MIRA INFORM REPORT

Report Date :

05.09.2014

IDENTIFICATION DETAILS

Name :	MARKSANS PHARMA LIMITED (w.e.f. 08.11.2005)
Formerly Known As :	TASC PHARMACEUTICALS LIMITED
Registered Office :	11^th Floor, Lotus Business Park, Off New Link Road, Andheri (West), Mumbai – 400053, Maharashtra
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	16.04.1992
Com. Reg. No.:	11-066364
Capital Investment / Paid-up Capital :	Rs. 520.307 Millions
CIN No.: [Company Identification No.]	L24110MH1992PLC066364
TAN No.: [Tax Deduction & Collection Account No.]	MUMT09972E
PAN No.: [Permanent Account No.]	AAACT3153G
Legal Form :	A Public Limited Liability company. The company’s Shares are Listed on the Stock Exchanges.
Line of Business :	The Company is primarily engaged in manufacturing and marketing of Pharmaceutical Formulations.
No. of Employees :	Information declined by the management.

RATING & COMMENTS

MIRA’s Rating :

Ba (53)

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Status :	Good
Payment Behaviour :	Regular
Litigation :	Exist
Comments :	Subject is an established company having a fine track record. Financial position of the company seems to be decent. Trade relations are reported as fair. Business is active. Payment 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.

INDIAN ECONOMIC OVERVIEW

NEWS

As per the latest IMF study, the total weigh of emerging markets in the GDP of the world on a purchasing power parity basis has seen a sizeable shift. It highlights how as against 51 % in 2005, the emerging economies now account for close to 56 % of the global purchasing power GDP as per the latest survey. And with the emerging economies growing at a faster rate than their developed counterparts, there are every possibility that the their share goes up further in the coming years.  China may surpass the US over the next few years.

Politics and economics are very intricately connected. They tend to influence each other in ways that could be very complex and far-reaching. The prospects of the India’s economy have been seriously compromised due to political corruption. High inflation, poor standard of living are to a great extent a result of rampant corruption in the country. China on the other hand, seems to be facing diametrically opposite challenge. American hedge fund manager Jim Chanos has been keenly following the political and economic development in the dragon economy and has figured out something that is quite worrying. He is of the view that the Chinese economy could be heading toward trouble on account of new Chinese President Xi Jingping’s very aggressive anti-corruption drive. Chanos believes tat many things such as apartment sales, luxury products, etc. were largely bought with dirty money. And it is now beginning to impact consumption. This may indeed be bad news for an economy that is struggling to transition from an investment-driven export-oriented economy to a domestic consumption-driven economy.

A study published by Firstpost has revealed that asset classes like real estate and equities were the biggest beneficiaries of the liberalization policies.  A firm called Ciane Analytics studied returns from assets including equities, gold, fixed deposits, G-Secs and real estate since 1991. Real estate outperformed every other asset classes during the 23-year period with an annualized return of 20 % ! Equities came in second with annualized return of 15.5 % ! However, while these returns may seem mouthwatering, the fact is that the return from equities adjusted for inflation came down to just 7.1 %.

Some brief news are as under

. R-Power to buy Jaypee’s hydro assets

. Investors await justice in NSEL case

. India seeks MFN status from Pakistan ahead of meeting

. Ukrain’s clashes with rebels hinder MH17 crash investigation

. India exploring merger of state-owned hydro PSUs

..Higher costs weigh down profit growth to slowest in 9 quarters

..Wal-Mart to expand wholesale business in India

. GMR group moves to strengthen balance sheet

. Central Bank to sell 4 % stake to Life Insurance Corporation

. Tata Chemicals plans to raise up to Rs 10000 mn.

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 31-03-2014.

