MIRA INFORM REPORT

Report No. :	353004
Report Date :	03.12.2015

IDENTIFICATION DETAILS

Name :	TORRENT PHARMACEUTICALS LIMITED

Registered Office :	Torrent House, Off. Ashram Road, Navarangpura 9, Ahmedabad – 380009, Gujarat
Tel No.:	91-79-26583060 /26585090

Country :	India

Financials (as on) :	31.03.2015

Date of Incorporation :	15.07.1972

Com. Reg. No.:	04-002126

Capital Investment / Paid-up Capital :	Rs.846.200 Million

CIN No.: [Company Identification No.]	L24230GJ1972PLC002126

IEC No.:	0888038241

TAN No.: [Tax Deduction and Collection Account No.]	AHMT00474F

PAN No.: [Permanent Account No.]	AAACT5456A

Legal Form :	A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges.

Line of Business :	Manufacturing of Bulk drugs and Pharmaceutical formulations. (From Indirect Sources)

No. of Employees :	11047 (Approximately)

RATING and COMMENTS

MIRA’s Rating :

Aa (80)

RATING		STATUS	PROPOSED CREDIT LINE
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

Status :	Excellent

Payment Behaviour :	Regular

Litigation :	Exist

Comments :	Subject is a strong player in the domestic markets with strong presence in the fast growing, life style related therapeutic segments. It is a well-established company having excellent track record. Rating takes into account of TPL's established market position in the Indian Domestic Pharmaceutical market backed by rich experience of promoters in pharmaceutical segment. Rating also takes into account of strong business risk profile supported by adequate financial base and healthy net worth base of the company. Trade relations are reported as fair. Business is active. Payments are reported to be regular and as per commitment. In view of strong operational base backed by adequate financial profile, the company can be considered good for normal 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.

EXTERNAL AGENCY RATING

Rating Agency Name	ICRA
Rating	Long term – Cash Credit = AA
Rating Explanation	High degree of safety and very low credit risk.
Date	May 2015

Rating Agency Name	ICRA
Rating	Commercial Papers = A1+
Rating Explanation	Very strong degree of safety and carry lowest credit risk.
Date	May 2015

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 31-03-2015.

INFORMATION DENIED

MANAGEMENT NON COOPERATIVE (91-79-26583060)

LOCATIONS

Registered Office/ Corporate office :	Torrent House, Off. Ashram Road, Navarangpura 9, Ahmedabad – 380009, Gujarat, India
Tel. No.:	91-79-26583060 /26585090
Fax No.:	91-79-26582100
E-mail :	info@torrentpharma.com maheshagarwal@torrentpharma.com investorservices@torrentpharma.com
Website :	http://www.torrentpharma.com

Factory 1 :	Indrad Plant: Village Indrad, Taluka Kadi, District Mehsana-382721, Gujarat, India
Tel. No.:	91-2764-233671-75, 233678-80
Fax No.:	91-2764-233676
E-Mail :	tplplant@icenet.net

Factory 2 :	Baddi Plant : Village Bhud and Makhnu Majra, Baddi, Tehsil Nalagarh, District: Solan, Himachal Pradesh, India
Tel. No.:	91-1795-246821
Fax No.:	91-1795-247159

Factory 3 :	32 No. Middle Camp, NH-31A, East District, Gangtok (Sikkim)

Project Site:	Plot No. Z104-106, Dahej SEZ Phase II, Taluka Vagra, Dist. Bharuch, Gujarat, India

Research and Development Facility :	Torrent Research Centre, Near Kanoria Hospital, Village Bhat, District Gandhinagar - 382428, Gujarat, India
Tel. No.:	91-79-23269124/23969100
Fax No.:	91-79-23269135/23969135/ 23969124-34
E-Mail :	trc@torrentpharma.com

Mumbai Office :	215, Atrium, 'B' 3rd Floor, Beside Courtyard Marriot Hotel, Andheri - Kurla Road, Andheri (East), Mumbai – 400093, Maharashtra, India

DIRECTORS

As on 31.03.2015

Name :	Mr. Sudhir Mehta
Designation :	Chairman
Address :	Akalpya, Near Karnavati Club, Sarkhej-Gandhinagar Highway, Ahmedabad – Gujarat, India

Name :	Mr. Markand Bhatt
Designation :	Director
Address :	2, Panchsheel Enclave, Near Sundervan, Satellite Road, Ahmedabad – 380015, Gujarat, India

Name :	Shri Samir Mehta
Designation :	Executive Chairman
Address :	Akalpya, Near Karnavati Club, Sarkhej-Gandhinagar Highway, Ahmedabad – Gujarat, India

Name :	Mr. Shailesh Haribhakti
Designation :	Director
Qualification :	F.C.A.

Name :	Mr. Haigreve Khaitan
Designation :	Director
Qualification :	LL. B.

Name :	Shri Pradeep Bhargava
Designation :	Director
Qualification :	B. Sc. (Honours), B.E. (EC), MBA (IIMA)

Name :	Dr. Chaitanya Dutt
Designation :	Director (Research and Development)
Address :	4, Arvind Colony, Near Police Commercial Office, Shahibaugq, Ahmedabad – 380004, Gujarat, India
Date of Birth /Age :	65 Years
Qualification :	M.D. (Medicine)
Experience :	35 Years

Name :	Prof. Ashish Nanda
Designation :	Director

KEY EXECUTIVES

Name :	Mr. Mahesh Agarwal
Designation :	Vice President (Legal) and Company Secretary
Address :	Torrent House Off Ashram Road, Ahmedabad – 380009, Gujarat, India
Tel No :	91-79-26585090
Fax No :	91-79-26582100
E-Mail :	maheshagarwal@torrentpharma.com inveestorservices@torrentpharma.com

Audit Committee :	Mr. Pradeep Bhargava Mr. Shailesh Haribhakti – Chairman Mr. Haigreve Khaitan

