MIRA INFORM REPORT

Report Date :

30.04.2014

IDENTIFICATION DETAILS

Name :	AJANTA PHARMA LIMITED
Registered Office :	Ajanta House, 98, Government Industrial, Area Charkop, Kandivli (West), Mumbai – 400067, Maharashtra
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	31.12.1979
Com. Reg. No.:	11-022059
Capital Investment / Paid-up Capital :	Rs. 118.000 Millions
CIN No.: [Company Identification No.]	L24230MH1979PLC022059
TAN No.: [Tax Deduction & Collection Account No.]	MUMA08396D/MUMA19462C
PAN No.: [Permanent Account No.]	AAACA5579P
Legal Form :	A Public Limited Liability company. The company’s Shares are Listed on the Stock Exchanges.
Line of Business :	Manufacturing and Marketing of Pharmaceutical and Related Activities, Including Research.
No. of Employees :	Information Decline by the management

RATING & COMMENTS

MIRA’s Rating :

A (67)

RATING		STATUS	PROPOSED CREDIT LINE
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

Maximum Credit Limit :	USD 14000000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Exist
Comments :	Subject is a well-established and reputed company having fine track record. Financial position of the company seems to be sound. Trade relations are reported as fair. Business is active. Payments terms are reported to be regular and as per commitments. The company can be considered good for normal business dealing at usual trade terms and conditions.

NOTES :

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

INDIAN ECONOMIC OVERVIEW

US investment bank Goldman Sachs has upgraded its outlook on Indian markets as it expects positive impact of the election cycle.

India’s economy may grow 4.7 % in the current financial year, lower than the official estimate of 4.9 %, Fitch Rating said. The global rating agency expects the economy to pick up in the next two financial years.

Global ratings agency Standard & Poor said increasing focus by India Inc on lowering debt is likely to improve their credit profiles.

Singapore (1.1 million Indian tourists in 2012), Thailand (one million), the United Arab Emirates ().98 million) and Malaysia ().82 million) emerged as the preferred holidays hotspots for Indians. The total figure is expected to increase to 1.93 million by 2017, according to the latest Eurmonitor international report.

There is a $29.34 bn outward foreign direct investment by domestic companies between April and January of 2013/14 which has seen some signs of recovery according to a Care Ratings report.

There are 264 number of new companies being set up every day on average during 2014. Most of them are registered in Mumbai. India had 1.38 million registered companies at the end of January, 2014.

Twitter like messaging service Weibo Corporation has filed to raise $ 500 million via a US initial public offering. Alibaba, which owns a stake in Weibo is expected to raise about $ 15 billion New York this year in the highest profile Internet IPO since Facebook’s in 2012.

Bharti Airtel has raised Rs.2,453.2 crore (350 million Swiss Francs) by selling six-year bonds at a coupon rate of three per cent and maturing in 2020. This is the largest ever bond offering by an Indian company in Swiss Francs. Bharat Petroleum Corporation raised 175 million Swiss Francs by selling five year bonds at 2.98 % coupon rate in February.

Indian Oil Corporation plans to invest Rs 7650 crore in setting up a petrochemical complex at its almost complete Paradip refinery in Odhisha in three to four years. The company board is set to consider the setting up of a 700000 tonne per annum polypropylene plant at an estimated cost at Rs.3150 crore.

Global chief information officers at gathering in Bangalore in April to meet Indian startups at an event called Tech50 Watchout for Little Eye Labs-Facebook type deals in the making.