INFORMATION DENIED BY

Name :	Mr. Chandra Shekhar
Designation :	Accounts Officer
Contact No.:	91-832-6721900
Date :	03.09.2014

LOCATIONS

Registered Office / Corporate Office :	11^th Floor, Lotus Business Park, Off New Link Road, Andheri (West), Mumbai – 400053, Maharashtra, India
Tel. No.:	91-22-40012000 (30 lines)
Fax No.:	91-22-40012099 / 40012011
E-Mail :	info@marksanspharma.com hitesh@marksanspharma.com harshavardhan@marksanspharma.com
Website :	www.marksanspharma.com
Location :	Owned
Branch Office :	F-89/13, 2nd Floor, Okhla Industrial Area, Phase 1, New Delhi – 110020, India
Factory :	· L – 82 and 83, Verna Industrial Estate, Verna, Goa , 403722, India Tel : 91-832-2782017, 2782512, 2782678 Fax : 91-832-2782071 Location : Owned · Bell, Sons and Company (Druggists) Limited, Gifford House, Slaidburn Crescent, Southport, Merseyside. PR9 9AL

DIRECTORS

AS ON: 31.03.2014

Name :	Mr. Mark Saldanha
Designation :	Chairman and Managing Director
Qualification :	B.S.C.
Name :	Mr. Ajay S. Joshi
Designation :	Director
Name :	Mr. B.S. Desai
Designation :	Whole-time Director
Qualification :	P.H.D.
Name :	Mr. Seetharama S. Buddharaju
Designation :	Director
Name :	Mr. Naresh B. Wadhwa
Designation :	Director

KEY EXECUTIVES

Name :	Mr. Harshavardhan Panigrahi
Designation :	Company Secretary and Leal Manager
Name :	Mr. Chandra Shekhar
Designation :	Accounts Officer
Name :	Mr. Mark Saldanha
Designation :	Chairman and Managing Director
Name :	Dr. Balwant S. Desai
Designation :	Whole-time Director and COO
Name :	Mr. Jitendra Sharma
Designation :	Chief Financial Officer

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON: 30.06.2014

Category of Shareholder	Total No. of Shares	Total Shareholding as a % of Total No. of Shares
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	197491733	51.26
Sub Total	197491733	51.26
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	197491733	51.26
(B) Public Shareholding
(1) Institutions
Financial Institutions / Banks	582903	0.15
Foreign Institutional Investors	944237	0.25
Sub Total	1527140	0.40
(2) Non-Institutions
Bodies Corporate	39025757	10.13
Individuals
Individual shareholders holding nominal share capital up to Rs. 0.100 Million	88886657	23.07
Individual shareholders holding nominal share capital in excess of Rs. 0.100 Million	50631284	13.14
Any Others (Specify)	7744633	2.01
Clearing Members	1628358	0.42
Non Resident Indians	4441703	1.15
Trusts	15000	0.00
Directors & their Relatives & Friends	1659572	0.43
Sub Total	186288331	48.35
Total Public shareholding (B)	187815471	48.74
Total (A)+(B)	385307204	100.00
(C) Shares held by Custodians and against which Depository Receipts have been issued
(1) Promoter and Promoter Group	0	0.00
(2) Public	0	0.00
Sub Total	0	0.00
Total (A)+(B)+(C)	385307204	100.00

Shareholding belonging to the category "Promoter and Promoter Group"

Sr. No.	Name of the Shareholder	Details of Shares held		Total shares (including underlying shares assuming full conversion of warrants and convertible securities) as a % of diluted share capital
		No. of Shares held	As a % of grand total (A)+(B)+(C)
1	Mark Saldanha	19,74,91,553	51.26	0.00
2	Sandra Saldanha	180	0.00	0.00
	Total	19,74,91,733	51.26	0.00

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

Sr. No.	Name of the Shareholder	No. of Shares held	Shares as % of Total No. of Shares	Total shares (including underlying shares assuming full conversion of warrants and convertible securities) as a % of diluted share capital
1	AKG Finvest Limited	5330000	1.38	0.00
2	UNO Metals Limited	4970000	1.29	0.00
	Total	10300000	2.67	0.00

Shareholding belonging to the category "Public" and holding more than 5% of the Total No. of Shares

