MIRA INFORM REPORT

Report Date :

27.11.2013

IDENTIFICATION DETAILS

Name :	JUBILANT LIFE SCIENCES LIMITED (w.e.f.01.10.2010)
Formerly Known As :	JUBILANT ORGANOSYS LIMITED
Registered Office :	Bhartiagram, Gajraula, Jyotiba Phoolay Nagar – 244223, Uttar Pradesh
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	21.06.1978
Com. Reg. No.:	20-004624
Capital Investment / Paid-up Capital :	Rs. 159.300 Millions
CIN No.: [Company Identification No.]	L24116UP1978PLC004624
TAN No.: [Tax Deduction & Collection Account No.]	MRTJ00275C
PAN No.: [Permanent Account No.]	AABCV0200H
Legal Form :	A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges.
Line of Business :	Subject is a global Pharmaceutical and Life Sciences player engaged in manufacture and supply of Generics (Including Active Pharmaceuticals Ingredients (APIs) and Solid Dosage Formulations) and Life Science Ingredients (Including Proprietary Products and Exclusive Synthesis, Nutrition Ingredients and Life Sciences Chemicals).
No. of Employees :	6223 (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 74470000
Status :	Satisfactory
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well-established and reputed company having a good track record. The company is continuously incurring losses from its two year of operations. However, general financial position of the company appears to be good. Fundamentals are healthy. 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 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

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	FITCH
Rating	Long term rating : A+
Rating Explanation	Rating denotes low risk of default the capacity for payment of financial commitment is considered strong.
Date	September 2012

RBI DEFAULTERS’ LIST STATUS

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

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

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

LOCATIONS

Registered Office/ Factory 1 :	Bhartiagram, Gajraula, Jyotiba Phoolay Nagar – 244223, Uttar Pradesh, India
Tel. No.:	91-5924-252351-60
Fax No.:	91-5924-252352
E-Mail :	ajay_krishna@jubilantorganosys.com ajay_krishna@jubl.com investors@jubl.com
Website :	http://www.vamorganic.com http://www.jubilantorganosys.com http://www.jubl.com
Corporate Office :	Plot No.1A, Sector – 16-A, Noida–201301, Uttar Pradesh, India.
Tel. No.:	91-120-4361000
Fax No.:	91-120-4234881/ 84/ 85/ 87/ 95/ 96
E-Mail :	investors@jubl.com support@jubl.com
Mumbai Office:	Contractor Building (Ground Floor) 46 R K Marg, Ballard Estate, Mumbai – 400038, Maharashtra, India
Factory 2 :	Village Nimbut, Near Nira Railway Station, District Pune, Maharashtra, India
Tel. No.:	91-2112-269155-57
Fax No.:	91-2112-269154
Factory 3 :	Block No. 133, P. O. Samlaya, Savli Jarod Road, Taluka Savli, Vadodara–391520, Gujarat, India
Tel. No.:	91-2667-251361/ 251563-4
Fax No.:	91-2667-251305
Factory 4 :	Sikanderpur Bhainswal Bhagwanpur, Roorkee, District Haridwar, Uttrakhand, India
Tel. No.:	91-332-235161-66
Fax No.:	91-332-235169
Factory 5 :	N-34, MIDC, Anand Nagar, Ambernath - 421506, Maharashtra, India
Tel. No.:	91-251-2620437/ 438
Fax No.:	91-251-2620439
Factory 6 :	SEZ, Bharuch Plot No.5, Vilayat GIDC, Taluka Vagra, Bharuch – 392012, Gujarat, India
Tel. No.:	91-2641-281500 (30 Lines)
Fax No.:	91-2641-281515
International Manufacturing Facilities :	Quebec Add : Jubilant DraxImage, Inc          16751, TransCanada Highway, Kirkland (Montreal), Québec, Canada H9H 4J4 Tel. : 91-514- 630 7030 Fax : 91-514 -694 9295 Spokane Add : Jubilant HollisterStier LLC          3525, N. Regal, Spokane, Washington 99207, USA Tel. : 91- 509 -489 5656 Fax : 91- 509 -484 4320 Salisbury Add : Jubilant Cadista Pharmaceuticals 207 Kiley Drive, Salisbury, Maryland 21801, USA Tel. : 91- 410- 860 8500 Fax : 91- 410- 860 8719
R and D Facilities :	Located at: · Uttar Pradesh Karnataka
Branch Offices :	Located at: · Lucknow Chennai Hyderabad Bangalore Mumbai Pune Ahmedabad Kolkata

DIRECTORS

AS ON 31.03.2013

Name :	Mr. Shyam S Bhartia
Designation :	Chairman and Managing Director
Name :	Mr. Hari S Bhartia
Designation :	Co-Chairman and Managing Director
Name :	Mr. Shyamsundar Bang
Designation :	Executive Director (Manufacturing and Supply Chain Operations)
Qualification :	M. Tech (Chem Engg.)
Name :	Mr. Abhay Havaldar
Designation :	Director
Name :	Mr. Shardul S Shroff
Designation :	Director
Name :	Dr. Inder Mohan Verma
Designation :	Director
Name :	Mr. Suresh Kumar
Designation :	Director
Name :	Mr. S Sridhar
Designation :	Director

KEY EXECUTIVES

Name :	Mr. Lalit Jain
Designation :	Company Secretary
Name :	Mr. Pramod Yadav
Designation :	CEO [Advance Intermediates and Nutritional Products]
Name :	Mr. Rajesh Srivastava
Designation :	CEO [Fine Chemicals and CRAMS]
Name :	Mr. Neeraj Agrawal
Designation :	CEO [Generics]
Name :	Mr. Marcelo Morales
Designation :	CEO [Contract Manufacturing and Services, Jubilant HollisterStier]
Name :	Mr. Scott Delaney
Designation :	CEO [Jubilant Cadista]
Name :	Mr. Chandan Singh
Designation :	President [Acetyls and Ethanol]
Name :	Mr. Martyn Coombs
Designation :	President [Jubilant DraxImage]
Name :	Mr. Kevin Garrity
Designation :	President [Allergy Business]
Name :	Dr. Vijayesh Kumar Gupta
Designation :	President [Branded Generics – India]
Name :	Dr. Subir Kumar Basak
Designation :	President [Jubilant Drug Discovery Services (Jubilant Biosys and Jubilant Chemsys)]
Name :	Mr. Nayan Nanavati
Designation :	CEO [Jubilant Clinsys]
Name :	Dr. Ashutosh Agarwal
Designation :	Chief Scientific Officer [Chemicals and Life Science Ingredients]
Name :	Dr. Goutam Muhuri
Designation :	President [RandD - Dosage Forms]

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 30.09.2013

Category of Shareholder	Total No. of Shares	As a %
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	1903435	1.20
Bodies Corporate	78452176	49.25
Sub Total	80355611	50.45
(2) Foreign
Bodies Corporate	5570445	3.50
Sub Total	5570445	3.50
Total shareholding of Promoter and Promoter Group (A)	85926056	53.95
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	1064235	0.67
Financial Institutions / Banks	1102687	0.69
Foreign Institutional Investors	31370338	19.69
Any Others (Specify)	11707200	7.35
Foreign Financial Institutions	11707200	7.35
Sub Total	45244460	28.41
(2) Non-Institutions
Bodies Corporate	9337099	5.86
Individuals
Individual shareholders holding nominal share capital up to Rs. 0.100 Million	12615074	7.92
Individual shareholders holding nominal share capital in excess of Rs. 0.100 Million	524562	0.33
Any Others (Specify)	5633888	3.54
Non Resident Indians	719263	0.45
Trusts	4914625	3.09
Sub Total	28110623	17.65
Total Public shareholding (B)	73355083	46.05
Total (A)+(B)	159281139	100.00
(C) Shares held by Custodians and against which Depository Receipts have been issued
(1) Promoter and Promoter Group	0	0.00
(2) Public	0	0.00
Sub Total	0	0.00
Total (A)+(B)+(C)	159281139	100.00

BUSINESS DETAILS

Line of Business :

Subject is a global Pharmaceutical and Life Sciences player engaged in manufacture and supply of Generics (Including Active Pharmaceuticals Ingredients (APIs) and Solid Dosage Formulations) and Life Science Ingredients (Including Proprietary Products and Exclusive Synthesis, Nutrition Ingredients and Life Sciences Chemicals).

Products/ Services :

ITC Code No.	Product Descriptions
293331.00	Pyridine
293319.90	Oxcarbazepine
291531.00	Ethyl Acetate

PRODUCTION STATUS (AS ON 31.03.2011)

Particulars	Unit	Installed Capacity	Actual Production
Alcohol	KBL	161000	23278
Organic including Specialty Chemicals and its Intermediates	MT	656001	314727
Dry and Acqueous Choline Chloride and Ethyoxylates	MT	21604	15246
Feed Premixes	MT	1800	1777
Active Pharmaceuticals Ingredients [API]	MT	680	414
Tablets and Capsules	No. in Millions	891	75

GENERAL INFORMATION

No. of Employees :

6223 (Approximately)

Bankers :

· Central Bank of India

Corporation Bank

Export Import Bank of India

ICICI Bank Limited

ING Vysya Bank Limited

Punjab National Bank

State Bank of India

The Hong Kong and Shanghai Bank Corporation Limited

Yes Bank Limited

Facilities :

SECURED LOANS	31.03.2013 (Rs. In Millions)	31.03.2012 (Rs. In Millions)
LONG-TERM BORROWINGS
Term loans From Banks - Indian rupee loans	9744.440	13400.000
- Foreign currency loans	2714.500	3417.100
From other parties - Foreign currency loans	7600.600	7376.880
Long-term maturities of finance lease obligations - Finance lease obligations	24.290	28.140
SHORT TERM BORROWINGS
Loans repayable on demand From Banks - Cash credit/working capital demand loans	4017.010	1609.430
Other working capital loans From other parties	271.450	0.000
Total	24372.290	25831.550
LONG-TERM BORROWINGS 1. Rupee term loans amounting to Rs.9,100.00 million from Corporation Bank, Axis Bank Limited, Central Bank of India and external commercial borrowings amounting to Rs.3,165.09 million from Citibank N.A., London and DBS Bank Limited, Singapore and other term loan in foreign currency amounting to Rs.2,714.50 from Export Import Bank of India are secured by a first pari-passu charge amongst the lenders by way of: - a) Mortgage of the immovable fixed assets both present and future situate at Bhartiagram, District Jyotiba Phoolay Nagar, Uttar Pradesh and immovable fixed assets situate at Village Samlaya, Taluka Savli, District Vadodara, Gujarat, and b) Hypothecation on the entire movable fixed assets, both present and future of the company. 2. Other term loan in foreign currency amounting to Rs.5,157.55 million from Housing Development Finance Corporation Limited is secured by first mortgage by way of deposit of original title deeds of specified land and buildings situated at Noida, Greater Noida, Nanjangud, Nira, Roorkee, Ambernath and also at Bharuch owned by one of the subsidiaries of the Company. Land mortgaged at Chittorgarh demerged into a group company consequent upon the scheme of demerger is under process of release. 3. Rupee term loan amounting to Rs.1600.000 million from Indian Bank is secured by fixed deposits. 4. Rupee term loans amounting to Rs.2700.000 million and Rs.1000.000 million from Corporation Bank is repayable in two equal yearly installments commencing from February, 2015 and March, 2015 respectively. 5. Rupee term loan amounting to Rs.3000.000 million from Axis Bank Limited is repayable in four equal half yearly installments commencing from September, 2014. 6. Rupee term loan amounting to Rs.2400.000 million from Central Bank of India is repayable in three yearly installments commencing from March, 2014. 7. Rupee term loan amounting to Rs.1600.000 million from Indian Bank is repayable in four yearly installments commencing from March, 2014. 8. External commercial borrowing amounting to Rs.450.590 million from Citibank N.A., London. Entire amount is repaid in April, 2013. 9. External commercial borrowing amounting to Rs.2714.500 million from DBS Bank Limited, Singapore is repayable in four yearly installments commencing from December, 2014. 10. Other term loan in foreign currency amounting to Rs.2714.500 million from Export Import Bank of India is repayable in four yearly installments starting from May, 2013. 11. Other term loan in foreign currency amounting to Rs.5157.550 million from Housing Development Finance Corporation Limited is repayable in single installment in July, 2014. 12. Finance lease obligations are secured by hypothecation of specific assets taken under such lease. The same are repayable as per the terms of agreement. SHORT TERM BORROWINGS Nature of security of short term borrowings and other terms of repayment: 1. Working capital facilities sanctioned by consortium of Banks and notified Financial Institutions comprising of ICICI Bank Limited, Corporation Bank, Punjab National Bank, State Bank of India, The Hongkong and Shanghai Banking Corporation Limited, ING Vysya Bank Limited, Central Bank of India, Yes Bank Limited and Export Import Bank of India, are secured by a first charge by way of hypothecation, ranking pari passu inter-se Banks, of the entire book debts and receivables and inventories both present and future, of the Company wherever the same may be or be held. The working capital sanctioned limits also include commercial paper programme of Rs.3000 million as sublimit carved out from the funded limits, against which the balance outstanding as at 31st March, 2013 Rs. NIL million. Maximum balance of commercial paper outstanding during the year at any time was Rs.600 million. 2. Other working capital loans are repayable as per terms of agreement within one year.

