1. Summary Information

		Country	India
Company Name	SEQUENT SCIENTIFIC LIMITED	Principal Name 1	Mr. K. R. Ravishankar
Status	Moderate	Principal Name 2	Mr. Kannan Ramanujam
		Registration #	11-036685
Street Address	301, 3^rd Floor, Dosti Pinnacle, Plot No. E7, Road No. 22, Wagle Industrial Estate, Thane (West) – 400604, Maharashtra, India
Established Date	28.06.1985	SIC Code	--
Telephone#	Not Available	Business Style 1	Manufacturer
Fax #	Not Available	Business Style 2	--
Homepage	http://www.sequent.in	Product Name 1	Active Pharmaceutical Ingredients (API)
# of employees	900 (Approximately)	Product Name 2	--
Paid up capital	Rs.234,400,000/-	Product Name 3	--
Shareholders	Promoter and Promoter Group – 60.73% Public shareholding – 39.27%	Banking	State Bank of India
Public Limited Corp.	YES	Business Period	28 Years
IPO	YES	International Ins.	-
Public Enterprise	YES	Rating	B (29)
Related Company
Relation	Country	Company Name	CEO
Holding Company	-	Fraxis Life Sciences Limited	-
Note	-

2. Summary Financial Statement

Balance Sheet as of	31.03.2013		(Unit: Indian Rs.)
Assets		Liabilities
Current Assets	1,760,470,000	Current Liabilities	1,737,080,000
Inventories	826,740,000	Long-term Liabilities	2,477,060,000
Fixed Assets	2,050,960,000	Other Liabilities	92,830,000
Deferred Assets	690,000	Total Liabilities	4,306,970,000
Invest& other Assets	762,600,000	Retained Earnings	741,300,000
		Net Worth	1,094,490,000
Total Assets	5,401,460,000	Total Liab. & Equity	5,401,460,000
Total Assets (Previous Year)	4,964,170,000
P/L Statement as of	31.03.2013		(Unit: Indian Rs.)
Sales	3,140,500,000	Net Profit	(545,010,000)
Sales(Previous yr)	3,324,300,000	Net Profit(Prev.yr)	14,680,000

MIRA INFORM REPORT

Report Date :

24.10.2013

IDENTIFICATION DETAILS

Name :	SEQUENT SCIENTIFIC LIMITED (w.e.f. 27.10.2009)
Formerly Known As :	P.I. DRUGS AND PHARMACEUTICALS LIMITED
Registered Office :	301, 3^rd Floor, Dosti Pinnacle, Plot No. E7, Road No. 22, Wagle Industrial Estate, Thane (West) – 400604, Maharashtra
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	28.06.1985
Com. Reg. No.:	11-036685
Capital Investment / Paid-up Capital :	Rs.234.400 Millions
CIN No.: [Company Identification No.]	L99999MH1985PLC036685
TAN No.: [Tax Deduction & Collection Account No.]	PNEP10307D
PAN No.: [Permanent Account No.]	AAACV1501G
Legal Form :	A Public Limited Liability Company. The company’s Shares are Listed on the Stock Exchanges.
Line of Business :	Manufacturer of Active Pharmaceutical Ingredients (API).
No. of Employees :	900 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (29)

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Maximum Credit Limit :	USD 4370000
Status :	Moderate
Payment Behaviour :	Slow
Litigation :	Exist
Comments :	Subject is an established company having moderate track record. There appears losses recorded by the company, from its operating activities during the financial year 2013. Trade relations are fair. Business is active. Payments are reported to slow. The company can be considered for business dealings with some caution.

NOTES :

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

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

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

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

INDIAN ECONOMIC OVERVIEW

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

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

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

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

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

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

EXTERNAL AGENCY RATING

Rating Agency Name	CARE
Rating	B (Long Term Bank Facilities)
Rating Explanation	Risk prone credit quality and very high credit risk.
Date	September 13, 2013

Rating Agency Name	CARE
Rating	A4 (Short Term Bank Facilities)
Rating Explanation	Minimal degree of safety and very high credit risk.
Date	September 13, 2013

RBI DEFAULTERS’ LIST STATUS

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

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

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

INFORMATION DENIED

Management Non-Corporative (91-80-67840340)

