from Operations before Other Income, finance cost & Exceptional Items (1 -2)	129.087	232.243	361.330
4	Other Income	176.116	166.805	342.921
5	Profit/ (Loss) from ordinary activities before finance cost & Exceptional Items (3+4)	305.203	399.048	704.251
6	Finance costs	159.371	124.595	283.966
7	Profit/(Loss) from ordinary activities after finance cost but before Exceptional Items (5-6)	145.832	274.453	420.285
8	Exceptional Items
	Exchange Fluctuation (Loss) / gain (Net)	(124.258)	8.276	(115.982)
9	Profit / (Loss) from Ordinary Activities before tax (7+ 8)	21.574	282.729	304.303
10	Tax Expense / (credit)	--	(32.999)	(32.999)
11	Net Profit / (Loss) after tax (9-10)	21.574	315.728	337.302
12	Paid-up Equity Share Capital (Face value of Rs.10/-each)	590.501	590.483	590.501
13	Earnings per share (face value of Rs. 10/- each) - not annualised
	Basic EPS (Rs.)	0.37	5.36	5.72
	Diluted EPS (Rs.)	0.34	5.32	5.68
A	PARTICULARS OF SHAREHOLDING
1	Public shareholding :
	(a) Number of shares	42,874,119	42,874,119	42,874,119
	(b) Percentage of shareholding	72.61%	72.61%	72.61%
2	Promoters and Promoter group shareholding : (a) Pledged / Encumbered
	- Number of shares	7,253,786	7,253,786	7,253,786
	- Percentage of shareholding (as a % of the total share holding of promoter and promoter group)	44.85%	44.85%	44.85%
	- Percentage of shareholding (as a % of the total share capital of the Company)	12.28%	12.28%	12.28%
	(b) Non Pledged / Non Encumbered
	- Number of shares	8,920,416	8,920,416	8,920,416
	- Percentage of shareholding (as a % of the total share holding of promoter and promoter group)	55.15%	55.15%	55.15%
	- Percentage of shareholding (as a % of the total share capital of the Company)	15.11%	15.11%	15.11%
B	INVESTOR COMPLAINTS [Nos.]
	Pending at the beginning of the quarter	--
	Received during the quarter	20
	Disposed of during the quarter	20
	Remaining unresolved at the end of the quarter	--

STATEMENT OF ASSETS AND LIABILITIES AS AT JUNE 30, 2013

Rs. In Millions

Sr. No.:	Particulars	As at current half year ended 30.06.2013
A	EQUITY AND LIABILITIES
1	Shareholders' Funds
	(a) Share Capital	590.501
	(b) Reserves & Surplus	13549.621
	Sub-Total of Shareholder’s Fund	14140.122
2	Non-Current Liabilities
	(a) long-term borrowings	4986.502
	(b) Other long term liabilities	82.971
	(c) long-term provisions	253.765
	Sub-Total Non-current Liabilities	5323.238
3	Current Liabilities
	(a) Short term borrowings	2770.156
	(b) Trade payables	1785.042
	(c) Other current liabilities	2549.329
	(d) Short-term provisions	166.455
	Sub-Total Current Liabilities	7270.982
	TOTAL-EQUITY AND LIABILITY	26734.342
B	ASSETS
1	Non-current assets
	(a) Fixed Assets	3404.802
	(b) Non-current Investments	4416.552
	(c) Long-term Loan and Advances	1173.941
	Sub-Total Non-Current Assets	8995.295
2	Current assets
	(a) Current investments	9283.028
	(b) Inventories	1451.963
	(c) Trade receivables	1897.399
	(d) Cash and cash equivalents	1665.071
	(e) Short-term loans and advances	3341.050
	(f) Other current assets	100.536
	Sub-Total Current Assets	17739.047
	TOTAL ASSETS	26734.342

NOTE:

1. The above unaudited results of the Company has been reviewed by the Audit Committee and taken on record by the Board of Directors at their meeting held on Julyl 25, 2013.