Securities Transfer and Investors Grievance Committee:	Mr. Sudhir Mehta, Chairman Mr. Markand Bhatt Mr. Samir Mehta

Nomination and Remuneration Committee:	Mr. Pradeep Bhargava, Mr. Markand Bhatt Prof. Ashish Nanda - Chairman

Committee of Directors:	Mr. Markand Bhatt, Chairman Mr. Samir Mehta

Name :	Shri Ashok Modi
Designation :	Executive Director and Chief Financial Officer

SHAREHOLDING PATTERN

As on 30.09.2015

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	34449248	20.36
Bodies Corporate	86115472	50.89
Any Others (Specify)	0	0.00
Sub Total	120564720	71.25
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	120564720	71.25

(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	10064765	5.95
Financial Institutions / Banks	148497	0.09
Foreign Institutional Investors	21020125	12.42
Sub Total	31233387	18.46
(2) Non-Institutions
Bodies Corporate	3160669	1.87
Individuals
Individual shareholders holding nominal share capital up to Rs.0.100 Million	7775512	4.59
Individual shareholders holding nominal share capital in excess of Rs.0.100 Million	1179992	0.70
Any Others (Specify)	5308440	3.14
Non Resident Indians	371220	0.22
Trusts	6570	0.00
Clearing Members	140093	0.08
Hindu Undivided Families	310257	0.18
Directors & their Relatives & Friends	4480300	2.65
Sub Total	17424613	10.30
Total Public shareholding (B)	48658000	28.75
Total (A)+(B)	169222720	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)	169222720	0.00

Shareholding of securities (including shares, warrants, convertible securities) of persons belonging to the category Promoter and Promoter Group

Sl. No.	Name of the Shareholder	Details of Shares held
Sl. No.	Name of the Shareholder	No. of Shares held	As a % of grand total
1	Samir U Mehta	6283960	3.71
2	Sudhir U Mehta	5885376	3.48
3	Sapna S Mehta	5359164	3.17
4	Anita S Mehta	6120268	3.62
5	Varun S Mehta	1750000	1.03
6	Samir Uttamlal Mehta HUF	2080000	1.23
7	Jinal S Mehta	1750000	1.03
8	Jinal S Mehta	3000	0.00
9	Sudhir Uttamlal Mehta HUF	1717480	1.01
10	Aman Mehta	1750000	1.03
11	Shaan S Mehta	1750000	1.03
12	Torrent Private Limited	86115472	50.89
	Total	120564720	71.25

Shareholding of securities (including shares, warrants, convertible securities) of persons belonging to the category Public and holding more than 1% of the total number of shares

Sl. No.	Name of the Shareholder	No. of Shares held	Shares as % of Total No. of Shares
Sl. No.	Name of the Shareholder	No. of Shares held	Shares as % of Total No. of Shares
1	Lavender Investments Limited	3033563	1.79
2	Franklin Templeton Investment Funds	2523613	1.49
3	HDFC Trustee Company Limited-HDFC Mid Cap Opportunities Fund	1704400	1.01
	Total	7261576	4.29

BUSINESS DETAILS

Line of Business :

Manufacturing of Bulk drugs and Pharmaceutical formulations. (From Indirect Sources)

Products :

Item Code No.	Product Description
300431.01	Insulin
300490.81	Lamotrigine
300490.88	Citalopram

Brand Names :

Not Divulged

Agencies Held :

Not Divulged

Exports :

Not Divulged

Imports :

Not Divulged

Terms :

Selling :

Not Divulged

Purchasing :

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:

11047 (Approximately)

Bankers :

Banker Name	Bank of Baroda
Branch Address	Ahmedabad, Gujarat, India
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

Corporation Bank, Ahmedabad, Gujarat, India
Canara Bank, Ahmedabad, Gujarat, India
State Bank of India, Ahmedabad, Gujarat, India
Oriental Bank of Commerce, Ahmedabad, Gujarat, India
Punjab National Bank, Ahmedabad, Gujarat, India
Axis Bank Limited, Ahmedabad, Gujarat, India
HSBC Bank (Mauritius) Limited, India
BNP Paribas

Facilities :

Secured Loan

31.03.2015

(Rs. in Million)

31.03.2014

(Rs. in Million)

Long-term Borrowings

Term loans from banks

21716.000

7307.200

Short-term borrowings

Loans from banks

950.000

196.200

Total

22666.000

7503.400

Note:

a) Loans are secured by:

Term loans of Rs.6050.500 Million (previous year Rs.2952.700 Million) from banks are secured by and Term loans of Rs. NIL (previous year Rs.2704.500 Million) to be secured by first equitable mortgage of immovable fixed assets and hypothecation of movable fixed assets, present and future, located at formulation manufacturing facilities, village Indrad; research facilities, village Bhat; Corporate Office, Ahmedabad, all in Gujarat, and manufacturing facilities, village Bhud; in Himachal Pradesh, on pari passu basis.

Term loan of Rs.14000.000 Million (previous year Rs.1000.000 Million) from bank is secured by and Term Loan of Rs.2000.000 Million (previous year NIL) are to be secured by first equitable mortgage of immovable fixed assets and hypothecation of movable fixed assets, present and future, of formulation manufacturing facilities located at Dahej (SEZ) in Gujarat and Gangtok in Sikkim, on pari passu basis along with some of the identified brands of the Company in respect of which the Company is in the process of creating the charge

Term loan of Rs.2000.000 Million (previous year Rs.2000.000 Million) from bank is secured by first equitable mortgage of free hold land located at village Rakanpur and free hold land and buildings located at Delhi, on pari passu basis along with some of the identified brands of the Company. The Company is in the process of creating charge on assets located at village Rakanpur and Delhi.