LOCATIONS

Registered Office :	301, 3^rd Floor, Dosti Pinnacle, Plot No. E7, Road No. 22, Wagle Industrial Estate, Thane (West) – 400604, Maharashtra, India
Tel. No.:	Not Available
Fax No.:	Not Available
E-Mail :	vinayak.hegde@sequent.in kannan.pr@sequent.in pidsecretarial@yahoo.co.in pid@pidrugs.com preetham.hebbar@sequent.in ravi.aray@sequent.in
Website :	http://www.sequent.in
Corporate Office :	Star II, Bilekahalli, Bannerghatta Road, Bangalore – 560076, Karnataka, India
Tel. No.:	91-80-67840340
Fax No.:	91-80-67840400
E-Mail :	marketing@sequent.in
Godown :	#201, Devavrata Sector 17, Vashi, Navi Mumbai – 400705, Maharashtra, India
Factory :	Located at: Plot No. 7, MIDC Engineering Zone, Kalyan Badlapur Road, Ambernath, Maharashtra, India W-152, 150, 151, 136, 137, 138, 139, 140 and 141, MIDC, Tarapur, Boisar, District Thane, Maharashtra, India B-32, G-2, G-3, MIDC, Mahad, District Raigad, Maharashtra, India A-68 and 69, Additional Ambernath, MIDC Industrial Area, Ambernath (East), District Thane, Maharashtra, India 120 A and B, Plot No. 36, Industrial Area, Baikampady, New Mangalore, Karnataka, India Plot No. 26, 26B, GIDC Industrial Estate, Panoli, District Bharuch, Gujarat, India A-14, MIDC, Phase I, Dombivali (East), District Thane, Maharashtra, India

DIRECTORS

As on: 31.03.2013

Name :	Mr. K. R. Ravishankar
Designation :	Chairman and Managing Director
Name :	Mr. Kannan Ramanujam
Designation :	Independent Director
Name :	Dr. Gopakumar G Nair
Designation :	Independent Director
Name :	Dr. Gautam Kumar Das
Designation :	Joint Managing Director

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on: 30.06.2013

Category of Shareholders	No. of Shares	Percentage of Holding
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	11189979	46.25
Bodies Corporate	3504532	14.48
Sub Total	14694511	60.73
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	14694511	60.73
(B) Public Shareholding
(1) Institutions
Foreign Institutional Investors	41000	0.17
Sub Total	41000	0.17
(2) Non-Institutions
Bodies Corporate	882323	3.65
Individuals
Individual shareholders holding nominal share capital up to Rs. 0.100 Million	972596	4.02
Individual shareholders holding nominal share capital in excess of Rs. 0.100 Million	1779131	7.35
Any Others (Specify)	5825630	24.08
Non Resident Indians	1912105	7.90
Clearing Members	6206	0.03
Directors & their Relatives & Friends	23348	0.10
Trusts	700100	2.89
Foreign Corporate Bodies	3183871	13.16
Sub Total	9459680	39.10
Total Public shareholding (B)	9500680	39.27
Total (A)+(B)	24195191	100.00
(C) Shares held by Custodians and against which Depository Receipts have been issued	0	0.00
(1) Promoter and Promoter Group	0	0.00
(2) Public	0	0.00
Sub Total	0	0.00
Total (A)+(B)+(C)	24195191	0.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Active Pharmaceutical Ingredients (API).

GENERAL INFORMATION

No. of Employees :

900 (Approximately)

Bankers :

· Andhra Bank

· Bank of India

· State Bank of Hyderabad

· State Bank of Mysore

· State Bank of India

· Corporation Bank

· Axis Bank Limited

· HDFC Bank Limited

· Central Bank of India

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2013	As on 31.03.2012
LONG-TERM BORROWINGS
Term loans
From banks	227.350	0.000
From other parties	847.860	613.850
SHORT-TERM BORROWINGS
Loans repayable on demand
From banks	1044.840	980.870
Total	2120.050	1594.720

Notes:

(i) Working capital loan from banks are secured by a first pari-passu charge on current assets of the Company and a second pari-passu charge on fixed assets of the Company as a collateral.

(ii) Short-term borrowings of Rs.1044.840 Millions (31 March 2012 Rs.980.870 millions) are guaranteed by some of the Directors of the Company in their personal capacities.

(iii) The Company has not defaulted in repayment of loans and interest.

Banking Relations :	--
Statutory Auditors :
Name :	Deloitte Haskins and Sells Chartered Accountants
Address :	Deloitte Centre 100/2, Anchorage II, Richmond Road, Bangalore – 560025, Karnataka, India
Internal Auditors :
Name :	Mahajan and Aibara Chartered Accountants
Address :	No 1, Chawla House, 62 Wodehouse Road, Colaba, Mumbai – 400005, Maharashtra, India
Holding Company :	Fraxis Life Sciences Limited (merged with the Company w.e.f September 14, 2011)
Wholly-owned Subsidiaries:	SeQuent Global Holdings Limited SeQuent European Holdings Limited (step-down subsidiary) SeQuent Research Limited SeQuent Antibiotics Private Limited SeQuent Oncolytics Private Limited Elysian Life Sciences Private Limited
Other Subsidiaries :	Galenica B.V. Codiffar N.V. (wholly Owned Subsidiary of Galenica B.V.) Elysian Health Care Private Limited (Wholly owned Subsidiary of Elysian Life Sciences Private Limited till 31st March 2013) (Refer Note 2) Vedic Fanxipang Pharma Chemic Company Limited (wholly owned subsidiary of Elysian Life Sciences Private Limited) Elysian Life Sciences Mauritius Limited (step-down subsidiary) Sanved Research Labs Private Limited SeQuent Penems Private Limited (with effect from 15 March 2012)
Associate :	SeQuent Penems Private Limited (till 15 March 2012)
Enterprises owned or significantly influenced by key management personnel and relative of key management personnel :	Strides Arcolab Limited Atma Projects Agnus Holdings Private Limited Latitude Projects Private Limited Chayadeep Properties Private Limited Agnus Capital LLP Chayadeep Ventures LLP

