MIRA INFORM REPORT

Report No. :	319342
Report Date :	28.04.2015

IDENTIFICATION DETAILS

Name :	GRANULES INDIA LIMITED
Registered Office :	Second Floor, Block III, My Home Hub, Madhapur, Cyberabad, Hyderabad – 500081, Telangana
Tel. No.:	91-40-66760000
Country :	India
Financials (as on) :	31.03.2014
Date of Incorporation :	18.03.1991
Com. Reg. No.:	01-012471
Capital Investment / Paid-up Capital :	Rs. 202.812 Million
CIN No.: [Company Identification No.]	L24110TG1991PLC012471
TAN No.: [Tax Deduction & Collection Account No.]	HYDG00432F
PAN No.: [Permanent Account No.]	AAACG7369K
Legal Form :	Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges.
Line of Business :	Subject is engaged in the manufacturing and selling of Active Pharmaceutical Ingredients (APIs), Pharmaceutical Formulation Intermediates (PFIs) and Finished Dosages (FDs).
No. of Employees :	1500 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (50)

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

Maximum Credit Limit :	USD 14000000
Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Exist
Comments :	Subject is an established company having satisfactory track. Financial position of the company is good. Trade relations are reported as fair. Business is active. Payment terms are reported to be usually correct. The company can be considered normal for business dealing at usual trade terms and conditions.

NOTES :

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

ECGC Country Risk Classification List – December 31, 2014

Country Name	Previous Rating (30.09.2014)	Current Rating (31.12.2014)
India	A1	A1

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

EXTERNAL AGENCY RATING

Rating Agency Name	CARE
Rating	Long Term Bank Facilities : A-
Rating Explanation	Adequate degree of safety and low credit risk.
Date	24.07.2014

Rating Agency Name	CARE
Rating	Short Term Bank Facilities: A2 +
Rating Explanation	Strong degree of safety and low credit risk.
Date	24.07.2014

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. B. Chandrashekhar
Designation :	General Manager – Finance
Contact No.:	91-9963027747

LOCATIONS

Registered Office/ Corporate Office :	Second Floor, Block III, My Home Hub, Madhapur, Cyberabad, Hyderabad – 500 081, Telangana, India
Tel. No.:	91-40-66760000
Mobile No.:	91-9963027747 (Mr. B. Chandrashekhar)
Fax No.:	91-40-23115145
E-Mail :	mail@granulesindia.com investorrelations@granulesindia.com chandra.b@granulesindia.com
Website:	http://www.granulesindia.com
Area :	10000 sq. ft.
Location :	Rented
Factory 1 :	Plot No.15/A/1, Phase-III, I.D.A. Jeedimetla, Hyderabad – 500055, Telangana, India
Factory 2 :	Temple Road, Bonthapally, Medak District – 502313, Telangana, India
Factory 3 :	Plot No.160/A and 161/E, Gagillapur Village, Qutubullapur Mandal, R.R. District – 500043, Andhra Pradesh, India
R&D Centre 1 :	Formulations Gagillapur, Qutubullapur Mandal, Ranga Reddy District – 500043, Andhra Pradesh, India
R&D Centre 2 :	API Plot No.15/A/1, Phase-III, I.D.A. Jeedimetla, Hyderabad – 500055, Andhra Pradesh, India
R&D Centre 3 :	API Gat No.258, Shreeram Building, Lawale Phata, Pirangut, Taluka Mulshi, District Pune – 412 108, Maharashtra, India
API & Formulations :	Plot no. 56, Road no. 5, ALEAP, Hyderabad, Telangana, India
Overseas Offices :	Located at: · Europe · U.S. · Canada · Latin America · Asia · Middle East · Africa

DIRECTORS

AS ON 31.03.2014

Name :	Mr. C. Krishna Prasad
Designation :	Managing Director – Non-Independent
Date of Birth/Age :	02.10.1954
Qualification :	B. Sc.
Date of Appointment :	31.08.1994
Name :	Mr. L.S. Sarma
Designation :	Director – Non-Executive, Independent
Name :	Mr. A.P. Kurian
Designation :	Director – Non-Executive, Independent
Name :	Mr. C. Parthasarathy
Designation :	Director – Non-Executive, Independent
Date of Birth/Age :	07.07.1955
Qualification :	B. Sc., LLB, FCA, FCS
Date of Appointment :	27.05.2009
Name :	Dr. Krishna Murthy Ella
Designation :	Director – Non-Executive, Independent
Name :	Mr. Arun Rao Akinepally
Designation :	Director – Non-Executive, Independent
Name :	Mr. Harsha Chigurupati
Designation :	Executive Director – Non-Independent
Name :	Mrs. Uma Chigurupati
Designation :	Executive Director – Non-Independent
Name :	Mr. K.B. Sankara Rao
Designation :	Additional Director

KEY EXECUTIVES

Name :	Mr. B. Madhusudan Rao
Designation :	Chief Operating Officer
Name :	Mr. VVS Murthy
Designation :	Chief Financial Officer
Name :	Mr. Stefan Lohle
Designation :	Chief Marketing Officer
Name :	Ms. Chaitanya Tummala
Designation :	Company Secretary and Compliance Officer
Name :	Mr. B. Chandrashekhar
Designation :	General Manager – Finance

