MIRA INFORM REPORT

Report Date :

12.07.2014

IDENTIFICATION DETAILS

Name :	AKORN INDIA PRIVATE LIMITED
Registered Office :	1105-1106, Ashoka Estate, New Delhi - 110001
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	29.08.2011
Com. Reg. No.:	55-262196
Capital Investment / Paid-up Capital :	Rs. 7.059 Millions
CIN No.: [Company Identification No.]	U24100DL2011PTC262196
PAN No.: [Permanent Account No.]	AAJCA8290J
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturing, Marketing, Trading of Generic Pharmaceutical Formulation and Medicinal Preparations.
No. of Employees :	Not Divulged

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 12600000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track record. Company has incurred huge loss from its operation in the year 2013. However, trade relations are fair. Business is active. Payment terms are slow but correct. The company can be considered for business dealing 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, 2014

Country Name	Previous Rating (31.12.2013)	Current Rating (31.03.2014)
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

N E W S

The economy grew 4.7 %in 2013/14, marking a second straight year of sub-5 % growth – the worst slowdown in more than a quarter of a century. The data was below an official estimate of 4.9 % annual growth and compared with 4.5 % in the last fiscal year. However, the current account deficit narrowed sharply to $ 32.4 billion at 1.7 % of gross domestic product, in 2013/14 from a record high of $ 98.8 billion or 4.7 %, the year before.A sharp fall in gold imports due to restrictions on overseas purchases and muted import of capital goods helped shrink the current account deficit.

Online retailer Flipkart has acquired fashion portal Myntra as it prepares to battle with the rapidly expanding India arm of the global e-commerce giant Amazon. The company raised $ 210 million from Russian Investment firm DST Global which has also invested in companies like Facebook, Twitter and Alibaba Group.

General Motors will start exporting vehicles from its Talegaon plant near Pune in the second half of 2014. GM was one of the few global carmakers that was using its India plant only for the domestic market.

Google has overtaken Apple as the world’s top brand in terms of value, according to global market research agency Millward Brown. Google’s brand value shot up 40 % in a year to $ 158.84 billion. The top 10 of the 100 slots were dominated by US companies.

Infosys lost another heavy weight when B G Srinivas, a board member put in his papers. He is the third CEO-hopeful to quit after Chairman N R Narayana Murthy’s return to the company – Ashok Vemuri and V Balakrishnan being the other two.While Vemuri went on to lead IGate, Balakrishnan joined politics.

Naresh Goyal – promoted Jet Airways posted biggest quarterly loss – Rs 2153.37 crore – in the three months ended March 31, mainly because it has been offering discounts to passengers to fill planes.

William S Pinckney – Chairman and CEO of Amway India was arrested by the Andhra Pradesh Police in connection with a complaint against the direct selling firm. This is the second time that he has been taken into custody. A year, ago the Kerala Police had arrested Pinckney and two company directors on charges of financial irregularities.

China has told its state-owned enterprises to sever links with American consulting firms after the United States charged five Chinese military officers wih hacking US companies. China’s action which targets consultancies like McKinsey & Co. and the Boston Consulting Group, sterns from fears that the first are providing trade secrets to the US governments.

India has emerged as a country with some of the highest unregistered businesses in the world. Indonesia has the maximum number of shadow businesses, says a study of 68 countries by Imperial College Business School in London.

Pfizer has abandoned its attempt to buy AstraZeneca for nearly $ 118 billion after the latter refused an offer of 55 pounds a share.

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 BY

Name :	Mr. Dheeraj Chopra
Designation :	Chief Finance Officer
Contact No.:	91-9810015565
Date :	11.07.2014

LOCATIONS

Registered Office :	1105-1106, Ashoka Estate, New Delhi – 110001, India
Tel. No.:	Not Available
Mobile No.:	91-9810015565 [Mr. Dheeraj Chopra]
Fax No.:	Not Available
E-Mail :	dheeraj.chopra@akornindia.com info@akornindia.com
Website :	http://www.akornindia.com
Corporate/ Head Office :	4th Floor, DLF Cyber City, Building 9B, Gurgaon - 122002, Haryana, India
Tel. No.:	91-124-6610950
Factory :	Khasra No. 5/1, 5/2, 5/3, Village Nihalgarh, Tehsil Paonta Sahib - 173025, Himachal Pradesh, India
Tel. No.:	91-1704-661100

DIRECTORS

AS ON 30.09.2013

Name :

Mr. Rajat Rai

Designation :

Director

Address :

7131, Pennsbury Lane Gurnee, IIIinois, US 60031

Date of Birth/Age :