CAPITAL STRUCTURE

As on: 31.03.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
32000000	Equity Shares	Rs.10/- each	Rs.320.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
24035191	Equity Shares	Rs.10/- each	Rs.240.350 Millions
	Less: Amount receivable from SeQuent Scientific Employee Stock Option Scheme Trust (Being Face Value of 700,000 Equity Shares of Rs.10 each allotted to the trust)		Rs.5.950 Millions
	Total		Rs.234.400 Millions

Notes:

(i) Reconciliation of the number of shares and amount outstanding at the beginning and at the end of the reporting year:

Equity Shares	As at 31 March 2013
	No. of Shares	Rs. in Millions
Shares outstanding at the beginning of the year	21935191	219.350
Add: Shares issued during the year (Refer note (a) below)	2100000	21.000
Less: Shares cancelled during the year (Refer note (b) below)	-	-
Shares outstanding at the end of the year	24035191	240.350

Notes:

(a) Conversion of 2,100,000 warrants issued during the year on preferential basis at a conversion price of Rs.120.75 per equity share of the company as approved in the Annual General Meeting dated 26 September, 2012.

(b) During the previous year, in terms of the Scheme of Amalgamation of Fraxis Life Sciences Limited with the Company sanctioned by the High Court of Bombay on August 20, 2011, the Company allotted 14,865,000 fully paid up equity shares of the Company to the shareholders of Fraxis Life Sciences Limited and shares held by Fraxis Life Sciences Limited in the Company of 14,865,000 shares stands cancelled

(ii) Terms/rights attached to equity shares

The Company has only one class of equity shares having a par value of Rs.10 per share. Each holder of equity shares is entitled to one vote per share. Each equity shareholder is entitled to dividend in the Company. The dividend is proposed by the Board of Directors and is subject to the approval of the shareholders in the ensuing Annual General Meeting, except interim dividend.

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the company, after distribution of all preferential amounts, if any. The distribution will be in proportion to the number of equity shares held by the shareholders.

The amount of dividend per share recognized as distributions to equity shareholders is Ni (31 March 2012 : Rs. Nil)

(iii) Details of shares held by each shareholder holding more than 5% shares

	As at 31 March 2013
Equity Shares	No. of Shares held	% of holding
Name of the shareholder
K R Ravishankar	5579986	23.22%
Arun Kumar Pillai	5579993	23.22%
Primera Partners Pte Limited	3183871	13.25%
Satpal Khattar	1699018	7.07%

(iv) 700,000 shares (As at 31 March, 2012 700,000 shares) of Rs.10 each are reserved towards outstanding employee stock options granted / available for grant.

(v) As at 31 March 2013, 2,750,000 warrants (March 2012-NIL) of Rs.10 each are outstanding to be converted into equivalent number of share.

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2013	31.03.2012	31.03.2011
EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	234.400	213.400	212.350
(b) Reserves & Surplus	741.300	1053.730	1043.180
(c) Money received against share warrants	118.790	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000	0.000
Total Shareholders’ Funds (1) + (2)	1094.490	1267.130	1255.530
(3) Non-Current Liabilities
(a) long-term borrowings	1082.410	622.650	878.720
(b) Deferred tax liabilities (Net)	0.000	82.410	122.910
(c) Other long term liabilities	0.500	0.000	0.000
(d) long-term provisions	56.830	40.190	39.570
Total Non-current Liabilities (3)	1139.740	745.250	1041.200
(4) Current Liabilities
(a) Short term borrowings	1394.650	980.870	689.040
(b) Trade payables	1459.160	1225.740	784.110
(c) Other current liabilities	277.420	716.010	338.810
(d) Short-term provisions	36.000	29.170	97.660
Total Current Liabilities (4)	3167.230	2951.790	1909.620
TOTAL	5401.460	4964.170	4206.350
ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	1940.960	1986.090	1786.430
(ii) Intangible Assets	110.000	76.790	68.500
(iii) Capital work-in-progress	160.580	93.130	125.540
(iv) Intangible assets under development	54.550	82.550	37.870
(b) Non-current Investments	545.700	388.140	135.630
(c) Deferred tax assets (net)	0.690	0.000	0000
(d) Long-term Loan and Advances	341.420	162.980	292.810
(e) Other Non-current assets	57.250	33.240	123.130
Total Non-Current Assets	3211.150	2822.920	2569.910
(2) Current assets
(a) Current investments	1.770	2.770	3.260
(b) Inventories	826.740	631.080	614.710
(c) Trade receivables	701.610	824.800	530.140
(d) Cash and cash equivalents	310.700	157.670	57.770
(e) Short-term loans and advances	267.200	421.150	422.040
(f) Other current assets	82.290	103.780	7.520
Total Current Assets	2190.310	2141.250	1635.440
TOTAL	5401.460	4964.170	4206.350