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 31.03.2015

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	86386620	42.29
Bodies Corporate	7491270	3.67
Sub Total	93877890	45.96
(2) Foreign
Individuals (Non-Residents Individuals / Foreign Individuals)	5369310	2.63
Sub Total	5369310	2.63
Total shareholding of Promoter and Promoter Group (A)	99247200	48.59
(B) Public Shareholding
(1) Institutions
Financial Institutions / Banks	152056	0.07
Foreign Institutional Investors	8243996	4.04
Sub Total	8396052	4.11
(2) Non-Institutions
Bodies Corporate	9315594	4.56
Individuals
Individual shareholders holding nominal share capital up to Rs. 0.100 Million	35794440	17.52
Individual shareholders holding nominal share capital in excess of Rs. 0.100 Million	14487449	7.09
Any Others (Specify)	37010805	18.12
Foreign Corporate Bodies	31983350	15.66
Non Resident Indians	4116778	2.02
Clearing Members	910677	0.45
Sub Total	96608288	47.30
Total Public shareholding (B)	105004340	51.41
Total (A)+(B)	204251540	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)	204251540	100.00

BUSINESS DETAILS

Line of Business :

Subject is engaged in the manufacturing and selling of Active Pharmaceutical Ingredients (APIs), Pharmaceutical Formulation Intermediates (PFIs) and Finished Dosages (FDs).

Products :

ITC Code	Product Description
2942000	Bulk Drugs Formulations and Granulations

Brand Names :

Not Divulged

Agencies Held :

Not Divulged

Exports :

Not Divulged

Imports :

Not Divulged

Terms :

Not Divulged

PRODUCTION STATUS : NOT AVAILABLE

GENERAL INFORMATION

Suppliers :

Reference :	Not Divulged
Name of the Person :	Not Divulged
Contact No.:	Not Divulged
Since How Long Known :	Not Divulged
Maximum Limit Dealt :	Not Divulged
Experience :	Not Divulged
Remark:	Not Divulged

Customers :

Reference :	Not Divulged
Name of the Person :	Not Divulged
Contact No.:	Not Divulged
Since How Long Known :	Not Divulged
Maximum Limit Dealt :	Not Divulged
Experience :	Not Divulged
Remark:	Not Divulged

No. of Employees :

1500 (Approximately)

Bankers :

Bank Name	Andhra Bank State Bank of India Bank of Baroda ING Vysya Bank
Branch	Not Divulged
Person Name (With Designation)	Not Divulged
Contact Number	Not Divulged
Name of Account Holder	Not Divulged
Account Number	Not Divulged
Account Since (Date/Year of Account Opening)	Not Divulged
Average Balance Maintained (If Possible)	Not Divulged
Credit Facilities Enjoyed (If any)	Not Divulged
Account Operation	Not Divulged
Remarks (If any)	Not Divulged

Facilities :

Secured Loan	31.03.2014 (Rs. in Million)	31.03.2013 (Rs. in Million)
LONG TERM BORROWINGS
Term Loans
Indian rupee loans from banks	909.000	4.133
Foreign currency loan from financial institutions	1239.832	1382.724
Finance lease obligations	4.366	13.907
SHORT TERM BORROWINGS
Loans repayable on demand from banks	774.862	767.148
Total	2928.060	2167.912

NOTES:

LONG TERM BORROWINGS

All secured term loans are secured by a paripassu first charge on fixed assets and a paripassu second charge of the current assets of the Company.

Of the foreign currency loans from Financial Institutions on account of Rs.606.900 Million as on 31st March, 2014 (Rs.548.700 Million as on 31st March, 2013) is further guaranteed by the personal guarantee of the Managing Director.

SHORT TERM BORROWINGS

The Secured Loans repayable on demand from Banks are secured by paripassu first charge on the current assets and a paripassu second charge on the fixed assets of the Company.

Financial Institution :	International Finance Corporation
Statutory Auditors :
Name :	Kumar and Giri Chartered Accountants
Address :	D.No.1-11-126/D, Opposite Aeroview Towers, Begumpet, Hyderabad – 500 016, Telangana, India
Internal Auditors :
Name :	Dhanunjaya and Haranath Chartered Accountants
Address :	302, Wings, 8-3-960/6/2, Srinagar Colony, Hyderabad – 500073, Telangana, India
Memberships :	--
Collaborators :	--
Wholly Owned Subsidiary Companies :	· Granules USA Inc. · GIL Life Sciences Private Limited · Granules Singapore Pte Limited · Auctus Pharma Limited
Joint Venture :	· Granules-Biocause Pharmaceutical Co. Limited · Granules Omnichem Private Limited
Directors Interest :	Karvy Computershare Private Limited

CAPITAL STRUCTURE

AS ON 31.03.2014

Authorised Capital :

No. of Shares	Type	Value	Amount
30000000	Equity Shares	Rs.10/- each	Rs.300.000 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
20281154	Equity Shares	Rs.10/- each	Rs.202.812 Million

Reconciliation of the number of shares outstanding and the amount of share capital as at March 31, 2013

Particulars	As at 31^st March, 2014
	No. of Shares	Amount (Rs. in Million)
Number of shares at the beginning of the year	20126154	201.262
Add: Shares issued on exercise of employee stock options	155000	1.550
Number of shares at the end of the year	20281154	202.812

Terms/Rights attached to equity shares:

The Company has only one class of equity shares having a par value of Rs.10/- . Each holder of equity shares is entitled to one vote 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 in the ensuing Annual General Meeting.