Banking Relations :	--
Statutory Auditors :
Name :	K. N. Gutgutia and Company Chartered Accountants
Address :	11K, Gopala Tower, 25, Rajendra Place, New Delhi - 110008, India
IFRS Auditors :
Name :	KPMG
Address :	Building No. 10, 8th Floor, Tower B, DLF Cyber City, Phase-II, Gurgaon - 122002 Haryana, India
Cost Auditors :
Name :	J K Kabra and Company Cost Accountants
Address :	552/1B, Arjun Street, Main Vishwas Road, Vishwas Nagar, Delhi - 110032, India
Internal Auditors :
Name :	Ernst and Young Private Limited Chartered Accountants
Address :	Hindustan Times Building, 6th Floor, 18-20, Kasturba Gandhi Marg, New Delhi - 110001, India
Subsidiaries including Step-down subsidiaries:	· Jubilant Pharma Pte Limited Draximage Limited Cyprus Draximage Limited, Ireland Draximage LLC Jubilant DraxImage (USA) Inc. Deprenyl Inc., USA Jubilant DraxImage Inc. 6963196 Canada Inc. 6981364 Canada Inc DAHI Animal Health (UK) Limited Draximage (UK) Limited Jubilant Life Sciences Holdings Inc. Jubilant Clinsys Inc. Cadista Holdings Inc. Jubilant Cadista Pharmaceuticals Inc. Jubilant Life Sciences International Pte. Limited HSL Holdings Inc. Jubilant HollisterStier LLC Jubilant Life Sciences (Shanghai) Limited Jubilant Pharma NV Jubilant Pharmaceuticals NV PSI Supply NV Jubilant Life Sciences (USA) Inc. Jubilant Life Sciences (BVI) Limited Jubilant Biosys (BVI) Limited Jubilant Biosys (Singapore) Pte. Limited Jubilant Biosys Limited, Jubilant Discovery Services, Inc. Jubilant Drug Development Pte. Limited Jubilant Chemsys Limited Jubilant Clinsys Limited Jubilant Infrastructure Limited Jubilant First Trust Healthcare Limited Asia Healthcare Development Limited Jubilant Innovation (BVI) Limited Jubilant Innovation Pte. Limited Jubilant DraxImage Limited India Jubilant Innovation (India) Limited Jubilant Innovation (USA) Inc Jubilant HollisterStier Inc. Draxis Pharma LLC Generic Pharmaceuticals Holdings, Inc. Jubilant Life Sciences (Switzerland) AG First Trust Medicare Private Limited Jubilant Drug Discovery and Development Services Inc. Vanthys Pharmaceutical Development Private Limited
Other Entities:	· Jubilant HollisterStier General Partnership Canada, Draximage General Partnership Canada (controlled through subsidiaries/step down subsidiaries).
Enterprise over which certain key management personnel have significant influence:	· Jubilant Enpro Private Limited Jubilant Oil and Gas Private Limited Jubilant FoodWorks Limited Tower Promoters Private Limited B&M Hot Breads Private Limited Jubilant Industries Limited Jubilant Agri and Consumer Products Limited Jubilant Motors Private Limited, Jubilant Aeronautics Private Limited Sankur Chalets Private Limited
Others:	· Vam Employees Provident Fund Trust Jubilant Employee Welfare Trust Jubilant Bhartia Foundation Vam Officers Superannuation Fund

CAPITAL STRUCTURE

AS ON 31.03.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
655,000,000	Equity Shares	Re. 1/- each	Rs. 655.000 Millions

Issued and Subscribed Capital :

No. of Shares	Type	Value	Amount
159,313,139	Equity Shares	Re. 1/- each	Rs. 159.310 Millions

Paid-up Capital :

No. of Shares	Type	Value	Amount
159,281,139	Equity Shares	Re. 1/- each	Rs. 159.280 Millions
	Add: Equity shares forfeited (paid up)		Rs. 0.020 Million
	Total		Rs. 159.300 Millions

Notes:

Paid up capital includes, 501,364, equity shares of Re.1 allotted and issued pursuant to the Scheme of Amalgamation and Demerger, to the shareholders of erstwhile Pace Marketing Specialities Limited for consideration other than cash during the year 2010-11.

The Company has only one class of shares referred to as equity shares having par value of ` 1. Each holder of equity shares is entitled to one vote per share.

The details of shareholders holding more than 5% shares is set out below:

Name of the shareholder	31.03.2013
	No of shares	% held
Jubilant Stock Holding Private Limited	21,740,992	13.65%
SSB Consultants and Management Services Private Limited	21,007,665	13.19%
HSB Corporate Consultants Private Limited	15,824,979	9.94%
Jubilant Capital Private Limited	--	--
Jubilant Securities Private Limited	--	--
GA Global Investments Ltd	11,707,200	7.35%

The reconciliation of the number of shares outstanding is set out below:

Particulars	31.03.2013
	No of shares	Rs. in Millions
Numbers of shares at the beginning	159,281,139	159.280
Numbers of shares at the end	159,281,139	159.280

a) 114,835, equity shares of Re.1 each allotted on exercise of the vested stock options in accordance with the terms of exercise under the “Jubilant Employees Stock Option Plan”.

b) Under the Jubilant Employees Stock Option 2005 Plan, as at 31st March, 2013 - 145,443 options are outstanding convertible into 727,215 shares.

c) Under the Jubilant Employees Stock Option 2011 Plan, as at 31st March, 2013 - 1,585,055 options are outstanding convertible into 1,585,055 shares.

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive any of the remaining assets of the Company, after distribution of all preferential amounts. However, no such preferential amounts exist currently. The distribution will be in proportion to the number of equity shares held by the shareholders.

The Company declares and pays dividends in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

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	159.300	159.300	159.300
(b) Reserves & Surplus	18458.910	19011.680	21246.600
(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)	18618.210	19170.980	21405.900
(3) Non-Current Liabilities
(a) long-term borrowings	20083.830	24222.120	22390.630
(b) Deferred tax liabilities (Net)	2419.270	2114.130	1899.020
(c) Other long term liabilities	0.000	0.000	0.000
(d) long-term provisions	2273.500	1568.850	308.760
Total Non-current Liabilities (3)	24776.600	27905.100	24598.410
(4) Current Liabilities
(a) Short term borrowings	6325.630	4847.320	7412.140
(b) Trade payables	9347.640	7067.000	4158.850
(c) Other current liabilities	4712.890	1867.860	1432.250
(d) Short-term provisions	1136.020	883.540	3843.330
Total Current Liabilities (4)	21522.180	14665.720	16846.570
TOTAL	64916.990	61741.800	62850.880
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	20901.220	17663.100	14917.000
(ii) Intangible Assets	953.620	737.580	468.130
(iii) Capital work-in-progress	257.600	2520.780	2694.950
(iv) Intangible assets under development	1875.970	1668.800	1475.180
(b) Non-current Investments	19785.060	19380.240	18523.050
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	4532.400	4632.240	4052.250
(e) Other Non-current assets	2.180	3.700	0.000
Total Non-Current Assets	48308.050	46606.440	42130.560
(2) Current assets
(a) Current investments	0.000	217.000	117.500
(b) Inventories	6112.140	5933.260	4047.000
(c) Trade receivables	3932.510	4038.250	3345.170
(d) Cash and cash equivalents	2558.850	2028.270	9852.590
(e) Short-term loans and advances	3412.390	2749.490	3316.030
(f) Other current assets	593.050	169.090	42.030
Total Current Assets	16608.940	15135.360	20720.320
TOTAL	64916.990	61741.800	62850.880

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013	31.03.2012	31.03.2011
	SALES
		Revenue from operations (net)	31463.030	26410.670	22084.770
		Other Income	89.160	89.410	51.450
		TOTAL (A)	31552.190	26500.080	22136.220
Less	EXPENSES
		Cost of materials consumed	15285.770	12399.520	9014.250
		Purchase of traded goods	1917.380	2436.790	2248.190
		Other manufacturing expenses	5446.030	4618.120	3498.420
		Employee benefits expenses	2486.510	2072.320	1728.110
		Other expenses	2027.780	1700.320	1449.720
		Exceptional Items	1525.230	1800.840	45.530
		Change in inventories of finished goods, work-in-progress and traded goods	(241.750)	(932.610)	(313.070)
		TOTAL (B)	28446.950	24095.300	17671.150
Less	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		3105.240	2404.780	4465.070
Less	FINANCIAL EXPENSES (D)		1711.660	1544.210	466.520
	PROFIT/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		1393.580	860.570	3998.550
Less/ Add	DEPRECIATION/ AMORTISATION (F)		1521.670	1320.030	999.070
	PROFIT/ (LOSS) BEFORE TAX (E-F) (G)		(128.090)	(459.460)	2999.480
Less	TAX (H)		305.140	349.690	203.220
	PROFIT/ (LOSS) AFTER TAX (G-H) (I)		(433.230)	(809.150)	2796.260
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	18008.460	13576.020	11356.890
		Other Operating Income	77.630	103.130	34.500
		Interest Income	0.000	0.210	1.130
	TOTAL EARNINGS		18086.090	13679.360	11392.520
	IMPORTS
		Raw Materials	5649.480	4761.490	3987.490
		Traded Goods	1153.160	1729.250	1544.990
		Stores, spares, chemicals and packing material	335.100	129.340	192.580
		Capital Goods	99.610	227.100	158.390
	TOTAL IMPORTS		7237.350	6847.180	5883.450
	Earnings/ (Loss) Per Share (Rs.)		(2.72)	(5.08)	17.56

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
PAT / Total Income	(%)	(1.37)	(3.05)	12.63
Net Profit Margin (PBT/Sales)	(%)	(0.41)	(1.74)	13.58
Return on Total Assets (PBT/Total Assets}	(%)	(0.30)	(1.20)	7.47
Return on Investment (ROI) (PBT/Networth)		(0.01)	(0.02)	0.14
Debt Equity Ratio (Total Debt/Networth)		1.42	1.52	1.39
Current Ratio (Current Asset/Current Liability)		0.77	1.03	1.23

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	--
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