Working capital facilities are secured by hypothecation of inventories and book debts.

b) The terms of repayment of loan obligations on principal amount repayable in yearly installments, for the secured and unsecured long-term loans are as under:

(Rs. In Million)

Financial year	Secured	Unsecured
2015-16	2334.500	26.100
2016-17	5301.900	39.000
2017-18	3180.600	37.800
2018-19	3481.000	26.700
2019-20	3576.600	19.800
2020-21	3225.900	12.900
2021-22	2450.000	0.000
2022-23	500.000	0.000
Total	24050.500	162.300

Auditors :
Name :	Deloitte Haskins and Sells Chartered Accountants
Address :	Heritage, 3^rd Floor, Near Gujarat Vidhyapith, Off Ashram Road, Ahmedabad - 380014, Gujarat, India
Tel No.:	91-79-27582542/27582543/66073100
Fax No.:	91-79-27582551

Subsidiaries and step down subsidiaries :	Zao Torrent Pharma Torrent Pharma Gmbh Torrent Do Brasil Limited Torrent Pharma Inc. Torrent Pharma Philippines Inc. Heumann Pharma Gmbh and Co. Generica KG Torrent Australasia Pty Limited Torrent Pharma S.R.L. Laboratorios Torrent, S.A. De C.V. Heunet Pharma Gmbh Norispharm Gmbh Torrent Pharma Canada Inc. Torrent Pharma (Thailand) Company Limited Torrent Pharma (UK) Limited Laboratories Torrent (Malaysia) SDN.BHD. Torrent Pharma France S.A.S. Aptil Pharma Limited

Enterprises controlled by the Company :	TPL Employee Group Gratuity Trust TPL Employee Superannuation Trust Torrent Phramaceuticals (Sikkim)

Holding Company / Enterprises controlled by the holding Company :	Torrent Private Limited Torrent Financiers Torrent Power Limited Torrent Cables Limited Torrent Power Services Private Limited Torrent Pipavav Generation Limited Torrent Energy Limited, Torrent Power Grid Limited Torrent Solargen Limited AEC Cements and Constructions Limited

Joint Venture/Associate :	Tornascent Care Institute

Enterprises controlled by key management personnel / relatives of key management personnel :	U N Mehta Charitable Trust D N Modi Charitable Trust Shardaben Mehta Charitable Trust Tsunami Tours and Travels Private Limited Torrel Cosmetics Private Limited Zeal Pharmachem India Private Limited Diamond Infrastructure Private Limited U. N. Mehta Institute of Cardiology and Research Centre Dushyant Shah Charitable Trust Shri Vadgam Mahal Kelavani Mandal Memadpur Kelavani Mandal

CAPITAL STRUCTURE

As on 31.03.2015

Authorised Capital:

No. of Shares	Type	Value	Amount

200000000	Equity Shares	Rs.5/- each	Rs. 1000.000 Million
2500000	Preference Shares	Rs.100/- each	Rs. 250.000 Million
	TOTAL		Rs. 1250.000 Million

Issued & Subscribed Capital:

No. of Shares	Type	Value	Amount

169236720	Equity Shares	Rs.5/- each	Rs. 846.200 Million

Paid-up Capital:

No. of Shares	Type	Value	Amount

169222720	Equity Shares	Rs.5/- each	Rs.846.113 Million
	Add : Forfeited shares		Rs.0.035 Million
	Total		Rs.846.200 Million

Reconciliation of equity shares outstanding at the beginning and at the end of the reporting year

Particulars	As on 31.03.2015
Particulars	Numbers	Rs In Million
As at beginning of the year	169222720	846.200
Issued during the year
Outstanding at the end of the year	169222720	846.200

Details of shares allotted for consideration other than cash, bonus shares and shares bought back in previous five financial years is as under:

The Company allotted 84611360 Equity Shares as fully paid up bonus shares of Rs.5 each on 25-Jul-2013, pursuant to the shareholders’ resolution passed on 12-Jul-2013.

Torrent Private Limited, the holding Company, holds 86115472 (previous year 86115472) equity shares of Rs.5 each, equivalent to 50.89% (previous year 50.89%) of the total number of equity shares, which is the only shareholder holding more than 5 % of total equity shares.

The Company has one class of equity shares having par value of Rs.5 each. Each shareholder is eligible for one vote per share held. The final dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amount, in proportion to shareholding.

FINANCIAL DATA

[all figures are in Rupees Million]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2015	31.03.2014	31.03.2013

I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	846.200	846.200	423.100
(b) Reserves & Surplus	26209.700	22051.900	16087.800
(c) Money received against share warrants	0.000	0.000	0.000

(2) Share Application money pending allotment	0.000	0.000	0.000
Total Shareholders’ Funds (1) + (2)	27055.900	22898.100	16510.900

(3) Non-Current Liabilities
(a) long-term borrowings	21852.200	7444.600	4545.400
(b) Deferred tax liabilities (Net)	1888.400	474.600	568.900
(c) Other long term liabilities	69.400	96.100	97.600
(d) long-term provisions	971.200	744.000	710.100
Total Non-current Liabilities (3)	24781.200	8759.300	5922.000

(4) Current Liabilities
(a) Short term borrowings	1000.000	2103.400	1246.200
(b) Trade payables	6302.300	4796.900	4507.400
(c) Other current liabilities	4263.900	3377.200	3298.700
(d) Short-term provisions	1692.600	1391.900	2078.400
Total Current Liabilities (4)	13258.800	11669.400	11130.700

TOTAL	65095.900	43326.800	33563.600

II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	9053.100	8313.900	7849.900
(ii) Intangible Assets	18581.900	47.700	63.900
(iii) Capital work-in-progress	6277.800	5075.800	2763.100
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	1503.500	1493.800	1475.000
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	1860.500	1064.900	533.600
(e) Other Non-current assets	502.800	607.400	239.000
Total Non-Current Assets	37779.600	16603.500	12924.500