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013	31.03.2012	31.03.2011
	SALES
		Income	3140.500	3324.300	2779.800
		Other Income	24.900	113.270	114.100
		TOTAL (A)	3165.400	3437.570	2893.900
Less	EXPENSES
		Cost of materials consumed	1790.600	1807.480	1247.530
		Purchases of stock-in-trade	99.420	85.130	284.200
		Changes in inventories of finished goods and work-in-progress and intermediates	(129.140)	6.120	(129.150)
		Employee benefits expense	354.840	254.370	227.040
		Other expenses	1089.910	816.500	680.500
		TOTAL (B)	3205.630	2969.600	2310.120
Less	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		(40.230)	467.980	583.780
Less	FINANCIAL EXPENSES (D)		320.450	282.650	200.350
	PROFIT/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		(360.680)	185.320	383.430
Less/ Add	DEPRECIATION/ AMORTISATION (F)		267.430	210.280	171.810
	PROFIT/ (LOSS) BEFORE TAX (E-F) (G)		(628.110)	(24.960)	211.620
Less	TAX (H)		(83.100)	(39.640)	52.300
	PROFIT/ (LOSS) AFTER TAX (G-H) (I)		(545.010)	14.680	159.320
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		385.240	370.560	296.420
	INCLUDED ON AMALGAMATION		0.000	0.000	(38.850)
Less	APPROPRIATIONS
		Transfer to General Reserve	0.000	0.000	7.970
		Dividend	0.000	0.000	32.900
		Tax on Dividend	0.000	0.000	5.460
	BALANCE CARRIED TO THE B/S		(159.770)	385.240	370.560
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	1344.730	1380.9620	1147.840
		Other non-operating income	0.280	0.690	0.000
	TOTAL EARNINGS		1345.010	1381.652	1147.840
	IMPORTS
		Raw Materials	874.530	988.290	439.110
		Capital Goods	13.790	6.330	17.430
	TOTAL IMPORTS		888.320	994.620	456.540
	Earnings/ (Loss) Per Share (Rs.)		(24.01)	0.67	7.26

QUARTERLY RESULTS

PARTICULARS	30.06.2013 1^st Quarter
	UnAudited
Net Sales	1136.100
Total Expenditure	1089.600
PBIDT (Excl OI)	46.500
Other Income	7.700
Operating Profit	54.200
Interest	87.700
Exceptional Items	0.000
PBDT	(33.600)
Depreciation	59.400
Profit Before Tax	(93.000)
Tax	0.000
Provisions and contingencies	0.000
Profit After Tax	(93.000)
Extraordinary Items	0.000
Prior Period Expenses	0.000
Other Adjustments	0.000
Net Profit	(93.000)

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
PAT / Total Income	(%)	(17.22)	0.43	5.51
Net Profit Margin (PBT/Sales)	(%)	(20.00)	(0.75)	7.61
Return on Total Assets (PBT/Total Assets}	(%)	(13.54)	(0.57)	5.87
Return on Investment (ROI) (PBT/Networth)		(0.57)	(0.02)	0.18
Debt Equity Ratio (Total Debt/Networth)		2.26	1.27	1.25
Current Ratio (Current Asset/Current Liability)		0.69	0.73	0.86

LOCAL AGENCY FURTHER INFORMATION

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

LITIGATION DETAILS
Bench:- Bombay
Presentation Date:- 18/06/2013
Stamp No:-	ARPST/16687/2013	Failing Date:-	19/06/2013	Reg. No.:-	ARP/35/2013	Reg. Date:-	31/07/2013
Petitioner:-	M/S DFC ENGINEERS PRIVATE LIMITED		Respondent:-	M/S SEQUENT SCIENTIFIC LIMITED
Petn.Adv:-	VICTOR BASU		Resp.Adv.:-	PRS LEGAL (VP FOR REP.)
District:-	MUMBAI
Bench:-	SINGLE		Stage:-	PETITIONS FOR HEARING [CIVIL SIDE MATTERS]
Status:-	Pre-Admission
Next Date:-	01/01/2014
Coram:-	PROVISIONAL BOARD		Stage:-	PETITIONS FOR HEARING [CIVIL SIDE MATTERS]
Last Date:-	04/10/2013
Last Coram:-	HON'BLE SMT. JUSTICE R.S. DALVI