During the year end 31-Mar-2014, the amount of per share dividend recognized as distribution to equity shareholders was Rs.3.50/- (31-Mar-2013: Rs.2.00/-)

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.

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

PARTICULARS	As at 31^st March, 2014
	No. of Shares	%
C. Krishna Prasad	7473538	36.85
Investco Management LLC	2211200	10.90
Ridgeback Capital Asia Limited	1144135	5.64
International Finance Corporation	----	----

LISTING DETAILS:

Subject Stock Code :	BSE : 532482 NSE : GRANULES
Stock Exchange Place :	The National Stock Exchange of India Limited
Listed Date :	---
ISIN :	INE101D01020

FINANCIAL DATA

[all figures are in Rupees Million]

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	202.812	201.262	200.617
(b) Reserves & Surplus	3240.315	2503.668	2246.752
(c) Money received against share warrants	0.000	0.000	0.000
(2) Share Application money pending allotment	2.548	3.150	0.000
Total Shareholders’ Funds (1) + (2)	3445.675	2708.080	2447.369
(3) Non-Current Liabilities
(a) Long-term borrowings	2220.918	1407.237	880.534
(b) Deferred tax liabilities (Net)	358.081	250.986	230.918
(c) Other long term liabilities	0.000	0.000	0.000
(d) Long-term provisions	36.990	21.238	15.303
Total Non-current Liabilities (3)	2615.989	1679.461	1126.755
(4) Current Liabilities
(a) Short term borrowings	774.862	767.148	614.127
(b) Trade payables	1262.480	838.475	642.269
(c) Other current liabilities	376.049	129.266	193.628
(d) Short-term provisions	83.048	47.093	46.632
Total Current Liabilities (4)	2496.439	1781.982	1496.656
TOTAL	8558.103	6169.523	5070.780
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	3264.286	2324.008	2215.306
(ii) Intangible Assets	92.443	124.338	156.233
(iii) Capital work-in-progress	391.421	916.024	290.752
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	1454.460	412.960	327.960
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	31.466	125.276	203.488
(e) Other Non-current assets	25.558	35.764	4.024
Total Non-Current Assets	5259.634	3938.370	3197.763
(2) Current assets
(a) Current investments	0.000	94.592	0.000
(b) Inventories	1202.873	1084.907	885.736
(c) Trade receivables	1218.197	680.966	530.280
(d) Cash and cash equivalents	219.258	61.597	236.520
(e) Short-term loans and advances	31.434	56.479	26.394
(f) Other current assets	626.707	252.612	194.087
Total Current Assets	3298.469	2231.153	1873.017
TOTAL	8558.103	6169.523	5070.780

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2014	31.03.2013	31.03.2012
	SALES
		Revenue from operations	10016.799	6797.970	5626.777
		Other Income	36.475	17.181	12.082
		TOTAL (A)	10053.274	6815.151	5638.859
Less	EXPENSES
		Cost of Materials consumed	5873.565	4252.584	3613.993
		Changes in inventories of finished goods and work-in- progress	(23.762)	(74.062)	(59.224)
		Employee benefits expense	692.738	504.205	379.572
		Other expenses	1844.176	1324.668	966.445
		TOTAL (B)	8386.717	6007.395	4900.786
Less	PROFIT / (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		1666.557	807.756	738.073
Less	FINANCIAL EXPENSES (D)		189.270	164.949	154.941
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		1477.287	642.807	583.132
Less/ Add	DEPRECIATION/ AMORTISATION (F)		263.979	202.089	179.760
	PROFIT / (LOSS) BEFORE TAX (E-F) (G)		1213.308	440.718	403.372
Less	TAX (H)		403.194	138.965	130.309
	PROFIT / (LOSS) AFTER TAX (G-H) (I)		810.114	301.753	273.063
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		1225.825	993.796	787.845
Less	APPROPRIATIONS
		Provision for Dividend	70.984	40.252	40.123
		Provision for Dividend tax	12.064	6.841	6.509
		Transfer to General Reserve	1000.00	22.631	20.480
	BALANCE CARRIED TO THE B/S		952.892	1225.825	993.796
	EARNINGS IN FOREIGN CURRENCY
		Export of goods calculated on F.O.B. basis	8239.590	5457.763	4821.839
	TOTAL EARNINGS		8239.590	5457.763	4821.839
	IMPORTS
		Raw Materials	3569.567	2759.834	2168.052
		Components and Spare Parts	20.906	12.277	9.495
		Capital Goods	95.356	150.829	92.709
	TOTAL IMPORTS		3685.829	2922.940	2270.256
	Earnings / (Loss) Per Share (Rs.)
	- Basic		40.06	15.02	13.61
	- Diluted		39.30	14.62	13.56

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013	31.03.2012
Net Profit Margin (PAT / Sales)	(%)	8.09	4.44	4.85
Operating Profit Margin (PBIDT/Sales)	(%)	16.64	11.88	13.12
Return on Total Assets (PBT/Total Assets)	(%)	18.08	9.10	9.06
Return on Investment (ROI) (PBT/Networth)		0.35	0.16	0.16
Debt Equity Ratio (Total Debt /Networth)		0.87	0.80	0.61
Current Ratio (Current Asset/Current Liability)		1.32	1.25	1.25

FINANCIAL ANALYSIS

[all figures are in Rupees Million]

