MIRA INFORM REPORT

Report No. :	355372
Report Date :	18.12.2015

IDENTIFICATION DETAILS

Name :	MYLAN PHARMACEUTICALS PRIVATE LIMITED (w.e.f. 08.08.2011)
Formerly Known As :	MYLAN INDIA PRIVATE LIMITED (w.e.f. 15.09.2008) MYLAN DEVELOPMENT CENTRE PRIVATE LIMITED (w.e.f. 27.03.2008) MERCK DEVELOPMENT CENTRE PRIVATE LIMITED
Registered Office :	Plot No, 1-A/2, MIDC, Industrial Area, Taloja, Panvel, District Raigad – 410208, Maharashtra
Tel. No.:	91-22-39255555
Country :	India
Financials (as on) :	31.03.2014
Date of Incorporation :	03.03.1997
Com. Reg. No.:	11-106267
Capital Investment / Paid-up Capital :	Rs. 199.050 Million
CIN No.: [Company Identification No.]	U73100MH1997PTC106267
IEC No.:	0988008858
TAN No.: [Tax Deduction & Collection Account No.]	Not Available
PAN No.: [Permanent Account No.]	AABCM9323J
Legal Form :	Private Limited Liability Company
Line of Business :	Subject is engaged in the business of trading of pharmaceutical products and also engaged in conducting research and development activities in the field of Biologics. [Registered Activity]
No. of Employees :	Information declined by the management

RATING & COMMENTS

MIRA’s Rating :

Ca (14)

RATING		STATUS	PROPOSED CREDIT LINE
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

Status :	Moderate
Payment Behaviour :	Slow
Litigation :	Clear
Comments :	Subject is step down subsidiary of “Mylan Incorporation” USA and itis having moderate track record. As per Registrar of Companies the date of balance sheet (i.e. financial filed) is shown as 31.03.2015 but the documents related to the financials are not been available from any sources. The company has reported weak financial profile marked by accumulated losses, which has eroded the networth of the company. Rating is further constrained due to company’s huge external borrowings which has risked the liquidity position of the company. The company has achieved modest growth into its sales turnover and strong holding support in form of technical, financial and managerial. However, business is active. Payments terms are reported to be slow. In view of aforesaid, the company can be considered for business dealing with safe and secure 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

NOT AVAILABLE

RBI DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

EPF (Employee Provident Fund) DEFAILTERS’ 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 (Tel. No.: 91-40-30866666)

LOCATIONS

Registered Office :	Plot No, 1-A/2, MIDC, Industrial Area, Taloja, Panvel, District Raigad – 410208, Maharashtra, India
Tel. No.:	91-22-39255555
Fax No.:	91-22-27402603
E-Mail :	ashwini.kandlikar@mylan.in

DIRECTORS

AS ON 31.03.2015

Name :	Mr. Rajesh Ullanat
Designation :	Whole Time Director
Address :	F. No. 10204, Indu Fortune Fields Gardenia, Walnut Block, 2^nd Floor, KPHB, JNTU, Hyderabad – 500075, Telangana, India
Date of Birth/Age :	26.05.1971
Date of Appointment :	16.08.2013
DIN No.:	06723959
Name :	Mr. Kumar Kumarapuram Subramanyam
Designation :	Whole Time Director
Address :	316/A 70, 9th Main Road, 5th Block, Jayanagar, Bangalore – 560041, Karnataka, India
Date of Appointment :	31.03.2015
DIN No.:	07116992
Name :	Mr. Susanto Banerjee
Designation :	Whole Time Director
Address :	JI003 Spring Field Apartment, Sarjapura Road ,Belan Dooru, Bangalore – 560102, Karnataka, India
Date of Appointment :	31.03.2015
DIN No.:	00182743

KEY EXECUTIVES

Name :	Mr. Ashwini Kandlikar
Designation :	Secretary
Address :	H.No.3-4-512/58 Barkatpura, Himayatnagar, Hyderabad – 500027, Telangana, India
Date of Birth/Age :	01.02.1980
Date of Appointment :	16.09.2011

MAJOR SHAREHOLDERS

As on 31.03.2015

Names of Equity Shareholders	No. of Shares
Mylan B.V., – Netherland	2
Mylan Group B.V., - Netherland	9999998
Total	10000000

Names of Preference Shareholders	No. of Shares
Mylan Group B.V - Netherland	9904986
Total	9904986

AS ON 30.09.2014

Equity Share Break up (Percentage of Total Equity)

Category	Percentage of Holding
Foreign holdings (Foreign institutional investor(s), Foreign companie(s) Foreign financial institution(s), Non-resident Indian(s) or Overseas Corporate bodies or Others)	100.00

BUSINESS DETAILS

Line of Business :	Subject is engaged in the business of trading of pharmaceutical products and also engaged in conducting research and development activities in the field of Biologics. [Registered Activity]
Products :	Pharmaceutical Products
Brand Names :	Not Available
Agencies Held :	Not Available
Exports :	Not Divulged
Imports :	Not Divulged
Terms :	Not Divulged