UNSECURED LOAN

(Rs. In Millions)

Particular	As on 31.03.2013	As on 31.03.2012
LONG-TERM BORROWINGS
From other parties	7.200	8.800
SHORT-TERM BORROWINGS
Loans from related parties	349.810	0.000
Total	357.010	8.800

BOARD OF DIRECTORS

K R Ravishankar

Chairman and Managing Director

Mr. K R Ravishankar has been in the pharmaceutical business for over 20 years. He started as an entrepreneur, and then joined Strides Arcolab Limited as co-promoter in 1991. He was Executive Director of Strides Arcolab Limited till he resigned from the executive post in Dec 2007 (he continues on the Board of Strides Arcolab Limited). He took over as CMD of SeQuent Scientific Limited in January 2008.

Kannan Ramanujam

Independent Director

Mr. Kannan Ramanujam, a Chartered Accountant by qualification has over 24 years of business and professional experience. He is the Promoter, CEO and Managing Director of Emerge Learning Services Limited, a company in learning space. The company offers complete solutions in Education, Training, e-governance and Information management areas. He is an Independent Director on the Board.

Dr. Gautam Kumar Das

Joint Managing Director

Dr. Gautam Kumar Das is a Joint Managing Director on the Board and has over thirty years of in depth experience in the pharmaceutical industry. Dr. Das has extensive experience in R and D, Plant Operations, Project Management, Material Management, Resource Management and Man Management. He has a proven track record in developing several cost effective processes, driving these processes from the laboratory to the plant and increasing productivity of plants. Dr. Das, a Doctorate in Synthetic Organic Chemistry from IIT Kharagpur, has authored several publications on chemical processes. In his immediate previous assignment, Dr. Das was with Orchid Chemicals and Pharmaceuticals Limited., Chennai as President – API.

Dr. Gopakumar G Nair

Independent Director

Dr. Gopakumar Nair is an Independent Director on the Board. With his 40 years experience and knowledge in pharmaceutical and chemical industry at different levels\ and positions like Director, Chairman and Managing Director, as well as Past-President of Indian Drug Manufacturers’ Association, Dr. Gopakumar Nair had the opportunity to familiarise himself with GATT, WTO, TRIPs and other IP laws over the years. It is with this wealth of experience that Dr. Nair became an IP/ Patent practitioner under the name Gopakumar Nair Associates.

BUSINESS PERFORMANCE REVIEW

During the financial year 2012-13, on a standalone basis, the Company’s revenues stood at Rs. 3165.400 Millions as against Rs. 3437.570 Millions in 2011-12. The Company posted an EBITDA of Rs. (40.230) Millions in the year as against Rs. 467.970 Millions in 2011-2012. The Company registered a net loss of Rs. 545.010 Millions.

On a consolidated basis, the Company’s revenues for the year 2012-13 stood at Rs. 3294.260 Millions as against Rs. 3562.930 Millions in 2011-12. The Company posted an EBITDA of Rs. (106.970) Millions as against Rs. 475.580 Millions in 2011-2012. The Company made a loss of Rs.646.940 Millions.

A detailed analysis on the Company’s operational and financial performance for the year is covered under ‘Management’s Discussion and Analysis Report’ which forms part of the Annual Report.

MANAGEMENT DISCUSSION AND ANALYSIS

INDUSTRY OVERVIEW

Global overview

During 2012, the global pharmaceutical market grew by 2.5 per cent to US$839 billion (bn), on account of double-digit growth registered in emerging markets. Average revenue growth in Established Markets was 1.5% while that in Emerging Markets was over seven times higher at 11.1%. The top five pharmaceutical markets in the world remained the US, Japan, Germany, France and China, with the US representing 39.3% of global pharmaceutical sales (2011: 38.1 %).

The world population is expected to rise from its current level of some seven billion and reach nine billion by 2050. In addition, the number of people who can access healthcare continues to increase, particularly among the elderly. Globally, it is estimated that between 2000 and 2050, the number of people aged 60 years and over will increase from 605 million (mn) to two billion. Faster developing economies, such as China, India and Brazil, offer new opportunities for the pharmaceutical industry to help an expanding number of patients who can benefit from innovative medicines. Developing markets now represent approximately 85% of the world population and over 22% of the world’s pharmaceutical revenues. Pharmaceutical revenues in those markets therefore continued to grow aster than those in Established Markets in 2012.

INDIAN OVERVIEW

India’s pharmaceutical sector can be classified into three broad market segments namely Contract Research And Manufacturing Services (CRAMS), Formulations, and Active Pharmaceutical Ingredients (APIs).