EXTERNAL AGENCY RATING

Rating Agency Name	CARE
Rating	Long term bank facilities: “AA-“
Rating Explanation	High degree of safety and carry very low credit risk.
Date	18.11.2013

Rating Agency Name	CARE
Rating	Short term bank facilities: “A1+“
Rating Explanation	Have very strong degree of safety and carry lowest credit risk.
Date	18.11.2013

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 DECLINED

Management non-cooperative. (Tel. No.: 91-22-66061000)

LOCATIONS

Registered Office / Factory – I :	Ajanta House, 98, Government Industrial, Area Charkop, Kandivli (West), Mumbai – 400067, Maharashtra, India
Tel. No.:	91-22-66061000
Fax No.:	91-22-66061200/1300
E-Mail :	info@ajantapharma.com
Website :	http://www.ajantapharma.com
Factory-2 :	B-4, B-5, B-6 MIDC Industrial Area, Paithan, Aurangabad-431128, Maharashtra
Tel. No.:	91-2431-233092
Fax No.:	91-2431-232088
Factory-3 :	31-O, MIDC Industrial Area, Chikalthana, Aurangabad-431210, Maharashtra, India
Tel. No.:	91-240-22485851
Fax No.:	91-240-22485850
Factory-4 :	Gut No. 11/12/14/15, Chitegaon, Paithan, Road, Aurangabad-431 105, Maharashtra, India
Factory -5 :	Gut No. 378, Plot No. 8, Waluj, Aurangabad, Maharashtra, India
Factory -6 :	Plot No Z-103 /A, Dahej SEZ - Part II, District Bharuch, Gujarat, India
Factory -7 :	Plot No 109, GIDC, Post Manjusar, Taluka - Savli, District Vadodra, Gujarat, India

DIRECTORS

As on: 31.03.2013

Name :	Mr. Mannalal B. Agrawal
Designation :	Chairman
Name :	Mr. Purushottam B. Agrawal
Designation :	Vice Chairman
Name :	Mr. Madhusudan B. Agrawal
Designation :	Vice Chairman
Name :	Mr. Yogesh M. Agrawal
Designation :	Managing Director
Name :	Dr. Anil Kumar
Designation :	Director
Name :	Mr. Chandrakant M. Khetan
Designation :	Director
Name :	Mr. Subal Chandra Saha
Designation :	Nominee Director (IDBI Bank)
Name :	Mr. Rajesh M. Agrawal
Designation :	Joint Managing Director
Name :	Mr. Madhu G. Verma
Designation :	Nominee Director - exim Bank

KEY EXECUTIVES

Name :	Mr. Deodatta Pandit
Designation :	Company Secretary

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on: 31.03.2014

Names of Shareholders	No. of Shares	Percentage of Holding
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	22515000	64.05
Bodies Corporate	3356905	9.55
Sub Total	25871905	73.60
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	25871905	73.60
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	14590	0.04
Financial Institutions / Banks	13051	0.04
Foreign Institutional Investors	1337727	3.81
Sub Total	1365368	3.88
(2) Non-Institutions
Bodies Corporate	3052323	8.68
Individuals
Individual shareholders holding nominal share capital up to Rs. 0.100 Million	3134010	8.92
Individual shareholders holding nominal share capital in excess of Rs. 0.100 Million	1566948	4.46
Any Others (Specify)	160146	0.46
Clearing Members	33169	0.09
Market Maker	6974	0.02
Hindu Undivided Families	20789	0.06
Non Resident Indians	99214	0.28
Sub Total	7913427	22.51
Total Public shareholding (B)	9278795	26.40
Total (A)+(B)	35150700	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)	35150700	0.00

Shareholding belonging to the category "Promoter and Promoter Group"