09.07.1966

Date of Appointment :

12.11.2012

DIN No.:

00546274

Other Directorship:

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U74140DL2005PLC135984	SALIENT BUSINESS SOLUTIONS LIMITED	Director	08/11/2005	08/11/2005	06/04/2009	Active	NO
2	U24100DL2011PTC262196	AKORN INDIA PRIVATE LIMITED	Director	12/11/2012	23/09/2011	-	Active	NO

Name :

Mr. Timothy Alan Dick

Designation :

Director

Address :

881 S Golf Cul De Sac St, Des Plaines, IIIinois, US 60016

Date of Birth/Age :

29.11.1969

Date of Appointment :

12.11.2012

DIN No.:

03626751

Other Directorship:

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Company/ LLP Status	Defaulting status
1	U24100DL2011PTC262196	AKORN INDIA PRIVATE LIMITED	Director	12/11/2012	23/09/2011	Active	NO

Name :

Mr. Joseph Patrick Bonaccorsi

Designation :

Director

Address :

623, Jackson Avenue, River Forest, IIIinois, US 60305

Date of Birth/Age :

14.07.1964

Date of Appointment :

12.11.2012

DIN No.:

03626810

Other Directorship:

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Company/ LLP Status	Defaulting status
1	U24100DL2011PTC262196	AKORN INDIA PRIVATE LIMITED	Director	12/11/2012	23/09/2011	Active	NO

KEY EXECUTIVES

Name :	Mr. Dheeraj Chopra
Designation :	Chief Finance Officer

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 30.09.2013

Names of Shareholders	No. of Shares	Percentage of Holding
Inc. Akorn, USA	1000	0.14
WorldAkorn Pharma Mauritius, Mauritius	704901	99.86
Total	705901	100.00

AS ON 30.09.2013

Equity Share Breakup	Percentage of Holding
Category
Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others]	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturing, Marketing, Trading of Generic Pharmaceutical Formulation and Medicinal Preparations.

GENERAL INFORMATION

No. of Employees :

Not Divulged

Bankers :

HDFC Bank Limited

Facilities :

SECURED LOANS	31.03.2013 (Rs. In Millions)	31.03.2012 (Rs. In Millions)
LONG-TERM BORROWINGS
Other loans and advances	1.528	0.000
Total	1.528	0.000

Banking Relations :	--
Auditors :
Name :	S.R Batliboi and Company LLP Chartered Accountants
Address :	Golf View Corporate Tower-D, Sector-42, Sector Road, Gurgaon, Haryana, India
Tel. No.:	91-124-4644000
Fax No.:	91-124-4644050
Income-tax PAN of auditor or auditor's firm :	AALFS0506L
Ultimate Holding company :	Akron Inc
Holding company :	World Akron Pharma Mauritius

CAPITAL STRUCTURE

AFTER 30.09.2013

Authorised Capital : Rs. 10.000 Millions

Issued, Subscribed & Paid-up Capital : Rs. 7.341 Millions

AS ON 31.03.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
1,000,000	Equity Shares	Rs. 10/- each	Rs. 10.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
705,901	Equity Shares	Rs. 10/- each	Rs. 7.059 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2013	31.03.2012
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	7.059	0.100
(b) Reserves & Surplus	3137.070	(30.440)
(c) Money received against share warrants	0.000	0.000
(2) Share Application money pending allotment	0.000	3185.640
Total Shareholders’ Funds (1) + (2)	3144.129	3155.300
(3) Non-Current Liabilities
(a) long-term borrowings	1.528	0.000
(b) Deferred tax liabilities (Net)	14.194	0.000
(c) Other long term liabilities	1.874	0.000
(d) long-term provisions	2.473	0.813
Total Non-current Liabilities (3)	20.069	0.813
(4) Current Liabilities
(a) Short term borrowings	0.000	0.000
(b) Trade payables	182.444	108.444
(c) Other current liabilities	21.475	140.962
(d) Short-term provisions	3.146	0.393
Total Current Liabilities (4)	207.065	249.799
TOTAL	3371.263	3405.912
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	1385.539	616.842
(ii) Intangible Assets	1288.632	1612.361
(iii) Capital work-in-progress	87.103	738.061
(iv) Intangible assets under development	0.000	0.000
(b) Non-current Investments	0.000	0.000
(c) Deferred tax assets (net)	0.000	0.000
(d) Long-term Loan and Advances	22.856	3.283
(e) Other Non-current assets	153.386	0.000
Total Non-Current Assets	2937.516	2970.547
(2) Current assets
(a) Current investments	0.000	0.000
(b) Inventories	138.050	88.707
(c) Trade receivables	175.104	142.159
(d) Cash and cash equivalents	88.749	201.316
(e) Short-term loans and advances	19.907	3.183
(f) Other current assets	11.937	0.000
Total Current Assets	433.747	435.365
TOTAL	3371.263	3405.912