Sr. No.	Name(s) of the shareholder(s) and the Persons Acting in Concert (PAC) with them	No. of Shares	Shares as % of Total No. of Shares	Details of convertible securities		Total shares (including underlying shares assuming full conversion of warrants and convertible securities) as a % of diluted share capital
				Number of convertible securities held	% w.r.t total number of convertible securities of the same class
1	BT Globenet Nominees Limited	0	0.00	26359	100.00	0.00
	Total	0	0.00	26359	100.00	0.01

Details of Locked-in Shares

Sr. No.	Name of the Shareholder	No. of Shares	Locked-in Shares as % of Total No. of Shares
1	Mark Saldanha	1,75,00,000	4.54
	Total	1,75,00,000	4.54

BUSINESS DETAILS

Line of Business :

The Company is primarily engaged in manufacturing and marketing of Pharmaceutical Formulations.

Particulars	Installed Capacity	Actual Production
Tablets / Hard Gel	25200	16952
Soft Gel Capsules	6000	443

NOTE: Licensed capacity is not mentioned since the same is not applicable.

GENERAL INFORMATION

No. of Employees :

Information declined by the management.

Bankers :

· State Bank of India

· Bank of India

· Corporation Bank

Facilities :

Secured Loan	31.03.2014 (Rs. In Millions)	31.03.2013 (Rs. In Millions)
Long term borrowings
Term loans from banks	198.000	78.400
Vehicle Loans	0.154	0.368
Short term borrowings
Working capital facilities from banks	580.587	753.123
Total	778.741	831.891

Note:

Long term borrowings

The term loan is secured by a charge on the plants and machineries of Goa plants. There are no over dues repayment of the term loan. Maturity profile of term loan are as set out below.

	2 years	2-3 years	3-4 years	Beyond 4 years
Term Loan from Bank	103730124	77223919	14400000	2800000

Short term borrowings

Working capital facilities are secured by Hypothecation of stock of raw material,packing material, finished goods, work-inprogress, receivables and equitable mortgage on fixed assets of manufacturing facility of Goa plants, present and future.

Banking Relations :	--
Auditors :
Name :	N. K. Mittal and Associates Chartered Accountants
Legal Advisors :	Crawford Bayley and Company
Subsidiary Companies :	· Nova Pharmaceuticals Australasia Pty Limited · Marksans Pharma (UK) Limited

CAPITAL STRUCTURE

AS ON: 31.03.2014

Authorised Capital :

No. of Shares	Type	Value	Amount
550000000	Equity Shares	Re.1/- each	Rs.550.000 Millions
1400000	7% Redeemable Cumulative Preference Shares	Rs.100/- each	Rs.140.000 Millions
	Total		Rs.690.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
385307204	Equity Shares	Re.1/- each	Rs.385.307 Millions
1350000	7% Redeemable Cumulative Preference Shares	Rs.100/- each	Rs.135.000 Millions
	Total		Rs.520.307 Millions

Note:

Reconciliation of the shares outstanding at the beginning and at the end of the reporting period

Particulars	Equity Shares of Rs. 1 each		7% Redeemable Cumulative Preference Shares
	Numbers	Rs. In Millions	Numbers	Rs. In Millions
Shares outstanding at the beginning of the year	385307204	385.307	1350000	135.000
Shares Issued during the year *	--	--	--	--
Shares bought back during the year	--	--	--	--
Shares outstanding at the end of the year	385307204	385.307	1350000	135.000

Terms/rights attached to Equity Shares

The Company has only one class of Equity Shares having a par value of H1/- per share. All the Equity Shares rank pari passu in all respect. Each holder of Equity Shares is entitled to one vote per share. The equity share holders are entitled to dividend, if declared by the shareholders in an Annual General Meeting, in proportion to the number of Equity Shares held by the shareholders.

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 number of Equity Shares held by the shareholders.

Terms/rights attached to Preference Shares

The Company has issued 1,350,000 7% Redeemable Cumulative Preference Shares of H100/- each fully paid-up to Glenmark Pharmaceuticals Limited on 27th March, 2013 against redemption of 1,350,000 7%Redeemable Cumulative Preference Shares of H100/- each issued on 27.03.2008. These new preference shares will be due for redemption on 27th March, 2018. These preference shares carry dividend at the rate of 7% per annum subject to approval of the shareholders at an Annual General Meeting.