INDEX OF CHARGES

S.NO.	CHARGE ID	DATE OF CHARGE CREATION/MODIFICATION	CHARGE AMOUNT SECURED	CHARGE HOLDER	ADDRESS	SERVICE REQUEST NUMBER (SRN)
1	10424562	25/04/2013 *	1,600,000,000.00	INDIAN BANK	47-48 PRAGATI HOUSE, NEHRU PLACE, NEW DELHI - 110019, INDIA	B74962739
2	10343200	25/04/2013 *	2,504,900,000.00	DBS BANK LIMITED	ACTING ON BEHALF OF DBS BANK LIMITED, SINGAPORE, CAPITOL POINT, BABA KHARAK SINGH MARG, NEW DELHI - 110001, INDIA	B74167784
3	10303869	20/03/2012 *	2,400,000,000.00	CENTRAL BANK OF INDIA	PRESS AREA BRANCH, LINK HOUSE, 3 BAHADUR SHAH MARG, NEW DELHI - 110002, INDIA	B35922640
4	10274305	20/03/2012 *	3,000,000,000.00	AXIS BANK LIMITED	B-2 & B-3, SECTOR-16, NOIDA - 201301, UTTAR PRADESH, INDIA	B35468982
5	10271462	20/03/2012 *	1,000,000,000.00	CORPORATION BANK INDUSTRIAL FINANCE BRANCH	H.T. HOUSE, 10TH FLOOR, K.G. MARG, CONNAUGHT PLACE, NEW DELHI - 110001, INDIA	B35922079
6	10271469	20/03/2012 *	2,700,000,000.00	CORPORATION BANK INDUSTRIAL FINANCE BRANCH	H.T. HOUSE, 10TH FLOOR, K.G. MARG, CONNAUGHT PLACE, NEW DELHI - 110001, INDIA	B35921576
7	10229540	12/07/2010	4,884,000,000.00	HOUSING DEVELOPMENT FINANCE CORPORATION LIMITED	RAMON HOUSE 169BACKBAY RECLAMATION, H T PAREKH MARG, MUMBAI - 400020, MAHARASHTRA, INDIA	A90177528
8	10217801	20/03/2012 *	2,300,000,000.00	EXPORT-IMPORT BANK OF INDIA	CENTRE ONE BUILDING, FLOOR 21, WORD TRADE CENTRE COMPLEX, CUFFE PARADE, MUMBAI - 400005, MAHARASHTRA, INDIA	B35908292
9	10173318	12/07/2010 *	4,884,000,000.00	HOUSING DEVELOPMENT FINANCE CORPORATION LIMITED	RAMON HOUSE 169BACKBAY RECLAMATION, H T PAREKH MARG, MUMBAI - 400020, MAHARASHTRA, INDIA	A89713697
10	80046092	20/09/2013 *	15,000,000,000.00	ICICI BANK LIMITED	LANDMARK RACE COURCE CIRCLE, ALKAPURI, VADODARA - 390007, GUJARAT, INDIA	B87010690

* Date of charge modification

UNSECURED LOANS

UNSECURED LOANS	31.03.2013 (Rs. In Millions)	31.03.2012 (Rs. In Millions)
SHORT TERM BORROWINGS
Other working capital loans From Banks	1514.970	2572.890
Loans from related parties	522.200	65.000
Commercial Papers	0.000	600.000
Total	2037.170	3237.890

CORPORATE INFORMATION

Jubilant Life Sciences Limited (the Company) is a public limited company domiciled in India and incorporated under the provisions of Companies Act, 1956. Its shares are listed on Bombay Stock Exchange and National Stock Exchange of India. The company is a global Pharmaceutical and Life Sciences player engaged in manufacture and supply of Generics (Including Active Pharmaceuticals Ingredients (APIs) and Solid Dosage Formulations) and Life Science Ingredients (Including Proprietary Products and Exclusive Synthesis, Nutrition Ingredients and Life Sciences Chemicals). The company’s strength lies in its unique offerings of Pharmaceuticals and Life Sciences products and services across the value chain. It is well recognized as a ‘Partner of Choice’ by leading pharmaceuticals and life sciences companies globally.

OVERVIEW

Jubilant Life Sciences Limited is a global Pharmaceutical and Life Sciences Company engaged in manufacture and supply of Generics (including Active Pharmaceutical Ingredients (APIs) and Solid Dosage Formulations), Specialty Pharmaceuticals (including Radiopharmaceuticals, Allergy Therapy Products and Sterlite Injectibles and Ointments, Creams and Liquids (OCL)) and Life Science Ingredients (including Proprietary Products and Exclusive Synthesis (PPES), Nutrition Ingredients (NI) and Life Science Chemicals (LSC). It also provides Drug Discovery and Development Solutions (DDDS) and other Healthcare services. The Company’s strength lies in its unique offerings of Pharmaceuticals and Life Science products and services across the value chain. With 10 worldclass manufacturing facilities in India, US and Canada and a team of over 6,200 multicultural people across the globe, the Company is committed to deliver value to its customers spread across 98 countries. The Company is well recognized as a “Partner of Choice” by leading pharmaceuticals and life sciences companies globally.

SUBSIDIARIES

As on March 31, 2013, the Company had 46 subsidiaries. Brief particulars of principal subsidiaries are given below:

JUBILANT HOLLISTERSTIER LLC

This subsidiary is based in Spokane, State of Washington, USA. It is a wholly owned subsidiary of HSL Holdings Inc. It is a recognised contract manufacturer of sterile injectables (vials and ampoules), lyophilized products, liquid fills, biologics, suspensions, WFI/Diluents and provides a complete range of services to support the pharmaceutical and biopharmaceutical industries. Additionally, it is a manufacturer of allergenic extracts, targeted primarily at treating allergies and asthma.

Its contract manufacturing capabilities include aseptic liquid fill / finishing and lyophilization in three distinct cGMP areas designated as Small Volume Parenteral (SVP), Small Lot Manufacturing (SLM) and Clinical Trial Manufacturing (CTM). Its capabilities can be applied to a variety of projects from pre-clinical through commercial scale across a multitude of dosage forms including microspheres, suspensions, WFI/diluents, biologics (proteins), lyophilized products and liposomes. Jubilant HollisterStier maintains an outstanding regulatory record with the FDA (CBER and CDER), EMA and Japan’s and Brazil’s regulatory agencies. Its contract manufacturing business serves customers including innovators ranging from small biotechnology to large pharmaceutical companies.

JUBILANT DRAXIMAGE INC. - This company is a wholly owned subsidiary of the Company through Jubilant Pharma Pte. Limited. It deals in radiopharmaceuticals which is a niche, high entry barrier business. DraxImage develops, manufactures and markets innovative diagnostic imaging radiopharmaceuticals solutions and therapeutic radiopharmaceutical products for the global market. The application of these products extends to cardiology, thyroid uptake and scan, lung scan, kidney imaging, bone scan etc.

This company is the major supplier of lyophilized radiopharmaceutical kits for use with Technetium - 99m including DRAXIMAGE MAA, MDP, DTPA, Glucoheptonte and Sestamibi. Its I-131 products are the market leaders in the US with more than 70% market share. These 131 products are currently the major revenue drivers. Radiopharmaceuticals are used for both therapeutic and diagnostic molecular imaging applications to customers comprising hospitals, imaging centres and cardiology / oncology clinics.

DraxImage also markets non-radioactive products, which are solid in lyophilized form.

This company operates a US FDA and Health Canada approved manufacturing facility in Montreal at Canada. It is recognised globally for its quality and execution capabilities, strong regulatory track record and has an established customer base comprising large innovator and specialty pharmaceutical companies.

JUBILANT BIOSYS LIMITED – This company is a subsidiary of the Company through Jubilant Biosys (Singapore) Pte. Limited, a wholly owned subsidiary of the Company, which holds 66.98% of the equity of this company. This company provides Drug Discovery Services to Global Pharmaceutical and Biotech companies in:

- Standalone Service Model

• Functional services in area of Discovery Informatics, Structural Biology and In Vivo and Invitro Biology and Insilico on FTE or Fee based Model

- Collaborative / Partnership Model

· Integrated discovery program across a single or a portfolio of molecules; and

Risk / reward sharing option

- Research Funding

- Payments for scientific milestones including bonus achieved through Discovery and Development phase

- Royalties on successful commercialisation of drug During 2012-13, this company has:

· Continued to provide Drug Discovery Services in integrated drug discovery programmes, functional service in structural biology, High thru put screening, Insilco modeling and IN Vivo Biology and Invitro Biology;

Expanded relationship with a couple of midsized biotech companies such as Norgine, Mnemosyne;

Successfully engaged a number of potential big clients which once closed, would give a continued stream of revenue;

Successfully received a developmental milestone from one of its customers named Endo Pharmaceuticals, culminating in its business model;

Successfully delivered a number of scientific milestones in different Therapeutic areas; and

Commenced internal research on new molecules which would be available for either partnering with existing clients or outlicencing to the interested potential clients.

JUBILANT DISCOVERY SERVICES INC. - This Delaware based USA corporation, is a wholly owned subsidiary of Jubilant Biosys Limited. This company apart from providing sales, marketing and liaisoning services to Jubilant Biosys Limited for its US based customers is also providing electrophysiology services to Jansen Pharmaceutical NV and Mnemosyne.

During the year, this company has expanded its reach and a number of potential clients have shown interest in this capability and has been a key differential to the competitors.

Jubilant Discovery Services Inc. has completed an important step in the realisation of a long term strategy to extend capabilities in prosecuting ion channel targets and expanding the capabilities in other targets including GPCRS and Kinases. As part of company’s strategy to extend its capabilities, company started the ‘State of the Art Discovery Center’ in North America for ion Channel targets. This center is enabled with comprehensive discovery biology capabilities with a focus in Voltage gated and ligand gated ion channels, GPCRs and Kinases.

JUBILANT CHEMSYS LIMITED – This company is a subsidiary of the Company through Jubilant Drug Development Pte. Limited, a wholly owned subsidiary of the Company, which holds entire equity of this company. This company offers following services to drug discovery companies based out of US, Europe and Japan on FullTime Equivalent and Molecule basis:

· Discovery Chemistry Functions;

Hit-to-Lead and Lead Optimisation;

Medicinal Chemistry Services; and

Scaling up from mg to kg in kilo lab and pilot plant.

It also works closely with Jubilant Biosys Limited in collaborative drug discovery research services arena. During the year, the chemistry business has been challenging and the same has been compounded due to certain customer contract cancellations. The management has, however, put together a plan for the revival of this business and expansion to other related areas such as

GMP scale up facility.

JUBILANT CLINSYS LIMITED – This company is a subsidiary of the Company through Jubilant Drug Development Pte. Limited, a wholly owned subsidiary of the Company, which holds entire equity of this company. This company is a full service, scientifically-focused contract research organisation that provides pharmaceutical, biotechnology and medical device companies with a wide range of services in support of Phase I-IV drug and device development. These services range from bio-analytical, bio-equivalence and pharmacokinetic studies, all phases of clinical trials, biostatistics, clinical data management, medical and scientific support including medical writing, drug safety, regulatory, quality assurance, end-to-end project management, clinical monitoring, site management, investigator and site recruitment. This company operates an 80 bedded Clinical Pharmacology Unit in Noida and is equipped with a bio-analytical as well as a clinical laboratory accredited by College of American Pathologists (CAP) and NABL, India.

During the year, this company has extended its reach to European clients and signed contracts with NRIM (U.K) and Aristo Pharma (Germany).

JUBILANT CLINSYS INC. – This New Jersey based USA corporation is a wholly owned subsidiary of Jubilant Life Sciences Holdings Inc. and is a therapeutically focused full service clinical research organisation.

This company has expertise in a wide range of highly specialised therapeutic areas including oncology, cardiovascular, central nervous system, respiratory, dermatology and allergy/immunology. It offers broad range of clinical research services to pharmaceutical, biotechnology and medical device companies in support of Phase II-IV drug and device development including project management, clinical monitoring, scientific and medical support, patient and investigator recruitment, site management, biostatistics, data management, drug safety, quality assurance, regulatory affairs and medical writing. This company expanded therapeutically, geographically and added functional service offerings. It has operations in Bedminster, New Jersey, Raleigh, North Carolina, Ottawa, Ontario, Canada and Dusseldorf, Germany.

JUBILANT INFRASTRUCTURE LIMITED – This wholly owned subsidiary of the Company had entered into a Memorandum of Understanding (MOU) with the Government of Gujarat during the ‘Vibrant Gujarat’ conference in 2007 for development of Sector Specific Special Economic Zone (SEZ) for Chemicals in Gujarat. About 107 hectares land was taken on lease from Gujarat Industrial Development Corporation (GIDC) in Bharuch District, Gujarat.

This SEZ became operational last year and commenced commercial production of Unit-1. The finished products from this facility would be fully backward integrated and based on in-house developed innovative technologies, making it a hub for world class quality offering value to all stakeholders.

The global scale plants of Vitamin B3 and 3-Cyanopyridine at SEZ make the Company the largest producer of Vitamin B3 in India and second largest globally.

During the year, the commercial production of Symtet, a crop science ingredient for one of the world’s largest and safest low cost insecticide, commenced in Unit-2 through an environment friendly process. This will make the Company the world’s largest producer of the crop science ingredient for the insecticide through green route.