DEBT EQUITY RATIO

Particular	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Share Capital	200.617	201.262	202.812
Reserves & Surplus	2246.752	2503.668	3240.315
Share Application money pending allotment	0.000	3.150	2.548
Net worth	2447.369	2708.080	3445.675
long-term borrowings	880.534	1407.237	2220.918
Short term borrowings	614.127	767.148	774.862
Total borrowings	1494.661	2174.385	2995.780
Debt/Equity ratio	0.611	0.803	0.869

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Sales	5626.777	6797.970	10016.799
		20.815	47.350

NET PROFIT MARGIN

Net Profit Margin	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Sales	5626.777	6797.970	10016.799
Profit	273.063	301.753	810.114
	4.85%	4.44%	8.09%

LOCAL AGENCY FURTHER INFORMATION

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	Yes
5) Type of Business	Yes
6) Line of Business	Yes
7) Promoter’s background	Yes
8) No. of employees	Yes
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	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	Yes

LITIGATION DETAILS

CASE STATUS INFORMATION SYSTEM

ITTA 34 / 2010

ITTASR 92 / 2008

CASE IS:PENDING

PETITIONER		RESPONDENT
THE COMMISSIONER OF INCOME TAX II, HYDERABAD	VS	M/S. GRANULES INDIA LIMITED
PET.ADV. : ASHOK		RESP.ADV. :
SUBJECT: U/Sec. 147 Income Escaping Assessment		DISTRICT:  HYDERABAD

FILING DATE:  23-01-2008	POSTING STAGE :  FOR ORDERS OF COURT
REG. DATE    :   19-02-2010	LISTING DATE :  28-10-2014	STATUS   :  ---------

HON'BLE JUDGE(S):

L.NARASIMHA REDDY

CHALLA KODANDA RAM

INDEX OF CHARGES:

S.NO.	CHARGE ID	DATE OF CHARGE CREATION/MODIFICATION	CHARGE AMOUNT SECURED	CHARGE HOLDER	ADDRESS	SERVICE REQUEST NUMBER (SRN)
1	10540765	30/12/2014	200,000,000.00	ANDHRA BANK	PB 34,H.NO.6-3-352/2,ASTRAL HEIGHTS,UPPER GROUND F  , ROAD NO.1, BANJARA HILLS, HYDERABAD, TELANGANA  - 500034, INDIA	C39301502
2	10476418	08/02/2014	1,645,000,000.00	ANDHRA BANK	SOMAJIGUDA BRANCH, 6-3-352/2, ASTRAL HEIGHTS,, RO  AD NO. 1, BANJARA HILLS, HYDERABAD, ANDHRA PRADESH  - 500034, INDIA	B95849865
3	10389714	30/11/2012	527,500,000.00	DEG - DEUTSCHE INVESTITIONS- UND ENTWICKLUNGSGESEL  LSCHAFT MBH	KAMMERGASSE 22, COLOGNE, - 50676, GERMANY	B63236012
4	10389717	30/11/2012	527,500,000.00	INTERNATIONAL FINANCE CORPORATION	2121 PENNSYLVANIA AVENUE, N.W., WASHINGTON DC, WA  SHINGTON DC, - 20433, UNITED STATES OF AMERICA	B63236624
5	10319592	22/11/2011	49,150,000.00	INTERNATIONAL FINANCE CORPORATION	2121 PENNSYLVANIA AVENUE, N.W., WASHINGTON DC, 20  433, WASHINGTON DC, - 110021, UNITED STATES OF AM  ERICA	B26012047
6	10082831	22/12/2007	360,000,000.00	INTERNATIONAL FINANCE COPORATION	IFC'S SOUTH ASIA DEPARTMENT, GATE NO.3, NITI MAG,,  50-M, SHANTHIPATH, CHANAKYAPURI,, NEW DELHI, DEL  HI - 110021, INDIA	A30260624
7	90139379	24/03/2014 *	4,710,100,000.00	ANDHRA BANK	SOMAJIGUDA BRANCH, 6-3-352/2, ASTRAL HEIGHTS,, RO  AD NO. 1, BANJARA HILLS, HYDERABAD, ANDHRA PRADESH  - 500034, INDIA	C03962818
8	90132933	22/06/2001	5,000,000.00	THE A.P.VARDHAMAN(MAHILA) CO-OP URBAN BANK	3-5-141/F/7; GROUND FLOOR, GEETANJALI COMPLEX, H  YDERABAD, ANDHRA PRADESH, INDIA	-
9	90131139	11/01/1995	861,250.00	A.P.STATE FINANCIAL CORPORATION	SANGAREDDY BRANCH, SANGAREDDY, ANDHRA PRADESH, IND  IA	-

* Date of charge modification

UNSECURED LOAN

Particulars	31.03.2014 (Rs. in Million)	31.03.2013 (Rs. in Million)
LONG TERM BORROWINGS
Deferred sales tax loan (Deferred sales tax loan is interest free and payable in 14 yearly installments commencing from June 2013 onwards.)	6.389	6.473
Creditors for capital goods	61.331	0.000
Total	67.720	6.473

CONTINGENT LIABILITIES: 

Particulars	31.03.2014 (Rs. in Million)	31.03.2013 (Rs. in Million)
a) Claims against the company not acknowledgment as debt
Income Tax	118.243	123.038
Excise	20.555	20.555
Service Tax	8.937	8.937
Customs	4.347	4.347
b) Bank Guarantee and LC	140.852	201.483
d) Bills discounted with banks	1782.042	1271.087
Total	2074.976	1629.447

CORPORATE INFORMATION:

The Company is a public domiciled in India and incorporated under the Companies Act, 1956. Its shares are listed on two stock exchanges in India. The Company is engaged in the manufacturing and selling of Active Pharmaceutical Ingredients (APIs), Pharmaceutical Formulation Intermediates (PFIs) and Finished Dosages (FDs). The Company caters to both domestic and international markets.

