MIRA INFORM REPORT

Report Date :

26.06.2014

IDENTIFICATION DETAILS

Name :	ABBOTT INDIA LIMITED
Registered Office :	3-4, Corporate Park Sion Trombay Road, Mumbai – 400 071, Maharashtra
Country :	India
Financials (as on) :	31.12.2012
Date of Incorporation :	22.08.1944
Com. Reg. No.:	11-007330
Capital Investment / Paid-up Capital :	Rs. 212.493 millions
CIN No.: [Company Identification No.]	l24239mh1944plc007330
TAN No.: [Tax Deduction & Collection Account No.]	MUMK08663E
PAN No.: [Permanent Account No.]	AAACB5170B
Legal Form :	A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges.
Line of Business :	The Company is engaged in the discovery, development, manufacture and marketing of pharmaceutical, diagnostic, nutritional and hospital products.
No. of Employees :	Not Available [We tried to confirm the number of employees but no one is ready to part any information from the company management]

RATING & COMMENTS

MIRA’s Rating :

A (69)

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 26000000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is an established company having good track record. Management of the company not filed its latest financial i.e. December 2013 with the government department. As per the available financial of December 2012, the financial position of the company seems to be sound and healthy. Fundamentals are strong. Performance capability of the company is high. Share price are quoted high on stock exchange. Trade relations are reported as fair. Business is active. Payments terms are reported to be regular and as per commitment. The company can be considered normal for business dealings at usual trade terms and conditions.

NOTES :

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

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

MANAGEMENT NON – COOPERATIVE (91-22-67978888)

LOCATIONS

Registered Office :	3-4, Corporate Park Sion - Trombay Road, Chembur, Mumbai – 400 071, Maharashtra, India
Tel. No.:	91-22-67978888
Fax No.:	91-22-67978920
E-Mail :	webmaster@abbot.co.in investor.relations@abbott.co.in
Website :	www.abbott.co.in
Factory :	L-18/19, Verna Industrial Area, Verna Salcette, Goa – 403 722, India
Tel. No.:	91-0832-6680232 / 3 / 2783412 Security Office :91-832- 6680229 R Barretto : 91-832-6680227 DPG/Depot : 91-832-6680228
Fax No.:	DPG/Depot :91-832-6680228 Factory : 91-832-2783405

DIRECTORS

As on 31.12.2013

Name :	Mr. Munir Shaikh
Designation :	Chairman
Date of Birth/Age :	25.11.1942
Qualification :	Masters Degree in English from St. Stephens College, Delhi.
Date of Appointment :	18.11.2006
Name :	Mr. Rehan Khan
Designation :	Managing Director
Date of Birth/Age :	14.06.1969
Qualification :	BS Degree from the University of Wisconsin - Madison, USA, a MS degree in Biomedical Sciences from Harvard Medical School, USA and MIT Sloan, USA and a MBA from Drexel University, USA.
Date of Appointment :	15.03.2012
Name :	Mr. Rajendra Shah
Designation :	Independent Director
Name :	Mr. Ashok Dayal
Designation :	Independent Director
Date of Birth/Age :	02.06.1937
Qualification :	B.A. (Hons) AIB (Part I) Fellow of the Indian Institute of Bankers. Fellow of the Royal Geographical Society (London).
Date of Appointment :	18.06.2003
Name :	Ms. Ranjan Kapur
Designation :	Independent Director
Date of Birth/Age :	25.11.1942
Qualification :	Masters Degree in English from St Stephens College, Delhi
Date of Appointment :	18.09.2006
Name :	Mr. Thomas Dee
Designation :	Non-Executive Director
Name :	Mr. Kaiyomarz Marfatia
Designation :	Whole-time Director
Name :	Mr. Bhasker Iyer,
Designation :	Non-Executive Director
Name :	Sachin Dharap
Designation :	Non-Executive Director