JUBILANT FIRST TRUST HEALTHCARE LIMITED – This company is a wholly owned subsidiary of the Company. 95.8% of its capital is being held directly by the Company and 4.2% by First Trust Medicare Private Limited. With a vision for providing quality healthcare at affordable cost, this company has set up multi-specialty hospitals in the district towns of West Bengal. It addresses vital disease segments like critical care, neonatal care, high risk pregnancies, dialysis, neuro sciences, plastic surgery to name a few. It has projected itself as a friendly neighbourhood hospital with a firm belief in ethics.

ASIA HEALTHCARE DEVELOPMENT LIMITED - This company is a subsidiary of the Company through Jubilant First Trust Healthcare Limited, which holds its entire capital. This company runs a 50 bedded low cost model multispecialty hospital in Behrampur on a Public-Private-Partnership (PPP) with the Government of West Bengal. For years, it has been serving the health needs and has stood as number one choice for the people of this region.

CADISTA HOLDINGS INC. AND JUBILANT CADISTA PHARMACEUTICALS INC.

1. Cadista Holdings Inc., a corporation incorporated in Delaware, got registered with the Securities and Exchange Commission (SEC) during the year ended March 31, 2012. The registration was obtained pursuant to section 12(g) of the Securities and Exchange Act of 1934 according to which, a company has to get registered with SEC on the number of shareholders exceeding 500. However, such registration did not constitute an offering of securities by the Company and no fresh money was raised pursuant to such registration. The Company, through its subsidiary, Generic Pharmaceuticals Holdings Inc., holds 82.38% of common stock of this company.

2. Jubilant Cadista Pharmaceuticals Inc., a corporation incorporated in Delaware, is a wholly owned subsidiary of Cadista Holdings Inc. This company is in the business of manufacturing solid dosage forms of generic pharmaceuticals at its US FDA approved manufacturing facility in Salisbury, Maryland, USA. Its customer base includes all the large wholesalers, retail and grocery chains. Besides manufacturing its own label products, it also provides Product Development and Contract Manufacturing services. As of March 31, 2013 there were 16 products commercialised in the US with focus in the therapeutic areas of CVS, CNS, Anti Allergic, Steroids etc. The company is the US market leader in 3 products and ranked in top 2 in 2 products and has a strong pipeline of product filings for future growth.

JUBILANT LIFE SCIENCES (USA) INC. – This corporation in the State of Delaware, USA, is a wholly owned subsidiary of the Company. It undertakes sales and distribution of advance intermediates, nutrition ingredients, fine chemicals and APIs in the USA.

JUBILANT LIFE SCIENCES (SHANGHAI) LIMITED – This wholly owned subsidiary of the Company is held through Jubilant Pharma Pte. Limited. It undertakes sales and distribution of products in China. It is into trading of advance intermediates - pyridine and its derivatives, vitamins, fine chemicals and crop protection chemicals. It is catering to pharmaceutical, animal feed and agrochemical industries in China. This subsidiary is also a sourcing hub of raw materials for the Company.

JUBILANT PHARMACEUTICALS NV - This is a wholly owned subsidiary of the Company through Jubilant Pharma NV, Belgium, which holds 99.8% of its shares and Jubilant Pharma Pte. Limited which holds the balance shares, both of which are wholly owned subsidiaries of the Company. This company is engaged in the business of licensing of generic dosage forms providing regulatory services to generic pharmaceutical companies and distribution of life science chemicals and vitamins to European customers. PSI Supply NV - This is a wholly owned subsidiary of the Company. 99.5% shares of this company are held by Jubilant Pharma NV and balance by Jubilant Pharma Pte. Limited. This company is engaged in the supply of generic dosage forms to European markets.

JUBILANT DRAXIMAGE LIMITED -This is a wholly owned subsidiary of the Company through Draximage Limited, Cyprus. This company is engaged in marketing of innovative diagnostic imaging radiopharmaceutical solution and therapeutic radiopharmaceutical products. It is providing wide range of radioisotopes which include Tc-99m Generator (used in the diagnosis of Bone Cancer, Renal Imaging, Cerebral Perfusion Imaging, Myocardial Perfusion Imaging), Thallium-201 and Iodine-131 capsules and solution for the diagnosis and treatment of Thyroid and its related disease. It has also launched the Lyophilized kits MDP, MAA and Sestamibi and would soon be launching DTPA. The target customers are Nuclear Medicine physicians, Cardiologists and Oncologists of various hospitals and imaging labs.

Other subsidiaries as at the year end are as follows:

· First Trust Medicare Private Limited

Jubilant Innovation (India) Limited

Vanthys Pharmaceutical Development Private Limited

Jubilant Innovation Pte. Limited

Jubilant Biosys (Singapore) Pte. Limited

Jubilant Drug Development Pte. Limited

Jubilant Pharma Pte. Limited

Jubilant Life Sciences International Pte. Limited

Jubilant Innovation (BVI) Limited

Jubilant Life Sciences (BVI) Limited

Jubilant Biosys (BVI) Limited

Jubilant Innovation (USA) Inc.

Generic Pharmaceuticals Holdings, Inc.

Jubilant Life Sciences Holdings Inc.

HSL Holdings Inc.

Draximage LLC.

Jubilant DraxImage (USA) Inc.

Deprenyl Inc., USA

Draxis Pharma LLC

Jubilant HollisterStier Inc.

Draximage Limited, Cyprus

Draximage Limited, Ireland

Jubilant Pharma NV

6963196 Canada Inc.

6981364 Canada Inc.

Jubilant Drug Discovery and Development Services Inc.

DAHI Animal Health (UK) Limited

Draximage (UK) Limited

Jubilant Life Sciences (Switzerland) AG

AWARDS AND ACCOLADES

During the year, various awards and accolades were received by the Company/its management. These are:

· ‘FICCI Quality System Excellence Award 2012’ silver prize under large scale category won by Gajraula Plant, India;

‘AIMA Managing India Awards 2013: Entrepreneurs of the Year’ award won by Mr. Shyam S. Bhartia and Mr. Hari S. Bhartia, presented by the President of India, Mr. Pranab Mukherjee;

NDTV Profit ‘Business Leadership Award 2012 under Corporate Social Responsibility category’ won by the Company presented by Dr. Montek Singh Ahluwalia, Deputy Chairman, Planning Commission, Government of India;

‘7 Star Category Certificate’ from Directorate of Industries, U.P., (valid for two years), won by Gajraula Plant, India;

‘ICC Award for Water Resource Management in Chemical Industry’ for the year 2011 won by Gajraula Plant, India;

‘The Economic Times - Frost and Sullivan India Manufacturing Excellence Gold Award – Process Sector’ for 2012 won by Gajraula Plant, India - second time in a row;

CII ‘National Award for Excellence in Water Management 2012’ as Water Efficient Unit won by Gajraula Plant, India;

‘National Quality Excellence Award’ for best in Class manufacturing presented by Stars of the Industry Group, won by Gajraula Plant, India;

‘Golden Peacock Environment Management Award 2012’ won by Gajraula Plant, India; and

‘Golden Peacock Award for Sustainability 2012’ won by Gajraula Plant, India.

MANAGEMENT DISCUSSION AND ANALYSIS

KEY ECONOMIC AND INDUSTRY TRENDS

The world economy is once again on the growth path. With financial conditions stabilising, there is greater hope of a sustained uptrend. The emerging economies continue to support broader economic expansion and have attracted robust capital inflows.

Last year has been a year of mixed trends for Pharmaceuticals and Life Sciences companies. On one hand, these are exciting times for pharmaceutical industry and it is on a growth path especially in emerging markets, on the other there are challenges that the industry has to face due to patents cliff, increased regulatory intervention and escalating healthcare costs.

The pharmaceuticals industry is riding on a growth wave in line with a rapidly strengthening scientific base, growing demand for medicines due to increasing and ageing global population, longer life expectancy, higher prevalence of infectious and chronic diseases and the removal of former impediments to free trade with the objective of providing lower cost healthcare services and improved access for all sections of society.

Agricultural chemicals have been proven to be highly effective in reducing crop losses caused by pests, diseases and weeds and to enable farmers to grow crops that meet growing demand and consumer expectations at reasonable prices.

They offer a substantial footprint in life science and pharmaceutical products and services through their presence across the value chain, thereby contributing to the needs of the environment, society and economy. Their integrated operations make it feasible to deliver advantages of scale and quality required by global clients in the chosen verticals. While the opportunity in outsourcing is large, the requirements from products and service solutions providers in this sector are often stringent. They continue to enjoy a sterling reputation as a ‘Partner of Choice’ to almost all top players within pharmaceuticals and life sciences.

Their strategy of continuously moving up the value chain into life sciences and pharmaceuticals businesses with expanded geographic reach and ongoing investments in RandD has yielded excellent results. This is exemplified by their long standing relationships with 19 of the top 20 pharmaceutical and 6 of the top 10 agrochemical companies of the world. Over the years the Company has consolidated its position and has truly transformed itself into a global life sciences player.

THEIR BUSINESS STRATEGY

Their strategic objective is to continue to maintain and establish leading market positions in select key business lines to drive profitable growth. As such, they have implemented the following core business strategies:

Global leadership in chosen lines of business and increasing market share by continuing to grow their product portfolio - Their success is derived from their ability to select attractive product candidates in niche markets and to increase capacity utilisation for higher sales volume at optimum cost.

Capitalise on their strong customer relationships to creating and pursuing growth opportunities – They believe in providing quality products with high service levels which help in establishing long lasting relationships with their customers. Their track record of compliance to global standards and regulations is an important factor in obtaining timely regulatory approvals helping in maintaining stable key accounts.

Optimise their margins while maintaining prudent financial policies - by leveraging their existing sales capabilities and administrative functions across an expanded revenue base, thereby gaining scale in operations. They estimate that no major capital expenditure for their businesses is needed in the short term as their existing capacities are sufficient to drive growth until FY 2015 and they anticipate using their free cash flows towards overall debt reduction.

The focus has now been on generating free cash flows from operations to reduce the overall debt of the consolidated entity to further strengthen the Balance Sheet. The board has formed a committee to explore various options of raising foreign currency bonds up to US$ 250 million for the purpose of prepayment of the existing debt and other general corporate purposes without increasing the overall net debt levels of the company in the best interests of the company and all its stakeholders.

I. PHARMACEUTICALS

The pharmaceuticals segment which accounted for 52% of their total revenue from operations (net) in the FY ended March 31, 2013, had increased revenue from operations (net) of 22% to Rs.26,580 million from Rs.21,764 million in the FY ended March 31, 2012.

ACTIVE PHARMACEUTICAL INGREDIENTS (APIS)

Commonly known as bulk actives or bulk drugs, APIs are mixed with other components to produce tablets, capsules or liquids. They have a clear focus on production of APIs for Cardiovascular System (CVS) and Central Nervous System (CNS) therapeutic areas besides few Anti-infective and Anti-ulcerants.

They are increasing their APIs product portfolio by entering first in markets, improving their cost competitiveness through efficient manufacturing processes and systems, accelerating Drug Master File (DMF) filings, entering into and expanding relationships with major US, European and Indian generic companies for sale of their APIs, and continuing to build on their previous track record. Their APIs are exported worldwide, into emerging as well as developed markets. Their key markets are North America, South America, Europe, Japan, Korea, Commonwealth of Independent States (CIS) countries, the Middle East and Australia. Their API customers are leading global generic companies.

As of March 31, 2013, they have 27 APIs available through commercial scale plants, of which Carbamazepine, Oxcarbazepine, Citalopram, Lamotrigine, Donepezil, Pinaverium Bromide, Meclizine and Azithromycin Monohydrate are the most significant. They are constantly working to ensure that all plant lines provide the desired turnover, with least downtime and optimal product mix.

They filed 50 DMFs during the year, out of which 7 were in the US, 15 across Europe, 1 Certificates of suitability to European Pharmacopoeia (CEPs), 4 in Canada and 23 in Rest of World (ROW). During the year, they launched multiple products across regions. As of March 31, 2013, they have filed 65 DMFs in the US, 29 CEPs in Europe, 33 in Canada, 6 in Japan and over 100 filings in other countries.

APIs business witnessed 13% increase in revenue to Rs.5081 million in the FY ended March 31, 2013, from Rs.4,486 million in the FY ended March 31, 2012, largely due to an increase in demand for their existing products. The increase in sales volume revenue was partially offset by lower sales prices achieved across most of the APIs.

