MIRA INFORM REPORT

Report No. :	312691
Report Date :	17.03.2015

IDENTIFICATION DETAILS

Name :	ST. JUDE MEDICAL INDIA PRIVATE LIMITED
Registered Office :	No. 1-11-250/A, Matarani Sensation, Lane Besides Syndicate Bank, Bengumpet, Hyderabad – 500016, Telangana
Country :	India
Financials (as on) :	31.03.2014
Date of Incorporation :	28.04.2005
Com. Reg. No.:	01-046028
Capital Investment / Paid-up Capital :	Rs. 16.900 Million
CIN No.: [Company Identification No.]	U33110TG2005PTC046028
TAN No.: [Tax Deduction & Collection Account No.]	Not Available
PAN No.: [Permanent Account No.]	AAICS9821J
Legal Form :	Private Limited Liability Company
Line of Business :	Subject is engaged in trading activities of cardiac rhythm management, cardiac surgery and cardiology devices manufactured by its group companies.
No. of Employees :	Not Divulged

RATING & COMMENTS

MIRA’s Rating :

Ba (46)

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

Status :	Satisfactory
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track. Trade relations ae fair. Business is active. Payment terms are reported as usually correct. The concern can be considered for business dealings at usual trade terms and conditions.

NOTES:

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

ECGC Country Risk Classification List – 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	Not Available
Rating	Not Available
Rating Explanation	Not Available
Date	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) 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

MANAGEMENT NON CO-OPERARIVE (91-40-44600100)

LOCATIONS

Registered Office :	No. 1-11-250/A, Matarani Sensation, Lane Besides Syndicate Bank, Bengumpet, Hyderabad – 500016, Telangana, India
Tel. No.:	91-40-44600111
Fax No.:	91-40-44600110
E-Mail :	vbang@sjm.com
Website :	http://www.sjm.com
Sales Office :	No. 309, B Wing, Everest Grande, Mahakali Road, Opposites Ahura Centre, Andheri (East), Mumbai – 400093, Maharashtra, India
Tel. No.:	91-22-40275100
Fax No.:	91-22-40275110
E-Mail :	indiaoffice@sjm.com

DIRECTORS

As on: 30.09.2014

Name :	Mr. K. Banerjee
Designation :	Director
Address :	202, Vishnu Elite, Gurumurthy Lane, Begumpet, Hyderabad – 500016, Telangana, India
Date of Birth/Age :	12.10.1969
Date of Appointment :	28.04.2005
DIN No.:	00015955
Name :	Mr. Venu Gopal Bano
Designation :	Director
Address :	14-1-430/4, Opposites Rocket Ground, Aghapura, Hyderabad – 500001, Telangana, INdia
Date of Birth/Age :	21.07.1972
Date of Appointment :	30.08.2010
DIN No.:	03212996
Name :	Mr. Jason Ashley Zellers
Designation :	Director
Address :	3561 Settlers Way, Stillwater, 55082, USA
Date of Birth/Age :	07.06.1976
Date of Appointment :	28.02.2013
DIN No.:	06512354

KEY EXECUTIVES

Name :	Mr. Siva Kiran Kuncham
Designation :	Secretary
Address :	Flat 402, Hemadurga Towers, Near Sitara Grand Hotel, Miyapur, Hyderabad – 500049, Talangana, India
Date of Birth/Age :	07.06.1976
Date of Appointment :	28.09.2014
PAN No.:	AIBPK6678H

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on: 30.09.2014

Names of Shareholders	No. of Shares
St. Jude Medical Holdings BV, Nethrlands	1689999
St. Jude Medical Inc. USA	1
Total	1690000

Equity Share Break up (Percentage of Total Equity)

As on: 30.09.2014

Category	Percentage
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
Total	100.00

BUSINESS DETAILS

Line of Business :	Subject is engaged in trading activities of cardiac rhythm management, cardiac surgery and cardiology devices manufactured by its group companies.
Products :	--
Brand Names :	Not Available
Agencies Held :	Not Available
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 :

Not Divulged

Bankers :