(2) Current assets
(a) Current investments	2834.800	1724.800	427.600
(b) Inventories	7811.500	6945.100	6970.900
(c) Trade receivables	11940.000	13174.300	8312.700
(d) Cash and cash equivalents	696.800	2184.900	2777.600
(e) Short-term loans and advances	1034.100	808.800	693.700
(f) Other current assets	2999.100	1885.400	1456.600
Total Current Assets	27316.300	26723.300	20639.100

TOTAL	65095.900	43326.800	33563.600

PROFIT & LOSS ACCOUNT

	PARTICULARS	31.03.2015	31.03.2014	31.03.2013
	SALES
	Income	34754.900	33648.700	27662.300
	Other Income	3056.700	355.400	1316.700
	TOTAL	37811.600	34004.100	28979.000

Less	EXPENSES
	Cost of Materials Consumed	9682.000	8760.800	7974.300
	Purchases of Stock-in-Trade	2007.800	933.800	2925.200
	Changes in inventories of finished goods, work-in-progress and Stock-in-Trade	(855.700)	306.100	(1104.300)
	Employees benefits expense	5074.100	4189.000	3663.400
	Exceptional items	0.000	0.000	374.900
	Other expenses	10413.200	8852.100	7412.200
	TOTAL	26321.400	23041.800	21245.700

Less	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION	11490.200	10962.300	7733.300

Less	FINANCIAL EXPENSES	1727.200	584.400	365.100

	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION	9763.000	10377.900	7368.200

Less/ Add	DEPRECIATION/ AMORTISATION	1802.200	794.700	715.000

	PROFIT/ (LOSS) BEFORE TAX	7960.800	9583.200	6653.200

Less	TAX	1729.000	1959.800	1189.000

	PROFIT/ (LOSS) AFTER TAX	6231.800	7623.400	5464.200

Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD	10260.000	5380.000	2740.000

Less	APPROPRIATIONS
	Transfer to General Reserve	630.000	760.000	550.000
	Interim Dividend	850.000	850.000	510.000
	Proposed Final Dividend	1060.000	850.000	1440.000
	Tax on Distributed Profits for Interim Dividend	170.000	140.000	80.000
	Tax on Distributed Profits for Final Dividend	210.000	140.000	250.000
	Balance Carried to the B/S	13571.800	10260.000	5380.000

	EARNINGS IN FOREIGN CURRENCY
	F.O.B. Value of Exports	14135.900	15664.800	12114.300
	Interest	8.700	2.700	2.900
	Other income [Product registration dossiers and others]	514.800	1194.900	1111.000
	TOTAL EARNINGS	14659.400	16862.400	13228.200

	IMPORTS
	Raw Materials and Packing Material	2259.500	2529.200	2141.800
	Components and Spares Parts	146.200	139.900	71.200
	Capital Goods	394.900	746.800	220.200
	TOTAL IMPORTS	2800.600	3415.900	2433.200

	Earnings / (Loss) Per Share (Rs.)	36.82	45.04	32.28

CURRENT MATURITIES OF LONG TERM DEBT DETAILS

Particulars	31.03.2015	31.03.2014	31.03.2013
Current Maturities of Long term debt	2,360.600	1,768.700	1138.100
Cash generated from operations	10998.800	5270.900	2859.800
Net Cash From Operating Activities	10661.000	3100.800	(686.900)

QUARTERLY RESULT

Particulars (Unaudited)	30.06.2015	30.09.2015
Particulars (Unaudited)	1^st Quarter	2^nd Quarter
Net Sales	18670.000	15640.000
Total Expenditure	6930.000	6390.000
PBIDT (Excl OI)	11740.000	9250.000
Other Income	750.000	970.000
Operating Profit	12490.000	10220.000
Interest	560.000	470.000
Exceptional Items	0.000	530.000
PBDT	11930.000	10280.000
Depreciation	540.000	550.000
Profit Before Tax	11390.000	9730.000
Tax	3090.000	2440.000
Provisions and contingencies	0.000	0.000
Profit After Tax	8300.000	7290.000
Extraordinary Items	0.000	0.000
Prior Period Expenses	0.000	0.000
Other Adjustments	0.000	0.000
Net Profit	8300.000	7290.000

KEY RATIOS

PARTICULARS		31.03.2015	31.03.2014	31.03.2013
Net Profit Margin (PAT/Sales)	(%)	17.93	22.66	19.75

Operating Profit Margin (PBDIT / Sales)	(%)	33.06	32.58	27.96

Return on Total Assets (PBT/Total Assets}	(%)	13.89	26.07	22.69

Return on Investment (ROI) (PBT/Networth)		0.29	0.42	0.40

Debt Equity Ratio (Total Debt/Networth)		0.93	0.49	0.42

Current Ratio (Current Asset/Current Liability)		2.06	2.29	1.85

STOCK PRICES

Face Value	Rs.5.00/-
Market Value	Rs.1483.95/-

FINANCIAL ANALYSIS

[all figures are in Rupees Million]

DEBT EQUITY RATIO

Particular	31.03.2013	31.03.2014	31.03.2015
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Share Capital	423.100	846.200	846.200
Reserves & Surplus	16087.800	22051.900	26209.700
Net worth	16510.900	22898.100	27055.900

long-term borrowings	4545.400	7444.600	21852.200
Short term borrowings	1246.200	2103.400	1000.000
Current Maturities of Long Term Debt	1138.100	1768.700	2360.600
Total borrowings	6929.700	11316.700	25212.800
Debt/Equity ratio	0.420	0.494	0.932

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2013	31.03.2014	31.03.2015
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Sales	27662.300	33648.700	34754.900
		21.641	3.287

NET PROFIT MARGIN

Net Profit Margin	31.03.2013	31.03.2014	31.03.2015
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Sales	27662.300	33648.700	34754.900
Profit	5464.200	7623.400	6231.800
	19.75%	22.66%	17.93%