The holder of the preference shares is entitled to one vote per share only on resolutions placed before the Company which directly affect the rights attached to the preference shares. In the event of liquidation of the Company before redemption of the preference shares, the holder of the preference shares will have priority over equity shares in the payment of dividend and repayment of capital.

The company has not issued bonus shares and shares for consideration other than cash nor has the company bought back any shares during the period of five years immediately preceding the reporting date except the issue of preference shares as stated in Note

Details of shareholders holding more than 5% shares in the Company

Name of Shareholder	As on 31.03.2014
	No. of Shares	% of Holding
Equity Shares of Re. 1/- each fully paid
Mr. Mark Saldanha	197491553	51.25
7% Redeemable Cumulative Preference Shares of Rs. 100/- each fully paid
Glenmark Pharmaceuticals Limited	1350000	100.00

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2014	31.03.2013	31.03.2012
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	520.307	520.307	502.807
(b) Reserves & Surplus	1078.892	579.456	(2395.158)
(c) Money received against share warrants	0.000	0.000	11.566
(2) Share Application money pending allotment	0.000	0.000	0.000
Total Shareholders’ Funds (1) + (2)	1599.199	1099.763	(1880.785)
(3) Non-Current Liabilities
(a) long-term borrowings	198.154	78.768	152.013
(b) Deferred tax liabilities (Net)	18.678	22.213	125.869
(c) Other long term liabilities	0.000	0.000	0.000
(d) long-term provisions	0.000	0.000	0.000
Total Non-current Liabilities (3)	216.832	100.981	277.882
(4) Current Liabilities
(a) Short term borrowings	580.587	753.123	771.834
(b) Trade payables	405.045	298.594	294.784
(c) Other current liabilities	735.860	750.516	2944.349
(d) Short-term provisions	226.780	99.499	18.226
Total Current Liabilities (4)	1948.272	1901.732	4029.193
TOTAL	3764.303	3102.476	2426.290
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	493.894	502.911	489.555
(ii) Intangible Assets	174.256	225.635	277.013
(iii) Capital work-in-progress	0.000	0.000	0.000
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	676.164	676.164	235.146
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	15.006	12.021	39.509
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	1359.320	1416.731	1041.223
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	556.086	513.176	402.470
(c) Trade receivables	1123.797	914.188	741.894
(d) Cash and cash equivalents	333.736	4.130	175.850
(e) Short-term loans and advances	391.364	254.251	64.853
(f) Other current assets	0.000	0.000	0.000
Total Current Assets	2404.983	1685.745	1385.067
TOTAL	3764.303	3102.476	2426.290

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2014	31.03.2013	31.03.2012
	SALES
		Revenue from operations	3149.446	1922.970	1545.912
		Other Income	33.120	41.718	19.541
		TOTAL (A)	3182.566	1964.688	1565.453
Less	EXPENSES
		Cost of materials consumed	1426.341	659.575	605.011
		Purchases of Stock-in-Trade	288.372	275.531	169.258
		Changes in inventories of finished goods, work-in-progress and Stock-in-Trade	(18.406)	91.931	103.316
		Employee benefits expense	213.886	153.925	135.489
		Other expenses	401.094	299.319	1710.590
		Miscellaneous Expenditure Written Off	0.000	0.000	0.131
		TOTAL (B)	2311.287	1480.281	2723.795
Less	PROFIT / (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		871.279	484.407	(1158.342)
Less	FINANCIAL EXPENSES (D)		152.127	101.323	490.877
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		719.152	383.084	(1649.219)
Less/ Add	DEPRECIATION/ AMORTISATION (F)		86.561	87.033	179.812
	PROFIT / (LOSS) BEFORE TAX (E-F) (G)		632.591	296.051	(1829.031)
Less	TAX (H)		77.020	(99.777)	(18.370)
	PROFIT / (LOSS) AFTER TAX (G-H) (I)		555.571	395.828	(1810.661)
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	3117.026	1890.165	843.828
	TOTAL EARNINGS		3117.026	1890.165	843.828
	IMPORTS
		Raw Materials	600.347	288.930	210.995
		Capital Goods / Spares	6.032	11.955	2.137
	TOTAL IMPORTS		606.379	300.885	213.132
	Earnings Per Share (Rs.)		1.44	1.03	(4.70)