To tap the opportunity of increased demand and to counter challenges from reducing prices, they are aggressively optimising and de-bottlenecking their operations by using existing infrastructure to maximise throughput. Their future development will be driven by their strategic objective of focusing and specialising in certain therapeutic areas and integrating vertically to the formulation development, wherein lies their strength of APIs.

SOLID DOSAGE FORMULATIONS

The Solid Dosage Formulations business is supported by their in-house RandD facility for formulation development and regulatory filings, in-house Clinical Research Organisation (CRO) for conducting bio-equivalence studies for the generics RandD program and cost effective manufacturing from India, while deriving benefit from backward integration from their API business. They focus primarily on manufacture and sale of proprietary solid dosage formulations including value-added formulations for CVS, CNS and Anti-allergy categories.

They are also expanding the sales reach in the United States directly to government agencies and distributors through their subsidiary Jubilant Cadista and continuing to award strategic licenses for their products to third parties in various European countries with regulatory support from their subsidiaries. As of March 31, 2013, they have 31 commercialised products across geographies including the United States and Europe. They are one of the largest exporters of oral solid formulations to Japan. This business develops first-to-market generic drugs, innovative drugs, over-the-counter drugs and line extensions. Their range of products also includes value-added formulations and special formulations such as taste masking, flash tablets, oral dispersible forms, chewable tablets and modified release forms.

They enjoy leadership in the US for Methylprednisolone, Terazosin and Lamotrigine and figure among the top 3 in Meclizine, Cyclobenzaprine, Prochlorperazin, Donepezil and HCTZ Caps. Their key strengths in Europe also include regulatory affairs services, formulation development, licensing of marketing authorisations in addition to supplies of Solid Dosage Formulations to makers of generic products.

Revenues for FY 2013 witnessed 55% increase to Rs.8,315 million from Rs.5,366 million in the FY ended March 31, 2012, driven primarily by volume growth in existing commercial products. This was made possible by an increase in capacity utilisation in their Roorkee plant and new product launches in various regions during the FY ended March 31, 2013. During the year, they launched multiple products across regions.

As of March 31, 2013, they have 58 ANDAs filings in the United States, 41 dossiers in Europe, 20 filings in Canada and over 500 filings in other countries. 25 ANDAs in the United States and 35 dossiers in Europe have already been approved and 33 ANDAs in the United States, 13 in Canada and 6 products in Europe are pending approval.

While they see opportunity for growth in Canada through tie ups with local Canadian companies for product supplies, in Europe, they are focusing on distribution agreements and profit sharing agreements to help them get higher penetration and an opportunity to recover development cost from licensing out, life time business and cost sharing. They are also licensing out wherein they invest in development of dossiers and then find customers. In South Africa, they see opportunity by supplying to retail chains and have tied up with various pharmacy chains and pharmaceuticals distributors. They are out-licensing to local South African companies too. They plan to tap into Russia and Commonwealth of Independent States by supplying to retail chains and distributors, Out-licensing to local companies. In Ukraine, they look to register the products in their brand names and tie up with sales and marketing company. In Latin America, they target enhanced sales through new launches, focus on filings in Brazil and commercialise countries like Chile, Peru and Costa Rica for top line growth. They also plan to enter Mexico and launch select generic products.

RADIOPHARMACEUTICALS

They offer a portfolio of products and complementary equipment in the niche segment of nuclear imaging. The business exhibits excellent skills in R and D, manufacturing, quality and regulatory affairs. It enjoys an established presence in North America. Nuclear medicine imaging and therapeutic agents are the focus of their Radiopharmaceuticals division, which develops, manufactures and markets such products in the global marketplace. Applications for their products include cardiology, oncology, thyroid uptake and scans, lung scans, kidney and brain imaging and bone scans.

The products currently marketed by their Radiopharmaceuticals business include a line of lyophilized Technetium-99m kits used in nuclear medicine imaging procedures and a line of imaging and therapeutic products including Sodium Iodide I-131 and Smart-Fill, a dispenser for I-131 for its therapeutic application in the treatment of thyroid cancer. Sodium Iodide I-131 is currently the main revenue contributor to this business segment. I-131 (used for treatment of thyroid cancer) is the sole US FDA product in its class, resulting in leadership for them. The diagnostic products in the portfolio include Macro Aggregates of Albumin (MAA) used in lung imaging, Diethylene Triamine Penta Acetic Acid (DTPA) suitable both for lung and renal imaging, Methyl Di Phosphonate (MDP) used in bone scanning, Gluceptate used in kidney and brain imaging and Sestamibi used in myocardial perfusion imaging. These products are often sold along with the kit that is used to administer the product. Products are directly retailed to radiopharmacies and hospitals with which they have tie-ups.

Revenues in FY 2013 witnessed 26% increase in revenue to Rs.2089 million in the FY ended March 31, 2013 from Rs.1659 million in the FY ended March 31, 2012, primarily because they launched existing products in new markets thereby contributing to growth.

They intend to expand their range of product offerings and consolidate their market share for Radiopharmaceuticals in North America. They are also expanding in markets such as Europe and Asia through their collaborative and contractual arrangements with partners and new distribution channels to drive growth in their current and pipeline products. Their Radiopharmaceuticals business has a number of other products in late stage development, including the Rubidium Rb-82 Generator System, a next-generation Rubidium generator. The system is currently under regulatory review in the United States, Europe and Canada, and they expect to launch it subject to regulatory approval.

The launch of Ruby-fill, a paradigm changing product, will help them become a leader in Nuclear Medicine Pet Cardiology. They see opportunity to build machine for rapid development of generics, a center of excellence in Montreal and to carefully forge partnerships with industry counterparts. Their innovation endeavors continue and they have identified potential new product targets and formulated a product launch plan upto 2020.

ALLERGY THERAPY PRODUCTS

Their Allergy Therapy business provides products to the allergy specialty industry with a range of over 200 different allergens and standard allergy vaccine mixtures both in bulk and against customer prescriptions. They focus on big 5 antigens plus skin test devices and the target user-base covers conventional allergists, ENT, regular physicians and managed care/hospital based clinics across the US and Canada besides other international markets. Majority of their therapeutic and diagnostic vaccines are extracted from pollens, animal pelt and stinging insects (venom).

Revenues in FY 2013 stood at Rs.1,767 million, up 22% from Rs.1,452 million in the previous year reflecting traction on account of their consolidation in the North American market with the introduction of new marketing and promotional tools.

During the year, they have brought improvements in their allergy sales and marketing organisation. They developed and tested sales force optimisation/profit maximisation model. They also validated research analysis of the US Market for allergenic extracts and skin testing devices. In international business, they completed a major supply agreement, expanded distribution in France and other markets including India, Korea, Mexico and Australia.

They aim to become leaders in US extract sales with improved margins by improving operations, reducing costs, improving cash management, eliminating product supply interruptions, increasing the sophistication of their sales and marketing efforts, adding value to their current service offering, improving Sales efficiency and capitalising on the emerging primary care segment. They aim to capitalize on opportunities by establishing strategic alliances and distributor relationships in order to expand their allergenic extracts product portfolio, and to introduce new immunotherapy products focusing on alternative routes of administration.

STERILE INJECTABLES AND OCL (OINTMENTS, CREAMS AND LIQUIDS)

In Sterile Injectables and OCL, they are focused on servicing innovator and branded pharmaceutical and biotechnology organisations, expanding their business to include clinical trial manufacturing and sterile manufacturing capabilities, leveraging on existing business relationships and cross-selling opportunities within the pharmaceuticals segment.

In sterile portfolio, they offer services for a broad range of products including Vial and Ampoule Liquid Fills, Freeze-Dried (Lyophilized) Injectables, Biologics, Suspensions and water for Injection Diluents to pharmaceutical companies. They are also capable of manufacturing products in quantities suitable for clinical trials as well as for large scale commercial requirements. The services they offer for non-sterile products include solid oral and semi-solid dosage formulations, including antibiotic ointments, dermatological cream and liquids (syrups and suspensions), capsules, tablets and powder blends.

They follow a partnership approach to contract manufacturing of Sterile Injectables and OCL where the primary clientele is innovator companies. They are among top 5 Contract Manufacturing Outsourcing players in North America in Sterile Injectables and have been strengthening their presence with manufacturing facilities at two locations in US and Canada with multiple service capabilities.

Revenues in FY 2013 stood at Rs.7,052 million with 14% growth compared to Rs.6,211 million in the previous year excluding the onetime other operating income of Rs.249 million in FY 2012). Backed by strong order execution, the business exhibited improvement in revenues on a year on year basis building superior channels for growth in the future. Focus on cost-saving helped Jubilant to improve margins in the sterile injectibles space.

They have integrated operations at their US and Canadian facilities. They had a successful launch of lab services across key customer segments in FY 2013. They now have a mechanism in place to monitor manufacturing effectiveness to ensure execution as per their plans. Automation of vial inspection will become a critical requirement from 2013 onwards. They are working towards achieving this. The business benefits from a strong order book and there are multiple contracts under execution for supplies to US and European geographies. Necessary measures to improve capacity utilisation have been taken which in turn will support growth in the future.

Their contract manufacturing facility at Canada had been issued a warning letter by USFDA identifying violations of certain Current Good Manufacturing Practice (cGMP) regulations. They have already carried out certain improvements suggested by the regulators and they are continuously engaged to provide all the necessary clarifications sought by the agency. However, their normal operations are going on as usual though this warning letter may have an impact on approval of any new applications.

DRUG DISCOVERY AND DEVELOPMENT SOLUTIONS (DDDS)

They provide their discovery services such as bioinformatics (pathart), chemoinformatics (ChemBioBase), crystallography structure directed molecular design and information technology services; pre-clinical services such as medicinal chemistry, analytical chemistry, custom synthesis, library design, combinatorial and focused and lead optimisation; clinical development and market launch services across Phase I (bioavailability studies, bioequivalence studies, bioanalytics analysis, pharmacokinetic support, statistical support and clinical materials management), Phase II, Phase III/ III B (clinical trial management study feasibility, site identification, site initiation/close out and medical monitoring) and Phase IV (data management, biostatistics, quality assurance, regulatory affairs, drug safety, consulting services and staffing solutions).

They also conduct collaborative and integrated drug discovery programs under this business. The collaborative/ partnership model is an integrated discovery program across a single or a portfolio of molecules. They share with the collaborators the risks and rewards of the project and they receive payments as research funding upon the achievement of agreed milestones, subject to the fulfillment of certain criteria and also bonus amounts at each specified stage. Continued development milestones and royalties for further development and commercialisation of a successful molecule or portfolio of molecules may also be agreed. Their partnering model allows collaborators to pursue integrated pre-clinical and clinical development strategies by taking targets and leads from research institutions, developing and taking them up to clinical trial phase II and licensing them to large pharmaceutical companies for further development and commercialisation. They offer an integrated play of Drug Discovery and Development Solutions where the focus is on oncology, metabolic disorders, pain and inflammation. There are certain projects being executed with leading pharmaceutical companies which are complemented by delivery capabilities across the US, European and Indian markets. The model is inherently flexible and offers optimal solutions in terms of costing and time-to-market.

The research facilities under the DDDS business are located in Malvern, US and at Bengaluru and Noida in India. They also maintain a global presence in the Clinical Trial operations and have facilities both in the US and in India with presence in Canada as well as in Germany.

Revenues in FY 2013 stood at Rs.2,082 million from Rs.2,450 million in the previous year. The performance in this business was muted due to decrease in services volume, reflecting intense competition. The global pharmaceutical industry continued to consolidate in the RandD space in the past year throwing up challenges for the business growth.

OTHERS – HEALTHCARE

Their Healthcare business is engaged in providing ‘Better Care at Affordable Cost’ to the middle-income population in West Bengal. It operates hospitals at Baharampur (with 50 beds) and at Barasat (with 120 beds), which provide services under Neurosurgery, Neonatal and Paediatric Intensive Care. This facility is operated by a team of full-time doctors representing major medical disciplines. These doctors are also available on-call to extend emergency care to patients.

Revenues in FY 2013 stood at Rs.194 million from Rs.140 million in the previous year. We are looking at improving profitability by focusing on enhancing productivity from current investments.

II. LIFE SCIENCE INGREDIENTS

Their Life Science Ingredients segment comprises revenue lines of Proprietary Products and Exclusive Synthesis, Nutrition Ingredients and Life Science Chemicals businesses. Life Science Ingredients segment revenues continued to chart their growth trajectory at Rs.25,030 million in FY 2013, contributing over 48% of their total revenue mix on the back of 19% growth year-on-year, mainly driven by volume uptick across businesses.