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	Check list by info agents	Available in Report (Yes/No)
1	Year of establishment	Yes
2	Constitution of the entity -Incorporation details	Yes
3	Locality of the entity	Yes
4	Premises details	No
5	Buyer visit details	-----------------
6	Contact numbers	Yes
7	Name of the person contacted	No
8	Designation of contact person	No
9	Promoter’s background	Yes
10	Date of Birth of Proprietor / Partners / Directors	Yes
11	Pan Card No. of Proprietor / Partners	No
12	Voter Id Card No. of Proprietor / Partners	No
13	Type of business	Yes
14	Line of Business	Yes
15	Export/import details (if applicable)	No
16	No. of employees	Yes
17	Details of sister concerns	Yes
18	Major suppliers	No
19	Major customers	No
20	Banking Details	Yes
21	Banking facility details	Yes
22	Conduct of the banking account	-----------------
23	Financials, if provided	Yes
24	Capital in the business	Yes
25	Last accounts filed at ROC, if applicable	Yes
26	Turnover of firm for last three years	Yes
27	Reasons for variation <> 20%	-----------------
28	Estimation for coming financial year	No
29	Profitability for last three years	Yes
30	Major shareholders, if available	Yes
31	External Agency Rating, if available	Yes
32	Litigations that the firm/promoter involved in	Yes
33	Market information	-----------------
34	Payments terms	No
35	Negative Reporting by Auditors in the Annual Report	No

LITIGATION DETAILS

HIGH COURT OF GUJARAT

TAX APPEAL No. 2231 of 2009

Status : PENDING

(Converted from : ST/3964/2009)

CCIN No : 001092200902231

Next Listing Date:

08/12/2015

Coram

HONOURABLE MS.JUSTICE HARSHA DEVANI

HONOURABLE MR.JUSTICE G.B.SHAH

S.NO.

Name of the Petitioner

Advocate On Record

COMMISSIONER OF INCOME TAX-IV

MR NITIN K MEHTA for: Appellant(s) 1

S.NO.

Name of the Respondent

Advocate On Record

TORRENT PHARMACEUTICALS LIMITED

RULE SERVED for :Opponent(s) 1

Presented On

: 09/11/2009

Registered On

: 09/11/2009

Bench Category

: DIVISION BENCH

District

: AHMEDABAD

Case Originated From

: THROUGH HIS/HER/THEIR ADVOCATE

Listed

: 9 times

Stage Name

: FOR FINAL HEARING

Classification

DB - OJ - TAX APPEAL - INCOME TAX ACT, 1961 - APPEAL TO HIGH COURT - U/S 260 OF IT ACT - LONG TERM CAPITAL GAIN - U/S 54EA

Act

INCOME-TAX ACT, 1961

Office Details

S. No.

Filing Date

Document Name

Advocate Name

Court Fee on Document

Document Details

15/08/2009

VAKALATNAMA

MS PAURAMIB SHETH ADVOCATE
for PETITIONER(s) 1

MS PAURAMI B SHETH:1

15/08/2009

DOCUMENT

RULE SERVED
for RESPONDENT(s) 1

RULE SERVED:1

16/05/2012

APPEARANCE NOTE

MS PAURAMIB SHETH ADVOCATE
for PETITIONER(s) 1

MS PAURAMI B SHETH:1

31/03/2014

APPEARANCE NOTE

MR NITIN K MEHTA ADVOCATE
for PETITIONER(s) 1

MRNITINKMEHTA(3286) for P:1

Linked Matters

S. No.

Case Detail

Status Name

Disposal Date

Action/Coram

TAX APPEAL/2232/2009

PENDING

HONOURABLE MS.JUSTICE HARSHA DEVANI

HONOURABLE MR.JUSTICE G.B.SHAH

Court Proceedings

S. No.

Notified Date

Court Code

Board Sr. No.

Stage

Action

Coram

19/04/2011

BOARD NO. I-A

NEXT DATE

HONOURABLE MR.JUSTICE AKIL KURESHI

HONOURABLE MS JUSTICE SONIA GOKANI

19/12/2014

FOR FINAL HEARING

NEXT DATE

HONOURABLE MR.JUSTICE KS JHAVERI

HONOURABLE MR.JUSTICE K.J.THAKER

21/01/2015

FOR FINAL HEARING

NEXT DATE

HONOURABLE THE ACTING CHIEF JUSTICE MR. JAYANT PATEL

HONOURABLE MR.JUSTICE KS JHAVERI and HONOURABLE MR.JUSTICE S.H.VORA and HONOURABLE MR.JUSTICE K.J.THAKER

23/02/2015

FOR FINAL HEARING

NEXT DATE

HONOURABLE THE ACTING CHIEF JUSTICE MR. JAYANT PATEL

HONOURABLE MR.JUSTICE S.H.VORA

22/04/2015

FOR FINAL HEARING

NEXT DATE

HONOURABLE THE ACTING CHIEF JUSTICE MR. JAYANT PATEL

HONOURABLE MR.JUSTICE M.R. SHAH and HONOURABLE MR.JUSTICE S.H.VORA

15/06/2015

FOR FINAL HEARING

NEXT DATE

HONOURABLE THE ACTING CHIEF JUSTICE MR. VIJAY MANOHAR SAHAI

HONOURABLE MR.JUSTICE M.R. SHAH and HONOURABLE MR.JUSTICE A.J.DESAI and HONOURABLE MR.JUSTICE S.H.VORA and HONOURABLE MR.JUSTICE A.G.URAIZEE and HONOURABLE MR.JUSTICE R.P.DHOLARIA