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013	31.03.2012
PAT / Total Income	(%)	17.46	20.15	(115.66)
Net Profit Margin (PBT/Sales)	(%)	20.09	15.40	(118.31)
Return on Total Assets (PBT/Total Assets}	(%)	20.48	12.20	(83.47)
Return on Investment (ROI) (PBT/Networth)		0.40	0.27	0.97
Debt Equity Ratio (Total Debt /Networth)		0.49	0.76	(0.49)
Current Ratio (Current Asset/Current Liability)		1.23	0.89	0.34

FINANCIAL ANALYSIS

[all figures are in Rupees Millions]

DEBT EQUITY RATIO

Particular	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Share Capital	502.807	520.307	520.307
Reserves & Surplus	(2395.158)	579.456	1078.892
Money received against share warrants	11.566	0.000	0.000
Net worth	(1880.785)	1099.763	1599.199
long-term borrowings	152.013	78.768	198.154
Short term borrowings	771.834	753.123	580.587
Total borrowings	923.847	831.891	778.741
Debt/Equity ratio	(0.491)	0.756	0.487

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Revenue from operations	1545.912	1922.970	3149.446
		24.391	63.780

NET PROFIT MARGIN

Net Profit Margin	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Revenue from operations	1545.912	1922.970	3149.446
Profit After Tax	(1810.661)	395.828	555.571
	(117.13%)	20.58%	17.64%

LOCAL AGENCY FURTHER INFORMATION

CURRENT MATURITIES OF TERM LOAN

Particulars	31.03.2014 (Rs. In Millions)	31.03.2013 (Rs. In Millions)	31.03.2012 (Rs. In Millions)
Current maturities of Term Loan	113.668	74.508	76.909
Total	113.668	74.508	76.909

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 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	No

LITIGATION DETAILS:

HIGH COURT OF BOMBAY

Bench:- Bombay
Lodging No:-	SL/1147/2012	Filing Date:-	26/04/2012	Reg. No.:-	S/1585/2012	Reg. Date:-	10/07/2012
Petitioner:-	EMBEE DROAD SERVICES PRIVATE LIMITED		Respondent:-	MARKSANS PHARMA LIMITED
Petn. Adv.:	S.V.VORA (0)
District:-	MUMBAI
Bench:-	SINGLE
Status:-	Transferred		Category:-	Civil Suits
Transfer Date:	17/01/2013		Remark:	Transferred to City Civil Court
Act:-	Code of Civil Procedure 1908

OPERATIONS

During the year ended 31st March, 2014, total turnover achieved by the company was H3149.45 Mn as compared

to H 1922.97 Mn in the previous year. The year has registered a net profit of H555.57 Mn as compared to H 395.83 Mn in the previous year. This is mainly due to strong business and improved financial performances, new ANDA product licenses in US markets and also due to better realization on account of currency movement.

MANAGEMENT DISCUSSION AND ANALYSIS

GLOBAL PHARMACEUTICAL MARKET

The global pharmaceutical industry grew by 3.3 percent in 2013 (Source: IMS) and is expected to grow to US$1 trillion in 2014 (Source: Urch Publishing). Patent expirations, government cost-containment policies in Europe and a weak employment scenario in the US may only be partially offset by the launch of new products and strong growth from the emerging markets. The USFDA approved 24 novel products in 2013 (as of November 30, 2013), compared to 39 in 2012.

US GENERIC MARKET

The generics industry provides a bright spot amidst escalating American healthcare costs, which are projected to hit US$2.9 trillion in 2013 and reach US$4.5 trillion by 2020. Generics saved American consumers an estimated US$1 trillion over the last decade. Growth in the American generics market will be driven by the loss of patent protection for a number of brands.

The total American pharma market is estimated at US$350-360 billion, of which generic medicines accounted for at least 10 percent. While American companies held the largest share, India became the largest foreign supplier of generic medicines to the US.