Sl.No.	Name of the Shareholder	Details of Shares held		Encumbered shares (*)
		No. of Shares held	As a % of grand total (A)+(B)+(C)	No	As a percentage	As a % of grand total (A)+(B)+(C) of sub-clause (I)(a)
1	Mannalal B Agrawal	21,62,688	6.15	0	0.00	0.00
2	Purushottam B Agrawal	21,55,770	6.13	0	0.00	0.00
3	Madhusudan B Agrawal	21,55,500	6.13	0	0.00	0.00
4	Yogesh M Agrawal	25,28,424	7.19	0	0.00	0.00
5	Ravi P Agrawal	10,81,824	3.08	0	0.00	0.00
6	Rajesh Agrawal	25,39,441	7.22	0	0.00	0.00
7	Ayush M Agrawal	10,05,927	2.86	0	0.00	0.00
8	Mannalal B Agrawal HUF	12,24,261	3.48	0	0.00	0.00
9	Purushottam B Agrawal HUF	12,14,406	3.45	0	0.00	0.00
10	Madhusudan B Agrawal HUF	12,30,000	3.50	0	0.00	0.00
11	Vimal M Agrawal	4,41,500	1.26	0	0.00	0.00
12	Vimal Agrawal and Mamta Agrawal	20,55,000	5.85	0	0.00	0.00
13	Mamta M Agrawal	7,23,573	2.06	0	0.00	0.00
14	Manisha Yogesh Agrawal	6,71,565	1.91	0	0.00	0.00
15	Richa Ravi Agrawal	6,63,000	1.89	0	0.00	0.00
16	Smriti Rajesh Agrawal	6,62,121	1.88	0	0.00	0.00
17	Gabs Investments Private Limited	33,56,905	9.55	890500	26.53	2.53
	Total	2,58,71,905	73.60	890500	3.44	2.53

Shareholding belonging to the category "Public" and holding more than 1% of the Total No. of Shares

Sl. No.	Name of the Shareholder	No. of Shares held	Shares as % of Total No. of Shares
1	Bagadia Securities Private Limited	742429	2.11
2	Narendra Kumar Agarwal	500000	1.42
3	Ganga Securities and Investments Private Limited	1131332	3.22
4	Goldman Commodity Private Limited	406167	1.16
5	Anand Rathi Shares and Stock Brokers Limited	459427	1.31
6	Narendra Kumar Agarwal	352897	1.00
	Total	3592252	10.22

Details of Locked-in Shares

Sl. No.	Name of the Shareholder	No. of Shares	Locked-in Shares as % of Total No. of Shares
1	Arvind Kanhaiyalal Agrawal	4,500	0.01
2	Jagdish Dwarkadas Joshi	2,700	0.01
3	Nandkishore Agrawal	4,500	0.01
4	Satish Hanumandas Agrawal	4,500	0.01
5	Suresh Chandra Pandey	4,500	0.01
6	Shailesh Rajkumar Singh	4,500	0.01
	Total	25,200	0.07

BUSINESS DETAILS

Line of Business :

Manufacturing and Marketing of Pharmaceutical and Related Activities, Including Research.

PRODUCTION STATUS AS ON 31.03.2011

Particulars	Unit	Installed Capacity
Tablets	Million Nos	1500
Capsules	Million Nos	425
Liquids	Million Nos	8
Powder	Million Nos	21
API	Tonnes	18

GENERAL INFORMATION

No. of Employees :

Information Decline by the management

Bankers :

Saraswat Co-Operative Bank Limited

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2013	As on 31.03.2012
Long term borrowings
From Banks	21.400	426.100
From others	0.000	162.500
From Banks	543.000	0.000
Vehicle Loans
From Banks	0.000	22.900
From others	0.000	2.100
Short term borrowings
Rupee Loan	165.600	40.000
Foreign Currency Loan	347.000	828.700
Total	1077.000	1482.300
Note: Term loans are secured by first charge on all fixed assets of the company and second charge on entire current assets of the company, present and future on pari passu basis in addition to personal guarantee of some of the directors. Previous year end vehicle loans were secured against vehicles acquired under the scheme. Term of Repayments a) Secured Loans from banks are repayable in equal Quarterly/Monthly installment up to 31 March 2016 b) The rate of interest on secured term loans vary between 4%p.a. to 11.25% p.a (Pr. Yr. 11.25% p.a. to 14% p.a.) c) Previous year end vehicle loans from banks were repayable in equal Monthly installment up to 31 July 2016. d) The rate of interest on vehicle loans vary between 10% p.a. to 11% p.a.