07/07/2015

FOR FINAL HEARING

NEXT DATE

HONOURABLE THE ACTING CHIEF JUSTICE MR. VIJAY MANOHAR SAHAI

HONOURABLE MR.JUSTICE A.J.DESAI and HONOURABLE MR.JUSTICE A.G.URAIZEE and HONOURABLE MR.JUSTICE R.P.DHOLARIA

01/09/2015

FOR FINAL HEARING

NEXT DATE

HONOURABLE MS.JUSTICE HARSHA DEVANI

HONOURABLE MR.JUSTICE A.J.DESAI and HONOURABLE MR.JUSTICE A.G.URAIZEE

29/09/2015

FOR FINAL HEARING

HONOURABLE MS.JUSTICE HARSHA DEVANI

HONOURABLE MR.JUSTICE A.G.URAIZEE

08/12/2015

FOR FINAL HEARING

HONOURABLE MS.JUSTICE HARSHA DEVANI

HONOURABLE MR.JUSTICE G.B.SHAH and HONOURABLE MR.JUSTICE A.G.URAIZEE

Available Orders

S. No.

Case Details

Judge Name

Order Date

CAV

Judgement

Questions

Transferred

TAX APPEAL/847/200

HONOURABLE MR.JUSTICE D.A.MEHTA

HONOURABLE MS.JUSTICE HARSHA DEVANI

15/04/2010

JUDGMENT

N N N N N

TAX APPEAL/2231/2009

HONOURABLE MR.JUSTICE AKIL KURESHI

HONOURABLE MS JUSTICE SONIA GOKANI

19/04/2011

ORDER

Certified Copy

S. No.

Applicant Name

Application Type

Application Date

UOL Number

Order Date

Notify Date

Delivery Date

Status

Nature Of Document

MRS MAUNA M BHATT

ORDINARY

20/04/2011

O/13415/2011

19/04/2011

01/12/2011

02/12/2011

Delivered

ORDER

INDEX OF CHARGES

S.NO.	CHARGE ID	DATE OF CHARGE CREATION/MODIFICATION	CHARGE AMOUNT SECURED	CHARGE HOLDER	ADDRESS	SERVICE REQUEST NUMBER (SRN)
1	10569447	24/04/2015	2,000,000,000.00	BNP PARIBAS	BNP PARIBAS HOUSE, 1 NORTH AVENUE, MAKER MAXITY, BANDRA KURLA COMPLEX, BANDRA (EAST), MUMBAI - 400051, MAHARASHTRA, INDIA	C53606067
2	10525000	20/09/2014	1,500,000,000.00	AXIS BANK LIMITED	2ND FLOOR, 3RD EYE ONE, NEAR PANCHVATI CIRCLE, C. G. ROAD, AHMEDABAD - 380009, GUJARAT, INDIA	C28214203
3	10516826	22/08/2014 *	1,304,200,000.00	IDBI TRUSTEESHIP SERVICES LIMITED	ASIAN BUILDING, GROUND FLOOR, 17. R. KAMANI MARG, BALLARD ESTATE, MUMBAI- 400 001, MAHARASHTRA, INDIA	C21912167
4	10516822	22/08/2014 *	2,760,000,000.00	IDBI TRUSTEESHIP SERVICES LIMITED	ASIAN BUILDING, GROUND FLOOR,, 17, R. KAMANI MARG , BALLARD ESTATE, MUMBAI - 400001, MAHARASHTRA, INDIA	C29055787
5	10500496	07/06/2014	18,000,000,000.00	IDBI TRUSTEESHIP SERVICES LIMITED	ASIAN BUILDING, GROUND FLOOR, 17, R. KAMANI MARG , BALLARD ESTATE, MUMBAI - 400001, MAHARASHTRA, INDIA	C05795729
6	10510777	05/06/2014	2,000,000,000.00	BNP PARIBAS	UNIT NO.203, SAKAR II, NEAR TOWN HALL,, ELLIS BRIDGE,, AHMEDABAD - 380006, GUJARAT, INDIA	C11661931
7	10447179	13/08/2013	2,200,000,000.00	HSBC BANK (MAURITIUS) LIMITED	HSBC CENTRE, 18 CYBERCITY, EBENE, MAURITIUS, - 000, MAURITIUS	B84093871
8	10421600	05/04/2013	500,000,000.00	BNP PARIBAS	203, SAKAR-II, ELLISBRIDGE,, AHMEDABAD - 380006, GUJARAT, INDIA	B73713752
9	10399912	23/03/2015 *	500,000,000.00	THE HONGKONG AND SHANGHAI BANKING CORPORATION LIMITED	52/60, MAHATMA GANDHI ROAD, FORT, MUMBAI - 400001, MAHARASHTRA, INDIA	C50587385
10	10010037	04/07/2006	448,000,000.00	STANDARD CHARTERED BANK	ABHIJEET II, GROUND FLOOR, MITHAKHALI SIX ROADS, AHMEDABAD - 380006, GUJARAT, INDIA	A02291342

* Date of charge modification

UNSECURED LOAN

PARTICULARS	31.03.2015 (Rs. in Million)	31.03.2014 (Rs. in Million)
Long-term Borrowings
Term loans from others	136.200	137.400
Short-term borrowings
Loans from banks	50.000	1907.200
Total	186.200	2044.600

CONTINGENT LIABILITIES:

(Rs. in Million)

PARTICULARS	Rs. in million 31.03.2015	Rs. in million 31.03.2014
(a) Claims against the Group not acknowledged as debts
Disputed Demand of Income Tax for which appeals have been preferred	70.100	52.500
Disputed Employee State Insurance Contribution Liability under E.S.I. Act, 1948	82.400	73.000
Disputed Legal cases for supply of goods and services	0.000	1.900
Disputed Demand of Excise and Service tax	148.700	324.100
Disputed Demand of Local Sales Tax and C.S.T	4.100	1.900
Disputed cases at Labour Court / Industrial Court	31.500	28.600
(b) Against the above, the Company has paid Rs.0.900 Million (previous year Rs.2.400 Million). The expected outflow will be determined at the time of final outcome in respect of the concerned matter. No amount is expected to be reimbursed.
(c) The Company has issued guarantee aggregating Rs.84.000 Million (previous year Rs.6.000 Million) for borrowing a demand loan at “Torrent Pharma Employee Welfare Trust”. The outstanding amount of liabilities by the said trust as on balance sheet date, is	5257.600	360.600

STANDALONE OPERATING RESULTS

The sales and operating income increased to Rs.34750.000 Million from Rs.33650.000 Million in the previous year yielding a growth of 3.27%. The operating profit for the year under review increased to Rs.11490.000 Million as against Rs.10960.000 Million in the previous year registering a growth of 4.83%. The profits after tax for the year decreased to Rs.6230.000 Million as against Rs.7620.000 Million in the previous year registering a degrowth of 18.24%.