PROPRIETARY PRODUCTS AND EXCLUSIVE SYNTHESIS (PPES)

Their PPES business unit develops, manufactures and provides products which comprise basic building blocks, value-added intermediates, and agro-actives used in the production of pharmaceutical and agrochemical and other life science industries. Their Fine Chemicals and Crop Science Chemicals products are mainly value-added intermediates that they develop from their advance intermediates on the basis of customer requests.

They are focused on maintaining and enhancing their market position in pyridine and derivatives, expanding their Fine Chemicals and Advance Intermediate product portfolios by leveraging their capability in complex chemical processes, and strengthening RandD and technology capabilities in developing new value-added products through forward value added products. They have developed manufacturing processes that enable us to produce more efficiently.

Their Exclusive Synthesis business unit offers process research, development, scale-up and optimisation services for intermediates of new chemical entities and other in-market products to life science companies across the value chain. They have the capability for seamless scale-up through their cGMP kilo lab, pilot plant and commercial scale plants.

PPES business is a fully-integrated operation where Pyridine, Picolines and a range of Pyridine derivatives are manufactured. The business benefits from over 3 decades of experience in Pyridine chemistry. There is continuous development of new products with pharmaceuticals and agrochemicals being the main focus areas. They enjoy global leadership across range of products including Pyridines, Beta Picolines and 14 other derivatives.

This business reported revenues of Rs.11,211 million in FY 2013 compared to Rs.9,312 million in the previous year. The 20% sales growth that they witnessed was primarily driven by a 14% increase in volume of PPES products sold. Their Pyridines and Beta Picoline capacity utilisation was close to 90% in FY 2013.

Advanced Intermediates global business is driven by dynamism of two co-products with highly competitive market and concentrated supplier structure. The low entrance barrier has paved way for many new Chinese players. This is coupled with few big customers and then highly fragmented customer base. In such a scenario, key differentiation is primarily based on manufacturing efficiencies. The past year saw them achieve market share of over 33% for Pyridine bases, helping them retain leadership position in the category.

They expect to maintain leadership position in Pyridine bases worldwide by maximising co-product utilisation through supply to Vitamins business, being the best in alpha chemistry and technological capabilities leading to be the lowest cost manufacturer and ensuring 100% compliance to environmental measures and Zero discharge.

They aim to become one of the Top 2 global supplier partners of chosen Pyridine derivatives by adding new products and Advanced Intermediates, achieving cost reduction, new product development and debottlenecking capacities of few Fine Chemicals. They are actively trying to work with innovator life science companies, for long term contracts of projects having synergy with us. They will keep working on present pipeline of 14 projects and keep developing new late phase pipeline for Exclusive Synthesis business potential.

In Crop Science Chemicals, they have formulated a definitive plan for their growth across regions. They plan to grow their agroactives business through presence in critical markets of Europe, Brazil and the US to become a global leader in the Pyridine based route of producing Chlorpyrifos by supplying Symtet, they plan to validate the bigger size column trials for optimising production and achieving longer batch time cycles. They also plan to ensure global compliance for Symtet like China Registration, Evaluation, Authorisation and Restriction of Chemical Substance notification, EU REACH and other forthcoming regulations. They enjoy excellent relationships with the global crop science active players.

NUTRITION INGREDIENTS

Their Nutrition Ingredients business is a fully integrated operation and primarily manufactures and markets Vitamin B3, which are formulated for human, pharmacological, cosmetics and animal feed consumption, as well as choline chloride (also referred to as Vitamin B4), an important feed additive for poultry. Vitamin B3 is also used extensively in human nutrition such as flour fortification, food enrichment, sports drinks, energy drinks, baby food and multi-vitamins and in animal nutrition as feed additives for the poultry, dairy and pork industry, and in pharmaceuticals such as diabetes and cholesterol-related drugs in cosmetics for skin color and texture improvement and the manufacture of other life sciences intermediates.

The biggest advantage they have is their integrated nature of operations. Beta Picoline manufactured under the Proprietary Products is the precursor to Niacin and Niacinamide (Vitamin B3) produced. This provides them with the cost-advantage that is difficult for any player in the industry to match.

Revenues in FY 2013 witnessed 26% increase to Rs.2,648 million in the FY ended March 31, 2013 from Rs.2,108 million in the FY ended March 31, 2012, driven by sales volume increase as a result of enhanced capacity utilisation after the commissioning of the new facility at SEZ Bharuch in the FY ended March 31, 2012.

This year saw consolidation at operational and management structure level. They also divided the sales team into two teams (Straight Ingredients and Specialty Products) to increase focus in the targeted segments. There were a slew of such initiatives across Manufacturing, RandD, Supply Chain and Human Resources. They are focused on improving their share in Vitamin B3 through higher capacity utilisation. With the recent price increase announcement after a challenged FY 2013 when prices were low, they see opportunity to benefit both in terms of volumes and value, thereby improving their profitability. They are working towards building a global leadership position in Vitamin B3. They plan to capitalise on strength of Vitamin B3 positioning for the launch of new products in Nutritional space. With their improved quality of Niacinamide, their strategy is centered on aggressively building market share in regions other than US, Europe and China. De-risking their business is high on agenda and they continue to explore new products to diversify the Nutrition Ingredients portfolio.

In Animal Nutrition business, they will focus on new product development, new business development initiatives such as participation in expositions and achieving optimum capacity utilisations going forward. New launches as well as entry into new geographies for existing products will hold the key to success of their strategy.

LIFE SCIENCE CHEMICALS

Life Science Chemicals are organic intermediates, also known as Acetyls, which are precursors to Advance Intermediates and Fine Chemicals used in a range of applications such as pharmaceuticals, aromatics, adhesives, food, packaging, beverages, crop protection chemicals, textiles and other solvents. They produce various organic intermediates including Acetic Acid, Monochloro Acetic Acid, Acetic Anhydride, Ethyl Acetate and Sodium Monochloracetate, which are typically used in the manufacture of downstream products such as pharmaceuticals, crop protection chemicals and solvents. Life Science Chemicals is a capital intensive business in which scale of operations is imperative. They have leadership position in Acetyls in India and sizeable presence globally. They enjoy economies of scale. The business produces ‘Green Solvent’ Ethyl Acetate, which is being preferred by customers in all markets.

Their strength lies in some of these Acetyls being consumed by their other business verticals in production of value added Fine Chemicals and APIs. Strong integration and manufacturing efficiencies have helped them rank within the top 10 in key Acetyl products across the world. They have created large storage capacities at their plants and ports to ensure continued supplies of feedstock to the operation and to benefit from lower feedstock prices which are cyclical in nature, especially with respect to Ethyl Alcohol.

Revenues in FY 2013 witnessed 16% increase in Life Science Chemicals to Rs.11,171 million in the FY ended March 31, 2013 from Rs.9,598 million in the FY ended March 31, 2012, driven by volume growth largely as a result of more efficient capacity utilisation.

This year saw them growing and further consolidating their presence in Life Science Chemicals by enhancing utilisations from newly added capacities of Ethyl Acetate and Anhydride in the previous year. They have started bringing economies through alternate material usage and developing new suppliers for other raw material. They successfully demonstrated developing Mundra as new Exporting Port providing them opportunity for substantial savings in the logistics area.

As part of their constant endeavour to enter into long term supply contract with major ethanol suppliers in the region, they were able to develop the same, covering more than 50% of alcohol purchase. This year they were able to secure alcohol requirement from domestic market by avoiding high cost imports (which were higher by Rs.7-8/lit). This resulted in positive impact on profits. They successfully conducted pilot trials of feeding spent wash with 15% solid to bio-methanation reactor at Nira (normal spent wash has 10% soild). This will help them implementing the initiative for reducing effluent at Nira. In another initiative, they optimised alcohol cost by stopping slop fired boiler for four months as purchase alcohol was cheaper compared to manufacturing cost through this route, resulting in savings.

For them to achieve their objective of becoming a formidable Acetyls player globally, they see opportunity by building a more robust marketing and distribution platform to handle larger annual volumes. They are conscious of the challenges that face them and have formulated a detailed business development plan for the same. The risks they might face stem from changing Acetic Acid balance in their region. They aim to increase the profitability by utilising their existing capacity, by changing their product mix, targeting higher share in Middle-East, African and Asian Markets by replicating their hugely successful Europe model and looking at charting aggressive growth in domestic market by entering untapped accounts.

BUSINESS EXCELLENCE

In Jubilant, Business Excellence function is proactively creating the framework for new improvement strategies which drives the competitive advantage backed by a strong execution mechanism and capability. These improvement strategies pertain to all three critical pillars of the organisation – Customer, Process and People.

The continual efforts of Business Excellence function is to understand processes and systems, model them by transfer functions and define crucial measurements resulting in a superior co-ordination and integration of processes. Learning, reconfiguration and transfiguration become source of competitive advantage and can be effectively used to leverage Company’s competitive strategy. During this journey of continual improvement, this function has adopted various improvement methodologies in line with organisation priorities like Six Sigma, Lean, Design for Six Sigma (DFSS), World Class Manufacturing (WCM), Total Productivity Management (TPM), Supply Chain Re-engineering (SCOR), Project Management (EPM), Operation Research (OR), Business Intelligence (BI) etc. This year Business Excellence function has also added competencies like Maynard Operation Sequencing Technique (MOST) for manpower productivity enhancement and dynamic and steady state simulation modelling for enhancing efficiencies of chemical processes using tools like ASPEN and DYNOCHEM.

The scope of these improvement initiatives cover all facets of the business like Manufacturing, Sales and Marketing, New Product Introduction (RandD), Supply Chain, Corporate HR, Projects and other support functions which helped creating a more efficient value chain. The Business Excellence infrastructure element helps in creating self-driven / mission directed teams which drive their operational area towards excellence in alignment to business objective through right accountability and training. This sustained culture of innovation and excellence is the result of deep commitment of the people at Jubilant.

These varied businesses have specific challenges and require customised innovative solutions to cater to these requirements. With the support of all CEOs, Business Heads, Champions and urge of all Business Functions (including foreign subsidiaries) towards internalisation of Business Excellence initiatives, this improvement journey has gone a long way in firming the foundations for sustained profitable growth.

The Company won award and recognition from Confederation of Indian Industry (CII), Kaizen Institute and Frost and Sullivan for various accomplishments in manufacturing excellence.

With respect to bringing about improvement in the Company, knowledge based newsletters were shared across all businesses, yellow and green belt trainings for corporate functions were undertaken covering many employees and a Kaizen scheme was launched to generate number of ideas on cost reduction, capacity enhancement and quality improvement.

Some of the key projects undertaken during the year are capacity debottlenecking projects through application of Lean Six Sigma and process simulation in APIs, Solid Dosage Formulations, Fine Chemicals and Exclusive Synthesis business, Supply Chain reengineering solutions in the area planning and sourcing by creating optimisation and business intelligence solutions in the pharmaceutical businesses customer delight projects in contract manufacturing businesses where critical cost savings and quality improvement projects were done to resolve chronic issues using design for Six Sigma techniques. In the last year an extensive emphasis was also created around effluent load reduction where extensive Raffinate reduction in Advance Intermediates, isolation of salts in APIs, reduction of fresh water usage in Acetyls, were accomplished. Total Productive Maintenance has been taken to the next level especially in Gajraula and Nanjangud (APIs) sites and significant improvements have been achieved in overall asset effectiveness. More than 100 green belts completed their requirements for certification by undergoing the Lean Six Sigma training and completing at least one Improvement project sponsored by their Functional Head. Cash to Cash cycle time reduction and working capital improvements were driven across all businesses by following best in class Lean and Supply Chain practices.