Banking Relations :	--
Auditors :
Name :	Kapoor and Parekh Associates Chartered Accountants
Cost Auditors :
Name :	Sevekari Khare and Associates Chartered Accountants
Subsidiaries :	Ajanta Pharma (Mauritius) Limited (APML) Ajanta Pharma (Mauritius) Intl. Limited (APMIL) (Subsidiary of APML w.e.f. 3 April 2012) Ajanta Pharma Inc. (AP Inc.) (Upto 11 January 2013) Ajanta Pharma USA Inc AP Inc. USA) (w.e.f. 6 December 2012) Ajanta Pharma Philippines Inc. ( (APPI) (Subsidiary of APML upto 29 April 2012) (Subsidiary of Ajanta Pharma Limited from 30 April 2012) Ajanta Pharma UK Limited (AP UK)
Associate Companies:	Turkmenderman Ajanta Pharma Limited (TDAPL)
Related Party:	Gabs Investment Private Limited

CAPITAL STRUCTURE

As on: 31.03.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
30000000	Equity Shares	Rs.5/- each	Rs. 150.000 Millions
30000000	Preference Shares	Rs.5/- each	Rs. 150.000 Millions
	Total		Rs. 300.000 Millions

Issued Capital,:

No. of Shares	Type	Value	Amount
23723600	Equity Shares	Rs.5/- each	Rs. 118.618 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
23417000	Equity Shares	Rs.5/- each	Rs. 117.100 Millions
306600	Add – Equity Shares Forfeited-Amount Originally Paid up		Rs. 0.900 Million
	Total		Rs. 118.000 Millions

Reconciliation of number of equity shares outstanding at the beginning and at the end of the year:

	As on 31.03.2013
	No. of Share	Rs. In Millions
Number of shares outstanding as at the beginning of the year	23417000	117.100
Add: Number of shares allotted as fully paid-up during the year	--	--
Less: Number of shares bought back during the year	--	--
Number of shares outstanding as at the end of the year	23417000	117.100

Terms/Rights attached to equity shares

The Company has issued only one class of equity shares having a par value of Rs.5 (Pr.Yr Rs.10) per share. Each holder of equity shares is entitled to one vote per share. The company declares and pays dividend in Indian rupees. The dividend proposed by the Board of Directors is subject to approval of the shareholders in the ensuing Annual General Meeting.

During the year ended 31 March 2013 amount per share of dividend recognised as distributions to equity shareholders was Rs.6.25 per equity share of FV Rs.5/- (Pr.Yr. Rs.7.50 per equity share of FV Rs.10/-) per equity share.

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. The distribution will be in proportion to the numbers of equity shares held by shareholders.

Details of Equity Shares held by each shareholders holding more than 5%

	As on 31.03.2013
Equity Shares of Rs.5 (Pr.Yr. Rs.10) each fully paid.	No. of Share	% holding
Mannalal B. Agrawal	1441792	6.16
Purushottam B. Agrawal	1437180	6.14
Madhusudan B. Agrawal	1437000	6.14
Vimal Agrawal and Mamta Agrawal	1370000	5.85
Yogesh M. Agrawal	1685616	7.20
Gabs Investments Private Limited	2086552	8.91

Shares reserved for issue under options *

3,60,000 (Pr.Yr.1,80,000) equity shares reserved out of which 56,000 (Pr.Yr. 28000) equity shares granted for issue under the Employee Stock Option Plan (ESOP), 2011 of the Company.

The Company is not a subsidiary company

* Number of equity shares are adjusted consequent to sub-division of one equity share of face value Rs.10/- each into two equity shares of Rs.5/- each as approved by the shareholders on 7 July 2012.