REVIEW OF OPERATIONS

The Company posted very good results during the financial year FY 14. The Company reported record sales of Rs.10016.799 Million in the FY 14 compared to net sales of Rs.6797.970 Million in FY 13, registering growth of 47.35% in the current financial year. The Company’s growth was driven by strong performance across all manufacturing facilities. The primary growth driver in FY 14 was led by the Company’s commercialization of its PFI and Finished Dosage expansion at its Gagillapur facility. The Company improved utilization in the newly expanded facility throughout the year and expects to continue improving utilization in the future. In addition, the API facilities continued to increase production which contributed to strong sales. On a standalone basis, the Finished Dosage business contributed the largest share of revenue at 35% while PFI and API contributed 33% and 32%, respectively. This is compared to 31%, 32% and 37% for Finished Dosages, PFI and API, respectively in FY 13.

The EBITDA stood at Rs.1666.557 Million in FY 14 compared to Rs.807.756 Million in FY 13, registering a growth of 106.32%. The profit after tax for FY 14 stood at Rs.810.114 Million compared to Rs.301.753 Million in FY 13, registering a growth of 168.47% in the current financial year. The profitability outpaced revenue growth due to several reasons. First, the Company improved its economy of scale by increasing production utilization in its newly expanded PFI and Finished Dosage capacity at the Gagillapur facility. Due to the increased utilization, the product mix shifted more towards Finished Dosages which bolstered profitability. Also, due to the Company’s focus on operational excellence, the API units also increased capacity through de-bottlenecking which drove profitability. The Company believes the profitability margins from the standalone operations are sustainable.

The Company was able to increase sales due to relentless focus on delivering high-quality material at a cost-effective price. The Company believes that its product portfolio offers compelling opportunities and will continue to strengthen its leadership position. In addition to growing its core business, it has been looking at opportunities to diversify its sales by leveraging its core competency of efficient manufacturing. In FY 14, Company made its first acquisition by purchasing Auctus Pharma Limited (‘Auctus’). The acquisition of Auctus fits into Company’s strategy of being a fully integrated manufacturer while diversifying its product portfolio by adding high-value products with significant market demand. In the shortto- mid term, Company will focus on selling APIs from the Auctus portfolio to customers in the regulated markets. Over the long-term, it will add value by offering Finished Dosages from select APIs in the same portfolio. The Company will continue to strengthen its model and build systems that are sustainable as it continue to scale-up.

EXPANSIONS

During FY 14, the Company commercialized its expansion at the Gagillapur facility. The expansion involved a capacity expansion in the PFI and Finished Dosage facilities. The expansion mainly focused on efficient design and output in terms of material transfer and automation. During the year, the Company received customer approvals for both expansions and capacity utilization increased accordingly. The Company also continued construction of a new central warehouse at its Gagillapur plant in FY 14.

SUBSIDIARY COMPANIES

GRANULES USA INC

Granules USA Inc, a wholly–owned subsidiary company Company achieved a turnover of Rs.1107.999 Million against the turnover of Rs.751.000 Million of FY 13 and the profit after tax is Rs.8.640 Million against Rs.27.096 Million of FY 13. The Company achieved a turnover of Rs.1107.999 Million against the turnover of Rs.751.000 Million of FY 13 and the profit after tax is Rs.8.640 Million against Rs.27.096 Million of FY 13.

GIL LIFESCIENCES PRIVATE LIMITED

The Company has not commenced any activity so far. As on 31st March 2014 the Authorized Share Capital of the Company is Rs.35.000 Million divided into 3.500 Million equity shares of Rs.10/– each and the Paid Up Share Capital of the Company is Rs.29.462 Million divided into 2.946 Million equity shares of Rs.10 each.

GRANULES SINGAPORE PTE LIMITED

During the year ended 31st March 2014 Granules Singapore Pte. Limited (Singapore) was liquidated due to no operations.

AUCTUS PHARMA LIMITED

Auctus Pharma Limited is a public limited and unlisted company incorporated on 25th April 2000 located at Hyderabad (Telangana). Auctus Pharma Limited is the manufacturer and seller of bulk drugs and drug intermediates. The Company acquired Auctus Pharma Limited by purchasing its total 3,900,000 (thirty nine lakhs) equity shares on 14th February 2014 on payment of Rs.1020.000 Million as purchase consideration to the shareholders of the Auctus Pharma Limited. The Share Capital of the Company as on 31st March 2014 is Rs.39.000 Million. The net sales of the Company in FY 14 stood at Rs.108.800 Million compared to the net sales of Rs.114.212 Million in FY 13, registering a reduction of 4.74% in the current financial year. The EBITDA stood at Rs.3.490 Million in FY 14 compared to Rs.21.260 Million in FY 13, registering a reduction of 116.42%. The loss after tax for FY 14 stood at Rs.64.489 Million compared to Rs.40.518 Million in FY 13, registering a increase of 59.16% in the current financial year. The Company is working on increasing the productivity.