STATEMENT OF STANDALONE UNAUDITED RESULTS FOR THE QUARTER AND HALF YEAR ENDED 30.09.2013

(Rs. in Millions)

Particulars	STANDALONE RESULTS
	Quarter Ended		Half Year Ended
	30.09.2013	30.06.2013	30.09.2013
	(Unaudited)	(Unaudited)	(Audited)
PART I
Income from operations
(a) Net sales/Income from operations (Net of excise duty)	9169.100	8125.800	17294.900
(b) Other Operating Income	107.600	109.800	217.400
Total income from operations (net)	9276.700	8235.600	17512.300
Expenses
a) Cost of materials consumed	4543.600	4131.200	8674.800
b) Purchase of traded goods	402.600	444.300	846.900
c) Change in inventories of finished goods, work-in-progress and traded goods	(181.600)	(39.500)	(221.100)
d) Power & fuel	944.700	859.900	1804.600
e) Employee benefits expenses	762.700	664.600	1427.300
f) Depreciation and amortization expenses	439.100	425.400	864.500
g) Other expenses	1060.300	977.600	2037.900
Total Expenses	7971.400	7463.500	15434.900
Profit/(Loss) from operations before other income, finance cost and exceptional items	1305.300	772.100	2077.400
Other Income	28.200	20.100	48.300
Profit/(Loss) from ordinary activities before finance costs & exceptional items	1333.500	792.200	2125.700
Finance costs	659.000	640.300	1299.300
Profit/(Loss) from ordinary activities after finance costs but before exceptional items	674.500	151.900	826.400
Exceptional items	1483.200	1168.400	2651.600
Profit/(Loss) from ordinary activities before tax	(808.700)	(1016.500)	(1825.200)
Tax expense (Net)	(22.900)	42.300	19.400
Net Profit/(Loss) from ordinary activities after tax	(785.800)	(1058.800)	(1844.600)
Extraordinary items (net of tax expenses)	--	--	--
Net Profit/(Loss) for the period	(785.800)	(1058.800)	(1844.600)
Paid-up equity share capital (Face value per share Re.1)	159.300	159.300	159.300
Reserves (excluding revaluation reserve)
Earnings per share before and after extraordinary items (Not annualized)
Basic (Rs.)	(4.93)	(6.65)	(11.58)
Diluted (Rs.)	(4.93)	(6.65)	(11.58)
PART II
PARTICULARS OF SHAREHOLDING
Public shareholding
- Number of shares (Re. 1 each)	73355083	81166083	73355083
- Percentage of shareholding Promoters and promoter group shareholding a) Pledged/Encumbered	46.05	50.96	46.05
- Number of shares	--	--	--
- Percentage of shares (as a % of the total shareholding of promoter and promoter group)	--	--	--
- Percentage of shares (as a % of the total share capital of the company) b) Non-Encumbered	--	--	--
- Number of shares	85926056	78116056	85926056
- Percentage of shares (as a % of the total shareholding of promoter and promoter group)	100.00	100.00	100.00
- Percentage of shares (as a % of the total share capital of the company)	53.95	49.04	53.95

Particulars	30.09.2013
Investors Complaints (Nos.)
Pending at the beginning of the quarter	Nil
Received during the quarter	9
Disposed of during the quarter	9
Remaining unresolved at the end of the quarter	Nil

SEGMENT WISE REVENUE, RESULTS AND CAPITAL EMPLOYED

Particulars	STANDALONE RESULTS
	Quarter Ended		Half Year Ended
	30.09.2013	30.06.2013	30.09.2013
	(Unaudited)	(Unaudited)	(Audited)
Segment revenue
a. Pharmaceuticals	2153.500	1912.500	4066.000
b. Life Sciences Ingredients	7129.900	6333.400	13463.300
Total	9283.4000	8245.900	17529.300
Less: Inter segment revenue	6.700	10.300	17.000
Net Sales/Income from operations	9276.700	8235.600	17512.300
a. Pharmaceuticals	2153.500	1912.500	4066.000
b. Life Sciences Ingredients	7123.200	6323.100	13446.300
Total	9276.700	8235.600	17512.300
Segment results (profit(+)/loss(-) before tax and interest from each segment)
a. Pharmaceuticals	659.700	354.900	1014.600
b. Life Sciences Ingredients	947.300	637.900	1585.200
Total	1607.000	992.800	2599.800
Less: i. Interest (Finance costs)	659.000	640.300	1299.300
ii. Other un-allocable expenditure (including exceptional items)	1784.900	1389.100	3174.000
iii. Un-allocable Income (including exceptional items)	(28.200)	(20.100)	(48.300)
Total Profit/(Loss) before tax	(808.700)	(1016.500)	(1825.200)
Capital Employed (Segment assets less Segment liabilities)
a. Pharmaceuticals	10980.900	10219.000	10980.900
b. Life Sciences Ingredients	16221.100	14971.700	16221.100
Total capital employed in segments	27202.000	25190.700	27202.000
Add: Un-allocable corporate assets less liabilities	21608.100	22601.200	21608.100
Total capital employed in the Company	48810.100	47791.900	48810.100

STATEMENT OF ASSETS AND LIABILITIES

Particulars	STANDALONE
	30.09.2013
	(Unaudited)
EQUITY AND LIABILITIES
Shareholders' Funds
a) Share capital	154.500
b) Reserves & surplus c) Money received against share warrants	14507.400 0.000
Sub-total- Shareholders' funds	14661.900
Share application money pending allotment	--
Minority interest	--
Non-current liabilities
a) Long-term borrowings	14333.600
b) Deferred tax liabilities (Net)	2124.100
c) Other long term liabilities	--
d) Long-term provisions	3701.000
Sub-total- Non-current liabilities	20158.700
Current liabilities
a) Short-term borrowings	9399.600
b) Trade payables	8544.500
c) Other current liabilities	10116.200
d) Short-term provisions	2020.600
Sub-total- Current liabilities	30080.900
TOTAL EQUITY AND LIABILITIES	64901.500
ASSETS
Non-current assets
a) Fixed assets	24292.300
b) Goodwill on consolidation	--
c) Non-current investments	19792.900
d) Deferred tax assets (net)	--
e) Long-term loans and advances	4492.700
f) Other non-current assets	1.000
Sub-total- Non-current assets	48578.900
Current assets
a) Current investments	--
b) Inventories	7444.100
c) Trade receivables	5412.000
d) Cash & bank balances	482.300
e) Short-term loans and advances	2919.300
f) Other current assets	64.900
Sub-total- Current assets	16322.600
TOTAL ASSETS	64901.500

Notes:

1. In line with its earlier decision of consolidation of Pharmaceuticals business under its wholly owned subsidiary Jubilant Pharma Limited Singapore (JPL) and evaluate the option and opportunity to raise money to reduce the consolidated debt of the company, the Board in its meeting held on 04.10.2013 approved transfer of Active Pharmaceutical Ingredients (API) and Dosage Forms business of the company by way of a slump safe sale on going concern bases and shares held by it in Jubilant Pharma Holding Inc USA and Jubilant Pharma NV Belgium, to a wholly owned subsidiary of JPL, for a net consideration of Rs. 11451.000 Millions (net of debts), subject to Shareholders and other regulatory approvals JPL has received on approval from the Foreign Investment Promotion Board in this regard.

2. During the quarter, the company has consolidated the accounts of the Jubilant Employee Welfare Trust with the Company. The trust primarily holds equity shares of the company which are to be transferred to employees of the company and its subsidiaries upon exercise of their stock under various Employee Stock Option Plans (ESOP) in force. Consequently, the face value of 4833496 equity shares held by trust as at 30.09.2013 amounting to Rs. 4.800 Millions, is reduced from the share capital and the excess of net worth (after elimination of inter-company loans) of Rs.420.000 Millions has been adjusted from reserves and surplus. The aforesaid adjustment did not have any effect on the financial results of the Group for the quarter and half year ended 30 September 2013.

3. The Company has applied hedge accounting In respect of certain foreign currency transactions including forward contracts under Accounting Standard 30 and the debit/ (credit) balance in Hedging Reserve (net) representing a portion of foreign exchange loss/gain on such transactions (after adjustment for related tax impact) as at 30 September 2013 and 31 March 2013 is Rs.610.900 Millions (debt balance) and Rs. 354.100 Millions respectively.

4. Finance cost includes exchange difference arising from foreign currency short-term borrowings regarded as an adjustment to Interest costs as per AS 16-Bormwing Costs, and is gross of credit on the swap contracts as under:

Particulars	STANDALONE RESULTS
	Quarter Ended		Half Year Ended
	30.09.2013	30.06.2013	30.09.2013
	(Unaudited)	(Unaudited)	(Audited)
- Finance Cost net of credit on swap contracts	497.700	482.100	979.800
Add : Foreign Exchange differences and credit on swap contracts	161.300	158.200	319.500
- Gross Finance Cost	659.000	640.300	1299.300

5. Exceptional items for each period presented includes:

I. Amortization of debit balance In Foreign Currency Monetary items Translation Difference Account (FCMITDA) of Rs.387.400 Millions, Rs. 255.100 Millions, Rs. 63.700 Millions, Rs. 642.500 Millions, Rs.231.500 Millions and Rs. 631.600 Millions for the quarters ended 30 September 2013, 30 June 2013, 30 September 2012; half year ended 30 September 2013, 30 September 2012; and year ended 31 March 2013 respectively, representing exchange difference on long-term foreign currency monetary liability which has been used for the purpose other than acquiring fixed assets.

II. The remaining amount of exceptional Items for all periods presented primarily represents foreign exchange difference for the period (excluding portion included in finance cost) and mark to market gain/ loss (net of related contractual recoveries) In respect of currency and interest rate swap contracts.

6. Tax expense for the quarter and six months ended 30 September 2013 is net of creation of deferred tax asset and true up of current tax amounting to (Rs.19.400) Millions in relation to reassessment of tax positions of earlier periods.

7. The Ministry of Commerce, Republic of China had imposed 24.6 % antidumping duty on pyridine Imported from the company for domestic sale in China, for which final order is still awaited and the impact of the same is charged In financial results.

8. Previous periods figures have been reclassified to conform to the current period's classification.

9. The above un-audited results were, subjected to limited review by the Statutory Auditors of the Company, reviewed by the Audit Committee and approved by the Board of Directors at its meeting held on 29 October 2013. The review report of the Statutory Auditors is being filed with the Bombay Stock Exchange and National Stock Exchange and IS also available on the Company's website at

CONTINGENT LIABILITIES:

A. Guarantees:

i. The Company has given following corporate guarantee on behalf of its subsidiaries to secure financial facilities :

Name of Subsidiary	Bank	2013	2012
Jubilant HollisterStier Inc.	ICICI Bank Canada	US$ 20.93 million	US$ 37.66 million
Jubilant Life Sciences International Pte. Limited	ICICI Bank Limited Singapore	SGD 22.00 million	--

Total effective guarantee as on 31st March, 2013 in Rs.2098.11 million (previous year Rs.2234.09 million).

ii. Outstanding guarantees furnished by banks on behalf of the Company/by the Company including in respect of letters of credits is Rs.2794.99 million (Previous year Rs.2101.03 million).

B. Claims against Company, disputed by the Company, not acknowledged as debt:

	31.03.2013	31.03.2012
Central Excise	514.460	320.330
Customs	31.630	12.590
Sales Tax	7.080	45.540
Income Tax	563.520	411.190
Service Tax	175.740	105.830
Others	47.030	41.830

Excluding demands in respect of business transferred in earlier year to Jubilant Industries Limited in terms of the scheme of demerger though the demands may be continuing in the name of the Company.

Future cash outflows in respect of the above matters as well as for matters listed under 33 (C) below are determinable only on receipt of judgments/decisions pending at various stages/forums.