KEY EXECUTIVES

Name :	Mr. Krupa Anandpara
Designation :	Company Secretary
Audit Committee :
Name :	Mr. Ashok Dayal
Designation :	Chairman
Name :	Mr. Rajendra Shah
Designation :	Member
Name :	Mr. Ranjan Kapur
Designation :	Member
Name :	Mr. Munir Shaikh
Designation :	Member
Corporate Management :
Name :	Mr Rehan A. Khan
Designation :	Managing Director
Name :	Mr. Rajiv Sonalker
Designation :	Director-Finance
Name :	Mrs. Nagina Singh
Designation :	HR Director
Name :	Mr Vidyadhar Natu,
Designation :	Commercial Director
Name :	Mr Rajaram Sankaran
Designation :	Commercial Director
Name :	Mr. Ashok Nair
Designation :	Commercial Director
Name :	Mr. Kaiyomarz Marfatia
Designation :	Director - Legal and Secretarial
Name :	Dr. Rashmi Hegde
Designation :	Director-Medical
Name :	Mr. Nagesh Voleti
Designation :	Director-Quality
Name :	Mr. TR Prasad
Designation :	Associate Director-Operations
Name :	Mr. Sambit Sathapathy
Designation :	Director Commercial Operations
Name :	Mr. Sandeep Khandelwal
Designation :	Director Commercial Excellence

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 31.03.2014

Category of Shareholder	No. of Shares	Percentage of Holding
(A) Shareholding of Promoter and Promoter Group
(1) Indian
(2) Foreign
Bodies Corporate	15934048	74.99
Sub Total	15934048	74.99
Total shareholding of Promoter and Promoter Group (A)	15934048	74.99
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	1586198	7.46
Financial Institutions / Banks	5731	0.03
Insurance Companies	84838	0.40
Foreign Institutional Investors	10263	0.05
Sub Total	1687030	7.94
(2) Non-Institutions
Bodies Corporate	217271	1.02
Individuals
Individual shareholders holding nominal share capital up to Rs. 0.100 Million	3149586	14.82
Individual shareholders holding nominal share capital in excess of Rs. 0.100 Million	202824	0.95
Any Others (Specify)	58543	0.28
Non Resident Indians	57922	0.27
Trusts	150	0.00
Foreign Corporate Bodies	471	0.00
Sub Total	3628224	17.07
Total Public shareholding (B)	5315254	25.01
Total (A)+(B)	21249302	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)	21249302	0.00

BUSINESS DETAILS

Line of Business :

The Company is engaged in the discovery, development, manufacture and marketing of pharmaceutical, diagnostic, nutritional and hospital products.

Products/Services :

Item Code No.	Product Description
30043110	Insulins
30039035	Antacid
29372300	Dydrogesterone I.P.

PRODUCTION STATUS (As On 31.12.2011)

Particulars	Unit	Licensed Capacity	Installed Capacity	Actual Production
Tablets	Million	NA	1455.00	1605.45
Liquids	Kilo Litre	NA	4880.00	3732.15
Capsules	Million	NA	NA	45.25
Injectables	Thousand	NA	NA	7481.25

GENERAL INFORMATION

No. of Employees :	Not Available [We tried to confirm the number of employees but no one is ready to part any information from the company management]
Bankers :	Standard Chartered Bank BNP Paribas HSBC HDFC Bank Limited

Banking Relations :	--
Auditors :
Name :	Deloitte Haskins and Sells Chartered Accountants
Solicitors :	Wadia Ghandy and Company Crawford Bayley and Company
Ultimate Holding Company:	Abbott Laboratories, USA
Holding Company :	Abbott Capital India Limited, U.K.
Fellow Subsidiaries :	Abbott Logistics BV, Netherlands Abbott Laboratories Intl. Company, USA Abbott Healthcare Private Limited, India Abbott Truecare Pharma Private Limited, India Abbott Laboratories Limited, Thailand Abbott International LLC, USA Abbvie Italy, Italy Abbott Laboratories (Singapore) Pte Limited, Singapore Abbvie PTE Limited, Singapore Abbott Laboratories S.A., DAFZ (Dubai Airport Free Zone), Dubai Abbott Healthcare Products Limited, U.K. Abbvie Logistics BV, Netherlands Abbott Laboratories S.A., China India Abbott Laboratories S.A., USA Abbott SA NV, Belgium Abbott Laboratories Trading (Shanghai) Company. Limited, China Abbott Products Operations AG., Switzerland Abbott Products GmbH., Germany Abbvie Inc, USA Abbott Laboratories, Philippines Abbott Products SAS, France British Colloids Limited, U.K.