India-based companies emerged as a growing competitive force in the US generics landscape. In 2012, over 20 percent of the retail generic prescriptions dispensed were from Indian firms. This trend appears to continue as India leads the way in Type-II drug master filings. In 2013, India-based companies surpassed US companies with the most ANDAs filed for the first time.

GLOBAL OUTSOURCING MARKET

A recent analysis of the Chemical Pharmaceutical Generic Association (CPA), which represents Italian generic API manufacturers, points to strong growth for the pharmaceutical contract research and manufacturing services (PCRAMS) industry. The global PCRAMS industry, which includes revenues from contract research organizations (CROs) and contract manufacturing organizations (CMOs), was valued at US$72 billion in 2012, up from US$21 billion in 2000. Contract manufacturing accounted for two-thirds of the 2012 market, or US$47 billion, and contract research the remaining US$25 billion, according to the CPA report, The World PCRAMS Industry.

Of the global contract manufacturing business, APIs and intermediates accounted for the largest sector at 64 percent or US$30 billion. Contract manufacturing of finished dosage forms accounted for 9.6 percent or US$4.5 billion, according to the CPA report. Development of finished dosage forms accounts for approximately 15 percent of the contract manufacturing market, or US$7 billion, and packaging/labeling and other services represent the remainder, or US$5.5 billion.

The global PCRAMS market is forecast to grow at an annual average of 13.6 percent over the next five years to reach US$136 billion by 2017 from US$72 billion in 2012. The global CRO business is expected to increase from US$25 billion to US$43 billion in 2017, representing an average annual growth of 11.4 percent, according to the CPA. The global CMO business will increase from US$47 billion in 2012 to US$93 billion in 2017, an average

of 14.6 percent in yearly growth, according to CPA estimates.

The Asia-Pacific region will show the strongest growth in the global PCRAMS market, with particularly strong growth coming in from India and China. The share held by India in the world PCRAMS market will nearly triple in the next five years, and by 2017, India could be the second largest market for PCRAMS, accounting for 21.3 percent of the global market compared to only 8.3 percent in 2012. India could only be surpassed by the US, which is expected to hold almost 25 percent (24.9 percent) of the global PCRAMS market in 2017 compared to a share of 33.7 percent in 2012. Just as the US market’s share in the global PCRAMS market could decline so could the share of Western Europe from 25.0 percent in 2012 to 17.1 percent in 2017. China’s share of the global PCRAMS market could increase from 12.2 percentin 2012 to 19.2 percent by 2017, according to the CPA analysis.

OUTLOOK

Going ahead, we expect to drive significant growth across a wider product range, creating new capacities, carving out a larger presence in the US and Germany, extending to unexplored global markets and liquidating their debt.

In doing so, we expect to emerge as a H1,0000.000 Millions entity in the coming years, the shortest tenure in which any Indian pharmaceutical player focusing on the regulated markets would have reached this milestone.

BUSINESS SEGMENTS

The Company is primarily engaged in a single business segment of manufacturing and marketing of Pharmaceutical Formulations and is managed as one entity for its various activities and is governed by a similar set of risks and returns.

CONTINGENT LIABILITIES

Particulars	31.03.2014 (Rs. In Millions)	31.03.2013 (Rs. In Millions)
Claims against the company not acknowledged as debt	2.568	14.293
Guarantees and Letter of Credit	834.230	833.905
Other money for which the company is contingently liable
Sales Tax
Sales Tax (BST, CST) - 03-04	0.506	2.021
Sales Tax (BST, CST) - 04-05	0.790	0.790
Sales Tax (CST) - 06-07	--	--
Foreign Currency Convertible Bonds	--	1519.298
	838.094	2370.298