2. The statutory auditors have carried out limited review of the above standalone results.

3. The previous period's figures have been regrouped/ reclassified wherever necessary to conform to the classification of the current period.

4. Consequent to the approval of Scheme of Arrangement during the year ending December 31, 2009 by the Hon'ble High Courts of Judicature ('the Scheme'), the Company has utilised the Reserve for Business Restructure (BRR) as mentioned below. In 2009, as per the Scheme, investments in a subsidiary had been fair valued and the resultant surplus over the previously carried book values, amounting to Rs. 5856.200 Millions had been credited to BRR. The maximum amount that can be written off against the BRR instead of being debited to the statement of profit and loss account on or at any time after January 1, 2009 would be restricted to the balance in the BRR or upto December 31, 2012 and not beyond that.

Particulars	3 Months ended 30.06.2013 Unaudited	Preceding3 Mounts ended 31.03.2013	Year to date figures for the previous year 30.06.2013
Utilisation of BRR : - Employee benefit expenses accrued / (reversed) - net - Depreciation and Amortisation - Other expenses - Interest on Fixed Loans Impact if the Company followed the Accounting Standards instead of the accounting treatment provided in the Scheme :-	--	--	--
			-
Net Profit for the period would have decreased by :			-
Earnings / (Loss) per share (EPS) (Face value of Rs.10/-each) would have been : - Basic (not annualised) - Diluted (not annualised)	Rs. 0.37 0.34	Rs. 5.36 5.32	Rs. 5.36 5.32

5. During the quarter, 1,800 equity shares were allotted by the Company on exercising equal number of options under Strides Arcolab ESOP 2008 Scheme. No options were granted under this scheme in the current period.

6. As part of the ongoing restructuring in the group, the following changes have been made during the quarter:

a. Strides Specialties (Holdings) Limited., Mauritius has been transferred from Agila Specialties Private Limited, India to Strides Pharmaceuticals Limited, Cyprus.

b. Inbiopro Solutions Private Limited., India has been transferred from Agila Specialties Private Limited., India to Strides Arcolab Limited, India

c. Agila Marketing e distribicao de Productos Hospitalaries Limiteda., has been transferred from Strides Pharmaceuticals Limited, Cyprus to Agila Specialties Americas, Cyprus

d. Agila Specialties Global Pte Limited, Singapore has acquired balance 49% stake in Agila Australasia Pty Limited from JNZ Tango Pty Limited., Australia, making Agila Australasia Pty Limited a wholly owned gubsidiary of the group

7. During the current quarter the following entities have been incorporated within the Strides Group:

a) Strides Pharma Inc, USA

b) Strides Actives Private Limited, India

8. During the quarter, Strides Pharma Limited, Cyprus has divested its stake in Scentia Pharmaceuticals Pty Limited, Australia to Amneal Pharma Australia Pty Limited., Australia.

9. Exchange fluctuation gain/loss (net) included under Exceptional Items comprises the exchange gains/losses arising out of the restatement/settlement of borrowings in foreign currency, intra group loans given and certain foreign currency denominated monetary items.

10. The Company’s operations fall within a single business segment viz. “Pharmaceutical Products” and as such there is no reportable segment information as per Accounting Standard 17 issued under the relevant provisions of the Companies Act, 1956.

11. During the previous quarter (February 27, 2013), the Company and its subsidiary, Agila Specialties Asia Pte Limited. (Agila Asia), have entered into definitive agreements for the sale of entities into Specialty products (a part of the Pharmaceutical business that the Group is into) by way of share sales to Mylan Inc. ('the purchaser') Pursuant to this agreement, the purchaser will acquire:

• the entire share capital of Agila Specialties Private Limited., from the Company, and

• the entire share capital of Agila Specialties Global Pte Limited., from Agila Asia.