CAPITAL STRUCTURE

As on 31.12.2012

No. of Shares	Type	Value	Amount
27500000	Equity Shares	Rs. 10/- each	Rs. 275.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
21249302	Equity Shares	Rs. 10/- each	Rs. 212.493 Millions

1. Number of Shares allotted as fully paid up pursuant to contract(s) without payment being received In case during the period of five years immediately preceding the reporting date :

Particular	As on 31.12.2012	As on 31.12.2011
Number of Equity Shares allotted to shareholders of Solvay Pharma in 2011	-	7574062

2. Details of Equity shares of Rs.10 each fully paid held by the Holding Company and subsidiaries of the ultimate Holding Company

(Rs. In Millions)

Particular	As on 31.12.2012	As on 31.12.2011
10719097 (2011 : 10719097) Abbott Capital India Limited U.K., (Holding Company)	107.791	107.191
3744951 (2011 : 3744951) Abbott Healthcare Products Limited, U.K., (Subsidiary of the ultimate Holding Company)	37.450	37.450
1470000 (2011 : 1470000) British Colloids Limited, U.K., (Subsidiary of the ultimate Holding Company)	14.700	14.700

The ultimate Holding Company is Abbott Laboratories, USA

3. The Company has only one class of equity shares with voting rights having a par value of Rs. 10 per share. The Company declares and pays dividends in Indian Rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders at the ensuing Annual General Meeting.

In the event of liquidation of the Company, the shareholders 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 number of equity shares held by the shareholders.

4. Reconciliation of the number of shares

Equity Shares	Number of Shares
Shares outstanding at the beginning of the year	21249302
Shares issued during the year	-
Shares outstanding at the end of the year	21249302

5. Details of equity shares held by shareholders holding more than 5% shares:

Name of Shareholder	Number of Shares	% holding
Abbott Capital India Limited U.K.	10719097	50.45%
Abbott Healthcare Products Limited, U.K	3744951	17.62%
British Colloids Limited, U.K.	1470000	6.92%
Total	15934048	74.99%

6. Shares brought back during the period of five years immediately preceding date :

Equity Shares	Number of Shares
Year ended November 30, 2008	797500
Year ended November 30, 2007	807360

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.12.2012	31.12.2011
I.              EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	212.493	212.493
(b) Reserves & Surplus	6256.098	5228.933
(c) Money received against share warrants	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000
Total Shareholders’ Funds (1) + (2)	6468.591	5441.426
(3) Non-Current Liabilities
(a) long-term borrowings	0.000	0.000
(b) Deferred tax liabilities (Net)	12.527	0.000
(c) Other long term liabilities	0.000	0.000
(d) long-term provisions	294.299	148.212
Total Non-current Liabilities (3)	306.826	148.212
(4) Current Liabilities
(a) Short term borrowings	0.000	0.000
(b) Trade payables	1013.357	1208.963
(c) Other current liabilities	841.117	763.460
(d) Short-term provisions	441.217	412.811
Total Current Liabilities (4)	2295.691	2385.234
TOTAL	9071.108	7974.872
II.          ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	1038.683	792.042
(ii) Intangible Assets	47.982	4.563
(iii) Capital work-in-progress	5.093	3.557
(iv) Intangible assets under development	0.000	0.000
(b) Non-current Investments	0.000	0.000
(c) Deferred tax assets (net)	0.000	62.027
(d) Long-term Loan and Advances	228.819	250.045
(e) Other Non-current assets	0.000	0.000
Total Non-Current Assets	1320.577	1112.234
(2) Current assets
(a) Current investments	0.000	0.000
(b) Inventories	2636.341	2548.976
(c) Trade receivables	1410.333	1326.147
(d) Cash and cash equivalents	3245.145	2589.456
(e) Short-term loans and advances	427.929	351.731
(f) Other current assets	30.783	46.328
Total Current Assets	7750.531	6862.638
TOTAL	9071.108	7974.872