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	118.000	118.000	117.961
(b) Reserves & Surplus	3,444.800	2,600.400	2,037.521
(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)	3,562.800	2,718.400	2,155.482
(3) Non-Current Liabilities
(a) long-term borrowings	722.000	753.600	590.524
(b) Deferred tax liabilities (Net)	236.500	170.900	109.209
(c) Other long term liabilities	25.000	25.000	24.976
(d) long-term provisions	29.800	49.100	26.638
Total Non-current Liabilities (3)	1,013.300	998.600	751.347
(4) Current Liabilities
(a) Short term borrowings	512.600	868.700	769.694
(b) Trade payables	1,300.400	1,059.200	675.883
(c) Other current liabilities	168.100	422.200	294.620
(d) Short-term provisions	196.600	104.500	82.052
Total Current Liabilities (4)	2,177.700	2,454.600	1,822.249
TOTAL	6,753.800	6,171.600	4,729.078
II.          ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	2,530.900	2,233.000	2,061.869
(ii) Intangible Assets	96.400	132.600	0.000
(iii) Capital work-in-progress	124.900	25.200	172.182
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	188.600	170.500	170.504
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	484.100	505.600	333.848
(e) Other Non-current assets	70.900	12.800	33.224
Total Non-Current Assets	3,495.800	3,079.700	2,771.627
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	1,435.100	1,623.500	961.198
(c) Trade receivables	1,351.900	1,254.200	757.643
(d) Cash and cash equivalents	251.100	50.800	93.064
(e) Short-term loans and advances	213.200	156.100	145.256
(f) Other current assets	6.700	7.300	0.290
Total Current Assets	3,258.000	3,091.900	1,957.451
TOTAL	6,753.800	6,171.600	4,729.078

PROFIT & LOSS ACCOUNT

	PARTICULARS	31.03.2013	31.03.2012	31.03.2011
	SALES
	Income	8,392.000	6,042.700	4,581.560
	Other Income	74.100	12.100	6.394
	TOTAL (A)	8,466.100	6,054.800	4,587.954
Less	EXPENSES
	Cost of Materials Consumed	2,840.900	2,302.900	1,536.604
	Purchases of Stock-in-Trade	273.500	204.700	239.601
	Changes in inventories of finished goods, work-in-progress and Stock-in-Trade	(114.100)	(329.900)	53.737
	Employees benefits expense	1,154.000	871.700	662.130
	Other expenses	2,164.900	1,761.000	1,183.692
	TOTAL (B)	6,319.200	4,810.400	3,675.764
Less	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (C)	2,146.900	1,244.400	912.190
Less	FINANCIAL EXPENSES (D)	184.800	140.100	158.599
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)	1,962.100	1,104.300	753.591
Less/ Add	DEPRECIATION/ AMORTISATION (F)	327.000	306.800	237.880
	PROFIT/ (LOSS) BEFORE TAX (E-F) (G)	1,635.100	797.500	515.711
Less	TAX (I)	623.900	132.600	51.257
	PROFIT/ (LOSS) AFTER TAX (G-I) (J)	1,011.200	664.900	464.454
	EARNINGS IN FOREIGN CURRENCY
	F.O.B. Value of Exports	5,066.700	3,426.800	2,618.608
	Freight and Insurance	172.500	115.900	76.219
	Technology transfer Fees	5.000	5.100	4.236
	Dividend from subsidiary	54.200	0.000	0.000
	TOTAL EARNINGS	5,298.400	3,547.800	2,699.063
	IMPORTS
	Raw Materials	393.000	332.100	315.080
	Capital Goods	123.600	41.200	29.717
	Other	7.100	4.100	5.869
	TOTAL IMPORTS	523.700	377.400	350.666
	Earnings / (Loss) Per Share (Rs.)	43.17	28.39	39.67

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
PAT / Total Income	(%)	11.94	10.98	10.12
Net Profit Margin (PBT/Sales)	(%)	19.48	13.20	11.26
Return on Total Assets (PBT/Total Assets}	(%)	25.39	13.35	11.76
Return on Investment (ROI) (PBT/Networth)		0.46	0.29	0.24
Debt Equity Ratio (Total Debt/Networth)		0.35	0.60	0.63
Current Ratio (Current Asset/Current Liability)		1.50	1.26	1.07

FINANCIAL ANALYSIS

[all figures are in Rupees Millions]