Not Available

Auditors :
Name :	S.R. Batliboi and Associates Chartered Accountants
Address :	Oval Office, 18, Ilabs Centre, Hitech City, Madhapur, Hyderabad – 500081, Telangana, India
PAN N Income-tax PAN of auditor or auditor's firm :	AABFS3421N
Memberships :	Not Available
Collaborators :	Not Available
Ultimate Holding Company	St. Jude Medical Inc.
Holding Company	St. Jude Medical BV, Netherlands
Fellow subsidiaries	SJM Coordination Centre BVBA St. Jude Medical Hong Kong Limited St. Jude Medical Artrial Fibrillation Division Inc. Pacesetter Inc. St. Jude Medical Brazil Limited St. Jude Medical P.R LLC. SJM Advanced Neuromodulation Systems Inc. SJM Cardiovascular Division St. Jude Medical (Thailand) Company Limited St. Jude Medical Shanghai Company St. Jude Medical Australia Private Limited St. Jude Medical Mexico S de R L de C V St. Jude Medical (Singapore) Private Limited St Jude Medical Operations (Malaysia) Sdn. Bhd. St. Jude Medical Company Luke Mc Mahon St. Jude Medical Taiwan Company

CAPITAL STRUCTURE

As on 31.03.2014

Authorised Capital :

No. of Shares	Type	Value	Amount
3,000,000	Equity Shares	Rs.10/- each	Rs. 30.000 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1,690,000	Equity Shares	Rs.10/- each	Rs. 16.900 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	16.900	16.900	16.900
(b) Reserves & Surplus	194.717	176.308	143.557
(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)	211.617	193.208	160.457
(3) Non-Current Liabilities
(a) long-term borrowings	0.000	0.000	0.000
(b) Deferred tax liabilities (Net)	0.000	0.000	0.000
(c) Other long term liabilities	0.000	0.000	0.000
(d) long-term provisions	107.302	82.429	60.403
Total Non-current Liabilities (3)	107.302	82.429	60.403
(4) Current Liabilities
(a) Short term borrowings	0.000	0.000	0.000
(b) Trade payables	1715.723	1287.948	842.486
(c) Other current liabilities	10.814	18.298	11.573
(d) Short-term provisions	10.677	31.416	3.186
Total Current Liabilities (4)	1737.214	1337.662	857.245
TOTAL	2056.133	1613.299	1078.105
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	86.751	94.580	82.516
(ii) Intangible Assets	0.343	0.446	0.763
(iii) Capital work-in-progress	0.000	0.000	4.638
(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)	37.234	44.502	16.081
(d) Long-term Loan and Advances	131.428	62.422	57.613
(e) Other Non-current assets	0.886	0.339	0.745
Total Non-Current Assets	256.642	202.289	162.356
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	493.230	350.782	274.872
(c) Trade receivables	1116.080	784.454	554.535
(d) Cash and cash equivalents	171.873	258.538	71.174
(e) Short-term loans and advances	18.183	17.202	15.168
(f) Other current assets	0.125	0.034	0.000
Total Current Assets	1799.491	1411.010	915.749
TOTAL	2056.133	1613.299	1078.105

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2014	31.03.2013	31.03.2012
	SALES
		Total Income	2339.437	1849.041	1566.219
Less	EXPENSES
		TOTAL	2311.398	1795.517	1542.039
	PROFIT/(LOSS) BEFORE TAX		28.039	53.524	24.180
Less	TAX		9.630	16.574	7.237
Less	Prior Period Item		0.000	4.199	0.000
	PROFIT/(LOSS) AFTER TAX		18.409	32.751	16.943
	EARNINGS IN FOREIGN CURRENCY		1.249	0.913	NA
	Earnings Per Share (Rs.)		10.89	19.38	10.02

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013	31.03.2012
Return on Total Assets (PBT/Total Assets}	(%)	1.39	3.41	2.29
Return on Investment (ROI) (PBT/Networth)		0.13	0.28	0.15
Debt Equity Ratio (Total Debt /Networth)		0.00	0.00	0.00
Current Ratio (Current Asset/Current Liability)		1.04	1.05	1.07

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	16.900	16.900	16.900
Reserves & Surplus	143.557	176.308	194.717
Net worth	160.457	193.208	211.617
long-term borrowings	0.000	0.000	0.000
Short term borrowings	0.000	0.000	0.000
Total borrowings	0.000	0.000	0.000
Debt/Equity ratio	0.000	0.000	0.000

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)
Total income	1566.219	1849.041	2339.437
		18.058	26.522

NET PROFIT MARGIN

Net Profit Margin	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Total income	1566.219	1849.041	2339.437
Profit	16.943	32.751	18.409
	1.08%	1.77%	0.79%