SOURCES OF FUNDS		31.12.2010
SHAREHOLDERS FUNDS
1] Share Capital		136.752
2] Share Application Money		0.000
3] Reserves & Surplus		2917.071
4] (Accumulated Losses)		0.000
NETWORTH		3053.823
LOAN FUNDS
1] Secured Loans		0.000
2] Unsecured Loans		0.000
TOTAL BORROWING		0.000
DEFERRED TAX LIABILITIES		1.894
TOTAL		3055.717
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		497.060
Capital work-in-progress		8.638
INVESTMENT		0.000
DEFERRED TAX ASSETS		0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	1285.862
	Sundry Debtors	652.761
	Cash & Bank Balances	1885.141
	Other Current Assets	12.049
	Loans & Advances	192.809
Total Current Assets		4028.622
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	577.533
	Other Current Liabilities	402.087
	Provisions	498.983
Total Current Liabilities		1478.603
Net Current Assets		2550.019
MISCELLANEOUS EXPENSES		0.000
TOTAL		3055.717

PROFIT & LOSS ACCOUNT

	PARTICULARS			31.12.2012	31.12.2011	31.12.2010
	SALES
			Income	16526.889	14902.106	9898.808
			Other Income	223.144	196.775	359.898
			TOTAL	16750.033	15098.881	10258.706
Less	EXPENSES
			Cost of Material Consumed	1671.248	1230.696
			Purchases of Stock-In-Trade	7957.884	8117.919
			(Increase) / Decrease in Inventories of Finished Goods, Work-in-progress and Stock-in-trade	87.355	(736.412)
			Employee Benefit Expenses	2061.042	1673.491
			Other Expenses	2731.408	2861.351
			TOTAL	14508.937	13147.045	9204.366
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION			2241.096	1951.836	1054.340
Less	FINANCIAL EXPENSES			0.239	0.300	0.387
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION			2240.857	1951.536	1053.953
Less/ Add	DEPRECIATION/ AMORTISATION			194.870	149.953	112.503
	PROFIT BEFORE EXCEPTIONAL ITEMS AND TAX			2045.987	1801.583	941.450
Less	EXCEPTIONAL ITEMS
			Provision for Anticipated Date Expired Goods	186.898	0.000	0.000
			Write-back of Depreciation consequent to change in method	(290.840)	0.000	0.000
	TOTAL EXCEPTIONAL ITEMS			(103.942)	0.000	0.000
	PROFIT BEFORE TAX AND AFTER EXCEPTIONAL ITEMS			2149.929	1801.583	941.450
Less	TAX			702.924	597.653	332.098
	PROFIT AFTER TAX			1447.005	1203.930	609.352
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD			3299.561	2634.469	2357.143
Less	APPROPRIATIONS
		Dividend (Proposed)		361.238	361.238	0.000
		Corporate Dividend Tax		58.602	57.207	0.000
		Transfer to Reserve		144.701	120.393	0.000
		For the period ended December 31, 2010		0.000	0.000	232.479
		For the year ended December 31, 2011		0.000	0.000	38.612
		Revenue Reserve		0.000	0.000	60.935
	BALANCE CARRIED TO THE B/S			4182.025	3299.561	2634.469
	EARNINGS IN FOREIGN CURRENCY
			Goods exported on FOB basis	120.078	58.771	74.272
			Reimbursement of Expenses/ Earnings from Affiliates	59.128	53.988	49.008
	TOTAL EARNINGS			179.206	112.759	123.280
	IMPORTS
			Capital Goods	13.075	11.341	16.077
			Stores & Spares	586.710	576.666	358.781
			Raw Materials and Packing Materials	1161.683	587.320	29.627
			Consumable stores	2.057	0.546	0.866
	TOTAL IMPORTS			1763.525	1175.873	405.351
	Earnings Per Share (Rs.)			68.10	56.66	44.56

KEY RATIOS

PARTICULARS		31.12.2012	31.12.2011	31.12.2010
PAT / Total Income	(%)	8.64	7.97	5.94
Net Profit Margin (PBT/Sales)	(%)	13.01	12.09	9.51
Return on Total Assets (PBT/Total Assets}	(%)	23.71	22.78	2.80
Return on Investment (ROI) (PBT/Networth)		0.33	0.33	0.31
Debt Equity Ratio (Total Debt /Networth)		0.00	0.00	0.00
Current Ratio (Current Asset/Current Liability)		3.38	2.88	2.72

FINANCIAL ANALYSIS

[all figures are in Rupees Millions]

DEBT EQUITY RATIO

Particular	31.12.2011	31.12.2012
	(Rs. In Millions)	(Rs. In Millions)
Share Capital	212.493	212.493
Reserves & Surplus	5228.933	6256.098
Net worth	5441.426	6468.591
long-term borrowings	0.000	0.000
Short term borrowings	0.000	0.000
Total borrowings	0.000	0.000
Debt/Equity ratio	0.000	0.000