GENERAL INFORMATION

Suppliers :

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

Customers :

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

No. of Employees :

Information declined by the management

Bankers :

Banker Name	Not Divulged
Branch Address	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

Auditors :
Name :	Deloitte Haskins and Sells Chartered Accountants
Address :	ASVN Ramana Tower, 52, Venkatnarayana Road, T Nagar, Chennai - 600017, Telangana, India
PAN No.:	AACFD4815A
Memberships :	--
Collaborators :	--
Ultimate Holding Company:	Mylan Incorporation USA
Holding Company :	Mylan Group B.V., Netherlands
Fellow Subsidiaries :	Mylan Laboratories Limited, India Astrix Laboratories Limited Mylan SAS, France Xixia Pharmaceuticals (Pty) Limited, South Africa Mylan Taiwan Limited, Taiwan Agila Specialties Private Limited Aplhapharm Pty. Limited, Ireland

CAPITAL STRUCTURE

AS ON 30.09.2015

Authorised Capital :

No. of Shares	Type	Value	Amount
10,000,000	Equity Shares	Rs. 10/- each	Rs. 100.000 Million
10,000,000	Preference Shares	Rs. 10/- each	Rs. 100.000 Million
	Total		Rs. 200.000 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
10,000,000	Equity Shares	Rs. 10/- each	Rs. 100.000 Million
9,904,986	Preference Shares	Rs. 10/- each	Rs. 99.050 Million
	Total		Rs. 199.050 Million

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	199.050	199.050	199.050
(b) Reserves & Surplus	(844.250)	(266.950)	87.330
(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)	(645.200)	(67.900)	286.380
(3) Non-Current Liabilities
(a) long-term borrowings	0.000	0.000	0.000
(b) Deferred tax liabilities (Net)	8.100	8.760	0.000
(c) Other long term liabilities	0.000	0.000	0.000
(d) long-term provisions	6.390	7.580	2.590
Total Non-current Liabilities (3)	14.490	16.340	2.590
(4) Current Liabilities
(a) Short term borrowings	1079.480	404.710	0.000
(b) Trade payables	268.540	134.590	69.170
(c) Other current liabilities	234.330	177.500	180.810
(d) Short-term provisions	3.070	3.070	3.070
Total Current Liabilities (4)	1585.420	719.870	253.050
TOTAL	954.710	668.310	542.020
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	504.240	330.930	20.030
(ii) Intangible Assets	6.910	5.460	0.000
(iii) Capital work-in-progress	0.000	6.460	286.820
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	0.000	0.000	0.000
(c) Deferred tax assets (net)	0.000	0.000	1.570
(d) Long-term Loan and Advances	34.070	124.860	27.200
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	545.220	467.710	335.620
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	119.420	9.720	0.000
(c) Trade receivables	206.100	140.410	41.760
(d) Cash and cash equivalents	0.510	0.380	140.710
(e) Short-term loans and advances	83.460	50.090	23.930
(f) Other current assets	0.000	0.000	0.000
Total Current Assets	409.490	200.600	206.400
TOTAL	954.710	668.310	542.020

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2014	31.03.2013	31.03.2012
	SALES
		Income	779.460	439.800	388.540
		Other Income	4.440	1.500	1.470
		TOTAL	783.900	441.300	390.010
Less	TOTAL EXPENSES		1361.860	785.250	488.480
	PROFIT/ (LOSS) BEFORE TAX		(577.960)	(343.950)	(98.470)
Less	TAX		(0.660)	10.330	3.360
	PROFIT/ (LOSS) AFTER TAX		(577.300)	(354.280)	(101.830)
	Earnings / (Loss) Per Share (Rs.)		(29.00)	(17.80)	(5.12)

CURRENT MATURITIES OF LONG TERM DEBT DETAILS

Particulars	31.03.2014	31.03.2013	31.03.2012
Current Maturities of Long term debt	NA	NA	NA
Cash generated from operations	NA	NA	NA
Net cash flows from (used in) operations	(462.310)	(402.700)	76.220

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013	31.03.2012
Net Profit Margin PAT / Sales	(%)	(74.06)	(80.55)	(26.20)
Return on Total Assets (PBT/Total Assets)	(%)	(60.54)	(51.97)	(38.82)
Return on Investment (ROI) (PBT/Networth)		0.90	5.07	(0.34)
Debt Equity Ratio (Total Liability/Networth)		(1.67)	(5.96)	0.00
Current Ratio (Current Asset/Current Liability)		0.26	0.28	0.82

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	199.050	199.050	199.050
Reserves & Surplus	87.330	(266.950)	(844.250)
Net worth	286.380	(67.900)	(645.200)
long-term borrowings	0.000	0.000	0.000
Short term borrowings	0.000	404.710	1079.480
Total borrowings	0.000	404.710	1079.480
Debt/Equity ratio	0.000	(5.960)	(1.673)