In terms of the agreements, the consideration is subject to certain retentions, post completion adjustments and deposit of escrow amounts as set out in the agreements. The completion of the sale is subject to various regulatory and corporate approvals as may be required and fulfillment of other terms and conditions agreed between the parties and set out in the agreements. Upon satisfaction of the terms and conditions and receipt of all regulatory and corporate approvals, the Company and its subsidiary will tender the shares to the buyer. Pending completion of all the formalities, no effect has been given to above sale of shares to the purchaser in this results.

CONTINGENT LIABILITIES (AS ON 31.12.2012)

The Company has given corporate guarantees upto Rs.26298.570 Millions (Previous year Rs.4572.940 Millions) to financial institutions and other parties, on behalf of its subsidiaries. At December 31, 2012, the subsidiaries had availed facilities from such financial institutions/ were obligated to the parties referred above for an aggregate amount of Rs.4068.850 Millions (Previous year Rs.3672.540 Millions). The Company has additionally provided its fixed assets (under a paripassu second charge) as security in respect of some of these facilities.

The Company has disputed tax liabilities arising from assessment proceedings relating to earlier years from the income tax authorities amounting to Rs.741.310 Millions (Previous year Rs.741.270). The outflow on account of disputed taxes is dependent on completion of assessments.

The Company has preferred an appeal with the CESTAT against the order of the Commissioner of Central Excise disallowing transfer of CENVAT credit of Rs.3.860 Million (Previous year Rs.3.860 Millions) as on the date of conversion of one of the units of the Company into a 100% EOU. The outflow on account of disputed taxes is dependent on completion of assessments.

FIXED ASSETS

· Freehold Land

· Leased Hold Land

· Buildings

· Furniture and Fixtures

· Office Equipment and Computers

· Plant and Machinery

· Motor Vehicles

· Registration and Brands

· Software Licences

PRESS RELEASE

STRIDES ARCOLAB TO REWARD SHAREHOLDERS WITH UP TO RS 800/SHARE PAYOUT POST AGILA SALE

Sep 23, 2013

MUMBAI: Drugmaker Strides Arcolab will be returning cash to shareholders, making it one of the rare Indian companies to do so, after the crash in the rupee bumped up the money the company is getting for selling its Agila unit to US-based pharmaceutical company Mylan Inc.

Shareholders will get around Rs 800 for every share they own, amounting to a total payout of about $800 million, according to a person with direct knowledge of the development. The company has 27,177 shareholders, including 24,320 retail investors. As of June 30, the promoters had a 27.39% stake in the company, while foreign institutional investors had 51.74%, according to the BSE web site.

STELIS BIOPHARMA SIGNS A RESEARCH COLLABORATION AGREEMENT WITH BIO-SCAFFOLD INTERNATIONAL PTE LIMITED TO DEVELOP SCAFFOLDS LOADED WITH BMP AND STEM CELLS FOR VARIOUS MEDICAL APPLICATIONS

October 23, 2013: Strides Arcolab Limited (BSE: 532531, NSE: STAR) announced that its biotech subsidiary -Stelis Biopharma (previously known as Agila Biotech) today entered into Research Collaboration Agreement with Bio-Scaffold International Pte Ltd (BSI), a Singapore based, start-up Company, to research and develop BMP and stem cell loaded 3D printed devices for various applications in Orthopaedics, Cosmetology/ Plastic and Reconstructive Surgery and Dentistry. The Research will be jointly directed by Dr. Anand Iyer, Ph.D., JD, CEO, Stelis Biopharma and Dr. Margam Chandrasekaran, CEO/ Chief Scientist, Bio-scaffold International Pte. Ltd. and each Company will bear the cost of its contribution to the joint research collaboration.

BSI is a pioneer in the application of 3D printing technology for the development of novel, biocompatible scaffolds. Stelis is a cutting edge biotechnology company whose research and development efforts include the development of drug and stem cell loaded devices for the treatment of various medical conditions. Scientists from Stelis and BSI have developed a framework for initial research collaboration which would include working on multiple areas such as BMP-2/7 heterodimer loaded scaffold for orthopaedic applications and BMP2/ BMP7 loaded scaffolds for spinal fusion etc.