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.12.2010	31.12.2011	31.12.2012
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Sales	9898.808	14902.106	16526.889
		50.544	10.903

NET PROFIT MARGIN

Net Profit Margin	31.12.2010	31.12.2011	31.12.2012
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Sales	9898.808	14902.106	16526.889
Profit	609.352	1203.930	1447.005
	6.16%	8.08%	8.76%

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	No
10]	Designation of contact person	No
11]	Turnover of firm for last three years	Yes
12]	Profitability for last three years	Yes
13]	Reasons for variation <> 20%	--
14]	Estimation for coming financial year	No
15]	Capital in the business	Yes
16]	Details of sister concerns	Yes
17]	Major suppliers	No
18]	Major customers	No
19]	Payments terms	No
20]	Export / Import details (if applicable)	No
21]	Market information	--
22]	Litigations that the firm / promoter involved in	--
23]	Banking Details	Yes
24]	Banking facility details	No
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	No
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

COMPANY INFORMATION:

‘The Company is a public limited company domiciled in India and is listed and traded on the Bombay Stock Exchange and also traded on the National Stock Exchange. The Company is one of the leading multinational pharmaceutical companies in India and operates with an owned manufacturing facility in Goa and various independent contract/ third party manufacturers based across the country.

The Company sells its products through independent distributors primarily within India.

MANAGEMENT DISCUSSION AND ANALYSIS:

The Indian Pharmaceutical industry is highly fragmented. It is estimated to have about 24,000 players, of which only around 330 players are in the organised sector. Of these, the Top 10 companies make up for more than 40% of the market.

According to IMS, Indian Pharmaceutical industry grew by 11% YoY in 2012. The industry has been growing at a CAGR of more than 15% over the last five years. It is the third largest industry in the world in terms of volumes and accounts for around 10% of the world's production; however, in terms of value, the Indian Pharmaceuticals industry accounts for a mere 1.4%. Out of the total industry volumes, branded generics dominate, making up for approximately 80% of the total retail market. Factors like sedentary lifestyle due to rapid urbanisation are leading to a remarkable increase in lifestyle related ailments like diabetes, heart disease and stroke. This has also resulted in enhanced medical infrastructure, rise in prevalence of treatment of chronic diseases and greater health insurance coverage.

The pharmaceutical market will continue to increase in value at double-digit rates for the next 5 years. Population growth, epidemiological trends, rising incomes and improvements in the availability and accessibility of basic healthcare provision will all act as drivers of demand for medicines. New drug launches will also boost market value, but price will remain a modest contributor to growth - largely as a result of intense competition for market shares.

A further gradual shift in demand from acute to chronic disease treatments will also be witnessed. While acute therapies continue to account for the majority of sales, their share has been declining from 86% in 2000 to 70% in 2012 and will continue to do so. This will be driven largely by epidemiological trends, which have seen conditions such as cardiovascular disease, cancer and diabetes diagnosed with increasing frequency. The ability of more patients to pay for repeat prescriptions of chronic therapies will also play a role.

The ratio between retail and hospital sales will also alter, with hospital market growth outstripping rates of increase in the retail pharmacy sector. Hospital sales will continue to grow rapidly, driven by a combination of an expansion of both public and private hospital infrastructure and more widespread health insurance coverage.

Per IMS Prognosis Report, estimated at 4.2% of GDP total healthcare expenditure remains low and out-of-pocket expenditure remains high at 50%. While it is unlikely to meet targets laid down in the 11th and 12th Five Year Plans, the Government's contribution to national healthcare spending will continue to rise from the current 33%. Alongside further growth in patient incomes, this will help drive increases in overall expenditure.

A substantial proportion of Government funds will be ploughed into the improvement and expansion of the public health infrastructure. Access to basic healthcare will improve as a result, but private clinics and hospitals will continue to play major role.