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	Check List by Info Agents	Available in Report (Yes / No)
1]	Year of Establishment	Yes
2]	Locality of the firm	Yes
3]	Constitutions of the firm	Yes
4]	Premises details	No
5]	Type of Business	Yes
6]	Line of Business	Yes
7]	Promoter's background	Yes
8]	No. of employees	No
9]	Name of person contacted	No
10]	Designation of contact person	No
11]	Turnover of firm for last three years	Yes
12]	Profitability for last three years	Yes
13]	Reasons for variation <> 20%	--
14]	Estimation for coming financial year	No
15]	Capital in the business	Yes
16]	Details of sister concerns	Yes
17]	Major suppliers	No
18]	Major customers	No
19]	Payments terms	No
20]	Export / Import details (if applicable)	No
21]	Market information	--
22]	Litigations that the firm / promoter involved in	--
23]	Banking Details	No
24]	Banking facility details	No
25]	Conduct of the banking account	--
26]	Buyer visit details	--
27]	Financials, if provided	Yes
28]	Incorporation details, if applicable	Yes
29]	Last accounts filed at ROC	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	No

REVIEW OF OPERATION:

Performance of the company for year ended March 31, 2014 was substantial. They remained committed to growth by launching new products and changing lives through medical innovation. The Company has shown improved performance in all its segments and achieved higher revenue of Rs. 2339.437 Million for the year ended March 31, 2014 (2012-13, Rs. 1849.040 Million). Profit for the year before tax and prior period items was Rs. 28.038 Million compared to Rs. 53.523 Million in the previous year. Profit to be carried to Balance sheet was Rs. 18.408 Million as against Rs. 32.751 Million in 2012-13. The reduction in profit is attributable to significant foreign exchange fluctuation in 2013-14 which has adversely impacted our cost of goods sold and has increased foreign exchange fluctuation loss.

MEDICAL DEVICE INDUSTRY IN INDIA:

The medical technology sector in India was valued at $6.3 billion in 2013 at end consumer prices and is growing at 10-12 percent per year. India is a very unique market with a very strong growth foundation, but has its own set of challenges. First, affordability and accessibility of medical technologies for Indian patients is much lower. Second, trained manpower to deliver the right care is in acute shortage. And finally, while the disease burden is moving towards chronic diseases, infectious diseases still remain a significant part of the disease burden. In 2013, the healthcare market was believed to be $80 billion of which $6.3 billion is the component of healthcare spending attributable to medical technology. Continued growth rates of 10-12 percent until 2025 implies an overall healthcare spend of $250-300 billion by then. Medical technology maintaining current penetration levels of 8 percent implies a domestic market of $20-25 billion. The Indian medical device sector continues its upward march of growth and is strongly supported by India’s robust legal framework. The regulatory framework, though, is under-developed and poses a challenge. A new regulatory regime is the need of the hour. The new government at center has shown promise and it is likely that a new law that will overhaul the regulatory framework applicable to medical devices may soon see the light of the day. As the new government sets about implementing its governance agenda for the next five years, in the healthcare sector it is important that it focuses increasingly on improving access to medicines, patient education and investments in healthcare infrastructure. India spends just 1.2 percent of GDP on healthcare with scant attention paid to factors that impact access. This needs to increase to at least 3 percent of GDP to help in the stated goal of universal health coverage. A vast country with a burgeoning population, India is effectively two markets in one country and the healthcare needs are many and varied. There are the very rich at one end, who can afford world-class healthcare and the very poor at the other end, for whom healthcare is not affordable at any price. This places the government and the industry in a piquant situation where they need to work together to ensure that the rich are not being subsidized for the poor. Today unfortunately there is no such mechanism and the solutions will only be found if all stakeholders come together to adequately address these concerns. With increasing urbanization and the problems related to modern day living in urban settings, 50 per cent of spending on in-patient beds currently is for lifestyle-related diseases; this has resulted in increased demand for specialized care Expansion to tier-II and tier-III cities. There is substantial demand for high-quality and specialty healthcare services in tier-II and tier-III cities

CONTINGENT LIABILITIES:

(Rs. in Million)

PARTICULARS	31.03.2014
Other money for which company is contingently liable	102.520
Total	102.520

INDEX OF CAHRGES: NO INDEX OF CHARGES

FIXED ASSETS:

• Plant and equipment
• Furniture and fixtures
• Office equipment
• Computer equipments
• Leasehold improvements
• Computer software

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.62.82
UK Pound	1	Rs.92.83
Euro	1	Rs.66.17

INFORMATION DETAILS

Information Gathered by :	NAY
Analysis Done by :	SUB
Report Prepared by :	MTN

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILITY	1~10	3
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	6
--RESERVES	1~10	5
--CREDIT LINES	1~10	5
--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		46

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.