JOINT VENTURE COMPANIES

GRANULES–BIOCAUSE PHARMACEUTICAL CO. LIMITED

The Share Capital of the Company as on 31st March 2014 is Rs.181.903 Million. During FY 14, the Company achieved a turnover of Rs.2639.889 Million of which Granules India Limited reports 50% in its consolidated revenue. Granules–Biocause successfully completed a U.S. FDA inspection in FY 14 with zero 483 observations.

GRANULES OMNICHEM PRIVATE LIMITED

The Share Capital of the Company as on 31st March 2014 is Rs.414.000 Million. The Company has not yet commenced its commercial activity during the period hence there was no income during FY 14. However the Company incurred a loss of Rs.13.817 Million. Granules OmniChem Private Limited is a 50:50 joint venture that will manufacture pharmaceutical intermediates and APIs in a greenfield facility in Visakhapatnam (AP) and mainly focus on high–value, low–volume APIs for the regulated markets.

The joint venture Company is setting up 100% export oriented unit at Jawaharlal Nehru Pharma city, Parwada Mandal, Visakhapatnam (AP) under the APIIC special economic zone to manufacture active pharmaceutical ingredients. The Company plans to obtain all necessary regulatory approvals from the U.S. Food and Drug Administration ("FDA") and other regulatory authorities by 31st March 2016.

AMALGAMATION OF AUCTUS PHARMA LIMITED

The Board of Directors of the Company at its meeting dated 20th February 2014 have approved the Scheme of Arrangement for amalgamation of Auctus Pharma Limited with the Company with effect from the "Appointed Date" i.e 1st April 2013 or such other date as may be fixed by the Hon'ble High Court of Judicature at Hyderabad for the State of Telangana and the State of Andhra Pradesh. Since both Companies are dealing in the similar line of business, the amalgamation will reap the following benefits for the Company:

· Focused strategic leadership and integrated business synergies.

· Channelized synergies; optimum utilization of the available resources and broadened customer base.

· Higher long–term financial returns and inculcation of greater financial strength and flexibility.

· Diversified product portfolio which would enable to manage risks in a better way.

· Manufacturing of value added products for fetching higher returns.

· Greater rationalization and reduction of duplication of systems and processes.

· Efficient and more cost effective management system in view of consolidation of operations.

· Pooling of financial, managerial and technical resources, personnel capabilities, skills, expertise and technologies of the merging companies leading to increased competitive strength.

The financial position of Granules India Limited will continue to remain strong and in light of the benefits flowing from the amalgamation and shall be strengthened by the vesting of the assets of the Auctus Pharma Limited under the Scheme of Arrangement. Hence, the rights and interests of the shareholders and creditors of Granules India Limited will not be prejudicially affected by the Scheme. The Scheme of Arrangement has been drawn up in consonance with the provisions of securities laws or the stock exchange requirements including the SEBI Act, 1992, the Securities Contracts (Regulation) Act, 1956, requirements under SEBI Circular No. CIR/CFD/DIL/5/2013 dated February 4, 2013 read with Circular No. CIR/CFD/ DIL/8/2013 dated 21st May 2013, the Depositories Act, 1996 and the provisions of the Companies Act, 1956, which are administered by SEBI and the rules, regulations, guidelines etc made under these Acts and the Listing Agreement. The National Stock Exchange of India Limited (NSE) and the Bombay Stock Exchange Limited (BSE) have respectively conveyed their 'No Objection' as required under clause 24(f) of the Listing Agreement vide their Observation Letter NSE/LIST/239123–K dated 19th May 2014 and Observation Letter DCS/AMAL/ LP/24(f)/047/2014–15 dated 16 May 2014 for filing the Scheme of Arrangement with the Hon'ble High Court.

The Company Auctus Pharma Limited, being the applicant has filed the petition for amalgamation with High Court of Judicature of Andhra Pradesh and Telangana at Hyderabad under Sections 391 and 394 of the Companies Act, 1956 and other applicable provisions of the Act, rules and regulations and sanction of the High Court is still awaited.

MANAGEMENT DISCUSSION AND ANALYSIS

PRODUCT OVERVIEW

Granules’ focus is primarily on pharmaceutical products with high API and/or finished dosage volume requirements. In many high-volume pharmaceutical products, there are dozens of suppliers leading to oversupply. While there are large surpluses, high quality material for the regulated markets is in short supply and can only be serviced by a handful of suppliers.

Customers in the regulated markets and an increasingly growing number of customers in the semi-regulated markets require high-quality supplies. Due to increased accountability and consumer pressure, countries in the semi-regulated markets are implementing tighter controls and demanding increased stringent quality parameters.

Quality conscious customers value supply security and quality over pricing. Customers generally work closely with their suppliers’ regulatory and quality control departments. Once they select a supplier, the customer usually stays with the supplier for years and only periodically reviews alternatives.

In addition, branded formulation and branded generics manufacturers typically grow faster than the overall market since they are gaining market share at the expense of lesser known suppliers. As new consumers gain access to pharmaceutical products, they become likely to purchase the brand of a well-known manufacturer whether it is an innovator or a generics manufacturer.