BRAND ACHIEVEMENTS:

The Company has achieved consistent success in the branded generics business with 10 brands in the Top 300 brands in the Indian Pharmaceutical market. Further, one of its products, Vertin – which is used for the treatment of vertigo, tinnitus and hearing loss, has jumped 13 ranks from 112 in January, 2012 to 99th rank in November, 2012 to enter the League of top 100 brands in the Indian Pharmaceutical markets. Thyronorm entered the top 15 brands of Indian Pharmaceutical market and Zolfresh is now counted among the top 250 brands.

OUTLOOK:

As per a report from McKinsey, the Indian Healthcare industry is expected to grow to a size of Rs. 3025000.000 Millions with a potential to grow to Rs. 30250000.000 Millions by 2020. The report states that such an increase in the industry size would be on the back of factors like increase in population, increased affordability of drugs and improved accessibility of drugs through growing medical infrastructure. This will be facilitated by increasing healthcare spend by the government (as a percentage of GDP) which has been growing annually at 18% since 2005-06.

The report also emphasises that this growth will be driven through the chronic therapeutic segments due to additional market creation by players, increased acceptance of biologics and preventive medicines. Market participants will shape the therapeutic segment especially for chronic therapies such as cardiovascular and neuropsychiatry.

Further, according to the findings of the report, the customer healthcare segment has a potential to grow over 14% annually provided the market participants make the large OTC (Over the Counter) brands easily available to consumers.

The Company has continued its focus on research and development enabling it to come out with new product launches to provide improved solutions for patients. The Company intends to continue revamping its new product launch processes to ensure higher number of successful new launches per year and also by brining in new products first to the market in the competitive market scenario.

In order to enhance its reach the Company also lays immense focus on increasing its distribution points and adopting stringent levels of service level arrangements.

FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE:

Sales:

Sales during the year grew over 11.6% to Rs. 161.309 Millions Inspite of a difficult business environment. The company achieved double digit growth across most of its therapeutic segments except Gastroenterology. Metabolic Business Unit registered 27% growth, Heptral, continued the momentum in 2012 with a stronger performance with sales exceeding Rs. 2.100 Millions. Gastroenterology, post a slow down in the first half, was able to regain some of the lost momentum in the second half of the year.

STATEMENT OF AUDITED RESULTS FOR THE QUARTER AND FIFTEEN MONTHS ENDED MARCH 31, 2014

(Rs. In Millions)

Particulars	Quarter Ended ( Unaudited)			For the period January 1, 2013 to March 31, 2014 (Unaudited)
	31.03.2014	31.12.2013	31.03.2013	31.03.2014
1. Income form operations
a) Net sales/ Income from operation (net of excise duty)	4785.500	4718.100	4065.200	22312.900
b) Other operating income	152.000	146.600	31.600	656.000
Total income from Operations(net)	4937.500	4864.700	4196.800	22968.900
2. Expenditure
a) Cost of material consumed	457.000	794.500	699.400	3188.900
b) Purchases of stock in trade	1905.200	2382.300	2120.500	10912.000
c) Changes in inventories of finished goods, work-in-progress and stock-in-trade	451.200	(328.300)	(430.300)	(791.800)
d) Employees benefit expenses	684.900	544.100	574.000	2997.400
e) Depreciation and amortization expenses	34.800	41.800	52.300	219.300
f) Other expenses	936.100	830.400	774.100	3979.000
Total expenses	4469.200	4264.800	3790.000	20504.800
3. Profit from operations before other income and financial costs	468.300	599.900	406.800	2464.100
4. Other income	93.900	187.900	63.700	482.200
5. Profit from ordinary activities before finance costs and Exceptional Items	562.200	787.800	470.500	2946.300
6. Finance costs	0.100	0.200	0.100	0.800
7. Profit from Ordinary Activities after Finance Costs but before Exceptional Items (5-6)	562.100	787.600	470.400	2945.500
8. Exceptional Items
1. Provision for Anticipated Date Expired Goods	--	--	-	--
2. Write back of Depreciation	--	--	-	--
Total Exceptional Items	--	--	-	--
9. Profit from Ordinary Activities before Tax	562.100	787.600	470.400	2945.500
10. Tax expenses	178.100	253.000	153.400	961.000
11. Net profit from ordinary Activities After Tax	384.000	534.600	317.000	1984.500
12. Paid up equity share capital (Face value of Rs. 10/- per share)	212.500	212.500	212.500	212.500
13. Reserves excluding revaluation reserves				7666.000
14. Basic and diluted Earning per share for the period	18.07	25.16	14.92	93.39
PART-II
A. Particulars of shareholding
1. Public Shareholding
- Number of shares	5315254	5315254	5315254	5315254
- Percentage of shareholding	25.01%	25.01%	25.01%	25.01%
2. Promoters and Promoters group Shareholding-
a) Pledged /Encumbered
Number of shares	-	-	-	-
Percentage of shares (as a % of total shareholding of the promoter and promoter group)	-	-	-	-
Percentage of shares (as a % of total share capital of the company)	-	-	-	-
b) Non Encumbered
Number of shares	15934049	15934049	15934049	15934049
Percentage of shares (as a % of total shareholding of the promoter and promoter group)	100.00%	100.00%	100.00%	100.00%
Percentage of shares (as a % of total share capital of the company)	74.99%	74.99%	74.99%	74.99%
B. Investor Complaints
Pending at the beginning of the quarter		1
Receiving during the quarter		--
Disposed of during the quarter		1
Remaining unreserved at the end of the quarter		--