C. Other contingent liabilities:

i. Liability in respect of bills discounted with banks is Rs.1050 million (Previous year Rs.500 million).

ii. The Company’s writ petition against the levy of transport fee by the State of Maharashtra on consumption of rectified spirit and molasses within Nira factory has been allowed by the Hon’ble Bombay High Court with consequential refund. The Company has filed a refund claim for an amount of Rs.2.51 million deposited during the period when the dispute was pending before the High Court. The total amount of disputed transport fee is Rs.171.66 million. The State of Maharashtra has filed a special leave petitionin the Supreme Court and has sought a stay on the operation of the High Court order.

iii. The Company has challenged before the Hon’ble Allahabad High Court, the increase in denaturing fee by the State of Uttar Pradesh w.e.f 1st April, 2004 on denaturing of rectified spirit in the Gajraula factory and the writ petition has been admitted by the court. The Company has deposited Rs.22.52 million under protest which is shown as deposits.

iv. Zila Panchayat at J.P. Nagar (in respect of the Company’s Gajraula plant) served a notice demanding a compensation of Rs.277.40 million allegedly for, percolation of poisonous water stored in lagoons and flowing through the land of Zila Panchayat resulting in loss of crops and cattle of the farmers and for putting poisonous fly ash on national highway which caused loss to the health and damages to eyes and skin of people. District Magistrate issued a recovery certificate along with 10% collection charges inflating the demand to Rs.305.14 million. In the opinion of the Company, the Zila Panchayat has no jurisdiction in raising this demand. The demand was challenged in Hon’ble Allahabad High Court and the court stayed the demand till further orders.

v. The Company has challenged, before the Hon’ble Allahabad High Court, the levy of license fees of Rs.2.87 million by State of Uttar Pradesh, for grant of PD-2 license for manufacture of ethyl alcohol for industrial use. The writ petition has been admitted and is being listed for final hearing. Though the amount has been deposited and shown as such, no provision against this has been made as the issue is covered by the earlier favorable judgment of the Hon’ble Supreme Court of India.

vi. The State of Uttar Pradesh (UP) has imposed levy on import of denatured spirit into the State of Uttar Pradesh (UP). The Company has imported denatured spirit into the State of Uttar Pradesh and has challenged levy amounting to Rs.90 million before Hon’ble Allahabad High Court. The writ petition has been allowed by the High Court in favour of the Company. The State of Uttar Pradesh filed a special leave petition (SLP) with Hon’ble Supreme Court. The SLP has been admitted but the Hon’ble Supreme Court has declined the request of the State of Uttar Pradesh (UP) to stay the operation of High Court Order.

vii. The Hon’ble Supreme Court has quashed the levy of license fee by State of Uttar Pradesh on captive consumption of denatured spirit in the Gajraula factory, and has ordered the refund of the fee paid during the period of dispute subject to condition that the amount has not been collected from the Company’s customers. Further the Court has directed the State to investigate whether the Company has collected the disputed fee from its customers to the extent bank guarantees were furnished.

The Company is entitled to a refund of Rs.84.06 million as the amount paid during the period of dispute or secured by bank guarantees was not collected from its customers. Accordingly the Company has approached the State of Uttar Pradesh for the refund of the said amount. The amount paid has been shown as deposit.

viii. The State of Uttar Pradesh (UP) has also levied trade tax (VAT) in addition to the administrative fee on sale of

molasses within the State. The Hon’ble Allahabad High Court had struck down the levy of VAT on grounds that once an administrative fee, in the form of tax, has already been charged under a Special Act, no Trade Tax or VAT can be charged under a general act. The Hon’ble Supreme Court (SC) has also declined to grant stay in SLP filed by the State of UP and the VAT authorities are currently treating molasses as goods not subject to VAT. The Company discontinued paying VAT on molasses purchased during FY 2011- FY 2013. The issue of applicability of VAT on sale of molasses is pending before the Hon’ble S.C and in case it is decided in favour of the State of UP, VAT amounting to Rs.228.40 million would become payable on molasses purchased till FY 2013 and the net liability would be Rs.24.70 million after adjustment of VAT credit to the extent of Rs.203.70 million.

FIXED ASSETS:

Tangible assets:

· Freehold Land

Leasehold Land

Buildings

Plant and equipment

Furniture and fixtures

Vehicles

Vehicles-leased

Office equipments

Railway sidings

Intangible assets:

· Internally generated

Product registration/market authorization

Rights

Software

PRESS RELEASES:

JUBILANT RECEIVES USFDA APPROVAL FOR TWO GENERIC DRUGS

New Delhi October 18, 2013

Drug firm Jubilant Life Sciences Limited today said it has received approval from the US Food and Drugs Administration (USFDA) to market generic versions of GlaxoSmithKline's anti-depressant Wellbutrin SR and smoking cessation aid, Zyban.

The abbreviated new drug applications (ANDAs) approval bupropion hydrochloride extended-release tablets, the generic version of Wellbutrin SR, is in multiple strengths of 100 mg, 150 mg and 200 mg, Jubilant Life Sciences said in a filing to the BSE.

For bupropion hydrochloride extended-release tablets, the generic version of Zyban, the approval is for 150 mg, the company added.

"We expect to launch these products in Q3 FY14," it said.

Quoting IMS data, the company said the current total market size of these products in the US is $518 million per annum.

As on June 30, 2013, Jubilant Life Sciences had a total of 649 filings for formulations, including 58 ANDAs filed in the US and 41 Dossier filings in Europe.

Of these, 189 have been approved in various regions of the world, the company said.

Shares of Jubilant Life Sciences were trading at Rs 75.25 a piece, down 0.13% from their previous close on the BSE.

Jubilant Life stock price

On November 26, 2013, Jubilant Life Sciences closed at Rs 122.50, up Rs 0.60, or 0.49 percent. The 52-week high of the share was Rs 248.25 and the 52-week low was Rs 65.10.

The latest book value of the company is Rs 116.89 per share. At current value, the price-to-book value of the company was 1.05.

JUBILANT LIFE SCIENCES

Noida, Tuesday October 29, 2013

The Board of Jubilant Life Sciences Limited, an integrated pharmaceutical and life science industry player met today to approve financial results for the quarter ended September 30, 2013.

Commenting on the Company’s performance, Mr. Shyam S Bhartia, Chairman & Managing Director and Mr. Hari S Bhartia, Co-Chairman & Managing Director, Jubilant Life Sciences said:

“Our performance is shaped by good volumes traction in Q2 FY2014. Growth will accelerate in H2 on the back of product launches under Solid Dosage Formulations, scale up in Speciality Pharmaceuticals and volume uptick visible in Vitamins and Acetyl businesses due to higher capacity utilisation levels. FY2014 will be marked by a strong business performance from all key business verticals and the restructuring initiative aimed at de-leveraging the balance sheet, which will drive a focussed reduction in debt.”

Q2 FY14 Highlights

· Revenue growth was driven by volume growth in both segments

Consolidated revenue up 17% YoY

· Pharmaceuticals revenue up by 6% YoY

· LSI revenue up by 30% YoY

· International revenues at Rs. 10700.000 Millions, contributing 75% to the overall mix and up 21% YoY

EBITDA margins at 19.2% and Normalized PAT margins at 4.9%

H1 FY14 Highlights

· Revenue growth on account of volume growth in both segments but prices remained under pressure for Pharmaceuticals business.

Consolidated revenue up 13% YoY

· Pharmaceuticals revenue up by 4% YoY

· LSI revenue up by 24% YoY

· International revenues at Rs. 20690.000 Millions, contributing 74% to the overall revenues

EBITDA margins at 18.5% and Normalized PAT margins at 4.6%

Business Performance Review

Pharmaceuticals Segment Review

In Q2 FY2014, Income from operations of the Pharma business stood at Rs. 6910.000 Millions, showing growth of 6% YoY and contributing 48% to the revenue mix. The Pharma business EBITDA was at Rs. 1750.000 Millions with EBITDA margins at 25.3%.

For H1 FY2014 the Income from operations stood at Rs. 13430.000 Millions, growing 4% YoY and contributing 48% to the overall revenue mix. The segment EBITDA stood at Rs. 3230.000 Millions with EBITDA margins at 24.1%.

Life Science Ingredients Segment Review

In Q2 FY2014, Income from operations for the Life Science Ingredients segment was at Rs. 7440.000 Millions, thus improved by 30% YoY and having 52% of share in total revenues. The segment EBITDA stood at Rs. 1250.000 Millions with EBITDA margins at 16.8%.

In H1 FY2014 the Income from operations of the segment was at Rs. 14510.000 Millions, up 24% YoY and contributing 52% to the revenue mix. The segment EBITDA came in at Rs. 2340.000 Millions with EBITDA margins at 16.1%.

Geographical Overview

Products and services of the Company reach out to clients in 99 countries of the world. International revenues contribute 75% of the revenue mix at Rs. 10700.000 Millions with the share of regulated markets at Rs. 8650.000 Millions.

In Q2 FY2014 revenues from North America stood at 9% improved YoY at Rs. 5590.000 Millions, contributing 39% in the overall revenues; revenues from Europe and Japan stood at Rs. 3060.000 Millions, up 28% with a share of 21% to the revenue mix. Domestic revenues grew 9% YoY at Rs. 3660.000 Millions thus giving a 25% share to the revenue mix. Revenues in ROW including China came in at Rs. 2050.000 Millions, better by 52%, with a 14% contribution to the revenue mix.

In H1 FY2013 the Revenue from North America was at Rs. 10790.000 Millions, up 6% with a contribution of 39% to the revenue mix. Revenue from Europe and Japan was at Rs. 5790.000 Millions contributing 21% to the revenue mix with a growth of 18% YoY. The Domestic revenue was at Rs. 7240.000 Millions up 8% YoY, contributing 26% to the revenue mix. Revenue from ROW including China was at Rs. 4110.000 Millions, up 44% and giving 15% contribution to the revenue mix.

Corporate Actions

With the objective of consolidating the Pharmaceuticals business under one entity and raise money to reduce the overall debt of the company, the board has resolved to transfer the following to its wholly-owned subsidiary in Singapore

1. The API and Dosage Form businesses of the Company in India by way of a slump sale on a going concern basis

2. Also, part of the shares held by the Company directly in US and European subsidiaries to enable the Singapore subsidiary to hold 100% of the business in Europe and US

The consideration for above transfer is Rs 11450.000 Millions (net of debt of Rs 5830.000 Millions) subject to the approval of the shareholders of the company and such other approvals and permissions as may be deemed necessary. Jubilant Pharma Limited, Singapore has received approval from the Foreign Investment Promotion Board (FIPB) for above transfer. This will enable the Company to consolidate its API, Solid Dosage Forms, Radiopharmaceuticals, Allergenic Extracts, Sterile Injectibles and Ointment, Cream and Liquid business (Pharma Business) under the Singapore subsidiary.

Outlook

The revenues and EBIDTA are expected to continue the uptrend and meet the growth targets set for FY2014. This is on account of improved capacity utilisations in Sterile Injctables and OCL, Nutrition Ingredients, Symtet and 3CP and backward integration of Pyridine and expansion to newer markets. We expect the price uptrend in Pyridine and Nutrition Ingredients to continue. We have a strong pipeline in API’s and Solid Dosage Formulations. We expect new product launches, expansion in newer geographies and robust order book in Sterile Injectables to improve outlook in H2FY2014, which we expect to be better than H1 FY2014.

JUBILANT LIFE SCIENCES RECEIVES ANDA APPROVALS FOR BUPROPION HYDROCHLORIDE

Noida (UP), India, Friday, October 18, 2013

Jubilant Life Sciences Ltd, an integrated Pharmaceuticals and Life Sciences Company announced today that it has received Abbreviated New Drug Application (ANDA) approvals from the US Food and Drug Administration (US FDA) for:

1. Bupropion Hydrochloride Extended-release Tablets USP (SR), 100 mg, 150 mg and 200 mg, the generic version of GlaxoSmithKline’s antidepressant Wellbutrin SR(R).

2. Bupropion Hydrochloride Extended-release Tablets USP (SR), 150 mg, the generic version of GlaxoSmithKline’s smoking cessation aid, Zyban(R).

The current total market size for these products as per IMS is US$ 518 Million per annum. We expect to launch these products in Q3 FY 14.

As on June 30, 2013, Jubilant Life Sciences had a total of 649 filings for formulations of which 189 have been approved in various regions of the world. This includes 58 ANDAs filed in the U.S and 41 Dossier filings in Europe.

About Jubilant Life Sciences

Jubilant Life Sciences Limited is a global Pharmaceutical and Life Sciences Company engaged in manufacture and supply of APIs, Generics, Specialty Pharmaceuticals and Life Science Ingredients. It also provides Services in Contract Manufacturing and Drug Discovery and Development. The Company’s strength lies in its unique offerings of Pharmaceutical and Life Sciences products and services across the value chain. With 10 world-class manufacturing facilities in India, US and Canada and a team of over 6,200 multicultural people across the globe, the Company is committed to deliver value to its customers spread across 98 countries. The Company is well recognized as a ‘Partner of Choice’ by leading pharmaceuticals and life sciences companies globally.

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. 62.45
UK Pound	1	Rs. 101.86
Euro	1	Rs. 84.50

INFORMATION DETAILS

Report Prepared by :

BVA

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
DEFAULTERS
--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.