DEBT EQUITY RATIO

Particular	31.03.2011	31.03.2012	31.03.2013
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Share Capital	117.961	118.000	118.000
Reserves & Surplus	2,037.521	2,600.400	3,444.800
Net worth	2,155.482	2,718.400	3,562.800
long-term borrowings	590.524	753.600	722.000
Short term borrowings	769.694	868.700	512.600
Total borrowings	1,360.218	1,622.300	1,234.600
Debt/Equity ratio	0.631	0.597	0.347

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2011	31.03.2012	31.03.2013
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Sales	4,581.560	6,042.700	8,392.000
		31.892	38.878

NET PROFIT MARGIN

Net Profit Margin	31.03.2011	31.03.2012	31.03.2013
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Sales	4,581.560	6,042.700	8,392.000
Profit	464.454	664.900	1,011.200
	10.14%	11.00%	12.05%

LOCAL AGENCY FURTHER INFORMATION

CURRENT MATURITIES OF LONG-TERM DEBT DETAILS: NOT AVAILABLE

Sr. No.	Check List by Info Agents	Available in Report (Yes / No)
1]	Year of Establishment	Yes
2]	Locality of the firm	Yes
3]	Constitutions of the firm	Yes
4]	Premises details	No
5]	Type of Business	Yes
6]	Line of Business	Yes
7]	Promoter's background	Yes
8]	No. of employees	No
9]	Name of person contacted	No
10]	Designation of contact person	No
11]	Turnover of firm for last three years	Yes
12]	Profitability for last three years	Yes
13]	Reasons for variation <> 20%	--
14]	Estimation for coming financial year	No
15]	Capital in the business	Yes
16]	Details of sister concerns	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

UNSECURED LOAN

(Rs. In Millions)

Particulars	As on 31.03.2013	As on 31.03.2012
Long term borrowings
Other Loans and Advances	157.600	140.000
Total	157.600	140.000

LITIGATION DETAILS:

HIGH COURT OF BOMBAY

Bench:- Bombay
Presentation Date:- 30/12/2013
Lodging No:-	ITXAL/2219/2013	Filing Date:-	30/12/2013	Reg. No.:-	ITXA/798/2014	Reg. Date:-	11/04/2014
Petitioner:-	COMMISSIONER OF INCOME TAX CENTRAL		Respondent:-	AJANTA PHARMA LIMITED
Petn. Adv.:	ARVIND PINTO (I583)
District:-	MUMBAI
Bench:-	DIVISION
Status:-	Pre-Admission		Category:-	TAX APPEALS
Last Date:-	28/04/2014		Stage:-	FOR REJECTION [ORIGINAL SIDE MATTERS]
Last Coram:-	ACCORDING TO SITTING LIST ACCORDING TO SITTING LIST
Act:-	Income Tax Act, 1961		Under Section:-	260A

PERFORMANCE REVIEW

The company’s performance has been excellent both at Stand Alone and Consolidated level. Operational Income grew by 39% in Stand Alone results with 52% growth in Net Profit. Exports contributed 65% of Total Revenue, which indicates a balanced growth in both the segments of domestic and exports business over years. During the year, income tax provision has seen sharp increase as all carry forward losses were exhausted and a liability of Rs.157.500 millions was provided towards previous years. Consolidated results kept the pace with equally good performance by both subsidiaries. Consolidated Operational Income grew by 37%, whereas Net Profit has seen a growth of 45%.

MANAGEMENT DISCUSSION AND ANALYSIS

Quality, Quality and Quality – the mantra

The mantra is engrained in every manufacturing location at Ajanta Pharma. Though looks repetitive, the mantra reflects 3 different facets we follow.

First, Quality in terms of the product they provide to a customer - world class and best. Second, Quality with respect to manufacturing practices to ensure consistency in every single product coming out of the facility. And the third, Quality of technical expertise used to achieve optimum productivity.

A strong and dedicated Quality assurance function is responsible for making sure that this mantra is followed in letter and spirit. Today, Ajanta boasts of one of the best quality systems in the industry and continuous approvals of their Paithan facility from stringent regulatory authorities such as US FDA, UK MHRA, WHO Prequalification, Brazil ANVISA, etc is testimony to that.