AUDITED STATEMENT OF ASSETS AND LIABILITIES

SOURCES OF FUNDS	31.03.2014
I.              EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	212.500
(b) Reserves & Surplus	7666.000
(c) Money received against share warrants	0.000
(2) Share Application money pending allotment	0.000
Total Shareholders’ Funds (1) + (2)	7878.500
(3) Non-Current Liabilities
(a) long-term borrowings	0.000
(b) Deferred tax liabilities (Net)	0.000
(c) Other long term liabilities	0.000
(d) long-term provisions	573.400
Total Non-current Liabilities (3)	573.400
(4) Current Liabilities
(a) Short term borrowings	0.000
(b) Trade payables	1362.200
(c) Other current liabilities	1038.700
(d) Short-term provisions	539.100
Total Current Liabilities (4)	2940.000
TOTAL	11391.900
II.          ASSETS
(1) Non-current assets
(a) Fixed Assets	995.200
(b) Non-current Investments	0.000
(c) Deferred tax assets (net)	12.800
(d) Long-term Loan and Advances	334.700
(e) Other Non-current assets	20.200
Total Non-Current Assets	1362.900
(2) Current assets
(a) Current investments	0.000
(b) Inventories	3655.100
(c) Trade receivables	1091.800
(d) Cash and cash equivalents	4628.400
(e) Short-term loans and advances	590.800
(f) Other current assets	62.900
Total Current Assets	10029.000
TOTAL	11391.900

NOTE:

The results for the quarter and fifteen months ended March 31, 2014 have been reviewed by the Audit Committee and approved by the Board of Directors at its meeting held on May 28, 2014.

The figures of quarter ended March 31, 2014 are the balancing figures between audited figures in respect of the full financial year up to March 31, 2014 and the unaudited published year-to-date figures up to fourth quarter of the current financial year.

The Board of Directors at their meeting held on May 28, 2014 have recommended a final dividend for the current period of Rs. 23 per equity share (nominal value Rs. 10/- per equity share) amounting to Rs. 488.700 Millions subject to approval of members at the ensuing Annual General Meeting of the Company.

The Company operates in one reportable business segment i.e. "Pharmaceuticals" and one reportable geographical segment i.e. "Within India".

With effect from the current financial year, the Company has changed its accounting year from year ended December 31 to year ended March 31. Hence, the figures and earnings per share for the current accounting period are not comparable with those of the previous year.

Other income for the current quarter and fifteen months ended March 31, 2014 includes profit on sale of residential properties amounting to Rs. 7.2000 Millions and 122.200 Millions respectively.

Figures for the previous periods / year have been regrouped / rearranged wherever considered necessary.

FIXED ASSETS:

• Leasehold Land
• Leasehold Improvements
• Buildings
• Plant and Equipment
• Office Equipment
• Furniture and Fixtures
• Vehicles
• Software
• Trademarks

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.60.28
UK Pound	1	Rs.102.28
Euro	1	Rs.82.05

INFORMATION DETAILS

Information Gathered by :	PLK
Analysis Done by :	DIV
Report Prepared by :	KVT

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	8
--LEVERAGE	1~10	8
--RESERVES	1~10	8
--CREDIT LINES	1~10	7
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	NO
--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
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		69

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended
--	NB	New Business	--

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