PRODUCT BASKET

ACTIVE PHARMACEUTICAL INGREDIENT (API)

The Company’s API portfolio went through a tremendous shift in FY14 due to the acquisition of Auctus Pharma. The acquisition will introduce more than a dozen API s across several therapeutic sectors including anti-histamine, antihypertensive, anti-fungal as well as others. The portfolio includes drugs such as Cetrizine, Clopidogrel Bisulphate, Fluconazole, Losartan Potassium, Rifaximin and Valsartan. The APIs will be made in a separate API facility in Vizag. These are higher in value than Granules’ existing portfolio and offer tremendous opportunity for the Company.

The Company’s core API portfolio continued to report double-digit growth despite the markets for most of these products reporting single-digit growth. Granules entered this segment in 1984 through the manufacture of Paracetamol APIs and expanded into other products such as Ibuprofen and Metformin.

Over the decades, the Company emerged among premier global API manufacturers due to a combination of scale, quality, compliance and reliability. Going forward, more of the APIs from the core portfolio will be used for captive consumption whether it is for PFIs or Finished Dosages. The API vertical will continue to be critical to the Company’s success since it will continue to represent the starting point of the Company’s PFI and FD verticals.

PHARMACEUTICAL FORMULATION INTERMEDIATES (PFI)

Granules pioneered the concept of commercializing PFIs, saving customers the need to manufacture their own PFIs and leaving them free to focus on finished dosage manufacturing and marketing.

Granules entered this business segment in the early- 90s following an insight that most Finished Dosage manufacturers were not efficiently producing PFIs. Manufacturers were granulating but not able to derive operational efficiencies because they focused on dozens of products or only created the product in limited runs. This pulled down the overall return from their investments, especially because PFI manufacture accounts for 80% of the total cost of a finished dosage.

The Company, through its PFI facilities at Gagillapur and Jeedimetla, is a leader in manufacturing PFIs and has the world’s largest capacity. The manufacturing facility uses high-shear and fluid-bed granulation processes with a 6 ton batch size, the largest in the industry. The capacity at the Gagillapur facility was expanded in FY14 and continues to be de-bottlenecked.

FINISHED DOSAGE (FD)

At Granules, the manufacture of finished dosages represents the apex of the value chain. The Company entered this business in FY09 with an installed capacity of six billion tablets and expanded it to eighteen billion tablets in FY14. The business accounts for 35% of the Company’s standalone revenue.

Granules’ finished dosage facility in Gagillapur comprises automated processes, robust infrastructure and superior quality systems that efficiently produce finished dosages. Granules offers multiple finished dosage forms comprising tablets, caplets and press fit capsules in bulk, blister packs and bottles.

STATEMENT OF STANDALONE UNAUDITED RESULTS FOR THE QUARTER AND NINE MONTHS ENDED

31.12.2014

Sr. No.	PARTICULARS	(Rs. in Million)
		Quarter Ended		Nine Months Ended
		31.12.2014	30.09.2014	31.12.2014
		Unaudited	Unaudited	Unaudited
1	Income from Operations
	(a) Net sales / Income from Operation (Net of Excise duty)	3195.444	2717.028	8960.954
	(b) Other operating income	--	--	--
	Total Income from Operations	3195.444	2717.028	8960.954
2	Expenses
a	Cost of material Consumed	1804.740	1639.059	5401.815
b	Changes in Inventories of Finished goods, Work in progress and Stock in trade	56.113	(160.310)	(199.747)
c	Employee benefits Expense	245.840	200.463	679.639
d	Depreciation	137.430	99.104	361.857
e	Manufacturing Expenses	201.438	162.937	568.991
f	Freight outward & clearing charges	124.525	119.868	370.989
g	R & D Expenses	3.922	3.843	12.458
h	Other expenditure	197.983	198.565	579.003
	Total	2771.991	2263.529	7775.005
3	Profit from Operations before Other Income, Interest & Exceptional Items (1- 2)	423.453	453.499	1185.949
4	Other Income	7.720	4.600	15.466
5	Profit from Ordinary activities before Finance Cost and exceptional items (3 - 4)	431.173	458.099	1201.415
6	Finance Costs	86.108	71.933	253.894
7	Profit from Ordinary activities after Finance Cost but before exceptional items (5 - 6)	345.065	386.166	965.521
8	Exceptional Items	---	--	--
9	Profit from Ordinary activities before Tax (7 - 8)	345.065	386.166	965.521
10	Tax expense	101.162	125.100	298.425
11	Profit from Ordinary activities after Tax (9 - 10)	243.903	261.066	667.096
12	Extraordinary Items (net of tax expense)	---	--	--
13	Net Profit for the period (11 - 12)	243.903	261.066	667.096
14	Paid-up share capital (Face Value of Rs.10/- each)	204.252	204.252	204.252
15	Reserves excluding Revaluation Reserve	3887.591	3733.727	3887.591
16	Earnings per Share
	(a) Basic Earning per share (Rs.)	11.99	12.85	32.78
	(b) Diluted Earning per share (Rs)	11.84	12.60	32.39
	Part II A. Particulars of Shareholding
1	Public Shareholding
	- No. of Shares	10500434	10484913	10500434
	-% of Shareholding	51.41	51.37	51.41
2	Promoters and Promoter group Shareholding
a	Pledged / Encumbered
	-Number of Shares	1504330	1504330	1504330
	- Percentage of Shares (as a % of the total shareholding of promoter and promoter group)	15.16	15.16	15.16
	- Percentage of Shares (as a % of the total Share capital of the Company)	7.37	7.37	7.37
b	Non-encumbered
	- Number of Shares	8420390	8419911	8420390
	- Percentage of Shares (as a % of the total shareholding of promoter and promoter group)	84.84	84.84	84.84
	- Percentage of Shares (as a % of the total Share capital of the Company)	41.23	41.26	41.23

B	INVESTOR COMPLAINTS	Quarter Ended 31.12.2014
	Pending at the beginning of the quarter	1
	Received during the quarter	43
	Disposed of during the quarter	44
	Remaining unresolved at the end of the quarter	Nil

NOTES :

1. The financial Results for the quarter ended December 31, 2014 have been reviewed by the Audit Committee on January 27, 2015 and approved by the Board of Directors at its meeting held on January 28, 2015.