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	388.540	439.800	779.460
		13.193	77.231

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	388.540	439.800	779.460
Profit	(101.830)	(354.280)	(577.300)
	(26.21%)	(80.55%)	(74.06%)

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	No
17	Details of sister concerns	Yes
18	Major suppliers	No
19	Major customers	No
20	Banking Details	No
21	Banking facility details	No
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	No
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	No
32	Litigations that the firm/promoter involved in	------
33	Market information	------
34	Payments terms	No
35	Negative Reporting by Auditors in the Annual Report	No

CORPORATE OVERVIEW

Subject was incorporated as a Private Limited Company in the state of Maharashtra on 3rd, March 1997. Subject is a subsidiary of Mylan Group B V, Netherlands and the ultimate holding company is Mylan Inc., USA.

Subject is engaged in the business of trading of pharmaceutical products in India and emerging markets and provides business support services to its ultimate holding company Mylan Inc. Further Subject is also engaged in conducting research and development activities in the field of Biologics for its ultimate holding company.

BUSINESS OPERATIONS AND OPPORTUNITIES:

Subject is a part of the Mylan group having world class facilities and set-up operational in India and abroad for manufacturing and marketing of pharmaceutical products.

COMMERCIAL OPERATIONS

Mylan Laboratories Limited, a sister subsidiary of subject had acquired the injectables business of Agila Specialties Private Limited. This acquisition gave subject access to a much wider product portfolio in injectables segment. Additionally, the India Commercial Operations of Agila also transitioned to subject. Consequently, subject now has a new vertical on the Oncology covering a part of the Agila product portfolio.

Subject is also in the process of filing the dossiers for the injectable portfolio in many Emerging Markets, thus helping your Company to build a much broader and deeper portfolio in these markets. As soon as the approvals are received, subject would be able to launch products, thus leveraging on the huge asset base of Agila.

Subject also had the credit of launching the world’s first biosimilar for monoclonal antibody Trastuzumab under its brand name ‘Hertraz’ in the Indian market. This product is used for treating the metastatic breast cancer patients who are HER 2+. This is a huge milestone in its journey of providing the 1.2 billion population of India with access to high quality and affordable medicines. Subject is also in the process of filing dossiers in other Emerging Markets and expects to launch them soon after the receipt of regulatory approvals.

Subject also launched the critical care business division in India Commercial with a robust product portfolio. Towards this, subject also partnered with Gilead Sciences Inc., and became its authorized Distributor for distributing Gilead branded products in India.

Subject is working on multiple other partnerships to provide a comprehensive portfolio of products in India and Emerging Markets. Subject has been diligently working towards building its business in the export markets. Towards this, subject has been continuously working towards identifying product portfolios, setting up of a robust supply chain, compiling and filing dossiers in various countries, partnering with registration agents and distributors with the requisite infrastructure and credentials who would support Mylan in this major strategic initiative.

As at 31 August, 2014, subject had filed 40 dossiers across four geographies and an additional 140 dossiers are ready for filing in the export markets. Subject aims to focus on widening its presence in select geographies where the product requirements are synergetic with the Company’s product portfolio and provides exciting opportunities for further expanding Mylan’s global footprint.

INDEX OF CHARGES: NO CHARGES EXIST FOR THE COMPANY.

UNSECURED LOANS

PARTICULAR	31.03.2014 (Rs. in Million)	31.03.2013 (Rs. in Million)
SHORT TERM BORROWINGS
Loans and advances from related parties	1079.480	404.710
Total	1079.480	404.710

FIXED ASSETS

· Plant and Machinery

· Office Equipments

· Furniture and Fixture

· Vehicles

· Computer Equipments

CMT REPORT (Corruption, Money Laundering & Terrorism]

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

1] INFORMATION ON DESIGNATED PARTY

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

2] Court Declaration :

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

3] Asset Declaration :

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

4] Record on Financial Crime :

Charges or conviction registered against subject: None

5] Records on Violation of Anti-Corruption Laws :

Charges or investigation registered against subject: None

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

Charges or investigation registered against subject: None

7] Criminal Records

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

8] Affiliation with Government :

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

9] Compensation Package :

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

10] Press Report :

No press reports / filings exists on the subject.

CORPORATE GOVERNANCE

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

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

CONTRAVENTION

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

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs. 66.65
UK Pound	1	Rs. 99.61
Euro	1	Rs. 72.33

INFORMATION DETAILS

Information Gathered by :	SPR
Analysis Done by :	KAS
Report Prepared by :	NKT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
PAID-UP CAPITAL	1~10	2
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILITY	1~10	--
--LIQUIDITY	1~10	1
--LEVERAGE	1~10	1
--RESERVES	1~10	--
--CREDIT LINES	1~10	1
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		14

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.