Dr. Iyer and Dr. Chandrasekaran strongly feel that this joint collaboration would help harness the synergies of the two companies in advancing the development of novel 3D printed devices for effectively treating various conditions in the orthopaedic, orthodontic oral/ maxillofacial and plastic/ reconstructive arena.

About Stelis Biopharma / Strides Arcolab Limited.

Stelis Biopharma Private Limited, India (formerly known as Agila Biotech Private Limited, India), is a wholly owned subsidiary of Strides Arcolab Limited, India. Stelis Biopharma (Malaysia) Sdn Bhd (formerly known as Agila Biotech (Malaysia) Sdn Bhd), is a wholly owned subsidiary of Stelis Biopharma Private Limited, India.

Stelis Biopharma Private Limited, India (formerly known as Agila Biotech Private Limited, India), is a wholly owned subsidiary of Strides Arcolab Limited, India. Stelis Biopharma (Malaysia) Sdn Bhd (formerly known as Agila Biotech (Malaysia) Sdn Bhd), is a wholly owned subsidiary of Stelis Biopharma Private Limited, India.

The facility will also provide product and process development and validation services, bioprocess solutions, integrated business services, operational support services, end-user services, leveraging a combination of technology platform and service delivery framework. Stelis will also provide training and support services as well as consultancy in business, marketing and other allied services to other biotechnology companies.

Strides Arcolab Limited, listed on the Bombay Stock Exchange Limited (532531) and National Stock Exchange of India Limited (STAR), is a global pharmaceutical company headquartered in Bangalore, India that develops and manufactures a wide range of pharmaceutical products.

The Company has 14 manufacturing facilities across 6 countries with presence in more than 75 countries in developed and emerging markets. Manufacturing is ably supported by a 350-scientist strong global RD Centre located in Bangalore.

About Bio-scaffold International Pte Limited.

Bio-scaffold International Pte Limited (BSI) is a local biomedical technology company focusing on the development of scaffolds for tissue engineering which include repair and replacement of human tissue including bones, ligaments and joints. BSI’s ground-breaking innovative technology has led to the development of Alvelac™ which aids in the preservation of alveolar socket after tooth extraction. BSI is working on extending the dental applications and development of new products to address applications in Orthopaedics, Plastic Reconstructive Surgery and allied fields.

STRIDES ARCOLAB SAYS FORM 483 ISSUES UNDER CONTROL, WILL CONTINUE SUPPLYING U.S.

August 1, 2013

Strides Arcolab recently joined a few of its fellow Indian drugmakers in a club no manufacturer wants to be part of. In June, the company became the latest in a series of Indian pharmas this year to draw critical observations from the FDA for production shortfalls. But unlike some of its counterparts, Strides will continue to send drugs to the U.S., as the company said Wednesday that everything is under control.

CEO Arun Kumar told Reuters that Strides had submitted its response to the FDA regarding the regulatory body's concerns at a Bangalore plant and was "confident about resolving it." As Business Standard reports, he cited a strong FDA track record, with 7 of 15 inspections coming up free of Form 483s--and the rest yielding observations that were addressed to the agency's satisfaction. "With our past experience, we are confident these Form 483s would be addressed in a diligent manner," Kumar told investors (as quoted by Business Standard).

Still, Strides' shares dipped as much as 17.1% on news of the Form 483, Reuters says. According to Business Standard, part of the worry was that the company's $1.6 billion sale of its specialty injectables unit to Mylan ($MYL), expected by September, might be delayed, as the FDA's observations dealt with a production line slated to be part of the deal. But Kumar said the Form 483 wouldn't impact the transaction.

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. 63.06
UK Pound	1	Rs. 101.15
Euro	1	Rs. 84.95

INFORMATION DETAILS

Report Prepared by :

NTH

SCORE RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	6
--RESERVES	1~10	6
--CREDIT LINES	1~10	5
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		51

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	--

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