The Indian Pharmaceutical industry is highly fragmented with about 24,000 players (around 330 in the organized sector). The top ten companies make up for more than a third of the market. The Indian pharma industry (IPM) grew by 16% YoY in 2012 to Rs. 629 bn. It accounts for about 1.4% of the world’s pharma industry in value terms and 10% in volume terms.

Fiscal 2012-13 was a year of strong operating performance for the Indian pharmaceutical industry as it benefitted from patent expiration wave in the US, strong growth from the emerging markets and favourable foreign exchange scenario. During the year, Indian pharma companies also managed to gain traction in their European businesses despite the challenging environment. However, back home in India, the growth momentum showed signs of moderation owing to relatively weak seasonal demand, adverse impact of inflationary pressures on disposable incomes coupled with uncertainties surrounding the implementation of the new pricing policy in the second half the financial year.

INDIAN GENERICS MARKET

India tops the world in exporting generic medicines worth US$ 11 bn. The Indian generic drug market is to grow at a CAGR of around 17 per cent between 2010-11 and 2012-13.Over the next few years, it is expected that the patent laws will provide impetus to the launch of patent protected products. Such products have the potential to capture upto a 10% share of the market by 2015, implying the market size of US$ 2bn.

APIs

In terms of global ranking, India is now the third largest API producers of the world just after China and Italy. However, in Drug Master File (DMF) filings India is currently ahead of China. In addition, India scores over China in ‘documentation’ and ‘Environment, Health and Safety (EHS) compliance. All these have contributed to India having around 161 US-FDA approved world class manufacturing facilities all together, which is considered the largest outside the US. India is likely to be the fastest growing API supplier during the next five years.

CORPORATE PERFORMANCE REVIEW

Background

About the Company

SeQuent Scientific Limited (hereinafter referred to as ‘SeQuent’) is a fast growing pharmaceuticals company having presence in Human and Veterinary segments. In 2007, first generation entrepreneurs, each having more than a decade’s experience, acquired SeQuent Scientific Limited. The Company has evolved into an integrated player in the pharmaceuticals segment, with footprints in API (Human and Veterinary), Formulations (Veterinary) and CRAMS. Besides, the Company is also a leading producer of specialty chemicals. The Company has seven units across the country, including two state-of-the-art R and D centres – in Mangalore and Bengaluru. SeQuent is also the leading producer of Anthelmentic APIs in the world.

CONTINGENT LIABILITIES

(Rs. In Millions)

		As at 31 March 2013	As at 31 March 2012
i. CONTINGENT LIABILITIES
(a)	Claims against the Company not acknowledged as debts
Sales tax / Value added tax *		16.520	16.680
Income tax *		32.870	2.080
Service tax *		0.320	0.160
Excise duty*		8.470	0.020
(b)	Guarantees
Guarantees to banks and financial institutions against credit facilities extended to subsidiaries (Refer note below)		303.450	260.710
(c)	Other money for which the Company is contingently liable
Bills receivables discounted with banks		133.900	154.850

* Outflow, if any, arising out of the said claim would depend on the outcome of the decision of the appellate authority and the Company's right for future appellate before the judiciary.

Note

(a) The Group has given a corporate guarantee to Triodos Sustainable Trade Fund towards a credit facility availed by its stepdown subsidiary (Vedic Fanxipang Pharma Chemic Company Limited) amounting to USD 1.30 Million (Rs. 70.710 Millions.; (Previous Year Rs. 66.500 Millions). Outstanding balance as on 31 March 2013 is Rs. 21.220 Millions (31 March 2012 Rs. 55.020 Millions).

(b) The Group has given a corporate guarantee to Stichting Triodos Sustainable Trade Fund towards a credit facility availed by its stepdown subsidiary (Elysian Life Sciences (Mauritius) Limited) amounting to USD 1.95 Million (Rs.106.060 Millions.) (Previous Year Rs. 99.760 Millions). Outstanding balance as on 31 March 2013 is Rs. 64.27 Million (31 March 2012 Rs. 30.690 Millions).

(c) The Company has given a corporate guarantee to State Bank of Hyderabad and State Bank of Travancore towards a credit facility availed by its subsidiary (Sequent Penems Private Limited) amounting to Rs. 900 Million. (Previous Year Rs. 900.000 Millions). Outstanding balance as on 31 March 2013 is Rs. 217.960 Millions (31March 2012 Rs. 175.000 Millions).