AWARDS AND RECOGNINTION

CNBC TV18 recognized Torrent Pharmaceuticals Limited as the “Most Promising Company of the Year” at their 10th India Business Leader Awards 2014.

SUBSIDIARIES

As of 31st March, 2015, the Company has 17 subsidiaries, out of which 4 are step down subsidiaries. All the said subsidiaries of the Company remained operational during the year.

Further, Tornascent Care Institute, a Section 8 company, under the Companies Act, 2013, was promoted and incorporated jointly with Torrent Power Limited during the year as Joint Venture Company. A statement containing salient features of financial statements of each subsidiary and the said joint venture, including its financial position and performance during the year.

MANAGEMENT’S DISCUSSION AND ANALYSIS

GLOBAL PHARMACEUTICALS MARKET

Global Economy:

Global economic growth in 2014 was a modest 3.4 percent, reflecting a pickup in growth in advanced economies relative to the previous year and a slowdown in emerging market and developing economies. Despite the slowdown, emerging market and developing economies still accounted for three-fourths of global growth in 2014. Complex forces that affected global activity in 2014 are still shaping the outlook. These include medium- and long-term trends, such as population ageing and declining potential growth; global shocks, such as lower oil prices; and many country or region-specific factors, such as crisis legacies and exchange rate swings triggered by actual and expected changes in monetary policies. Overall, global economy growth is projected to reach 3.5 percent and 3.8 percent in 2015 and 2016, respectively. Growth is projected to be stronger in 2015 relative to 2014 in advanced economies, but weaker in emerging markets, reflecting more subdued prospects for some large emerging market economies and oil exporters. Nevertheless, emerging markets and developing economies still account for more than 70 percent of global growth in 2015.

Global Pharma Market:

The global pharmaceutical sales grew by 8.3% in the year 2014 and key growth drivers continue to be shift towards use of generic medicines accompanied by patent expiries mainly in the regulated market and higher growth in Pharmerging markets.

The largest pharmaceutical market US is estimated to be approximately US$ 365 Bn registering a growth of around 11.8% in 2014 which is significantly higher than the 3.6% growth over the past five years. The market is expected to grow at a compounded annual growth rate of 5-8% through 2018 due to fewer patent expiries and launches of more innovative medicines which is a reflection of a shift in the balance of the “innovation cycle”—the amount of new medicines being launched and utilized compared to the value of branded medicines that are facing new generic competition.

The European market is estimated to be approximately US$ 216 Bn registering a growth of 3.3% in 2014. Across the major markets in Europe, economic austerity–led efforts to constrain growth in healthcare spending, and especially medicines, have resulted in spending declines or very low growth, which will continue through 2018.

The Pharmerging markets will grow at a compounded annual growth rate of 8-11% through 2018, a slower pace than over the past five years, which averaged 13.6% growth. Implementation of health reforms are increasing demand for medicines, while pricing regulations are being used more frequently to manage overall growth levels. Over 80% of growth in Pharmerging markets will be attributed to non-branded medicines.

PERFORMANCE SNAPSHOT

Torrent is one of the front runners in the Indian Pharmaceuticals Industry having presence in India as well as International Markets. The Company’s revenues are mainly from manufacture and sale of branded as well as unbranded generic pharmaceutical products.

INDIAN PHARMACEUTICALS MARKET

The pharmaceutical business model is witnessing a paradigm shift, moving from a fully integrated company structure towards a future where companies use a wide range of outsourcing, partnership initiatives and other contractual and relationship arrangements to create networks of collaboration and discovery. Investing in India will be a vital component of this networked future. Companies that will be most successful in doing business in India will be those that are most adept at managing and mixing a range of contractual relationships and partnership strategies.

STATEMENT OF STANDALONE AUDITED RESULTS FOR THE QUARTER AND HALF YEAR ENDED 30 SEPTEMBER 2015

(Rs. In Million)

Particulars	Quarter ended 30.09.2015	Quarter ended 30.06.2015	Half year ended 30.09.2015
	(Unaudited)	(Unaudited)	(Unaudited)
Income from operations
Net sales/ Income from operation (net of excise duty)	15310.000	18100.000	33410.000
Other operating income	330.000	570.000	900.000
Total income from Operations(net)	15640.000	18670.000	34310.000
Expenditure
Cost of material consumed	2520.000	2640.000	5160.000
Purchases of stock in trade	440.000	470.000	910.000
Changes in inventories of finished goods, work-in-progress and stock-in-trade	(270.000)	(120.000)	(390.000)
Employees benefit expenses	1400.000	1400.000	2800.000
Depreciation and amortization expenses	550.000	540.000	1090.000
Other expenditure	2300.000	2540.000	4840.000
Total expenses	6940.000	7470.000	14410.000
Profit from operations before other income and financial costs	8700.000	11200.000	19900.000
Other income	970.000	750.000	1720.000
Profit from ordinary activities before finance costs	9670.000	11950.000	21620.000
Finance costs	470.000	560.000	1030.000
Profit from ordinary activities after finance costs but before Exceptional Items	9200.000	11390.000	20590.000
Exceptional Items	530.000	0.0000	530.000
Profit from ordinary activities before tax Expense:	9730.000	11390.000	21120.000
Tax expenses	2440.000	3090.000	5530.000
Net Profit / (Loss) from ordinary activities after tax (9-10)	7290.000	8300.000	15590.000
Paid-up equity share capital (Nominal value Rs.5/- per share)	850.000	850.000	850.000
Reserve excluding Revaluation Reserves as per balance sheet of previous accounting year
Earnings per share (not annualized):
Basic and diluted	43.07	49.07	92.14
A. Particulars of shareholding
1. Public Shareholding
- Number of shares	48658000	48658000	48658000
- Percentage of shareholding	28.75%	28.75%	28.75%
2. Promoters and Promoters group Shareholding-
a) Pledged /Encumbered
Number of shares	Nil	Nil	Nil
Percentage of shares (as a % of total shareholding of the promoter and promoter group)	Nil	Nil	Nil
Percentage of shares (as a % of total share capital of the company)	Nil	Nil	Nil