2. The auditors of the company carried out limited review of the above financial results,

3. Pursuant to the Notification No.G.S.R.913(E), dt, December 29, 2011 Issued by the Ministry of Company Affairs, the company has opted to capitalise foreign currency gains and losses on loans utilised for purchase of fixed assets.

- During the quarter loss of Rs. 36.796 Million (Gain of Rs.26.255 Million for the Quarter ended December 31, 2013) was transferred to fixed assets.

4. The Scheme of Amalgamation (‘Scheme") of Auctus Pharma Limited (APL), a wholly owned subsidiary of the Parent Company, and the Parent Company has been sanctioned by the Hon’ble High Court of Judicature at Hyderabad for the State of Telangana and the State of Andhra Pradesh vide its order dated September 23, 2014 and the same has been filed with the Registrar of Companies (RoC), on November 13, 2014. In terms of the Scheme with effect from April 01, 2013 (appointed date), Interalia, following effect have been given :

(a) The Parent Company has recorded all assets and Liabilities of APL at their respective fair values.

(b) intercompany Investments, balances and transactions have been eliminated.

(c) On account of the above Scheme, Profit Before Tax for the quarter and YTD of the Parent Company is lower by Rs.30.070 Million and Rs. 116.650 Million respectively.

(d) Due to the merger of Auctus Pharma Limited (APL) with the Parent Company, the current quarter and YTD Dec-2014 figures are inclusive of APL financials. Hence the current quarter and YTD Dec-2014 numbers are not comparable with the previous quarter and the corresponding previous year periods figures.

5. The Company operates only in the segment of Pharmaceuticals.

6. The Company, during the quarter has allotted 16,000 equity shares of Rs.10/- each, fully paid up, on exercise of options by employees/Directors, in accordance with the Company's Employee Stock Option Scheme(s).

7. Figures are regrouped wherever necessary.

FIXED ASSETS

Tangible Assets

· Land

· Buildings

· Plant and Machinery

· Computers

· Office Equipment

· R&D Equipment

· Furniture and Fixtures

· Vehicles

Intangible Assets

· Technical Knowhow

WEBSITE DETAILS:

NEWS/ PRESS RELEASES:

GRANULES INDIA HITS NEW HIGH, UP 12% POST USFDA INSPECTION

Granules India   shares extended rally on Tuesday, up 12 percent intraday to hit a record high of Rs 1,017.10 after the US drug regulator inspected company's Andhra Pradesh unit.

The pharma company on Monday said the US Food and Drug Administration (USFDA) inspected its Gagillapur unit (in Rangareddi district of Andhra Pradesh) last week.

The inspection at Gagillapur concluded with no observations, it added. According to the filing, the USFDA inspection was triggered by one of its abbreviated new drug application (ANDA) filing.

At 11:31 hours IST, the scrip of Granules India was quoting at Rs 994, up Rs 85.30, or 9.39 percent on the BSE.

INVESTCO MANAGEMENT SELLS 2.060 MILLION SHARES OF GRANULES INDIA –

Apr 17 2015

Investco Management LLC has sold 2.060 Million shares of Granules India through the open market route. The shares were sold on an average price of Rs 100.71 valuing the transaction to Rs 207.500 Million.

Granules India is a fast growing pharmaceutical manufacturing company with world class facilities and is committed to manufacturing excellence, quality and customer service. The Company produces Finished Dosages (FDs), Pharmaceutical Formulation Intermediates (PFIs) and Active Pharmaceutical Ingredients (APIs) for quality conscious customers in the regulated and semi-regulated markets.

GRANULES INDIA: UPDATES ON DELISTING OF GDR FROM LUXEMBOURG STOCK EXCHANGE

Mar 17, 2015

Granules India Limited has informed BSE that the Company has requested Luxembourg Stock Exchange for de-listing of GDR since there are no outstanding GDR following the conversion into equity shares.

CMT REPORT (Corruption, Money Laundering & Terrorism]

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

1] INFORMATION ON DESIGNATED PARTY

No exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

2] Court Declaration :

No records exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

3] Asset Declaration :

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

4] Record on Financial Crime :

Charges or conviction registered against subject: None

5] Records on Violation of Anti-Corruption Laws :

Charges or investigation registered against subject: None

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

Charges or investigation registered against subject: None

7] Criminal Records

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

8] Affiliation with Government :

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

9] Compensation Package :

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

10] Press Report :

No press reports / filings exists on the subject.

CORPORATE GOVERNANCE

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

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

CONTRAVENTION

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

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.63.40
UK Pound	1	Rs.95.42
Euro	1	Rs68.49

INFORMATION DETAILS

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

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--CREDIT LINES	1~10	5
--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	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTERS
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		50

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.