UNAUDITED FINANCIAL RESULTS FOR THE QUARTER ENDED 30 JUNE 2013

(Rs. in Millions)

		STANDALONE
		Quarter Ended
S.No.	Particulars	30.06.2013
		UNAUDITED
Part-1
1	Income from operations
a	Net Sales / Income from Operations (net of excise duty)	1132.360
b	Other Operating Income	3.760
	Total income from operations (net)	1136.120
2	Expenses
a	Cost of materials consumed	533.200
b	Purchase of stock-in-trade	24.940
c	Changes in inventories of finished goods, work-in-progress and stock-in-trade	89.060
d	Employee benefits expenses	107.740
e	Depreciation and amortisation expenses	59.420
f	Other expenses	334.680
	Total expenses	1149.040
3	Profit/(Loss) from operations before other income, finance costs and exceptional items (1-2)	(12.920)
4	Other Income	7.670
5	Profit/(Loss) from ordinary activities before finance cost and exceptional Items (3±4)	(5.250)
6	Finance cost	87.740
7	Profit/(Loss) from ordinary activities after finance cost but before exceptional Items (5±6)	(92.990)
8	Exceptional items	-
9	Profit/(Loss) from ordinary activities before tax (7±8)	(92.990)
10	Tax Expense	-
11	Net Profit/(Loss) from Ordinary activities after tax (9±10)	(92.990)
12	Extraordinary items	-
13	Net Profit/(Loss) for the period(11±12)	(92.990)
14	Paid-up equity share capital (Face Value per share Rs.10 each)	241.952
15	Reserve excluding Revaluation Reserve as per balance sheet of previous accounting year	-
16.i	Earnings Per Share before Extraordinary Items for the period (Non-Annualised)
	Basic (Rs.)	(3.86)
	Diluted (Rs.)	(3.86)
16.ii	Earnings Per Share after Extraordinary Items for the period (Non-Annualised)
	Basic (Rs.)	(3.86)
	Diluted (Rs.)	(3.86)
Part-II
A	PARTICULARS OF SHAREHOLDING
1	Public Shareholding
	No. of Shares	9500680
	% of Share Holding	39.27%
2	Promoters and Promoter Group Shareholding
	a) Pledged / Encumbered
	1. No of shares	1000000
	2. Percentage of shares (as a % of the total shareholding of promoter & promoter group)	6.81%
	3. Percentage of shares (as a % of the total share capital of the company)	4.13%
	b) Non-encumbered
	1. No of shares	13694511
	2. Percentage of shares(as a % of the total shareholding of promoter & promoter group)	93.19%
	3. Percentage of shares (as a % of the total share capital of the company)	56.60%
B	INVESTOR COMPLAINTS	Quarter ended 30 June 2013
	Pending at the beginning of the quarter	NIL
	Received during the quarter	NIL
	Disposed of during the quarter	NIL
	Remaining unresolved at the end of the quarter	NIL

Notes:

1. The unaudited financial results were taken on record by the Board of Directors at its meeting held on August 14, 2013.

2. The Statutory Auditors have performed a limited review of the standalone financial results for the quarter ended as on June 30, 2013 of the Company as required by Clause 41 of the Listing Agreement.

3. Segment Results

The Company has identified Pharmaceuticals and Specialty Chemicals as its business segments, Segments have been identified taking in to account the nature of products, the differing risks and returns, the organisational structure and the internal reporting system.

(Rs. in Millions)

		Quarter Ended
Sl. No	Particulars	30.06.2013
		UNAUDITED
1	Segment Revenue
	a) Pharmaceuticals	956.924
	b) Specialty Chemicals	179.196
	Net Sales /Income from Operations	1136.120
2	Segment Results
	Profit or Loss before Tax and Interest from Each Segment
	a) Pharmaceuticals	2.986
	b) Specialty Chemicals	28.713
	Total	31.699
	Less (i) Finance Cost	87.740
	(ii) other unallocable expenditure net off unallocable income	36.949
	Total Profit / (Loss) Before Tax	(92.990)
3	Capital Employed
	a) Pharmaceuticals	2495.332
	b) Specialty Chemicals	146.100
	c) Unallocated	(1617.892)
	Total	1023.540

4. During the quarter the Company has issued 1.6 lakhs shares on conversion of warrants to its promoter group.

5. On July 13, 2013, the Company signed a Letter of Intent with Shasun Pharmaceuticals Limited to form a Joint Venture Company to develop, manufacture and sell veterinary products inclusive of both Active Pharmaceutical Ingredients and formulations in the global market.

6. Figures for the quarter ended 31 March 2013 are the balancing figures between audited figures and the published year-to-date figures up to the third quarter of the previous financial year.

7. Figures for previous periods have been regrouped and rearranged, wherever necessary, to confirm to the relevant current period classification.