b) Non Encumbered
Number of shares	120564720	120564720	120564720
Percentage of shares (as a % of total shareholding of the promoter and promoter group)	100.00%	100.00%	100.00%
Percentage of shares (as a % of total share capital of the company)	71.25%	71.25%	71.25%
B. Investor Complaints
Pending at the beginning of the quarter		1
Receiving during the quarter		4
Disposed of during the quarter		5
Remaining unreserved at the end of the quarter		0

Note:

The above results were reviewed by the Audit Committee on 27-Oct-2015 and approved by the Board of Directors on 29-Oct-2015, in their respective meetings. There is no qualification in the Auditors Report on this statement of financial results.

The Company operates a solitary business segment viz. pharmaceuticals, comprising mainly manufacture of branded formulations. A further breakdown of pharmaceutical sales is given below.

(Rs. In Million)

Particulars	Quarter ended 30.09.2015	Quarter ended 30.06.2015	Half year ended 30.09.2015
	(Unaudited)	(Unaudited)	(Unaudited)
Sales in India
Branded Sales	4420.000	4440.000	9350.000
Contract Manufacture	880.000	960.000	1920.000
Others	40.000	20.000	80.000
Total Sales in India	5340.000	5420.000	11350.000
Sales outside India	9990.000	3000.000	22100.000
Total Sales	15330.000	8420.000	33450.000
Less : Excise Duty	20.000	20.000	40.000
Net Sales	15310.00	8400.000	33410.000

The Company had issued rated listed secured redeemable non-convertible debentures of Rs 4900.000 Million by way of private placement. These debentures form part of loan funds as on 30 September 2015 & are to be secured by a first pari passu charge by way of mortgage of immovable assets and tangible movable assets, present and future located at Dahej (formulation and API manufacturing facility) and Sikkim (formulation facility) and of certain trademarks of the Company including its future line extensions.

4. The Board of Directors, in its Board Meeting held on October 08, 2015 have approved the scheme of amalgamation of Zyg Pharma Private Limited, a wholly owned subsidiary company with the Company, subject to approval of stock exchange, SEBI & other Government authorities as well as Hon'ble High Court of the concerned Judicature. The appointed date for the amalgamation is October 1, 2015.

5. Exceptional item represents write back of provision for diminution in value of investments of Rs. 37 crores and profit on sale of investments of Rs. 160.000 Million.

6. The figures for the comparative periods have been regrouped, wherever necessary, to make them comparable with the figures for the current periods.

7.The Company has also prepared and published unaudited consolidated financial results for the quarter and half year ended 30-Sep- 2015, which were subjected to limited review by statutory auditors of the Company.

STANDALONE STATEMENT OF ASSETS AND LIABILITIES

(Rs. In Million)

Particulars (Unaudited)	30.09.2015

Equity And Liabilities
Shareholders’ Funds
Share Capital	850.000
Reserves and Surplus	40700.000
Sub-total Shareholders fund	41550.000

Non-current liabilities
Long term borrowings	21900.000
Deferred tax liabilities	2860.000
Other long term liabilities	90.000
Long term provisions	1210.000
Sub-total non-current liabilities	26060.000
Current liabilities
Short term borrowings	0.000
Trade payables	5940.000
Other current liabilities	5800.000
Short term provisions	2120.000
Sub-total current liabilities	13860.000

TOTAL EQUITY AND LIABILITIES	81470.000

ASSET
Non-current assets
Fixed assets	34620.000
Non-current investment	3840.000
Long term loans and advances	2810.000
Other non-current assets	590.000
Sub-total non-current assets	41860.000
Current assets
Current investments	9540.000
Inventories	9140.000
Trade receivables	15670.000
Cash and Bank balances	660.000
Short term loans and advances	2230.000
Other current assets	2370.000
Sub-total current assets	39610.000

TOTAL ASSETS	81470.000

FIXED ASSETS

Intangible Assets

Land
Buildings
Plant and Equipment
Furniture and Fixtures
Vehicles
Office Equipment
Electrical Equipment

Intangible Assets

Computer Software
Products Licenses

CMT REPORT (Corruption, Money Laundering and 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.66.61
UK Pound	1	Rs.100.34
Euro	1	Rs.70.66

INFORMATION DETAILS

Information Gathered by :	GAY

Analysis Done by :	KAR

Report Prepared by :	PNM

SCORE AND RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	9
PAID-UP CAPITAL	1~10	8
OPERATING SCALE	1~10	9
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	9
--PROFITABILITY	1~10	9
--LIQUIDITY	1~10	9
--LEVERAGE	1~10	9
--RESERVES	1~10	9
--CREDIT LINES	1~10	9
--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		80

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.

MIRA INFORM REPORT

INDEX OF CHARGES

Unit