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2013	31.03.2012
GROSS REVENUE FROM OPERATIONS		1063.054	48.860
PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION		104.922	1.757
DEPRECIATION/ AMORTISATION		406.024	32.198
NET PROFIT/ (LOSS) FOR THE YEAR		(316.434)	(30.440)
EARNINGS IN FOREIGN CURRENCY
	Export Earnings	9.316	0.000
Earnings/ (Loss) Per Share (Rs.)		(448.27)	(3044.00)

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012
Return on Total Assets (PBT/Total Assets}	(%)	(9.64)	(1.14)
Return on Investment (ROI) (PBT/Networth)		(0.10)	(0.01)
Debt Equity Ratio (Total Debt/Networth)		0.00	0.00
Current Ratio (Current Asset/Current Liability)		2.09	1.74

FINANCIAL ANALYSIS

[all figures are in Rupees Millions]

DEBT EQUITY RATIO

Particular	31.03.2012	31.03.2013
	(Rs. In Millions)	(Rs. In Millions)
Share Capital	0.100	7.059
Reserves & Surplus	(30.440)	3137.070
Share Application money pending allotment	3185.640	0.000
Net worth	3155.300	3144.129
long-term borrowings	0.000	1.528
Short term borrowings	0.000	0.000
Total borrowings	0.000	1.528
Debt/Equity ratio	0.000	0.000

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2012	31.03.2013
	(Rs. In Millions)	(Rs. In Millions)
Gross Sales	48.860	1063.054
		2,075.714

NET PROFIT MARGIN

Net Profit Margin	31.03.2012	31.03.2013
	(Rs. In Millions)	(Rs. In Millions)
Gross Sales	48.860	1063.054
Profit/ (Loss)	(30.440)	(316.434)
	(62.30%)	(29.77%)

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	Yes
8]	No. of employees	No
9]	Name of person contacted	Yes
10]	Designation of contact person	Yes
11]	Turnover of firm for last two years	Yes
12]	Profitability for last two 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	Yes
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	No

INDEX OF CHARGES: NO CHARGES EXIST FOR COMPANY

CHANGE OF ADDRESS:

The Registered Office of the company has been shifted from 101-104, Banaji House, First Floor, Flora Fountain, Fort, Mumbai – 400001, Maharashtra, India to the present address w.e.f.25.11.2013.

CORPORATE INFORMATION

Akorn India Private Limited (the Company), a private company domiciled in India was incorporated on August 29, 2011 under the provisions of Companies Act, 1956. The Company entered into a Business Transfer Agreement ('BTA') dated October 6, 2011 with Kilitch Drugs (India) Limited ('KDIL') a public company domiciled in India and incorporated under the provisions of the Companies Act, 1956 and NBZ Pharma Limited ('NBZ') a company holding 45% shares in KDIL, and members of the promoter group (the 'Promoters') of KDIL and NBZ to acquire KDIL's business of research, development, manufacturing, marketing, importing and exporting of generic pharmaceutical formulation products at its manufacturing facility located at Village Nihalgarh, Tehsil Paonta Sahib, Himachal Pradesh, India along with related assets and liabilities.

The Company is engaged in the business of research, development, manufacturing, marketing, trading of generic pharmaceutical formulation and medicinal preparations such as sterile injectables, biological, antibiotics preparations. The Company mostly manufactures these drugs on a contract basis for its customers.

OPERATIONS

During the year, the gross revenue from operations was Rs 1063.054 Millions in 2012-13. The Company has made cash profit before interest, tax, depreciation and amortization of Rs 104.922 Millions.

OUTLOOK

Considering the performance of the Company and the cash profit earned by it during the year, and having regard to the market conditions, and the abundant opportunities available, they are very optimistic that the Company will perform well in the current year and the years to come.

FIXED ASSETS:

· Land

Buildings

Plant and equipment

Factory equipments

Other plant and equipment

Furniture and fixtures

Vehicles

Office equipment

Computer equipments

Other equipments

Leasehold improvements

Goodwill

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. 60.19
UK Pound	1	Rs. 103.15
Euro	1	Rs. 81.87

INFORMATION DETAILS

Information Gathered by :	SVA
Analysis Done by :	SUM
Report Prepared by :	BVA

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--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	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	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTERS
--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.