FIXED ASSETS

Tangible Assets

• Free Hold Land
• Lease Hold Land
• Land Development
• Building
• Furniture and Fixtures
• Office equipment and Computers
• Plant and Machinery
• Vehicles

Intangible Assets

• Software

AS PER WEBSITE DETAILS

Press Release

SEQUENT SCIENTIFIC LIMITED AND SHASUN PHARMACEUTICALS LIMITED ANNOUNCE JOINT VENTURE TO CREATE LEADING ANIMAL HEALTH COMPANY

July 13, 2013; Bangalore: SeQuent Scientific Limited (SeQuent) and Shasun Pharmaceuticals Limited (Shasun) today announced that they have signed a Letter of Intent (LOI) to form a Joint Venture Company (JVC) to develop, manufacture and sell veterinary products inclusive of both API (Active Pharmaceutical Ingredients) and formulations in the global market. Together, SeQuent and Shasun aim to quickly and effectively offer a range of veterinary products globally through the JVC.

The joint venture will benefit from SeQuent’s strong expertise in the development and commercialization of animal health care products as well as SeQuent’s strong sales network. SeQuent’s capabilities are complementary to Shasun’s global expertise in the research, development and manufacture of pharmaceutical ingredients. This joint venture brings the companies one step closer to providing highest quality veterinary products and supports their strategy to enter key, fast- growing markets.

In terms of the arrangement proposed in the LOI, SeQuent & Shasun will set up a JVC, into which contributions will be made by both companies by way of transfer of identified assets, contracts and licenses. SeQuent will own 73% of the JVC and Shasun will own the remaining 27% ownership in the JVC. The creation of the JVC is subject to the requisite corporate and statutory approvals, as may be applicable and is expected to operate from Q1 2014.

On successful completion of this arrangement, the JVC will emerge as India’s leading provider of animal health solutions.

Commenting on this milestone, Dr. Gautam Kumar Das, Jt. Managing Director of SeQuent said “The combination with Shasun will deliver synergies and technical arbitrage enabling the JVC to emerge as a leading global provider of animal health solutions,”.

Mr. S. Hariharan Chief Financial Officer of Shasun stated “We share SeQuent's passion for developing world class animal health care products, and are confident that together we are well positioned to cater to the needs of the global market in the growing animal health care sector.”

SEQUENT RECEIVES US FDA APPROVAL FOR ITS API DRUG MANUFACTURING FACILITY AT MANGALORE

April 30, 2013; Bangalore: SeQuent Scientific Limited (SeQuent) today announced that it has received an US FDA approval for its API Drug Manufacturing facility at Mangalore, Karnataka (SeQuent Mangalore). This facility has earlier received quality approval from TGA, Australia and certified by World Health Organisation, Geneva under its Prequalification’s of Medicines Programme.

The SeQuent Mangalore facility is ISO 9001 certified for Quality Management systems and ISO 14000 certified for Environment Management systems. This state-of-the-art facility engaged in the development and manufacture of APIs and API Intermediaries.

Commenting on this milestone, Dr. Gautam Kumar Das, Executive Director, said, “The US FDA approval endorses our commitment to ensure strong regulatory compliance as well as our dedication to offer quality products through research. Being the first ever for the company, this approval will further rejuvintate us in establishing SeQuent among the finest global API Manufacturers”.

SeQuent Mangalore specializes in niche and difficult to manufacture APIs and has 5 of its APIs prequalified by WHO Prequalification of Medicines program. It has filed more than 30 drug master files covering USFDA, Europe, WHO, Australia, Canada with several more niche APIs in the pipeline for future filings.

SEQUENT SCIENTIFIC ALLOTS 7 LAKH EQUITY SHARES ON CONVERSION OF 7 LAKH WARRANTS

November 16, 2012

Sequent Scientific Ltd has informed BSE that the Company has allotted 7,00,000 fully paid equity shares of Rs. 10/- each against conversion of 7,00,000 warrants at a price of Rs.120.75 to the following entities belonging to the promoter group:1. Name of the Allottees: Chayadeep Ventures LLP No of Shares:- 3,50,0002. Name of the Allottees: Agnus Capital LLP No of Shares :- 3,50,000Consequent to the allotment, the paid up equity share capital of the Company has increased from Rs. 22,93,51,910 consisting of 2,29,35,191 equity shares of Rs. 10/- each to Rs. 23,63,51,910 consisting of 2,36,35,191 equity shares of Rs. 10/- each.

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 records exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

3] Asset Declaration :

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

4] Record on Financial Crime :

Charges or conviction registered against subject: None

5] Records on Violation of Anti-Corruption Laws :

Charges or investigation registered against subject: None

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

Charges or investigation registered against subject: None

7] Criminal Records

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

8] Affiliation with Government :

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

9] Compensation Package :

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

10] Press Report :

No press reports / filings exists on the subject.

CORPORATE GOVERNANCE

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

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

CONTRAVENTION

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

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.61.53
UK Pound	1	Rs.99.74
Euro	1	Rs.84.75

INFORMATION DETAILS

Information Gathered by :	SVA
Report Prepared by :	VRN

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	3
--CREDIT LINES	1~10	3
--MARGINS	-5~5	-
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	YES
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		29

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.