INDEX OF CHARGES

S.No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10241328	13/08/2010	60,000,000.00	BANK OF INDIA	MUMBAI MID CORPORATE, 70/80, M.G. ROAD, BANK OF  INDIA BUILDING, MEZZANINE FLOOR, FORT, MUMBAI, MAHARASHTRA - 400001, INDIA	A93860021
2	80034914	06/01/2014 *	1,550,000,000.00	STATE BANK OF INDIA	CORPORATE ACCOUNT GROUP BRANCH, NEVILE HOUSE, J. N. HEREDIA MARG, BALLARD ESTATE, MUMBAI, MAHARASHTRA - 400001, INDIA	B94457934

* Date of charge modification

STATEMENT OF UNAUDITED RESULT FOR THE QUARTER YEAR ENDED 30TH JUNE 2014

(Rs. In Millions)

Particulars	Quarter Ended
	30.06.2014
	Unaudited
Part - I
1. Income from Operations
(a) Net Sales/Income from Operations (Net of Excise Duty)	1006.650
(b) Other Operating Income	--
Total Income from Operation	1006.650
2. Expenses
Cost of materials consumed	448.930
Purchases of Stock in Trade	84.100
Changes in inventories of finished goods, work-in-progress and stock-in-trade	24.490
Employee benefits expense	58.200
Depreciation and amortization expense	22.420
Other expenses	92.920
Total Expenses	731.060
3. Profit/(Loss) from Operations before Other Income, finance cost* and Exceptional Items (1-2)	275.590
4. Other income	--
6. Profit/(Loss) from ordinary activities before finance costs and exceptional Items (3+4)	275.590
6. Finance Costs	25.440
7. Profit/(Loss) from ordinary activities after finance costs but before exceptional items (5-6)	250.150
8. Exceptional Hems	--
9. Profit/(Loss) from ordinary activities before tax (7-8)	250.150
10. Tax Expense	67.510
11. Net Profit/(Loss) for the period (9-10)	182.640
12. Minority Interest	--
13. Net Profit/(Loss) after taxes, minority Interest and Share of Profit/(Loss)	182.640
14. Paid-up Equity Share Capital (Pace Value per share : Rs.1/-	385.310
15. Reserves excluding Revolution Reserve as per balance sheet of previous accounting year
16. Earning* per share of Rs.1/- each (Not Annualised):
Basic and Diluted EPS before Extraordinary items	0.47
Basic and Diluted EPS after Extraordinary items	0.47
A. PARTICULARS OF SHAREHOLDING
Public shareholding
Number of shares	18,78,15,471
Percentage of Shareholding	48.75%
Promoters and Promoter Group Shareholding
Pledged /encumbered
Number of shares	Nil
Percentage of shares (as a % of the total shareholding of promoter and promoter group)	Nil
Percentage of shares (as a % of the total share capital of the company)	Nil
Non-encumbered
Number of shares	19,74,91,733
Percentage of shares (as a % of the total shareholding of promoter and promoter group]	100%
Percentage of shares (as a % of the total share capital of the company)	51.25%

B	INVESTOR COMPLAINTS :	Quarter Ended 30.06.2014
	Pending at the beginning of the quarter	Nil
	Received during the quarter	Nil
	Disposed of during the quarter	--
	Remaining unresolved at the end of the quarter	Nil

Note :

· The above results have been reviewed by the Audit Committee and approved by the Board of Directors at its meeting held on 12.08.2014.

· The Company will considered effect of Deferred tax Assets / Liabilities – AS -22, in the audited accounts at the year end.

· The Company is primarily engaged in a single business segment of Manufacturing and Marketing of Pharmaceutical Formulations.

· The figure for the quarter ended March 31, 2014 are the balancing figures between audited figures in respect of the full financial year ended March 31,2014 and the unaudited published year to date figure upto December 31,2013 being the date of the end of the third quarter of the financial year.

· Previous year’s figures have been re-grouped/re-classified, wherever necessary, so as to make them comparable with the current year's figures.

FIXED ASSETS

• Land
• Building
• Plant and Machinery
• Computer and Software
• Office Equipments
• Furniture and Fixtures
• Vehicles

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. 60.45
UK Pound	1	Rs. 99.46
Euro	1	Rs. 79.46

INFORMATION DETAILS

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

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	7
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	7
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	6
--CREDIT LINES	1~10	6
--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		53

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.