Company today operates 4 formulation manufacturing facilities and 1 API facility, which are certified for current Good Manufacturing Practices (cGMP) prescribed by World Health Organization (WHO). All their facilities have excellent processes and documentation procedures and keep sharp eye on environment protection.

Their preparations have begun “For Future”, in the form of two new manufacturing facilities – one for regulated markets and other for domestic and emerging markets. These facilities are expected to be up and running during FY 2014-15.

Addition of these two new facilities, coupled with their existing facilities, will make sure that they sustain their growth in coming years without any capacity constraints.

It is their belief in manufacturing capacities that has given us the wings to fly high and be ready “For Future”.

CONTINGENT LIABILITIES:

(Rs. In Millions)

Particulars	As on 31.03.2013
Letter of Credit opened	14.400
Guarantees given by the Bankers on behalf of the company	160.900
Guarantee given to banks for loan availed by Ajanta Pharma (Mauritius) Limited, wholly owned subsidiary USD Nil (Pr.Yr. USD 1.500 millions )	Nil
Estimated amounts of contracts remaining to be executed on capital account and not provided for, net of advances	597.100
Claims against the Company not acknowledged as debt	3.400
Income tax demands disputed by Company pending in appeal. Amount paid under protest Rs.18.200 millions (Pr. Yr. Rs.18.002 millions).	36.900
Sales tax demands disputed by Company pending in appeal.	2.200
Custom Duty on import under Advance License Scheme, pending fulfilment of Exports obligation.	6.000
Disputed Octroi. Amount paid under protest Rs.5.200 millions (Pr. Yr. Rs.5.200 millions)	5.200
Excise duty disputed by the Company	1.600
Unpaid allotment money in respect of (a) Common Stock of Ajanta Pharma Inc., wholly owned subsidiary equivalent to USD Nil (Pr.Yr. USD 0.100 million).	Nil
Shares of Ajanta Pharma UK Limited, wholly owned subsidiary, equivalent to UK Pound 10,000 (Pr.Yr. UK Pound 10,000).	0.800
Common Stock of Ajanta Pharma USA Inc., wholly owned subsidiary equivalent to USD 0.100 million (Pr.Yr. USD Nil).	5.400

Future cash outflows in respect of liability under clauses (i) to (iv) is dependent on terms agreed upon with the parties, in respect of clauses (v) to (x) is dependent on decisions by relevant authorities of respective disputes and in respect of clause (xi) it is dependent on call made by investee companies.

STATEMENT OF STANDALONE UNAUDITED FINANCIAL RESULTS FOR THE QUARTER AND NINE MONTHS ENDED 31 DECEMBER 2013

(Rs. In Millions)

Sr. No.	Particular	Quarter Ended		Nine months Ended
		31.12.2013 (Unaudited)	30.09.2013 (Unaudited)	31.12.2013 (Unaudited)
1	Net Sales/Income from Operations	2925.900	2707.500	7787.300
	Other operating income	82.600	90.800	201.400
	Total Income	3008.500	2798.300	7988.700
2	Expenditure
	Cost of materials consumed	860.200	571.600	1940.100
	Purchase of stock in trade	101.400	85.100	262.400
	Changes in inventories of finished goods, work in progress and stock in trade	(46.900)	272.600	387.100
	Employee benefits expenses	383.800	373.500	1095.800
	Depreciation and amortization expenses	94.900	89.900	270.800
	Exchange rate difference (Net)	20.000	--	--
	Other expenses	717.800	653.900	1966.100
	Total Expenses	2131.200	2046.600	5922.300
3	Profit From Operations before Other Income, Interest and Exceptional Items (1-2)	877.300	751.700	2066.400
4	Other Income	40.300	58.400	146.800
	Exchange rate difference (Net)	--	4.600	12.600
5	Profit Before Interest and Exceptional Items (3+4)	917.600	814.700	2225.800
6	Finance Cost	21.800	22.100	60.200
7	Profit from Ordinary Activities before Tax (7+8)	895.800	792.600	2165.600
8	Tax Expense	271.600	234.500	657.900
9	Net Profit from Ordinary Activities after Tax (9-10)	624.200	558.100	1507.700
10	Paid-up Equity Share Capital	176.700	176.700	176.700
	(Face Value of Re. 1/- Each)	5.000	5.000	5.000
11	Reserves Excluding Revaluation Reserve
12	Basic and Diluted Earning Per Share (EPS) (Rs.)-Not Annualised
	a) Basic	17.75	15.88	42.89
	b) Diluted	17.75	15.86	42.82
	Public Shareholding
	-Number of Shares	9278805	9278805	9278805
	- Percentage of Shareholding	26.40%	26.04%	26.40%
18	Promoters and Promoter Group Shareholding
	a) Pledged/Encumbered
	- Number of Shares	840500	940500	840500
	- Percentage of Shares (as a % of the Total Shareholding of promoter and promoter group)	3.25%	3.64%	3.25%
	- Percentage of Shares (as a % of the Total Share Capital of the Company)	2.39%	2.68%	2.39%
	b) Non Encumbered
	- Number of Shares	25031395	24931395	25031395
	- Percentage of Shares (as a % of the Total Shareholding of Promoter and Promoter Group)	96.75%	96.36%	96.75%
	- Percentage of Shares (as a % of the Total Share Capital of the Company)	71.21%	70.92%	71.21%

INVESTOR COMPLAINTS	As on 31.012.2013
Pending at the beginning of the quarter and remaining unresolved at the end of the quarter	Nil
Received and disposed off during the quarter	37

Note:

1. Above results have been reviewed by Audit Committee and approved by Board of Directors at their meeting held on January 27, 2014.
2. Statutory Auditors have carried out Limited Review of above results.
3. Company has only one segment of activity namely, Pharmaceuticals.
4. Earning per share has been disclosed considering increased number of share post bonus, for all periods herein above.
5. Previous periods figures have been regrouped wherever necessary.

Press Release

Ajanta Pharma among ‘Asia’s 200 Best corporations under a Billion’

Mumbai - (September 2, 2013) - Ajanta Pharma Limited, a specialty focused pharmaceutical formulation company, featured among the ‘Forbes Asia’s 200 Best under a Billion’ list consecutively for the second year. It is indeed an important moment, as the company’s efforts have been recognized by a leading publication of world repute consistently for past 2 years as one of the best performing companies in Asia under a billion dollars. Only 19 Indian companies from various industries have been able to make to this prestigious compilation, including Ajanta.

Forbes Asia’s editors maintain a database of 15,000 stock-traded companies in Asia-Pacific region with revenues between $5 million and $1 billion. 873 companies were short listed and finally the top 200 companies were finalized. Only 52 companies from the last year’s list have re-qualified this year. Based on 3 stringent criteria of return on equity, growth in sales and earnings & debt-equity ratio, they selected 200 best performing companies and Ajanta is proud to be one amongst this elite list.

Commenting on this recognition, Mr. Yogesh Agrawal, Managing Director, said “The recognition is a testimony to Ajanta’s aligned, focused and committed efforts coupled with fundamentally strong strategies to build scalable and sustainable business model.”

FIXED ASSETS

• Land & Site Development
• Buildings
• Plant and Machinery
• Furniture and Fixtures
• Office
• Equipments
• Vehicles
• Computers

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. 60.52
UK Pound	1	Rs. 101.77
Euro	1	Rs. 83.91

INFORMATION DETAILS

Information Gathered by :	NYA
Analysis Done by :	RAS
Report Prepared by :	DPH

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	8
PAID-UP CAPITAL	1~10	7
OPERATING SCALE	1~10	8
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	8
--PROFITABILIRY	1~10	7
--LIQUIDITY	1~10	7
--LEVERAGE	1~10	7
--RESERVES	1~10	8
--CREDIT LINES	1~10	7
--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		67

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.